TITLE
Consider a memorandum/resolution awarding Bid No. 18-07 for a contract with Big Chief Dist. Co., Inc. to purchase unleaded gasoline for the Killeen-Fort Hood Regional Airport.
SUMMARY
DATE: March 6, 2018
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: Contract Award for Bid 18-07, Unleaded Gasoline
BACKGROUND AND FINDINGS:
The Aviation Department stocks and resells unleaded gasoline to the tenant rental car companies at the Killeen-Fort Hood Regional Airport. The average monthly sales volume is about 4,100 gallons per month. Typical Airport purchase requirements are about 800 to 1200 gallons with approximately one delivery per week. Due to the nature of this retail fuel business - the fact that payment of all state and federal taxes are required and that all delivery quantities are for less than transport load amounts, the Airport bulk motor fuel supply is not included in the scope of services with the Texas Fleet Fuel contract, under which most of the City’s fuel is procured.
An invitation for bid was advertised in the Killeen Daily Herald on January 7 and January 14, 2018. The invitation for bid was also advertised and bid specifications were available for download on the City’s web site and various bidding web sites used by the City for procurements.
At the close of specified time for bids at 2:00 PM, Friday, February 9, 2018, one sealed bid was received from Big Chief Dist. Co., Inc., Killeen, TX.
Wholesale fuel prices fluctuate daily due to a number of market factors. To establish a fair pricing mechanism for each Airport purchase throughout the term of the contract, the bidder used a wholesale price plus a vendor gross profit (or mark-up). The pricing also includes the applicable state and federal taxes, since the fuel will be resold by the Airport to the rental car companies.
The ...
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