Title
Consider a memorandum/resolution awarding Bid Number 24-12, Gasoline, Unleaded and Clear Diesel Fuel for Killeen Regional Airport to Fikes Wholesale, Inc., in an amount of $133,900 for FY 2024.
Body
DATE: February 6, 2024
TO: Kent Cagle, City Manager
FROM: Jarrod Provost, Assistant Director of Aviation
SUBJECT: Contract Award for Bid 24-12, Unleaded Gasoline and Clear Diesel
BACKGROUND AND FINDINGS:
The Aviation Department resells unleaded gasoline and diesel to Airport tenants at the Killeen Regional Airport. The average monthly sales volume is about 3,800 gallons of gasoline and 400 gallons of diesel. The Airport cannot be absorbed into the City of Killeen's current contract with Texas Fleet Fuel for two reasons: fuel storage limitations and payment of all state and federal taxes.
An invitation for bid was advertised in the Killeen Daily Herald on December 3 and December 10, 2023. The invitation for bid was also advertised and bid specifications were available for download on the City's website and various bidding websites used by the City for procurements.
At the close of specified time for bids at 3:00 PM, Thursday, December 21, 2023, 2 sealed bids were received from the following companies: Fikes Wholesale Inc. and Big Chief Distribution Co., Inc.
Wholesale fuel prices fluctuate daily due to several market factors. To establish a fair pricing mechanism for each purchase throughout the term of the contract, the bidders used a wholesale price, plus a vendor profit. The pricing also includes the applicable state and federal taxes since the fuel will be resold to Airport tenants.
Bidder
Profit Margin-Unleaded Fuel
Profit Margin-Diesel Fuel
Fikes Wholesale, Inc.
$0.13
$0.13
Big Chief Dist. Co., Inc.
$0.19
$0.24
Staff has determined the bid from Fikes Wholesale, Inc. with a profit per gallon of $0.13 for gasoline and $0.13 for diesel is the lowest responsible and responsive bid which meets the minimum requirements established in the specif...
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