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Regular City Council Meeting
Resolution - Purchasing and Contract Management:
Consider a resolution authorizing the Mayor to execute Contract 15048, with Pro Petroleum, LLC, for firm fixed price fuel on bulk unleaded and diesel fuel services (RFP 20-15048-MA).
The contract with Pro Petroleum, LLC, establishes firm fixed prices for unleaded and diesel fuel for a 5-year period for the City and Citibus fleet operations. The firm fixed pricing and delivery strategy avoids market volatility and improves budget accuracy regarding the fuel budget. The contract will begin January 1, 2020, and expire on December 31, 2020, with the option to renew for 4 additional 1-year periods. Staff recommends the contract award to Pro Petroleum, LLC, of Lubbock, Texas, the sole respondent.
The estimated annual fuel costs are $2,994,367 for unleaded and $4,204,225 for diesel, for the City of Lubbock fleet and for Citibus, and are budgeted within each operating department's budgets. Contracts can be reviewed in the City Secretary's office.
Staff recommends contract award to the sole respondent, Pro Petroleum, LLC, of Lubbock, Texas.
D. Blu Kostelich, Chief Financial Officer
Resolution Contract 15048
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