Consent 1.A.1.
Regular City Council Meeting
- Meeting Date:
- 09/25/2017
- TITLE
- Oil and Lubrication Products
- Department:
- City Hall Administration
Presentation:
No
PROBLEM/ISSUE STATEMENT
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 is based on a verifiable index. Price movements must be supported by major oil company documentation.
The Fleet Services Division advertised for sealed bids for Oil and Lubrication Products on September 1 and 8, 2017, with a bid opening on September 12, 2017.
The 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.
The bid award for oil and lubrication products allows for a floating price (up or down) that is based on a verifiable index. Price movements must be supported by major oil company documentation.
The Fleet Services Division advertised for sealed bids for Oil and Lubrication Products on September 1 and 8, 2017, with a bid opening on September 12, 2017.
The 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.
ALTERNATIVES ANALYZED
City Council may:
- Approve the purchase of oil and lubrication products from the low bidder or;
- Disapprove the purchase and reject all bids
FINANCIAL IMPACT
All departments with City equipment budget for oil and lubrication expense. Three bids were received September 12, 2017, as outlined below:
OIL AND LUBRICATION PRODUCTS
A & I Distributors: $ 76,569.54
Valley Farmers Supply: $122,757.87
Farstad Oil Inc. $130,829.86
OIL AND LUBRICATION PRODUCTS
A & I Distributors: $ 76,569.54
Valley Farmers Supply: $122,757.87
Farstad Oil Inc. $130,829.86
RECOMMENDATION
Staff recommends that the City Council award the oil and lubrication products contract for one year to A & I Distributors for the bid amount of $76,569.54.