ITEM TITLE:
Approval of Contract Award to Crowley Fuel, LLC. for Propane Supplies.
SUBMITTED BY: Nathan Duval, Capital Facilities Director
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: Various
RECOMMENDATION:
Approve Contract Award to Crowley Fuel, LLC. for Propane Supplies.
SUMMARY STATEMENT:
The City’s fuel supply was last bid in 2019 and renewed for two extensions, necessitating rebidding the contract. The solicitation was posted on April 8, 2024 and closed April 26, 2024. Both North Pacific Fuel and Crowley Fuel responded, and each company was awarded a portion of the contract based on their bids. Compensation is based on a markup to the weekly Oil Price Information Service (OPIS) Anchorage price for diesel products and the Edmonton or Kansas exchange for propane.
North Pacific will supply diesel and Crowley will supply propane.
The agreements are in force until May 21, 2029.
The City uses approximately 200,000 gallons of diesel fuel products annually for both heating and heavy equipment in addition to approximately 9-11,000 gallons of propane.
The Hospital, Schools, Senior Center, and Museum benefit from the City’s pricing structure but pay their invoices directly to the vendors.