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HomeMy WebLinkAboutContract 41012 (2)CITY SECRETARY CONTRACT NO._ Rebates to Principal Procurement Agency National Intergovernmental Purchasing Alliance Company ("National IPA") shall make an annual rebate payment ("PPA Rebate") to the City of Fort Worth, Texas ("Principal Procurement Agency" or "PPA") based on National IPA's revenue attributable to the marketing of the Motor Fuels Master Agreement ("Master Agreement"). The PPA Rebate payment is hereby mutually agreed upon and shall be remitted to PPA no later than 45 days after the end of the respective Master Agreement fiscal year for which a PPA Rebate is required. This PPA Rebate shall remain in effect for the complete term and renewal period(s), where applicable, of the Master Agreement. The annual PPA Rebate for the Master Agreement shall be equal to the greater of Ten Thousand Dollars ($10,000) or 8.3 3 3 % of National IPA's administrative fees received in respect of the Master Agreement during the fiscal year for such Master Agreement. Each annual PPA Rebate payment from National IPA shall include a remittance report detailing the calculation for the current fiscal year's PPA Rebate. 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 4100 Columbus Trail Fort Worth, Texas 76133 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX :a :-a- -_ 1 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. National IPA agrees that all Master Agreement marketing materials are subject to review by the Principal Procurement Agency. Any use of the Principal Procurement Agency's logo must be approved in writing by the Principal Procurement Agency. Authorized Signature, Principal Procurement Agency Assistant City Manager Title Karen L. Montgomery Printed Name Date APPROVED AS TO FORM AND LEGALITY: By: ((t ssista�City Attorney CONTRACT AUTHORIZATION: M&C: P-11056 Date Approved: November 10, 2009 Attested by, �r andrix, ` ity Secretary NATIONA INTERGOVERNMENTAL PURG ALLIANCE COMPANY ignature Chief Operating Officer Title Ward H. Brown Printed Name IGj i Date r 000aao 0 oa QO A sp 114 X O o id as o' a OFFICIAL RECORD CITY SECRETARY Ft WORTH, TX 2 Page 1 of 3 City of Fort Worth, rens Mayor and Cowici Communication COUNCIL ACTION: Approved on 11/10/2009 DATE: Tuesday, November 10, 2009 LOG NAME: 13P09-0012 MOTOR FUELS SUBJECT: Authorize Agreements with the National Intergovernmental Purchasing Alliance, Truman Arnold Companies and Martin Eagle Oil Company for Motor Fuels for the Equipment Services Department and Other National Public Agencies for an Annual Amount of City of Fort Worth Expenditures Up to $9,000,000.00 REFERENCE NO.: P-11056 RECOMMENDATION: It is recommended that the City Council authorize agreements with the National Intergovernmental Purchasing Alliance (National IPA), Truman Arnold Companies (TAC) and Martin Eagle Oil Company (MEOC) for motor fuels for the Equipment Services Department and other national public agencies for an annual amount of City of Fort Worth expenditures up to $9,000,000.00 as follows: 1. Award purchase agreements with Truman Arnold Companies and Martin Eagle Oil Company for the City of Fort Worth. Truman Arnold Companies will be the primary supplier for Unleaded and E85 fuel and the secondary supplier of Diesel and Biodiesel blend fuels. Martin Eagle Oil Company will be the primary supplier of Diesel and Biodiesel blend fuels and the secondary supplier of Unleaded and E85 fuel; 2. Award a dual national award to Truman Arnold Companies and Martin Eagle Oil Company for all Motor Fuels (unleaded and diesel, all varieties) requested in the RFP and any future fuels added by amendment. Martin Eagle Oil Company is recommended for an award as a supplier for the state of Texas only and Truman Arnold Companies is recommended for award as a supplier for all 48 contiguous United States; and 3. Authorize a Rebate to Principal Procurement Agency Agreement with National IPA. DISCUSSION: The Equipment Services Department and other public agencies throughout the United States will use these agreements to obtain motor fuels to supply and operate equipment. No guarantee was made that a specific amount of these fuels would be purchased. The City previously awarded separate agreements for unleaded fuels on December 16, 2008 (M&C P- 10898) and diesel fuels on March 4, 2008 (M&C P-10746). These agreements were competitively bid by several suppliers of these fuels The estimated annual amount of unleaded fuels to be purchased under the previous agreement was $4,000,000.00 and the estimated annual amount of diesel fuels to be purchased under the previous agreement was $2,348,000.00. During the previous year, the City purchased approximately 3,000,000 