Item 4G - MemoM E M O R A N D U M
October 6, 2020
To: Shana Yelverton
From: Sharen Jackson, Chief Financial Officer
Tim Slifka, Purchasing Manager
Subject: Item 4G Authorize Annual Fuel Purchases from US Venture Inc for
City Vehicles and Equipment in an Amount Not to Exceed $333,711
Action
Requested: Approve annual City fuel purchases through a cooperative
purchasing agreement with OMNIA/National Intergovernmental
Purchasing Alliance (National IPA) and City of Fort Worth through
US Venture Inc.
Background
Information: The City purchases fuel from US Venture Inc. utilizing a
cooperative purchasing agreement with OMNIA/National IPA and
the City of Fort Worth. This agreement is based on a nationally
awarded cooperative purchasing fuel contract. The contract
provides the City with the best overall pricing for fuel. The
estimated fuel cost for FY 2020 is approximately $202,000.
Fiscal Year Budgeted Actual
FY 2018 $351,500 $265,400
FY 2019 $351,500 $263,022
FY 2020 $348,800 202,000 (est)
FY 2021 333,711
Financial
Considerations: Maintain lowest available fuel cost for the City. Fuel purchases will
be funded through department budgets for FY 2021.
Strategic Link: B2 – Collaborate with select partners to implement service
solutions.
Citizen Input/
Board Review: None
Legal Review: Interlocal purchasing is allowed through Local Government Code
271.102. City Attorney’s have reviewed interlocal agreements.
Alternatives: Deny, City release local fuel bids for fuel or purchase fuel retail.
Supporting
Documents: Interlocal Agreements with OMNIA/National IPA and City of Fort
Worth
Staff
Recommendation: Approve purchasing City fuel through OMNIA/National IPA and
City of Fort Worth national fuel contract from US Venture Inc.
CITY SECRETARY
RACTNO. 533N (A
CITY OF FORT WORTH
ASSIGNMENT
For value received, Martin Eagle Oil Company, Inc. ("Assignor"), hereby assigns to U.S.
Venture, Inc. ("Assignee"), all of its right, title and interest in and to any and all sums of money
now due or to become due from the City of Fort Worth to Assignor under PSK 9263/ CSCO
53316 (the "Contracts") and Assignee agrees to assume and perform all duties and obligations
required by Assignor under the terms of the Contracts.
This Assignment constitutes the entire agreement between Assignor and Assignee with
respect to the subiect matter hereof. No modification of any provision of this Assignment shall
be effective unless in writing and signed by Assignor and Assignee. This Assignment shall inure
to the benefit of and be binding upon Assignor and Assignee and their respective successors and
assigns. This Assignment shalt be governed by the terms of the original Contracts between
Assignor and various other entities and the City of Fort Worth and the laws of the State of Texas,
without application of principles of conflicts of law.
This Assignment may be executed in one or more counterparts each of which shall be
deemed an original but all of which together shall coustitlrte one and the same instrument.
Signed signature pages may be transmitted by facsimile or e-mail, and any such signature shall
have the same Iegal effect as an original.
Dated the /U day of k4a'"2020.
Martin Eagle Oil Company, Inc.
Assignor
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Title: Chief Operating Officer
U.S.Venture,Inc.
Assignee)
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NOTARY ACKNOWLEDGEMENT
On the )
Z day of 12 ;??A---_ _ 2020, personally appeared
1i 7&-2'Z ;Awho acknowledged to me that (s)he is the Chief Operating Officer of
Nlt ittn Eagle Oil Company, Inc., and that (s)hc executed this document for the purposes and
consideration contained herein.
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By:
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Itr atn a iy,Inc.
Print: Sae*hz 4. t,. vv^t S"I/
Title: Chief Operating Officer
SUBSCRIBED TO before me on this day of 1- ,2020.
fix'';" ANTOINMDHAMM
wYcoMMisNotary Public in and for the State of `%'rocJLILY1NOTARYIDMycommissionExpires: `2 •—%Z:2-—a
NOTARY ACKNOWLEDGEMENT
On Ile day of C 2020, personally appeared
who acknowledged to me that (s)he is theA , 5 r+r. pf
U.S. Venture, Inc., and that (s)he executed this document for the purposes and consideration
contained herein.
U.S. Venture, Inc.
By:
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Title: A50
SUBSCRIBER?TO befo[q pie on this tt10 day of 2020.
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CITY SECRETARY
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CONSENT TO ASSIGNMENT
The City of Fort Worth consents to the assignment of Martin Eagle Oil Company, Inc.
Assignor") to U.S. Venture, Inc. ("Assignee"), of all its rights, title, and obligation owing and
all funds due or to become due to Assignor under PSK 9263/CSCO 53316, as long as all terms
required of Assignor in said contracts are met by Assignee.
