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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Patrick Preusser, Chief Operating Officer |
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PRESENTER(S): |
Nathan Hess (Fleet Engineering Supv)/PM |
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Lynnette Moody (Fleet Engineering Proj Admin) |
TITLE:
title
Contract: Red Diesel and Unleaded Gasoline Fuel Supply and Services (Rhinehart Oil Company)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve award and authorize Executive Director to execute the contact and associated disbursements with Rhinehart Oil Company a Division of Parkland USA, in the Not-To-Exceed amount of $108,138,479.48 over five years for 2025-2029.
BACKGROUND:
UTA requires Diesel and Gasoline for a large portion of the buses, commuter rail, and other operation (non-revenue) vehicles.
After conducting a Request for Proposal (RFP) solicitation, UTA received multiple proposals. After evaluation, UTA chose to proceed with Rhinehart Oil Company a Division of Parkland USA, based on best value offered to UTA.
DISCUSSION:
UTA Staff is requesting approval of the contract, not-to-exceed (NTE) $108,138,479.48 over a five (5) year period. The contract period will commence upon approval and will expire five (5) years from the commencement date. This contract is to provide reliable and consistent fuel supply and monitoring services for No.2 ‘Red’ Diesel and Unleaded Gasoline 87 Octane 10% Ethanol fuels in support of UTA Revenue (Buses & Rail-Locomotive) and Non-Revenue (Auto), Vehicles.
The contract shall not exceed the amounts as stated in this memo.
CONTRACT SUMMARY:
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Contractor Name: |
Rhinehart Oil Company a Division of Parkland USA |
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Contract Number: |
24-03872BCM |
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Base Contract Effective Dates: |
January 1, 2025 thru December 31, 2029 |
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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: |
NTE of $108,138,479.48 over 5 years |
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Procurement Method: |
RFP |
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Budget Authority: |
Proposed 2025 Operating Budget |
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ALTERNATIVES:
Without a contract UTA would have to purchase fuel at street pricing with fluctuations in the market.
FISCAL IMPACT:
The 2025 proposed final budget includes $21,293.345.00 for Diesel & Gasoline Fuels. Board approval of 2025 budget must precede approval of this contract. Projected funding $86,845,134.48 requests for future years 2026, 2027, 2028, and 2029. The total 5-year Not-To-Exceed (NTE) amount is $108,138,479.48. All funds will come from the Diesel and Gasoline Fuel operating expense line items in the applicable End-User’s Department of Operations Fuel (Diesel & Gasoline) budgets for User Groups 3100, 3200, 3300, 3400, 3900, 4600.
2025 Expenditure Request: $21,293,345.00 (included in the proposed final 2025 Operating Budget)
2026 Expenditure Request: $21,455,715.80
2027 Expenditure Request: $21,622,771.40
2028 Expenditure Request: $21,794,749.26
2029 Expenditure Request: $21,971,898.02
Expected 5-year spend: $108,138,479.48
ATTACHMENTS:
1) Contract