Item Coversheet

Competitive Bid Reports - C2  K




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:June  28, 2023
 



SUBJECT:REQUEST FOR APPROVAL TO AWARD CONTRACTS PURSUANT TO INVITATION TO BID (ITB) 2023-378-LB PICKUP AND DELIVERY OF UNLEADED GASOLINE AND DIESEL FUEL.

RECOMMENDATION

It is recommended that the Mayor and City Commission approve the award of contracts to the following firms, pursuant to Invitation to Bid (ITB) No. 2023-378-LB, for unleaded gasoline and diesel fuel: Black Oil Inc. as primary vendor for line items A3, A4, B1 and B2, Indigo Energy Partners LLC as primary vendor for line items A5 and A6 and secondary vendor for line items A3 and A4, Mansfield Oil Company of Gainesville, Inc. as tertiary vendor for line items A1 and A2, Saratoga Rack Marketing LLC as secondary vendor for A1 and A2, and Sunoco LLC d/b/a Gladieux Energy as primary vendor for line items A1 and A2 and secondary vendor for line items A5, A6, B1, and B2 and tertiary vendor for A3 and A4.

 

This solicitation is currently under the cone of silence.

BACKGROUND/HISTORY

The City is currently utilizing ITB 2018-014-AG for the pickup and delivery of unleaded gasoline and diesel fuel. This ITB intends to establish replacement contracts with a qualified vendors for 1) the delivery of diesel and unleaded gasoline to various facilities City-wide, and 2) the City pick-up of diesel and unleaded gasoline at the vendor(s) facility on an as-needed basis.

 

The principal user departments from the contract established pursuant to this solicitation are the Facilities and Fleet Management Department and the Public Works Department. During Fiscal Year 2022 (October 1, 2021 – September 30, 2022), the City spent approximately $2.7 million in diesel fuel and unleaded gasoline.

ANALYSIS

On April 7, 2023, the ITB was issued. A pre-bid conference to provide information to proposers submitting a response was held on April 20, 2023. One (1) addenda was issued. The Procurement Department issued bid notices to approximately 7,909 companies utilizing the City's e-procurement system, with 33 prospective bidders accessing the solicitation. Responses were due and received on May 24, 2023. The City received five (5) responses from the following firms: Black Oil Inc., Indigo Energy Partners LLC, Mansfield Oil Company of Gainesville, Inc., Saratoga Rack Marketing LLC, and Sunoco LLC d/b/a Gladieux Energy. The tabulation of responses submitted is included in Attachment A.

 

The solicitation stated that the lowest responsive, responsible Bidder meeting all terms, conditions, and specifications would be recommended for award. Staff from the Procurement Department and Facilities and Fleet Management Department have verified that the lowest responsive bids meet the requirements of the solicitation, including compliance with submittal requirements and prior experience as follows:

 

Group A – Delivery

A1 Diesel (Transport Vehicle – >5,000 gallons)

Primary: Sunoco LLC d/b/a Gladieux Energy

Secondary: Saratoga Rack Marketing LLC

Tertiary: Mansfield Oil Company of Gainesville, Inc.

 

A2 Unleaded Gasoline (Transport Vehicle – >5,000 gallons)

Primary: Sunoco LLC d/b/a Gladieux Energy

Secondary: Saratoga Rack Marketing LLC

Tertiary: Mansfield Oil Company of Gainesville, Inc.

 

A3 Diesel (Tank Wagon Vehicle – 5,000 - 500 gallons)

Primary: Black Oil Inc.

Secondary: Indigo Energy Partners LLC

Tertiary: Sunoco LLC d/b/a Gladieux Energy

 

A4 Unleaded Gasoline (Tank Wagon Vehicle – 5,000 - 500 gallons)

Primary: Black Oil Inc.

Secondary: Indigo Energy Partners LLC

Tertiary: Sunoco LLC d/b/a Gladieux Energy

 

A5 Diesel (Truck – <500 gallons)

Primary: Indigo Energy Partners LLC

Secondary: Sunoco LLC d/b/a Gladieux Energy

 

A6 Unleaded Gasoline (Truck – <500 gallons)

Primary: Indigo Energy Partners LLC

Secondary: Sunoco LLC d/b/a Gladieux Energy

 

Group B Item

B1 Pick Up of Diesel

Primary: Black Oil Inc.

Secondary: Sunoco LLC d/b/a Gladieux Energy

 

B2 Pick Up of Gasoline

Primary: Black Oil Inc.

Secondary: Sunoco LLC d/b/a Gladieux Energy

 

Below are brief descriptions of the lowest, second-lowest, and third-lowest responsive and responsible bidders.

 

Black Oil Inc.

Black Oil was incorporated in 2016 and is headquartered in Medley, Florida. According to the information provided by Black Oil, customers include Miami-Dade County Public Schools and the City of Homestead.