gallons of motor fuels at a cost of $7,129,000.00. The additional estimated annual amount listed in this action is requested to cover potential increases in prices and volumes. Other public agencies participating in the previous agreements have purchased approximately 14,000,000 gallons of motor fuels. This represents an increase of about 11,000,000 gallons of motor fuel over the previous agreement. Based on the new motor fuel agreement the City of Fort Worth will save approximately $39,787.00 annually over previous motor fuel agreements as a direct result of the increased volume by participation of the other public agencies. http://apps.cfwnet.org/ecouncil/printmc.asp?id 12666&print true&DocType—Print 8/20/2010 Page 2 of 3 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 IPA by the petroleum vendors for each gallon of motor fuel sold under this national cooperative contract. This rebate could generate approximately $92,000.00 annually in revenue to the City. The City will have no liability or responsibility for purchases by other public agencies. This Motor Fuel Agreement combined the two existing fuel agreements' requirements and was bid as a national cooperative purchasing Request for Proposals (RFP) to develop and encourage cooperative purchasing efforts to reduce the cost of motor fuel to the City and other public agencies. The RFP included estimated annual quantities from 63 public entities around Texas and the US with a total estimated quantity of 110 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 TAC and MEOC to be the best evaluated firms for awards of the agreements. Participating Agencies within the state of Texas have the ability to elect to use either TAC or MEOC for their fuel needs to provide greater benefit to the participating agencies. Awarding to both vendors will ensure that the City and other agencies obtain the best value when ordering split loads or smaller than tank loads, to provide an uninterrupted supply of fuels during instances of fuel shortages and/or other curtailments or if one vendor does not exercise a renewal option of the agreement. The following agencies have purchased fuel utilizing the current agreements: The Cities of Arlington, Carrollton, Coppell Duncanville, Flower Mound, Garland, Grand Prairie, Grapevine, Haltom, Keller, Kennedale, Lewisville, North Richland Hills, Plano, Richardson, Southlake, University Park and Watauga; Tarrant, Johnson and Hood Counties; Crowley and Ponder ISD; Tarrant County College and University of Texas at Dallas. Prices will be based on the overall low proposal of the Dallas Metro Texas Oil Price Information Service Rack Average Petrostat net price sent at 10:00 a.m Eastern time for the date the fuel is delivered. Payments are due ten days from receipt of invoices, the City takes ownership at the City's storage tank and freight is included. BID ADVERTISEMENT - This bid was advertised in the Fort Worth Star -Telegram on April 15, 2009 and April 22, 2009. Thirty-two vendors were solicited from the purchasing database system, seven proposals were received. M/WBE - A waiver of the goal for M/WBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office because the purchase of goods is from sources where subcontracting or supplier opportunities are negligible. AGREEMENT TERM - The agreements will begin November 10, 2009 and expire November 9, 2010. 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 / CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Equipment Services Fund BQN\09-0012\KDK http://apps.cfwnet.org/ecouncil/printmc.asp?id=12666&print=true&DocType=Print 8/20/2010 Page 3 of 3 FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Karen Montgomery (6222) Lena Ellis (8517) Jack Dale (8357) Randy Rendon (5112) ATTACHMENTS 1. City of Fort Worth BAFO Pricing Analysis 9-16-09 Final.pdf (CFW Internal) 2. MWBE Waiver.PDF (CFW Internal) http://apps.cfwnet.org/ecouncil/printmc.asp?id=12666&print=true&DocType=Print 8/20/2010 REDUCING PROCUREMENT COSTS THROUGH COLLABORATION L_ NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE 1600 Westgate Circle Suite 275 Brentwood, TN 37027 (866) 408-3077 info@nationalipa.org www.nationalipa.org October 4, 2010 Jack Dale Purchasing Manager City of Fort Worth 1000 Throckmorton Street Fort Worth, TX 76102 Dear Mr. Dale: Enclosed please find two original signatures on the PPA Rebate Agreement for the Motor Fuels Master Agreement. Once executed by the City of Fort Worth, please forward one copy to me at: Ward Brown National IPA 1600 Westgate Circle Suite 275 Brentwood, TN 37027 Please contact me at (615) 786-1122, if you have any questions. Thant{ you, and H. Brown Chief Operating Officer Attachments • ft y;s i4 °. (LI , 7 ✓I i J li 1 111 ii'.�.