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New State Contract for Fuel Card Services
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DESCRIPTION: To enter a contract to supply unleaded fuel to paratransit and non-revenue vehicles under the state’s contract fuel card program. |
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 three-year contract to Mansfield Oil Co of Gainesville Inc. for fleet fuel services in the amount of $4,508,191.
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ISSUE/BACKGROUND:
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The RTA currently utilizes fuel cards to refuel our paratransit and support fleet gasoline vehicles. However, our existing fuel contract has expired, and we are currently operating on a month-to-month basis with our current fuel provider (refer to 23-080). The agency recently conducted an RFP process with RFP 2022-019 to secure a new fuel contract, but unfortunately, the bid was found to be unresponsive.
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DISCUSSION:
In light of unresponsive RFP bids, the staff has turned to the state contract that offers fuel dispensing services similar to what the agency is currently receiving. By utilizing the Louisiana State contract fuel card program, the agency can enjoy several benefits, including federal tax exemptions per gallon, bulk fuel incentives, no setup fees for the card program, and rebates.
It is important to note that the City of New Orleans and other Louisiana State agencies are already utilizing this state contract for their fueling needs. One notable example where this arrangement could prove beneficial is during hurricane events. The agency previously relied on city fueling stations during Hurricane Ida, and being on the state contract for fuel could simplify the process if the agency needs to use these pumps again in the future.
To proceed with this arrangement, staff recommends establishing a purchase order for a three-year contract with two one-year options, utilizing the state's fueling contract number 4400008141.
FINANCIAL IMPACT:
Fuel services for paratransit and non-revenue vehicles are locally funded through local accounts 1430099.8030.081, 1430099.9221.181, 1450006.8030.03105, 1450006.9221.03105. It is estimated that the three-year cost of these fueling services will be four million five hundred eight thousand one hundred ninety-one dollars $4,508,191. The estimated remaining FY 2023 cost is eight hundred ninety-two thousand six hundred eighty-four dollars $892,864.89.
NEXT STEPS:
Once approved staff will begin to work on implementing the new fuel card program.
ATTACHMENTS:
1. Resolution
2. Procurement routing
3. State fuel card flyer
Prepared By: Jacques Robichaux
Title: Director of Maintenance
Reviewed 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