Broward County Commission Regular Meeting
Director's Name: Coree Cuff Lonergan
Department: Transportation
Information
Requested Action
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MOTION TO APPROVE threshold increase of $8,400,000 for the initial two-year term and $8,800,000 for each of the remaining eight one-year renewal periods for open-end contract with Port Consolidated, Inc. for the Unleaded Gas and Diesel Fuel Contract TRN2124222G1, which will result in an increase of the overall contract threshold of $78,800,000 for a new estimated total of $268,800,000 for the ten-year term.
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Why Action is Necessary
In accordance with the Broward County Procurement Code, Section 21.47, the Board is required to approve purchases with a value of more than $500,000.
What Action Accomplishes
Provides an increase in the current contract threshold for the Unleaded Gas and Diesel Fuel Contract TRN2124222G1 in order to meet and sustain County Transit and Fleet vehicle operations.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
April 26, 2022, Item No. 29
Summary Explanation/Background
THE TRANSPORTATION DEPARTMENT AND THE PURCHASING DIVISION RECOMMEND APPROVAL
The Transportation Department’s Fleet Service Division is requesting an increase in the two-year contract threshold amount of $8,400,000 and an increase in the one-year renewal option threshold amounts of $8,800,000 which will result in an increase of the overall contract threshold of $78,800,000 based on the remaining eight one-year renewal options for the Unleaded Gas and Diesel Fuel Contract TRN2124222G1 for a total of $268,800,000 for the ten-year term.
This contract threshold increase request is due to unprecedented escalation of fuel prices, at times 70% higher than anticipated averages, and unforeseen increased fuel usage within the initial two-year term of the contract and is necessary to ensure adequate threshold is available for the procurement of unleaded gas and diesel fuel to sustain County transit and fleet vehicle operations into the future.
Due to delays in the production and delivery of electric buses and a shortage of available light-duty electric passenger vehicles from automobile manufacturers for Broward County’s fleet, fuel usage has not decreased as anticipated.
As background, on April 26, 2022, Item No. 29, the Board awarded an open-end contract to highest ranked proposer, Port Consolidated, Inc., for Unleaded Gasoline & Diesel Fuel for Southeast Florida Governmental Purchasing Cooperative Group, Request for Proposals No. E-03-22, for the Fleet Services Division and other Broward County agencies, in the initial estimated two-year amount of $38,000,000 and authorized the Purchasing Director to renew the contract for up to eight additional one-year periods for a ten-year total potential estimated amount of $190,000,000. The purpose of this contract is to provide unleaded gasoline and diesel fuel for countywide use and regional emergency storage to ensure continuity of the County’s operations. The Southeast Florida Governmental Purchasing Cooperative Group is an organization of various Southeast Florida cities, counties and governmental agencies that provides for cooperative purchasing by which quantities for the same item are combined to achieve economies of scale through volume discount pricing. The City of Pompano Beach was the lead agency and facilitated the solicitation and subsequent implementation of the initial contract with Port Consolidated; however, the contract issued by the County, TRN2124222G1, reflected only the County’s estimated usage.
Source of Additional Information
Coree Cuff Lonergan, Director, Transportation Department (954) 357-8361
Ross Meslin, Director, Fleet Services Division (954) 357-6492
Fiscal Impact
Fiscal Impact/Cost Summary
Each requirement processed against the open-end contract will be funded by the appropriate source at the time of release.