Title
Consider a memorandum/resolution awarding RFP 25-32, Aviation Fuel Supplier and authorizing an agreement with Avfuel Corporation, for fuel services at Killeen Regional Airport and Skylark Field, in the amount of $340,000.00.
Body
DATE: September 16, 2025
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Aviation Fuel Supply Agreement for Killeen Regional Airport and Skylark Field
BACKGROUND AND FINDINGS:
The City of Killeen, Aviation Department is pursuing a contract with a common aviation fuel supplier to secure a reliable and uninterrupted fuel supply essential for its aviation operations. This initiative seeks to enhance the quality of service provided while establishing a profitable arrangement for the acquisition of aviation fuel.
This strategic approach not only guarantees a consistent supply of aviation fuel but also positions the City to benefit from competitive pricing and quality service in the aviation sector.
A Request for Proposals (RFP#25-32) was advertised on June 23rd, 2025, and three proposals were received on July 30th, 2025. Proposals were submitted by Avfuel Corporation, AEG Fuels, and Titian Aviation Fuels. Following a thorough assessment of all submissions, staff determined that Avfuel Corporation’s proposal meets the Airport’s operational needs and provides the best value for the City of Killeen.
Staff has negotiated an Aviation Fuel Supply agreement with Avfuel Corporation. The term of the agreement is for a period beginning October 1, 2025, and ending September 30, 2027, with two one-year option periods.
The aviation fuel supply agreement provides goods that generate revenue for both Killeen Regional Airport (GRK) and Skylark Field Airport (ILE) through resale or contracted delivery to air operators. The contract is expected to generate approximately $541,724 in revenue, with estimated expenses totaling $340,000. Additionally, the agreement includes additional value-added services at no extra cost, such as three fuel trucks, free regulatory training, quality-control equipment, regulatory signage and stickers, and other cost-saving items.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Yes, this item conforms to state and local policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
No fiscal impact in the current year (FY 2025).
For FY 2026, the aviation fuel supply agreement provides goods which generate revenues for Killeen Regional Airport (KRA) and Skylark Field Airport (ILE) from resale or contract delivery to air operators, (i.e., Fuel Flow Fees, Into Plane Fees, Jet Fuel and 100LL Fuel Sales). This fuel supply contract provides revenue into the following accounts for FY 2026:
525-44224-600-601-000000 – Fuel Flow Fees (KRA) $ 730
525-44224-600-602-000000 – Fuel Flow Fees (ILE) $ 3,394
525-44228-600-601-000000 – Into Plane Fees (KRA) $ 156,000
525-44230-600-601-000000 – Jet Fuel Sales (KRA) $ 101,000
525-44230-600-602-000000 – Jet Fuel Sales (ILE) $ 91,000
525-44210-600-602-000000 – 100LL Fuel Sales (ILE) $ 189,600
Total Estimated Revenue $ 541,724
The goods of this vendor and potential new customers it may bring to the airport are also expected to have a positive effect on aviation fuel sales, however the estimated amount cannot be determined at this time.
Is this a one-time or recurring revenue/expenditure?
Expenditures are recurring from the following accounts:
525-55510-600-601-000000 – Cost of Goods (GRK) $ 90,000
525-55500-600-602-000000 – Cost of Goods (ILE) $ 250,000
Total Estimated Expense $ 340,000
Is this revenue/expenditure budgeted?
Yes
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
City Council approve the aviation fuel supply agreement with Avfuel Corporation in the amount of $340,000 and authorize the City Manager, or designee, to execute same, and all amendments or supplemental agreements allowed per federal, state, or local law.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Proposal
Certificate of Interested Parties
Presentation