Explanation
BACKGROUND: This legislation is for the option to establish a UTC contract for Ultra Low Sulfur Diesel, BioDiesel and Non-Road Diesel for the Division of Fleet Management, the primary user. This contract will provide for the purchase of various diesel fuels for delivery at various City of Columbus locations, for use in vehicles and various non-vehicle equipment such as generators and pumps. The term of the proposed option contract would be approximately two years, expiring September 30, 2016, with the option to renew for one (1) additional year. The Purchasing Office opened formal bids on June 12, 2014.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation No. SA005400). Twenty-one (21) bids were solicited: (M1A-0, F1-0, MBR-2). Six (6) bids were received.
Due to inherent issues with diesel fuel gelling in cold weather and with the large volume of deliveries the City of Columbus requires, specifications require that the successful bidder also own their own terminals to afford greater control and reliability. The first two apparent low bidders did not meet that requirement and are non-responsive. The next low bidder meets that requirement. The Purchasing Office is recommending award to the overall lowest, responsive, responsible and best bidder as follows:
Benchmark Biodiesel, Inc., MAJ, CC# 26-1274251 expires 05/16/2016, All Items, $1.00
Total Estimated Annual usage 1.3 million gallons, Division of Fleet Management, the primary user
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search. This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle and the efficient delivery of valuable public services will be slowed.
FISCAL IMPACT: Funding to establish this option contract is from the General Fund. City Agencies will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures.
Title
To authorize the Finance and Management Director to enter into a contract for the option to purchase Ultra Low Sulfur Diesel, BioDiesel and Non-Road Diesel with Benchmark Biodiesel, Inc., to authorize the expenditure of $1.00 to establish the contract from the General Fund, and to declare an emergency. ($1.00).
Body
WHEREAS, Ultra Low Sulfur Diesel, BioDiesel and Non-Road Diesel is used in vehicles and various equipment throughout the City of Columbus; and,
WHEREAS, the Purchasing Office advertised and solicited formal bids on June 12, 2014 and selected the overall lowest, responsive, responsible and best bidder; and
WHEREAS, this ordinance addresses Purchasing objective of 1) maximizing the use of City resources by obtaining optimal products/services at low prices and 2) encouraging economic development by improving access to City bid opportunities and 3) providing effective option contracts for City agencies to efficiently maintain their supply chain and service to the public; and
WHEREAS, in order to maintain a supply of Ultra Low Sulfur Diesel, BioDiesel and Non-Road Diesel, this is being submitted for consideration as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the Purchasing Office in that it is immediately necessary to enter into a contract for the option to purchase Ultra Low Sulfur Diesel, BioDiesel and Non-Road Diesel, thereby preserving the public health, peace, property, safety, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and is hereby authorized to enter into the following contract for the option to purchase Ultra Low Sulfur Diesel, BioDiesel and Non-Road Diesel in accordance with Solicitation No. SA005400 for a term of approximately two years, expiring September 30, 2016, with the option to renew for one (1) additional year, as follows:
Benchmark Biodiesel, Inc., All Items, $1.00
SECTION 2. That the expenditure of $1.00 is hereby authorized from the General Fund, Organization Level 1: 45-01, Fund 10, OCA: 450047, Object Level 3: 2270 to pay the cost thereof.
SECTION 3. That for the reason stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.