To approve the purchase of bulk fuels for a period of one (1) year with an option of three (3) one-year renewals for Fleet Services in the estimated annual amount of $500,000, for an estimated total amount of $1,917,667, from Jack Ray Oil Company through an existing contract; and authorizing the City Manager to execute all necessary documents. (Tarrant County Contract No. 2022-063) Approved

It is the recommendation of Fleet Services to purchase bulk fuels from Jack Ray Oil Company through Tarrant County Contract No. 2022-063.  Fleet Services and Purchasing have reviewed multiple Cooperative Contracts and found this to be the best value for the City. 

This contract will be used for the purchase of bulk fuels for emergency generators, tank sites throughout the City and refilling the tanker truck.  The total estimated annual expenditures for bulk fuels are $500,000.  This is a budgeted expense in cost center 342 Fleet Services.  This contract is for a period of one (1) year with an option of three (3) one-year renewals. Estimated total amount, if all renewals are used, is $1,917,667.

If this contract is not approved for use by the City of Plano, the City would be required to purchase fuel on a monthly basis without a contract in place.

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. (Tarrant County Contract No. 2022-063 / City of Plano Internal Contract No. 2022-0426-OA)

Approval of this item will allow Fleet Services to continue purchasing bulk fuels for emergency generators and tank sites Citywide. The initial term of the contract is for a period of one (1) year with an option of three (3) one-year renewals. 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 FY 2021-22 is $167,667. The estimated future amount, if all renewals are used, is $1,750,000. 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 Citywide relates to the City's Strategic Plan Critical Success Factors of Excellent, Innovative and Accountable City Government and Multi-Modal Transportation and Mobility Solutions.