HCPS FL Logo Business
Action Item
DATE: Tuesday, March 24, 2015
TO: School Board Members
FROM: Jeff Eakins, Acting Superintendent
SUBJECT / RECOMMENDATIONS
Accept the Lowest, Responsive, Responsible Bid Submitted by TAC Energy - Invitation to Bid (ITB) #15027-DST Fuel Purchases (NYMEX Futures Pricing) (Business Division)
EXECUTIVE SUMMARY
This bid was prepared to establish a contract with a fuel vendor to provide fuel at the lowest cost, fixed fees (differential).

Hillsborough County Public Schools (HCPS) purchases diesel fuel in two ways.  Approximately half of our fuel volume is acquired as future purchases on the New York Mercantile Exchange (NYMEX) fuel settlement price, plus a contracted differential fee.  The other half of our fuel volume is purchased via current pricing on the wholesale market for immediate delivery, approved by the Board on October 14, 2014.

A unit price (per gallon) will be computed, based on the fixed price differential plus the applicable NYMEX fuel settlement price.  The Procurement Department monitors the fluctuation of fuel prices on a daily basis.

This contract may be renewed for 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.  The Superintendent is authorized to approve the renewal agreement, per the terms of the specifications.

STRATEGIC OBJECTIVES
•¬†Align financial resources to support the districts strategic goals •¬†Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
Year-to-date expenditures for 2014/2015 are $3,650,749 and $4,784,390 for 2013/2014.  A reduction in pricing will result in a savings to the district of approximately $9,000 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 6.10
Hillsborough County Public Schools (Florida) * Mtg.#20150324_686 (Board Meeting) * Section A Item# 6.10