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McPherson Oil Extension #2
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DESCRIPTION: To exercise the second-year option of an existing contract with McPherson Oil |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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To authorize the Chief Executive Officer to extend in form and substance, the current agreement with McPherson oil companies for $366,330.
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ISSUE/BACKGROUND:
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In 2021, the board approved Resolution 2021-001 in the amount of six hundred fifty thousand two hundred ninety-two dollars ($650,292), authorizing the purchase of vehicle fluids and lubricants. Over the past three years, our agency has been sourcing oils, antifreeze, DEF fluid, and grease from the McPherson Companies Inc. The Company has consistently delivered these products in a timely manner without any issues. The existing contract between our agency and McPherson allows for an extension if both parties agree. Additionally, in the previous board item, the board authorized a two-year contract with the provision for two one-year extensions.
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DISCUSSION:
This extension involves exercising the second one-year option with McPherson. It will be our final extension, leading to a new solicitation next year. Authorizing this extension ensures that all our vehicle fleets-comprising buses, paratransit, and streetcars-are equipped with the necessary fluids and lubricants for effective maintenance service
FINANCIAL IMPACT:
The estimated cost of the one-year extension is Three hundred sixty-six thousand three hundred thirty dollars ($366,330). With this contract modification, the total value will reach $1,352,952. The necessary funding will utilize local fund accounts 1430099.8070.03103, 1430006.8070.03105, 1430002.8070.03101.
NEXT STEPS:
Once approved staff will work on the needed modifications and order materials as needed.
ATTACHMENTS:
1. Resolution
2. Procurement Authorization
3. Original Bid form
4. Original contract agreement
Prepared By: Ryan Moser
Title: Chief of Asset Management
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
7/29/2024
Lona Edwards Hankins Date
Chief Executive Officer