HomeMy WebLinkAboutContract 46298 City Secretary Contract No. �
Rebate Agreement
THE CITY OF FORT WORTH, TEXAS (herein "Principal Procurement Agency") has entered into
a Master Agreement effective JANUARY 1, 2015, Agreement Number 14-0121, by and between
the Principal Procurement Agency and Supplier, (as may be amended from time to time in
accordance with the terms thereof, the "Master Agreement"), for the purchase of MOTOR FUELS
AND AVIATION FUELS (herein "Product").
Based upon its marketing of the Master Agreement, National Intergovernmental Purchasing
Alliance Company ("National IPA") receives administrative fees from the Supplier and based upon
such administrative fees shall make an annual rebate payment ("PPA Rebate") to Principal
Procurement Agency.
The annual PPA Rebate for the Master Agreement shall be equal to 8.333% of National IPA's
administrative fees received for purchases of Product for each contract year under the Master
Agreement. The PPA Rebate shall be remitted to Principal Procurement Agency either no later than
45 days after the end of the respective Master Agreement fiscal year for which a PPA Rebate is
required or no later than 45 days after National IPA receives, from the respective Supplier(s), all
administrative fees due for the applicable Master Agreement contract year, whichever is later. Each
annual PPA Rebate payment from National IPA shall include a remittance report detailing the
calculation for the applicable contract year's PPA Rebate.
Principal Procurement Agency represents and warrants that its receipt of the PPA Rebate complies
will federal, state and local law, including but not limited to any and all state specific procurement
laws.
This Rebate Agreement shall commence on the 1 ST day of JANUARY 2015 and remain in effect
for the complete term and any renewal period(s), where applicable, of the Master Agreement.
The annual PPA Rebate specified in the Agreement shall be remitted to PPA exactly as shown
below:
City of Fort Worth, Texas
Name of PPA as it shall Appear on Actual Remittance
Address Where Remittance is to be mailed:
Fleet Manager
City of Fort Worth OFFICIAL RECORD
CITY SECRETARY
4100 Columbus Trail FT.WORTN9 TX
Fort Worth, Texas 76133
RECEIVED DEC 2 9 PM.
Rebate Agreement, continued
The Principal Procurement Agency agrees to allow National IPA to utilize its name in promotional
and marketing materials for National IPA and for the Master Agreement to Participating Public
Agencies and Suppliers (both terms as defined in the Master Agreement). National IPA agrees that
all Master Agreement marketing materials are subject to review by the Principal Procurement
Agency.
Authorized Signature, Principal Procurement Agency NATIONAL INTERGOVERNMENTAL
P R SING ALLIANCE COMPANY
OJ&�� -Sig ature Signature
Assistant City Manager Ward H. Brown
Title Name
Susan Alanis Chief Operating Officer
Printed Name Title
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Date Date
ATTEST: � F�®��,
By' S�' a 8� °
City Secretary �gD
APPROVED AS TO FORM AND LEGALIT �oGo 0000
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By: ..;1�Qt ���z
Assistant City Attorney
CONTRACT AUTHORIZATION:
M&C: P-11716
Date Approved: December 2, 2014
[OFFICIAL RECORD
CITY SECRETARY
�T WORTIi,TX
2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/2/2014
DATE: Tuesday,December 02, 2014 REFERENCE NO.: P-11716
LOG NAME: 13P14-0121 FUELS DG
SUBJECT:
Authorize Agreements with the National Intergovernmental Purchasing Alliance,Mansfield Oil Company,
Martin Eagle Oil Company,Inc., and Truman Arnold Oil Companies in the Annual Amount of City of Fort
Worth Expenditures Up to$9,000,000.00 for Motor Fuels and Aviation Fuels for the Equipment Services
Department and Other National Public Agencies (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize Agreements
with the National Intergovernmental Purchasing Alliance,
Mansfield Oil Company,Martin Eagle Oil Company,Inc., and
Truman Arnold Oil Companies in the annual amount of City of
Fort Worth expenditures up to$9,000,000.00 for motor fuels and
aviation fuels for the Equipment Services Department and other
national public agencies as follows:
1.Award Non—Exclusive Purchase Agreements with Mansfield Oil
Company,Martin Eagle Oil Company,Inc., and Truman Arnold
Oil Companies for the City of Fort Worth;
2.Award a multiple national award to Mansfield Oil Company,
Martin Eagle Oil Company,Inc., and Truman Arnold Oil
Companies for all motor fuels and aviation fuels requested in the
Request for Proposal and any future fuels added by amendment.
