It is the recommendation of Fleet Services to purchase bulk fuels from U.S. Oil, a Division of U.S. Venture, Inc., through the City of Fort Worth/OMNIA Contract No. 53316, which uses the City of Fort Worth as the lead agency.  The term of this initial contract is through December 31, 2023 with an option for a one (1) year renewal.

This contract will be used for the purchase of bulk fuels for City wide use in emergency generators, tank sites, and transport by the city’s fuel tanker.  The total estimated expenditures through December 31, 2023 is $208,333. The total estimated annual expenditures for the contract period from January 1, 2024 to December 31, 2024 is $500,000. This is a budgeted expense in cost center 342 Fleet Services.

If this contract is not approved , the City would be required to order bulk fuel deliveries on the open market. This would keep us from realizing discounts that would be available if we were participating in a cooperative purchasing agreement.

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. (Omnia Contract No. 53316 / City of Plano Contract No. 2023-0299-OA)

Approval of this item will allow Fleet Services to continue purchasing bulk fuels for emergency generators and pump stations. The initial contract term is August 2023 through December 2023 with an optional renewal through December 2024. 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 2022-23 is $83,333. The estimated future amount is $625,000 ($500,000 in FY 2023-24 and $125,000 in FY 2024-25). 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.