 

Indigo Energy Partners LLC

Indigo Energy supplies fuel across 46 states in the US and has 11 fuel terminals in Florida. Indigo Energy is also an awarded contractor on Miami Dade County Contract No. RTQ-00676. According to the information provided by Indigo Energy, customers include the State of South Carolina, the City of Ocala, and Marion County.

 

Mansfield Oil Company of Gainesville, Inc.

Mansfield has been in business for over 60 years and is an awarded vendor on multiple contracts, such as Miami Dade County Contract No. RTQ-00676 and State of Florida Contract No. 15100000-19-1. The City has procured fuel from Mansfield pursuant to ITB 2018-014-AG since 2018. Before the ITB 2018-014-AG award, the City procured fuel from Mansfield pursuant to the State of Florida contract. According to the information provided by Mansfield, other customers include Hillsborough Area Transit Authority (HART), FL, Miami-Dade County Schools, FL, and the Schoolboard of Okaloosa County. Mansfield has access to multiple terminals throughout the State of Florida, including Port Everglades, Cape Canaveral, and Tampa.

 

Saratoga Rack Marketing LLC

Saratoga has provided wholesale supply and distribution services since 2010. Since Saratoga's formation, it has acquired SC Fuels and Pro Petroleum, resulting in a combined 100-year experience in the commercial fuel supply industry. Currently, it supplies and distributes over 5 billion gallons annually. According to the information provided by Saratoga, customers include the City of Opelika, the Arizona Department of Transportation, and Tarrant County.

 

Sunoco LLC d/b/a Gladieux Energy

Sunoco, LLC completed the acquisition of Gladieux Energy, LLC; Gladieux Trading & Marketing, LLC; Gladieux Logistics, LLC; and Gladieux Processing, LLC, effective on April 1, 2022. These entities have all been operating as subsidiaries of Sunoco, LLC since that time. Sunoco's lineage traces back over a century to Pennsylvania in 1886. Since then, the company has developed a network of independent distributors, operators, and commercial customers in more than 30 states, through which Sunoco distributed approximately 8 billion gallons of fuel in 2021. According to the information provided by Sunoco, customers include Greater Dayton Regional Transit Authority, Pennsylvania Turnpike Commission, and Southeastern Pennsylvania Transportation Authority.

SUPPORTING SURVEY DATA

N/A

FINANCIAL INFORMATION

The pricing received pursuant to this ITB reflects an average increase of 27% compared to similar line items in the previous ITB for these services. The Consumer Price Index (CPI) reflects a 77.7% increase in the price of motor fuel since 2018. Therefore, because the pricing received for ITB 2023-378-LB is lower than the inflation rate in recent years, the Administration believes it is in the City's best interest to award contracts to the contractors mentioned above. The City estimates an annual expenditure of $3,112,000.00

Amount(s)/Account(s):

Facilities:

Account No: 520-1720-000325-29-413-592-00-00-00-……..$18,000.00

Account No: 168-9964-000325-29-402-592-00-00-00-…........$4,000.00

Account No: 480-0463-000325-27-413-526-00-00-00-……….$3,000.00

Account No: 463-1990-000325-31-413-526-00-00-00-……….$3,000.00

Account No: 467-1996-000325-31-413-526-00-00-00-……….$3,000.00

 

Fleet Management:

Account No. 510-1780-000351-29-412-592-00-00-00-… $3,065,000.00

 

Public Works:

 Account No: 425-0410-000351-29-412-592-00-00-00-……… $3,000.00

 Account No: 425-0420-000351-29-412-513-00-00-00-……….$5,000.00

 Account No: 427-0427-000351-29-412-592-00-00-00-……….$8,000.00

 

At this time, grant funding is not anticipated. 

CONCLUSION

Based on the preceding, it is recommended that the Mayor and City Commission of the City of Miami Beach, Florida, approve the award of a contract to the following firms pursuant to Invitation to Bid (ITB) No. 2023-378-LB Pickup and Delivery of Unleaded Gasoline and Diesel Fuel: Black Oil Inc. as the primary vendor for line items A3, A4, B1 and B2, Indigo Energy Partners LLC as the primary vendor for line items A5 and A6 and secondary vendor for line items A3 and A4, Mansfield Oil Company of Gainesville, Inc. as the tertiary vendor for line items A1 and A2, Saratoga Rack Marketing LLC as the secondary vendor for A1 and A2, and Sunoco LLC d/b/a Gladieux Energy as the primary vendor for line items A1 and A2, the secondary vendor for line items A5, A6, B1, and B2, and tertiary vendor for A3 and A4.

Applicable Area

Not Applicable
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Non-Applicable
Legislative Tracking
Facilities and Fleet Management/Public Works/Procurement

ATTACHMENTS:
Description
Attachment A