Title
Petroleum Products - Contract Recommendation (Ordinance S-46473)
Description
Request to authorize the City Manager, or his designee, to enter into separate contracts with Senergy Petroleum, LLC, New West Oil Company, LLC, Arizona Petroleum Products Company, Western States Petroleum, Inc., and Van De Pol Enterprises, Inc. to provide petroleum products. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Public Works and Aviation departments are responsible for managing a diverse fleet of over 6,800 vehicles, which include off-road equipment, emergency response vehicles, staff vehicles, refuse trucks, and other equipment. This contract will allow the City of Phoenix to purchase fully synthetic engine motor oils, hydraulic fluids, lubricants, diesel exhaust fluid, as well as other petroleum products necessary for operation and maintenance of these vehicles and equipment.
Procurement Information
Invitation for Bid (IFB) 21-FSD-003 was conducted in accordance with Administrative Regulation 3.10. Fifteen groups were identified for various types of petroleum products. The Public Works Department, Procurement Section, received five bids with all groups having bids deemed responsive and responsible. The requesting departments approved a multiple award recommendation for all groups to allow adequate coverage to procure all products. The award recommendation with the following vendors can be found in Attachment A.
Senergy Petroleum, LLC
New West Oil Company, LLC
Arizona Petroleum Products Company
Western States Petroleum, Inc.
Van De Pol Enterprises, Inc.
Contract Term
The initial one-year contract term shall begin on or about July 1, 2020, with four option years to be exercised, at the Public Works Director's discretion, in increments of up to one year, for a total contract option term of five years.
Financial Impact
This contract will have an estimated aggregate cost of $2,445,000 over the life of the contract. Funds are available in the Aviation and Public Works departments' budgets.
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and Deputy City Manager Karen Peters and the Aviation and Public Works departments.