Fleet Services recommends utilizing the City of Irving cooperative purchasing contract 019LR-24F to procure bulk fuel from Offen Petroleum. The term of this initial contract is through January 31, 2026, with optional renewals through January 31, 2030. After reviewing multiple cooperative contract options, Fleet Services and Purchasing have determined that this agreement offers the best value for the City.

This contract will be used for the purchase of bulk fuels for citywide use in emergency generators, tank sites and transport by the city’s fuel tanker. The total estimated expenditures through for the remainder of FY 2024–25 is approximately $17,747. Annual expenditures are projected at $425,000 per fiscal year. This is a budgeted expense for Fleet Services (Cost Center 342).

If this contract is not approved, the City would be required to make purchases on the open market. This would keep us from realizing discounts that would be available if we were participating in a cooperative purchasing agreement. Approval of this contract will ensure the City maintains a reliable fuel supply at the best available pricing.

The City is authorized to purchase from a cooperative purchasing program with another local government or a local cooperative organization pursuant to Chapter 271 Subchapter F of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (City of Irving 019LR-24F and the City of Plano Contract No. 2025-0352-OA)

Approval of this item will allow Fleet Services to purchase bulk fuels for emergency generators and tank sites. The initial contract term is September 2025 through January 2025 with optional renewals through January 2030. Expenditures will be made within the approved budget appropriations for each year of the contract based on need. The estimated amount to be spent in the remainder of FY 2024-25 is $17,747. The estimated future amount is $1,841,667 ($425,000 in FY 2025-26 through FY 2028-29 and $141,667 in FY 2029-30). Any additional funds needed will be available from savings and fund balance, and any remaining balance each year will be used for other Fleet Services purchases.

Purchasing bulk fuels for emergency generators and tank sites relates to the City's Strategic Plan Critical Success Factors of Excellent, Innovative and Accountable City Government and Multi-Modal Transportation and Mobility Solutions.