Martin Eagle Oil Company,Inc.,is recommended for an award as
a supplier for Collin,Dallas,Denton and Tarrant Counties,and
Mansfield Oil Company and Truman Arnold Companies are
recommended for award as suppliers for all forty—eight contiguous
United States; and
3.Authorize a Rebate to Principal Procurement Agency Agreement
with National Intergovernmental Purchasing Alliance.
DISCUSSION:
The Equipment Services Department and other public agencies
throughout the United States will use these Agreements to obtain
unleaded, diesel and Jet—A fuels to supply and operate equipment.
No guarantee was made that a specific amount of these fuels would
be purchased.Unleaded and diesel fuel will be used by various
City departments.The Jet—A aviation fuel will be used by the
Police Department.
The City previously awarded separate Agreements for unleaded
fuels and diesel fuels on November 10,2009 (M&C P-11056) and
for Jet—A aviation fuel on June 7,2011 (M&C P-11241).The
previous Agreements were competitively bid.During the previous
year,the City purchased approximately
$5,831,859.00 of motor fuels and approximately$118,000.00 of
Jet—A aviation fuels.The additional estimated annual amount listed
in this action is requested to cover potential increases in prices and
volumes over the five year term of the Agreement. A price change
of 50 cents per gallon can impact the annual expenditures by
$1,000,000.00.
Other public agencies participating in the previous Agreements
have purchased approximately 21,000,000 gallons of motor fuels.
Based on the new Motor Fuel Agreement,the City of Fort Worth
will save approximately$38,000.00 annually over previous Motor
Fuel Agreements as a direct result of the increased volume by
participation of the other public agencies.
Under the Rebate to Principal Procurement Agency Agreement,the
City of Fort Worth will receive 8.333 percent of a one—cent
administration fee to be paid to National Intergovernmental
Purchasing Alliance(National IPA)by the petroleum vendors for
each gallon of fuel sold under these national cooperative contracts.
This rebate could generate approximately$42,000.00 annually in
revenue to the City.The City will have no liability or responsibility
for purchases by other public agencies.
This Motor Fuel and Aviation Fuel Non—Exclusive Purchase
Agreement was bid as a National Cooperative Purchasing Request
for Proposals (RFP)to develop and encourage cooperative
purchasing efforts to reduce the cost of motor and aviation fuel to
the City and other public agencies.The RFP included estimated
annual quantities from current public agencies using the contract
and allowed for quantities additional new agencies may have under
the contract with a total estimated quantity of 50 million gallons.
The RFP evaluation factors included responsiveness and clarity of
proposal,ability to meet City of Fort Worth specifications,the
National Program,vendor qualifications and contract cost.
Representatives of the City's Equipment Services,Fire,Police,
Transportation and Public Works and Water Departments
evaluated the proposals received and found Mansfield Oil
Company,Martin Eagle Oil Company,Inc.,and Truman Arnold
Oil Companies to be the best evaluated firms for awards of the
Agreements.
BID ADVERTISEMENT—This bid was advertised in the Fort
Worth Star—Telegram every Wednesday starting on June 4,2014
through July 9,2014.Eighty—eight vendors were solicited from the
purchasing database; seven responses were received.
M/WBE OFFICE—A waiver of the goal for MBE/SBE
subcontracting requirements was requested by the Purchasing
Division and approved by the M/WBE Office,in accordance with
the BDE Ordinance,because the purchase of goods or services is
from sources where subcontracting or supplier opportunities are
negligible.
ADMINISTRATIVE CHANGE ORDER—An administrative
change order or increase may be made by the City Manager in the
amount up to$50,000.00 and does not require specific City
Council approval as long as sufficient funds have been
appropriated.
AGREEMENT TERM—Upon City Council approval,these
Agreements shall have an initial term of five years beginning on
November 19, 2014 and ending on November 18, 2019.
RENEWAL OPTIONS —These Agreements may be renewed for
up to four successive one—year terms at the City's option.This
action does not require specific City Council approval,provided
the City Council has appropriated sufficient funds to satisfy the
City's obligation during the renewal term.
FISCAL INFORMATION:
The Financial Management Services Director certifies that funds
are available in the current operating budget, as appropriated, of
the Equipment Services Fund.
BQN\14-0121\DG
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Jack Dale (8357)
Darian Gavin (2057)
ATTACHMENTS
1. MWBE Waiver 14-0121.12df