REPORT TO COUNCIL
SUBJECT
Title
Award of Contracts for the Purchase of Vehicle Fuel Based on Cooperative Reverse Auction (F15-44)
Report
REPORT IN BRIEF
Approval is requested to award three-year contracts, not to exceed budgeted amounts, to Valley Oil Company, Southern Counties Oil Company dba SC Fuels (SC Fuels), Golden Gate Petroleum, and Mansfield Oil Company for unleaded and diesel fuel, and to authorized the City Manager to renew the contracts for two additional one-year periods if pricing and service remain acceptable to the City. The total cost over the three year period is not anticipated to exceed $2.6 million, based on current operating budget assumptions.
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
Most of the City's fleet of vehicles is powered by diesel and unleaded gasoline. The fuel is stored in underground tanks at various locations in the City and is monitored by Central Stores staff. The City's current contracts for fuel were awarded as a result of the County of Santa Clara's cooperative, multi-agency bid solicitation in November, 2009, the contract period for which expires January 31, 2015. In August 2014 the City of Sunnyvale accepted the County's invitation to again participate in a cooperative purchase solicitation for delivery of bulk fuel.
The County of Santa Clara's procurement method for fuel was through online reverse auctions conducted by BidSync, one of the leading providers of online auction services. This type of auction takes place in real time, and both the buyer and seller can see each bid as it is placed. Auctions are commonly scheduled for one half hour; if a last minute bid is received, the auction is automatically extended for an additional five minutes to allow thoughtful reaction by other bidders. Participating agencies included the Counties of Santa Clara and Alameda, the Santa Clara County Fire Department, the Alameda-Contra Costa Transit District, the East Bay Regional Park District, and the...
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