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Legislation Details
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Type:
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Procurement Contract/Change Order
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Status:
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Passed
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On agenda:
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2/22/2023
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Final action:
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2/22/2023
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Title:
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Contract: Oil, Lubricant, and Fluid Products for Bus and Rail Maintenance (VGP Holdings, LLC/Valvoline)
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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Cherryl Beveridge, Chief Operating Officer |
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PRESENTER(S): |
Nathan Hess, Fleet Engineering Supervisor |
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Brent Miller, Contract Buyer |
TITLE:
title
Contract: Oil, Lubricant, and Fluid Products for Bus and Rail Maintenance (VGP Holdings, LLC/Valvoline)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve award and authorize Executive Director to execute this contract and associated disbursements with VGP Holdings LLC/Valvoline to provide oil, lubricant, and fluids as presented in the estimated amount of $4,108,987.
BACKGROUND:
UTA’s Revenue fleet requires following a regular maintenance schedule to maintain warranty and expected life of our fleet. This contract will provide several of the oils, greases, and coolants that UTA uses to meet this requirement.
DISCUSSION:
This procurement was completed as an invitation for bid (IFB) and resulted in contracts between Utah Transit Authority (UTA) and multiple awardees (see below) to supply UTA with oils, lubricants, and fluids for all of its bus & rail divisions in support of vehicle and facility maintenance. Valvoline provides a high-quality product that meets or exceeds our specifications.
Solicitation: IFB 22-03628BCM for RSS 11291.
Applicable Contracts: 22-036281, 22-036282, 22-036283, 22-036284, & 22-036285
These contracts will be for five (5) years to commence upon approval and will expire when all services have been received approximately December 31, 2027. The combined pricing for all five (5) contracts is estimated at $5,940,353.07 over a five (5) year period.
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Yr1 (2023) |
Yr2 (2024) |
Yr3 (2025) |
Yr4 (2026) |
Yr5 (2027) |
5yr Total/Supplier (PO) |
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Crus Oil |
$ 113,345.09 |
$ 121,890.47 |
$ 76,299.13 |
$ 133,723.24 |
$ 85,657.03 |
$ 530,914.97 |
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Rhinehart Oil |
$ 80,553.78 |
$ 216,918.44 |
$ 212,665.13 |
$ 216,918.44 |
$ 212,665.13 |
$ 939,720.93 |
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Senergy Petroleum |
$ 2,095.47 |
$ 2,158.33 |
$ 2,201.51 |
$ 2,245.52 |
$ 2,290.45 |
$ 10,991.28 |
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Solutions Plus |
$ 66,233.70 |
$ 69,169.46 |
$ 69,392.70 |
$ 72,391.64 |
$ 72,551.70 |
$ 349,739.21 |
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Valvoline |
$ 858,996.03 |
$ 916,684.78 |
$ 672,062.36 |
$ 961,536.07 |
$ 699,707.44 |
$ 4,108,986.69 |
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Annual Total |
$ 1,121,224.07 |
$ 1,326,821.49 |
$ 1,032,620.83 |
$ 1,386,814.92 |
$ 1,072,871.76 |
$ 5,940,353.07 |
The pricing presented on the price forms with each contract are estimates only based on UTA’s best estimate for forecast usage over a five (5) year period. The estimated usage was only used to allow bidders to quote realistic pricing and are not an obligation to purchase.
The contract values for each supplier shall not exceed the amounts as stated in this board memo and in accordance with the limits of the RSS requisition.
Actual cost will be tracked and managed by the Procurement Department via POs within UTA’s ERP system JDE.
CONTRACT SUMMARY:
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Contractor Name: |
VGP Holdings LLC/Valvoline |
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Contract Number: |
22-036284BCM |
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Base Contract Effective Dates: |
2/22/2023 to 12/31/2027 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$4,108,987.00 (estimated) |
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Procurement Method: |
IFB |
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Budget Authority: |
2023 Operation Maintenance Budget and 5-Year Transit Financial Plan |
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ALTERNATIVES:
There are additional vendors that can provide the fluids and lubricants. Valvoline has given us the best value currently for this contract.
FISCAL IMPACT:
The cost of this contract is estimated at $821,798.00 a year for a total of $4,108,987 over the Five-year contract.
ATTACHMENTS:
22-036284 Valvoline IFB 22-03628BCM Oils Lubes, & Fluids MB signed
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