Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
APRIL 20, 2023
Subject
SUBJECT: UNLEADED FUEL
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Modification No. 3 to Contract No. FY75015000 with Mansfield Oil of Gainesville, Inc. to increase the 2-year base contract amount by $1,067,343 from $6,628,473 to $7,695,816, exercise the 1-year option term extending the period of performance from July 1, 2023, to June 30, 2024 and increase the total not-to-exceed amount by $5,679,967 from $6,628,473 to $12,308,440.
Issue
ISSUE
The original contract value was established to provide up to 2,850,000 gallons of unleaded gasoline for non-revenue vehicles for 36 months at prevailing Oil Price Information Service (OPIS) pricing with the application of state and federal taxes and fees associated with unleaded gasoline. The OPIS pricing at the beginning of the contract averaged $3.46 per gallon, which was in line with industry expectations. The cost of gasoline dramatically increased over the past year to unprecedented levels of up to $5.71 per gallon, and the Inflation Reduction Act of 2022 (IRA) increased the per gallon cost of gasoline with the resurrection of the Hazardous Substance Superfund Trust Fund (aka "Superfund") tax on oil and petroleum products effective January 1, 2023. Staff is projecting that the increased cost per gallon for gasoline will result in the fuel costs reaching the maximum contract value in advance of the base and option periods.
Background
BACKGROUND
In June 2021, the Board awarded a 36-month Contract for unleaded gasoline to Mansfield Oil of Gainesville for $9,211,566.91. Mansfield Oil of Gainesville is required to provide unleaded gasoline for Metro's non-revenue vehicles (automobiles, trucks, vans, and equipment) at the prevailing OPIS pricing. The original contract was established as an Indefinite Delivery Indefinite Quantity (IDIQ) for a t...
Click here for full text