Staff recommends that City Council award the Oil and Lubrication products contract for one year to A & I Distributors for the bid amount of $94,811.00.

The Fleet Services Division administers the annual contracts for all Oil and Lubrication products for City equipment. The present contract expires next month, so staff requested bids for various blends of engine, hydraulic, transmission and gear oils and lubricating greases.
The bid award for Oil and Lubrication products allows for a floating price (up or down) that would be based on a verifiable index.  Price movements would be supported by major oil company documentation,
The Fleet Services Division advertised for sealed bids for Oil and Lubrication Products on August 30 and September 6, 2024, with a bid opening on September 17, 2024.
The bid award will be for one year.  Renewals of the contract, by mutual agreement of both parties, may be made at one-year intervals, or any interval that is advantageous to the City, not to exceed a total of seven years.

City Council may:

• Approve the purchase of Oil and Lubrication products from the low bidder or;
• Not Approve the purchase and reject all bids

All departments with City equipment budget for oil and lubrication expenses.  Three bids were received on September 17, 2024, as outlined below:

OIL AND LUBRICATION PRODUCTS
A & I Distributors:          $94,811.00
Farstad Oil Inc             $112,539.80
City Service Valcon      $114,876.61
 

 In summary, staff recommends that City Council award the Oil and Lubrication products contract for one year to the lowest bidder, A & I Distributors, for the bid amount of $94,811.00.