Title
Fire Emergency and Transportation Fuel
Action
Action:
A. Approve the purchase of emergency and transportation fuel by the gas, fuel, and oil exception,
B. Approve a contract with Jacobus Energy LLC for the purchase of emergency and transportation fuel for the 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
Cynthia Bonham, Fire
Damian Owens, 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 maintain fuel tanks at Charlotte Fire Department locations, which require fuel delivery on an as needed basis.
* To assure continuous fuel delivery in the event of an emergency or natural disaster, the city contracts with a supplier that procures its fuel from outside of the Charlotte distribution system.
* The fuel supplier must provide above ground fuel tanks and an electronic fuel tank monitoring system free of charge.
* In the event of extended emergency conditions, the volume of fuel required along with priority needs necessitate having a vendor that is equipped to supply larger deliveries and ensure that the city remains a first priority during product and service interruptions.
* On May 28, 2019, the city issued an informal Request for Quotes; three quotes were received.
* Jacobus Energy LLC was selected as the lowest responsive, responsible bidder.
* In the event of an emergency, Jacobus Energy LLC may also be used by other city departments under this contract.
* Annual expenditures for this contract are estimated to be $1,000,000.
Charlotte Business INClusion
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