TITLE
Recommendation to adopt Specifications No. PA-00506; and award contracts to GP Resources, Inc., and Rosemead Oil Products, Inc., for furnishing and delivering petroleum products, in the estimated annual amount of $152,000 for the period of one year, with the option of renewing for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is being requested to enter into contracts for furnishing and delivering
petroleum products. Petroleum products include oils, lubricants and solvents that are
required to support City-owned equipment and vehicles.
The bid was advertised on November 28, 2005, and 18 potential bidders specializing in
petroleum products were notified; two are Minority-owned Business Enterprises (MBEs),
three are Women-owned Business Enterprises (WBEs), and two are Long Beach
businesses. The bid document was made available from the Purchasing Division located
announcement was also included in the Purchasing Division's weekly update on Open Bid
Opportunities, which is sent to 32 local, minority, and women's groups. Bids were opened
on December 1, 2005. GP Resources, Inc., of Rancho Dominguez, and Rosemead Oil
Products, Inc., of Santa Fe Springs, CAI were the lowest responsible bidders.
This matter was reviewed by Senior Deputy City Attorney Donna F. Gwin on November 7,
2005 and Budget Management Officer David Wodynski on December 8,2005.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-00506 and award the contracts
concurrently is requested on December 20, 2005 to ensure that the contracts are in place
prior to the expiration of the current contract. The contracts will have a start date of
January 19, 2006, which is the expiration date of the old contract.
FISCAL IMPACT
The cost of the contracts, in the estimated amount of $135,000 annually, is budgeted in the
Fleet Services Fund (IS 386) in the Department of Public Works (PW), plus $3,500 in the
Harbor Operations Fund (HR) in the Harbor Department (HA) and $14,000 in the Water
and Sewer Funds (EF) in the Water Department (WA). The annual amount is based on
historical expenditures and reflects a slight increase from the amount awarded in the
previous contract due to the increased cost of materials. The term of the contract will be
one year with the option for two additional one-year periods. The City will have the option
of adding expenditures up to 10 percent above the contract amount.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL A. KILLEBREW
DIRECTOR OF FINANCIAL MANAGEMENT