Title
Airport Fuel Products
Action
Action:
A. Approve the purchase of fuel products from a cooperative contract,
B. Approve a unit price contract with Mansfield Oil Company of Gainesville, Inc. for the purchase of fuel products for a term expiring February 10, 2027 under Sourcewell contract #121522-MNF, and
C. Authorize the City Manager to extend the contract for additional terms as long as the cooperative contract is in effect, at prices and terms that are the same or more favorable than those offered under the cooperative contract.
Body
Staff Resource(s):
Haley Gentry, Aviation
Jack Christine, Aviation
Explanation
§ Aviation facilitates access to gasoline and diesel fuel for both Aviation use and tenant use on the airfield.
§ NC General Statute Section 143-129(e)(3) allows local governments to purchase from formally organized cooperative purchasing contracts.
§ A cooperative purchasing agreement results from the consolidation and competitive solicitation of multiple public agency requirements. By aggregating common needs, all agencies can leverage economies of scale, such as volume discounts, improved terms and conditions, reduced administrative costs, and access to professional and technical expertise.
§ Approximately 75 percent of fuel costs are recovered via fuel consignment agreements with airport tenants.
§ Annual expenditures are estimated to be $9,000,000.
Charlotte Business INClusion
Cooperative purchasing contracts leverage contracts established by other governmental agencies and do not involve the city conducting a bidding process and are thus exempt from CBI Program goals. Subcontracting opportunities are typically not feasible under cooperative purchasing arrangements.
Fiscal Note
Funding: Aviation Operating Budget