Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JANUARY 21, 2021
Subject
SUBJECT: UNLEADED FUEL
Action
ACTION: RATIFY EXPENDITURES AND APPROVE CONTRACT MODIFICATION
Heading
RECOMMENDATION
Title
AUTHORIZE the CEO to:
A. RATIFY expenditures in excess of the total contract award of $3,863,300 for unleaded gasoline from Pinnacle Petroleum for Metro's non-revenue vehicle fleet increasing the Contract No. FY34649000 total contract value from $9,717,450 to $13,580,750.
B. EXECUTE Modification No. 3 in the amount of $6,485,975 to include ratified funding in paragraph A above, and to extend the contract period of performance to June 30, 2021 for an additional $2,622,675, increasing the total contract value from $13,580,750 to $16,203,425.
Requires Two-Thirds Vote
Issue
ISSUE
The original contract was to provide up to approximately five million gallons of unleaded gasoline for 60 months at prevailing Oil Price Information Service (OPIS) pricing with the application of state and federal taxes and fees associated with unleaded gasoline. The contract is an Indefinite Delivery Indefinite Quantity (IDIQ) for a two-year base, inclusive of sales taxes 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 amount $9,717,450.
Discussion
DISCUSSION
In July 2017 the Board awarded a 60-month Contract for unleaded gasoline to Pinnacle for $9,717,450. Pinnacle was required to provide unleaded gasoline for Metro's non-revenue vehicles (automobiles, trucks, vans, and equipment). The ratification is due to inadequate staff monitoring, unforeseen fluctuations and increases in fuel variables over the past 2 years related to the federal and state fuel taxes and fees, Oil Price Information Service (OPIS) fee per gallon, and its fuel supplier. The unexpected pandemic has also impacted the supply and demand for fuel. The fuel industry has experienced a reduction in fuel...
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