HCPS FL Logo Business
Action Item
DATE: Tuesday, October 14, 2014
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Accept the Lowest and Best Bids Submitted by Various Vendors-Invitation to Bid (ITB) #14099-DST Fuel (OPIS Pricing) (Business Division)
EXECUTIVE SUMMARY
This bid was prepared for our district to establish a contract with a fuel vendor who can provide fuel and fixed fees at a low cost and guarantee delivery.

Hillsborough County Public Schools purchases diesel fuel in two ways.  Approximately half of our volume is contracted as future purchases on a New York Mercantile Exchange fuel settlement price plus a guaranteed differential, as approved by the Board on June 15, 2010.  The other half of our volume is purchased on a wholesale market for immediate delivery.  Market research revealed there may be a possibility of lowering our current pricing structure.  This contract will allow our district to utilize floating wholesale rack fuel prices, as published weekly by the Oil Price Information Service (OPIS).

This contract may be renewed four additional one-year periods, provided all terms and conditions remain unchanged and in full force and effect. This option to renew requires the mutual agreement of both parties. Refusal by either party to exercise this option to renew will require this contract to expire on the original or mutually agreed date.  The Superintendent is authorized to approve the renewal agreement, per the terms of the specifications.

STRATEGIC OBJECTIVES
• Align financial resources to support the district’s strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
Expenditures for our wholesale purchases were $5,366,709 for 2013/2014.  A reduction in pricing will result in a savings to the district of approximately $54,342 from the previous year.
EVALUATION
Contract administration or evaluation is performed by the Project Manager (end user) and Procurement Officer, who function as a team.  Reviews are conducted face to face, typically quarterly, or by utilizing an online vendor performance report.  Prior to soliciting a new contract, the Contract Administration Team must first give consideration to the specifications and supporting data of the expiring contract.
SUBMITTED BY:  Jean Bowman, General Manager, Procurement Department
Christopher Farkas   Gretchen Saunders
Chief Facilities Officer
(813) 272-4004
  Chief Business Officer
(813) 272-4270
    A 6.08
Hillsborough County Public Schools (Florida) * Mtg.#20141014_643 (Board Meeting) * Section A Item# 6.08