Title
Emergency and Transportation Fuel
Action
Action:
A. Approve the purchase of emergency and transportation fuel by the gas, fuel, and oil exemption,
B. Approve a contract with Jacobus Energy, LLC for the purchase of emergency and transportation fuel for an initial term of three years, and
C. Authorize the City Manager to renew the contract for up to two, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Reginald Johnson, Fire
Jerry Winkles, Fire
Peter Skeris, Fire
Gas, Fuel, and Oil Exception
§ G.S. 143-129(e)(5) states the purchase of gasoline, diesel fuel, alcohol fuel, motor oil, fuel oil, or natural gas are not subject to the formal bidding requirements.
§ These purchases are subject to the informal bidding procedures of G.S. 143-131.
Explanation
§ The city contracts to refill fuel tanks at Charlotte Fire Department (CFD) locations, which require fuel delivery as needed.
§ This contract is crucial for the uninterrupted operations of CFD and is designed to continuously deliver fuel and diesel exhaust fluid during an emergency, natural disaster, and/or pandemic.
§ In the event of extended emergency conditions, there is a need to have a vendor equipped to supply larger deliveries and ensure the city remains a first priority during production and service interruptions.
§ On June 26, 2024, the city issued an informal Request for Quotes; two quotes were received.
§ Jacobus Energy, LLC was selected as the lowest responsive, responsible bidder.
§ In the event of an emergency, this contract may also be used by other city departments.
§ At renewal, potential price adjustments may be considered based on legitimate and justified increases in the cost of doing business. The ability to consider price adjustments also allows the city to accept decreases, if warranted.
§ Annual aggregate expenditures are estimated to be $1,200,000.
Charlotte Business INClusion
This contract is exempt under the CBI Program since it is for the purchase of gas, fuel, and/or oil.
Fiscal Note
Funding: Fire Operating Budget