CITY OF FORT WORTH
44U L4 2D
Dana BurgO—ofVAS-sislit City Manager DATE
Cynthia Garcia, Assistant Director—FMS DATE
Attested By: 8` Syr
ary Ka cit36Wecretary k•,' DATE
APPROVED AS TO FORM AND LEGALITY:
Jo tro g, s is t City Attorney
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Assignment Page 3 of
Page 1 of 2
MOTOR AND AVIATION FUELS AND RELATED SERVICES
Executive Summary
Lead Agency: City of Fort Worth, Texas Solicitation: CFW01-19-0000037
RFP Issued: August 21, 2019 Pre-Proposal Date: September 4, 2019
Response Due Date: October 3, 2019 Proposals Received: #5
Awarded to:
The City of Fort Worth, Texas issued RFP CFW01-19-0000037 on August 21, 2019, to establish a national
cooperative contract for Motor and Aviation Fuels and Related Services.
The solicitation included cooperative purchasing language in the General Information, Section 1.2. National
Contract (RFP, Page 3):
NATIONAL CONTRACT
The City of Fort Worth, Texas as the Principal Procurement Agency (or “PPA”), defined in Attachment A, with
OMNIA Partners is working to make the resultant contract (also known as the “Master Agreement” in materials
distributed by OMNIA Partners) from this solicitation available to other public agencies nationally, including state
and local governmental entities, public and private primary, secondary and higher education entities, non profit
entities, and agencies for the public benefit (“Public Agencies”), through OMNIA Partners’ cooperative purchasing
program. The City of Fort Worth, Texas is acting as the contracting agency for any other Public Agency that elects
to utilize the resulting Master Agreement. Use of the Master Agreement by any Public Agency is preceded by their
registration with OMNIA Partners (a “Participating Public Agency”).
Notice of the solicitation was sent to potential offerors, as well as advertised in the following:
•City of Fort Worth, Texas website
•OMNIA Partners, Public Sector website
•USA Today, nationwide
•Arizona Business Gazette, AZ
•San Bernardino Sun, CA
•Honolulu Star-Advertiser, HI
•The Advocate – New Orleans, LA
•New Jersey Herald, NJ
•Times Union, NY
•Daily Journal of Commerce, OR
•The State, SC
•Houston Community Newspapers, Cy Creek
Mirror, TX
•Deseret News, UT
•Richmond Times, VA
•Seattle Daily Journal of Commerce, WA
•Helena Independent Record, MT
Page 2 of 2
On October 3, 2019 proposals were received from the following offerors:
• Mansfield Oil Company of Gainesville, Inc. • Martin Eagle Oil Company, Inc.
• Petroleum Traders Corporation • Pinnacle Petroleum, Inc.
• Truman Arnold Companies dba TAC Energy
The proposals were evaluated by an evaluation committee. Using the evaluation criteria established in the RFP,
the committee determined that five (5) companies demonstrated the ability to provide the products and services
outlined in the solicitation while offering competitive pricing to members.
• Mansfield Oil Company of Gainesville, Inc. • Martin Eagle Oil Company, Inc.
• Petroleum Traders Corporation • Pinnacle Petroleum, Inc.
• Truman Arnold Companies dba TAC Energy
City of Fort Worth, Texas executed agreements with a contract effective date of January 1, 2020.
Contracts include:
Motor Fuels and Aviation Fuels that is inclusive of all motor and aviation fuels to include: finished motor gasoline,
finished aviation gasoline, Kerosene-Type Jet Fuel, Distillate Fuel Oil for on-highway and off-highway diesel
engines, Renewable Green Diesel, Biodiesel, and Diesel Emission Fluid.
Term:
Initial one-year agreement from January 1, 2020 through December 31, 2020 with the option to renew
for a maximum of four (4) years (through December 31, 2024).
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/17/19 M&C FILE NUMBER: M&C 19-0413
LOG NAME: 13PMOTOR AND AVIATION FUEL LSJ PMD
SUBJECT
Award a Multiple National Award and Authorize Execution of Non-Exclusive Agreements with Mansfield Oil Co. of Gainesville, Inc., Martin Eagle
Oil Company, Inc., Truman Arnold Companies, Pinnacle Petroleum, Inc., and Petroleum Traders Corporation in an Annual Amount Up to
$12,000,000.00 for Motor Fuels and Aviation Fuels for the Property Management Department and Other Public Agencies; Authorize Execution of
a Rebate Agreement with National Intergovernmental Purchasing Alliance Company d/b/a OMNIA Partners, Public Sector (ALL COUNCIL
DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Award a multiple national award to Mansfield Oil Co. of Gainesville, Inc., Martin Eagle Oil Company, Inc., Truman Arnold Companies, Pinnacle
Petroleum, Inc., and Petroleum Traders Corporation as suppliers of motor and aviation fuels for public agencies in all forty-eight contiguous states
in the United States;
2. Authorize Execution of Non-Exclusive Agreements with Mansfield Oil Co. of Gainesville, Inc., Martin Eagle Oil Company, Inc., Truman
Arnold Companies, Pinnacle Petroleum, Inc., and Petroleum Traders Corporation in an annual amount up to $12,000,000.00 for Motor and
Aviation Fuels for the Property Management Department; and
3. Authorize Execution of a Rebate Agreement with National Intergovernmental Purchasing Alliance Company d/b/a OMNIA Partners, Public
Sector.
