Title
Consider a memorandum/resolution awarding Bid No. 22-13 to American Lube Supply for Petroleum Products and Diesel Exhaust Fluid in the amount of $90,702.
Summary
DATE: March 15, 2022
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Award of Bid #22-13 Petroleum Products and Diesel Exhaust Fluid to American Lube Supply
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 agreement. 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 used petroleum and DEF products. After reviewing the two bids received and comparing them to then current pricing, staff recommended rejecting the bids due to an estimated overall increase of $77,555. City Council approved the bid rejection December 7, 2021, and the products were then rebid.
On February 1, 2022, at 2:15 pm, two (2) bids for Bid #22-13, Petroleum Products and DEF, were opened and read aloud. After review of the two bids, American Lube Supply submitted the most cost-effective pricing resulting in an approximate $47,335 lower bid than that received in October 2021. This bid results in an overall estimated decrease of $6,728 compared to current February non-contract ...
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