Title
Consider a memorandum/resolution awarding Bid No. #25-25, Petroleum Products, Diesel Exhaust Fluid and Coolant, to American Lube Supply and Safety-Kleen, in an annual amount of $115,000.00.
Body
DATE: April 15, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Authorize the Award of Bid #25-25 Petroleum Products, Diesel Exhaust Fluid and Coolant to American Lube Supply and Safety-Kleen
BACKGROUND AND FINDINGS:
The City of Killeen Fleet Services Division solicits the petroleum products, diesel exhaust fluid and coolant bid every three years to procure these products used daily in the maintenance of the City’s approximately 1,045 units of fleet. The costs of those items are then charged back to the corresponding City departments as they are used.
On March 4, 2025, two (2) bids for Bid #25-25, Petroleum Products, Diesel Exhaust Fluid (DEF), and Coolant, were opened and read aloud. The bid requested pricing on twenty-two (22) of the most used products. After review of the two bids, American Lube Supply (current supplier) submitted the most cost-effective pricing for petroleum products and DEF. Safety-Kleen submitted the only coolant bid, and was chosen to supply the City’s coolant, as their pricing is lower than what is currently being paid. Per commencement of bid pricing and current usage, the estimated annual cost is anticipated to be approximately $115,000.
The recommended awarded bid per unit pricing is outlined below:
|
Product |
Price |
|
Engine Oil 15W40 Syn Blend Bulk |
$9.70/Gal. |
|
Engine Oil 5W30 Full Syn Bulk |
$9.70/Gal. |
|
Engine Oil 15W40 Syn Blend |
$3.93/Qt. |
|
Engine Oil 5W30 Full Syn |
$3.98/Qt. |
|
Engine Oil 10W30 Syn Blend |
$17.86/Gal. |
|
Engine Oil 5W20 Full Syn |
$14.32/Gal. |
|
Engine Oil 5W20 Full Syn |
$3.58/Qt. |
|
Engine Oil 0W20 Full Syn |
$16.48/Gal. |
|
Engine Oil 0W20 Full Syn |
$4.12/Qt. |
|
Engine Oil 0W40 Full Syn |
$9.04/Qt. |
|
Mercon V Full Syn ATF |
$8.51/Qt. |
|
MV Full Syn ATF |
$4.33/Qt. |
|
Transyn 668 ATF |
$37.00/Gal |
|
Hydraulic Oil AW46 Bulk |
$5.99/Gal. |
|
Hydraulic Oil AW68 Bulk |
$5.99/Gal. |
|
Grease NLGI 2 Bulk 55 Gal. Drum |
$3,398.00/Keg |
|
Grease NLGI 2 Bulk 16 Gal. Keg |
$1,285.20/Keg |
|
Grease NLGI 2 Cartridge Tube |
$11.67/Tube |
|
Grease HD NLGI 2.5 Cartridge Tube |
$11.23/Tube |
|
Diesel Exhaust Fluid Bulk |
$1.97/Gal. |
|
Diesel Exhaust Fluid 2.5 Gal. Jug |
$3.65/Gal |
|
HD Antifreeze/Coolant |
$5.35/Gal |
Due to market volatility, the contract awarded under this bid is based upon unit pricing and would be for a term of six (6) months with the option to renew for five (5) additional six (6) month periods, making the total contract with renewal periods three (3) years. The aggregate unit price increase is limited to 10% for any contract period extension.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This resolution conforms to City policies and Texas Local Government Code, Section 252.021.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The estimated amount to be spent annually for fleet petroleum products, DEF and coolant is $115,000. Petroleum products, DEF, and coolant are an ongoing annual expense required for the City’s fleet. Future expenditures should be comparable.
Is this a one-time or recurring revenue/expenditure?
The purchases will be recurring expenditures with fixed unit costs.
Is this revenue/expenditure budgeted?
Yes, this expenditure is budgeted within each department/division under the following accounts:
53800-Repair & Maintenance, Motor Vehicle 53800 (on-road)
53315-Repair & Maintenance, Equipment & Machinery 53315 (off-road)
These accounts cover the necessary repairs and maintenance expenses.
If not, where will the money come from?
NA
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
City Council authorize the award of Bid No. #25-25, Petroleum Products, Diesel Exhaust Fluid, and Coolant, to American Lube Supply and Safety-Kleen, in an amount of $115,000 annually, and authorize the City Manager or designee, to execute any and all change orders within the amounts set by State and Local Law.
DEPARTMENTAL CLEARANCES:
Fleet Services
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreements
Bid Tabulation
Certificate of Interested Parties
Presentation