TO: Mayor and Commissioners
FROM: Theresa Webb, Chief Purchasing Officer
THROUGH: Donald B. Cooper, City Manager
DATE: June 21, 2016
Title
PURCHASE AWARD TO MACMILLAN OIL COMPANY, LLC FOR BULK FUEL, GASOLINE, AND DIESEL FUEL
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Recommended Action:
Recommendation
Motion to approve a one year purchase award to MacMillan Oil Company, LLC, in an amount not to exceed $1,500,000 for bulk gasoline and diesel fuel utilizing Florida State Contract #405-000-10-1.
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Background:
In October 2014, City Commission approved an award to MacMillan Oil Company, LLC and authorized the City to utilize Florida State Contract #405-000-10-1 to buy bulk gasoline and diesel fuels through June 30, 2016. The Florida Department of Management Services and MacMillan Oil Company, LLC have mutually agreed to a one year renewal of the Contract between the State of Florida and MacMillan Oil Company, LLC through June 30, 2019.
The City of Delray Beach maintains three fuel sites. Site 1 provides both gasoline and diesel fuels and is located at Public Works. This site is used by all City departments. Site 2 is located at Fire Station #3 and provides diesel fuel that is primarily used to refuel Fire Rescue apparatus and ambulances. Site 3 is located at the Police Department and is used exclusively for refueling Police vehicles.
The State of Florida Contract divides the State into four districts: North, Western, Central and Southern. Each district has a fuel supplier(s) to whom a Contract was awarded. MacMillan Oil is the lowest priced Contract supplier within the Southern District, which includes Palm Beach County. The Contract price sheet stipulates the per gallon, supplier markup allowed for fuel deliveries. The Florida Department of Management Services publishes a daily fuel pricing index report. Each City fuel delivery invoice is reviewed by Fleet Maintenance staff to ensure that the pricing is correct and matches the daily price index and Contract delivery...
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