Hillsborough County Public Schools Business
Action Item

DATE: Tuesday, September 26, 2006
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Accept the Lowest and Best Bids Submitted by J.H. Williams Oil Corporation as the Primary Vendor and Petroleum Traders Corporation as the Secondary Vendor - Invitation to Bid #4846-HM Fuel Purchases (Business Division)

EXECUTIVE SUMMARY

This bid was prepared at the request of the Transportation Department to establish a fixed fee to be added to the price of fuel. Given the uncertainty of fuel prices, this contract allows the District to utilize floating fuel prices as published weekly by the Oil Price Indicator Service (OPIS), or fixed fuel prices as reported by the New York Mercantile Exchange. Beginning in September 2005, the District utilized the fixed method to purchase fuel at an average cost, including fees and taxes, of $2.49 per gallon. If fuel were currently purchased using the floating method, fuel would be purchased at $2.36 per gallon. A one cent (.01) difference in fuel price equates to approximately $30,000. Staff will monitor the fluctuation of fuel prices and recommend to the Chief Business Officer the optimal time to establish a fixed fuel price. This award is made to the lowest responsive and responsible bidders meeting specifications. To improve upon the likelihood of being able to timely respond to emergency needs, such as hurricanes, the ITB specified primary award to a vendor with a local presence in the Tampa Bay area. The recommended secondary vendor is not required to have a local presence and will be used as a backup in times of emergencies. This recommendation has been reviewed by the General Director of Transportation. To ensure fair and open competition, the District utilizes an online vendor registration system to notify potential bidders of opportunities. Through this system, two (2) bidders responded. A more detailed review of specifications can be obtained by contacting the Purchasing Department.

ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)

As stated in OPPAGA report: "Efficient purchasing and warehousing require that management processes be in place to ensure that supplies, equipment, and services vital to the school’s education mission are purchased from a competitive source, in the right quantity, delivered timely to the correct location, and stored in a secure location. These criteria should be met for each purchase without sacrificing quality."

FINANCIAL IMPACT (Budgeted: Yes)

These items are, or will be, included in the General Fund Budget in an amount not to exceed $10,000,000.

EVALUATION

Contract administration or evaluation is performed by the Project Manager (end user) and Purchasing Agent, 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: Willie T. Campbell, CPPO, CPPB, General Manager of Procurement

Jack E. Davis
Chief Information Officer
(813) 272-4600
Gretchen Saunders
Chief Business Officer
(813) 272-4270
5.23
Hillsborough County Public Schools (Florida) * Mtg.#20060926_184 * Section E Item# 5.23