- Subject
- 2. Resolution; Award of Contract Gasoline and Diesel Fuel Purchases (Barksdale Oils, Inc.) (Betsy Drewry, Deputy County Administrator, Finance)
- Meeting
- Feb 27, 2024 - February 27 Regular Meeting
- Category
- E. Order of Business
- Type
- Action
- Preferred Date
- Feb 27, 2024
- Absolute Date
- Feb 27, 2024
- Fiscal Impact
- Yes
- Budgeted
- Yes
- Budget Source
- Gasoline and Diesel Fuel Costs are budgeted throughout the County's Adopted Budget for departments assigned County vehicles
- Recommended Action
- Authorize the County Administrator to execute a contract awarding the purchase of gasoline and diesel fuel to Barksdale Oils Inc. and move away from using state contract vendor Mansfield Oil Company of Gainesville (#E-194-73737). Award is based on use of a cooperative City of Petersburg contract #21-0010 effective May 3, 2021, with renewals available through May 2, 2026.
Issue Analysis Form
| Description and Current Status: |
Prince George County currently utilizes state contract #E-194-73737 for the purchase of gasoline and diesel fuel from Mansfield Oil Company of Gainesville, Inc. The state contract vendor transitioned from Quarles Petroleum to Mansfield Oil on July 22, 2022.
On January 6, 2024, Mansfield Oil implemented an added freight / delivery charges with little notice. The flat fee freight additions are depicted below.
The estimated added cost in freight to the County is up to $35,000 (using make up and frequency of deliveries made to the County garage and fire stations for the past calendar year).
Fuel contracts are awarded on a differential / "mark up" from OPIS pricing due to the fluctuation in fuel prices. The Barksdale contract with the City of Petersburg is based on a differential / mark up of $0.0379 per gallon for both gas and diesel, plus mandated environmental fees (which are also included on billings from Mansfield).
We pay a variable differential to Mansfield Oil depending on the type of delivery (Transport Truck or Tank Wagon Delivery), and also have "minimum delivery" charges that amount to approximately $15,200 annually that are absent in the City of Petersburg contract with Barksdale Oil. A comparison of the differentials is provided as an attachment.
Barksdale's differential is higher than Mansfield's for transport truck deliveries, but less for tank wagon deliveries. Our estimates indicate that the differential increase (when applicable) will be offset by removal of the minimum delivery charges we are incurring with Mansfield. Additionally, we will avoid up to $35,000 in freight charges newly implemented on January 6, 2024.
We expect this change to be "budget neutral" and do not believe this will impact our current budgeted amount, or the amounts estimates developed for the FY2025 budget.
Staff recommends moving away from use of state contract #E-194-73737 with Mansfield Oil, and an award of contract to Barksdale Oils, Inc. using a cooperative contract with the City of Petersburg (#21-0010) as soon as the transition is practical, but no later than March 15, 2024.
A draft resolution for Board consideration and possible approval is included.
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|---|---|
| Government Path: | |
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No. |
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No. |
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No. |
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Yes. |
| Does this require a public hearing? | No. |
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| Fiscal Impact Statement: | There is no added fiscal impact to the County, but if the change in vendor is not approved, we will pay up to $35,000 in freight charges for fuel deliveries. |
| County Impact Statement: |
Award of contract to Barksdale Oil will result in the avoidance of up to $35,000 annually in fuel delivery freight charges. |
| Notes: |
The County currently owns all gasoline and diesel tanks and should not experience a disruption in service. General Services, the Fleet Manager and Procurement worked together to establish appropriate accounts and ensure continuity of deliveries.
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