Title
Consider a memorandum/resolution rejecting bids received for Bid No. 22-05, Petroleum Products and Diesel Exhaust Fluid.
Summary
DATE: November 30, 2021
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Rejecting bids received for Bid #22-05 Petroleum Products and Diesel Exhaust Fluid
BACKGROUND AND FINDINGS:
On October 30, 2018, City Council awarded Bid #19-02 to American Lube Supply for petroleum products and Arnold Oil Company for diesel exhaust fluid (DEF). The initial agreements were for a term of one (1) year with the option to renew three (3) additional one (1) year terms. Fiscal Year 2022 would have been the fourth and final term of the agreements. During the renewal process, staff received notification from the vendors that petroleum products would increase 36% and DEF 35%. The bid document limited future price increases to 10% for each renewal term, so both items needed to be bid again. Petroleum products and DEF are being purchased from American Lube Supply and Arnold Oil Company until a new bid can be awarded.
On October 14, 2021, at 2:15 pm, two (2) bids for Bid #22-05, Petroleum Products and DEF, were opened and read aloud. This bid requested pricing on seventeen (17) of the most commonly used petroleum and DEF products. After reviewing the only two bids received and comparing them to current pricing, staff recommends rejecting the bids. The low bid for petroleum products would be a $48,582 or 79% increase over current pricing and the low bid for DEF would be a $16,202 or 116% increase over current pricing. In addition, six (6) bids were received the last time petroleum products and DEF were bid compared to only two (2) bids for Bid #22-05. If City Council rejects all bids, City staff plans to conduct another competitive bid for both products.
Fleet Services utilizes petroleum products and DEF daily to service the C...
Click here for full text