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SR-205-003 (305) ;Z05" to 03 0-M DEe 9 1986 PU:EOB:laj Council Meeting Santa Monica, California December 9, 1986 TO: Mayor and City Council FROM: City staff SUBJECT: Recommendation to Award Bid #2089 for Vehicle Fuels, Oils and Solvents Introduction This report concerns award of bid #2089 for vehicle fuels, oils, and solvents for all City Department I s as per the unit prices bid, for a period of one year beginning December 15, 1986. Background In response to published Notices Inviting Bids (published Novem- ber 11,12, 1986) to furnish and deliver vehicle fuels, oils, and solvents in accordance with city specifications, bids were received and publicly opened and read on November 25, 1986. Proposal forms were mailed to thirty-five vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Eight proposals were received as follows: ITEM 1 GASOLINE, PREMIUM UNLEADED 91 OCTANE PRICE PER GAL TRUCK & TRAILER TANK WAGON GASCO *.5999 .6999 COSBY OIL .6146 *.6546 MOCK RESOURCES NB NB - 1 - It;-M tlrC - It 1986 INTERNATIONAL FUELS GALE BARSTOW .664 .634 ITEM 2 GASOLINE, UNLEADED 87 OCTANE PRICE PER GAL TRUCK & TRAILER GAS CO COSBY OIL MOCK RESOURCES INTERNATIONAL FUELS GALE BARSTOW *.5299 .5400 .599 .5900 .5740 ITEM 3 #1 DIESEL FUEL PRICE PER GAL TRUCK & TRAILER GASCO COSBY OIL MOCK RESOURCES INTERNATIONAL FUELS GALE BARSTOW *.5824 .5909 .628 .6900 .5880 ITEM 4 #2 DIESEL FUEL PRICE PER GAL TRUCK & TRAILER .5274 *.5151 .5560 GASCa COSBY OIL MOCK RESOURCES - 2 - .6830 .6690 TANK WAGON *.5699 .5800 .709 .610 .6140 TANK WAGON *.6224 .6309 .7780 .7010 .6280 TANK WAGON .5674 *.5551 .706 INTERNATIONAL FUELS GALE BARSTOW .6171 .5440 .628 .5840 NOTE: All prices include .09 motor vehicle tax FOB delivered to all locations; 6 1/2% sales tax is not included. The prices in- dicate bids for tank wagon delivery (small quantities) and truck and trailer delivery (large quantities) ITEM 5 TRANSMISSION FLUID DRUMS 3,000 GAL CHEVRON MOCK RESOURCES ROSEMEAD OIL PRODUCT INC. COSBY OIL CO. ITEM 6 *2.18 2.24 2.46 2.30 TRANSMISSION FLUID BULK 10,000 GAL CHEVRON MOCK RESOURCES ROSEMEAD OIL PRODUCT INC. COSBY OIL CO. ITEM 7 SAE 30 MOTOR OIL 24,000 GAL CHEVRON MOCK RESOURCES *l. 93 2.13 2.29 2.20 *1.604 l. 705 - 3 - ROSEMEAD OIL PRODUCT INC. COSBY OIL CO. ITEM 8 SAE 40 MOTOR OIL 7,500 GAL CHEVRON MOCK RESOURCES ROSEMEAD OIL PRODUCT INC. COSBY OIL CO. ITEM 9 SAE 90 GEAR OIL 2,000 GAL CHEVRON MOCK RESOURCES ROSEMEAD OIL PRODUCT INC. COSBY OIL CO. ITEM 10 1. 680 1. 770 *1. 604 1. 745 1. 84 1. 80 .37 PER POUND *.336 PER POUND .340 PER POUND .344 PER POUND HYDRAULIC OIL BULK SHIPMENTS 8,000 GAL CHEVRON MOCK RESOURCES ROSEMEAD OIL PRODUCT INC. COSBY OIL CO. *1. 29 1. 64 1.56 1. 70 - 4 - ITEM 11 STODDARD SOLVENT 5300 GAL CHEVRON MOCK RESOURCES ROSEMEAD OIL PRODUCT INC. COSBY OIL CO. 1. 865 *1. 33 1. 46 1. 39 * DENOTES LOW BID NOTE: Prices on items 7 & 8 include .014 California Motor oil fee; 6 1/2% sales tax is not included The bids are based on the following approximate consumptions: Item #1 Item #2 Item #3 Item #4 Item #5 Item #6 Item #7 Item # 8 Item #9 Item #10 Item #11 91 octane unleaded gasoline 27,000 gallons 87 octane unleaded gasoline 240,000 gallons #1 diesel fuel 1,600,000 gallons #2 diesel fuel 180,000 gallons transmission fluid (drums) 3,000 gallons transmission fluid (bUlk) 10,000 gallons SAE 30 motor oil 24,000 gallons SAE 40 motor oil 7,500 gallons SAE 90 gear oil 2,000 gallons Hydraulic oil bulk shipments 8,000 gallons Stoddard solvent 5300 gallons The prices on all fuels will remain firm for a period of 90 days as per the specifications. After 90 days the prices will be sub- j ect to fluctuation according to the suppliers I posted or rack - 5 - prices. This is necessary because of the volatile fuel market that prevails. staff frequently monitors to ascertain that fuel prices remain within current market prices. The oils, lubricants and solvent will remain firm for a period of 6 months. Any in- crease or decrease will require a 30 day notification to the Pur- chasing Agent. staff has studied the bids and are recommending that the bid be split, awarding to the four lowest bidders as per the specifica- tions for a period of one year beginning December 15, 1986. Budgetary/Financial Impact Fiscal Year 1986/87 appropriation authority for this purchase is in the accounts of various departments. As the materials are drawn out of inventory they will be expensed against available FY 1986/87 appropriation authority. For the period of July 1, 1987 through December 14, 1987 appropriation authority will be as set forth in the FY 1987/88 budget for the various user departments. ---- - 6 - Recommendation It is recommended that the award of Bid # 2089 be made to Gasco Gasoline, Inc. on items #1 (truck and trailer only), 2 and 3; Cosby oil Company Inc. on items #1 (tank wagon only) and 4; Chev- ron U.S.A. Inc. on items #5,6,7,8, and 10; and Mock Resources on items ~9 & 11, at the unit prices bid excluding sales tax, as the lowest & best bidders. This is for a period of 1 year beginning December 15, 1986 with two one year options based on the same conditions contained in the specifications Prepared By: E. o. Barnes, Purchasing Agent - 7 -