DISCUSSION:
The Property Management Department and other public agencies throughout the United States will use these agreements to obtain unleaded,
diesel, Jet-A fuels, and alternative fuels required in the DFW nonattainment area to supply and operate equipment. No guarantee was made that a
specific amount of these fuels would be purchased. Unleaded and diesel fuel will be used by various City departments. The Jet-A aviation fuel will
be used by the Police Department.
The City previously awarded separate agreements for unleaded fuels and diesel fuels on December 2, 2014 (M&C P-11056) and for Jet-A
aviation fuel on June 7, 2011 (M&C P-11716). The previous Agreements were competitively bid. During the previous year, the City purchased
approximately $5,370,552.18 of motor fuels and approximately $42,643.00 of Jet-A aviation fuels. The additional estimated annual amount listed
in this action is requested to cover potential increases in prices and volumes over the five year term of the Agreement. A price change of 50 cents
per gallon can impact the annual expenditures by $1,000,000.00.
Other public agencies participating in the previous agreements have purchased approximately 44,194,959 gallons of motor fuels. The City of Fort
Worth expects to save approximately $45,000.00 annually over previous agreements as a direct result of the increased volume of participation of
the other public agencies.
Under the Rebate Agreement, the City of Fort Worth will receive a minimum of 8.333 percent of a one-cent administration fee that is paid to
National Intergovernmental Purchasing Alliance d/b/a OMNIA Partners, Public Sector by the petroleum vendors for each gallon of fuel sold under
these national cooperative contracts. This rebate could generate approximately $50,000.00 annually in revenue to the City. The City will have no
liability or responsibility for purchases by other public agencies. The Non-Exclusive Agreements were bid as a National Cooperative Purchasing
Request for Proposals (RFP) to develop and encourage cooperative purchasing efforts to reduce the cost of motor and aviation fuel to the City
and other public agencies. The RFP included estimated annual quantities from current public agencies using the contract and allowed for
quantities additional new agencies may have under the contract with a total estimated quantity of 50 million gallons. The RFP evaluation factors
included responsiveness and clarity of proposal, ability to meet City of Fort Worth specifications, the National Program, vendor qualifications and
contract cost. Representatives of the City's Property Management Department, Fire, Police, Code Compliance, Transportation and Public Works
and Water Departments were invited to participant in the evaluation. However, only Purchasing Division, Property Management Department, and
Code Compliance participated in the evaluation of the proposals received and found all five participating fuel providers qualified in multiple
categories; Mansfield Oil Co. of Gainesville, Inc., Martin Eagle Oil Company, Inc., Truman Arnold Companies, Pinnacle Petroleum, Inc., and
Petroleum Traders Corporation to be the best evaluated firms for award of the agreements.
ADVERTISEMENT - A Request for Proposals (RFP) was advertised in the Fort Worth Star-Telegram on August 21, 2019, August 28, 2019,
September 4, 2019, September 11, 2019, September 18, 2019, September 25, 2019 and October 2, 2019. Thirteen vendors were solicited from
the purchasing database; five responses were received.
M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the
M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or
supplier opportunities are negligible.
ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to
$50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.
AGREEMENT TERM - Upon City Council approval, these Agreements shall have an initial term of five years beginning on January 1, 2020 and
ending on December 31, 2020.
RENEWAL OPTIONS - These Agreements may be renewed for up to four successive one-year terms at the City's option. This action does not
require specific City Council approval, provided the City Council has appropriated sufficient funds to satisfy the City's obligation during the renewal
term.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations funds are available in the current operating budget, as
appropriated, and that contingent on the approval and the adoption of the Fiscal Year 2021 Budget by the City Council, funds will be available in
the Fiscal Year 2021 Operating Budget, as appropriated, in the Fleet & Equipment Services (Fleet & Equip Serv) Fund. Prior to an expenditure
being incurred, the Property Management Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by: Kevin Gunn 2015
Originating Business Unit Head:Reginald Zeno 8517
Additional Information Contact:Cynthia Garcia 8525
LaKita Slack-Johnson 8314