Metro - File #: 2017-0417

• File #: 2017-0417
• Type: Contract
• Status: Agenda Ready
• File created: 6/2/2017
• In control: System Safety, Security and Operations Committee
• On agenda: 7/20/2017
• Title: AUTHORIZE the Chief Executive Officer to award a 60 month, Indefinite Delivery/Indefinite Quantity Contract No. FY34649 for unleaded gasoline to Pinnacle Petroleum, Inc., the lowest responsive and responsible bidder, for a two year base, inclusive of sales tax, for a not-to-exceed amount of $3,886,980, and three one-year options for a not-to-exceed amount of $5,830,470, for a total not-to-exceed contract amount of $9,717,450, subject to resolution of protest(s), if any.
• Sponsors: Operations (Department)
• Indexes: Budgeting, Contract administration, Contracts, Fuels, Metro Rail B Line, Metro Red Line, Non-revenue Vehicles, Operations Maintenance (Project), Operations Transportation (Project), Procurement, Rail Operations - Red Line (Project), Rail Ops Mgmt & Admin (Project), Sustainability Environmental Management System (Project)

Date	Action By	Action	Result
7/27/2017	Board of Directors - Regular Board Meeting

Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMITTEE
JULY 20, 2017

Subject
SUBJECT: UNLEADED GASOLINE

Action
ACTION: AWARD CONTRACT FOR UNLEADED GASOLINE

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to award a 60 month, Indefinite Delivery/Indefinite Quantity Contract No. FY34649 for unleaded gasoline to Pinnacle Petroleum, Inc., the lowest responsive and responsible bidder, for a two year base, inclusive of sales tax, for a not-to-exceed amount of $3,886,980, and three one-year options for a not-to-exceed amount of $5,830,470, for a total not-to-exceed contract amount of $9,717,450, subject to resolution of protest(s), if any.

Issue
ISSUE

Under this Contract, the recommended contractor is required to provide unleaded gasoline for Metro's non-revenue vehicles (automobiles, trucks, and vans). The use of an Indefinite Delivery/Indefinite Quantity Contract provides Metro with fuel on an as-needed basis. In an environment where future non-revenue vehicles may come in the form of electric automobiles it is prudent to establish maximum flexibility for fuel demand and delivery. Due to the fluctuation and variability in fuel prices the total not-to-exceed price is subject to change but will be in compliance with the prevailing Oil Price Information Service (OPIS) fee per gallon for the Los Angeles Region.

Discussion
DISCUSSION

This Contract will provide up to approximately five million gallons of unleaded gasoline for 60 months at prevailing Oil Price Information Service (OPIS) pricing. OPIS is a widely accepted fuel price index that is published daily to reflect current market prices in the Los Angeles area for petroleum products. OPIS is a private, independent company with no stake in fuel transactions and is not funded by the oil industry.
Since this is a requirements contract, the bid quantities are estimates only, with deliveries to be ordered and released as required. There is no obligation or commitment on the p...