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McPherson Oil Contract Extension #1
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DESCRIPTION: To extend an existing contract with McPherson Oil by exercising the first one-year option. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
To authorize the Chief Executive Officer to award a contract extension to McPherson Companies Inc. for the purchase of vehicle fluids and lubes in the amount of $366,330.00.
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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 two 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 board approval aims to exercise the first one-year option with the McPherson Companies. By doing so, we will ensure that our fleets are equipped with the necessary fluids and lubricants for effective maintenance.
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 one million sixteen thousand six hundred twenty-two dollars ($1,016,622). 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 contract modification.
ATTACHMENTS:
1. Resolution
2. Procurement routing
Prepared By: Ryan Moser
Title: Interim Chief of Asset Management
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
6/1/2023
Lona Edwards Hankins Date
Chief Executive Officer