Annually, the Village purchases approximately 165,000 gallons of unleaded gasoline and 75,000 gallons of bio-diesel fuel to operate our vehicles and various pieces of equipment.

The Village awarded a three-year contract, and up to three annual contract extensions, with Gas Depot for unleaded and bio-diesel fuel, at the September 4, 2018 Village Board meeting, after a public bid process. In accordance with Village purchasing guidelines, staff is requesting the second of three possible one-year contract extensions. 

The price for the fuel is determined by the Oil Price Information Service (OPIS) price on the day of delivery, plus the vendor’s mark-up. OPIS provides the most widely accepted fuel price benchmarks for contracts. The OPIS benchmark is used by Federal, State, Municipal and County Governments to allow competitive contract pricing while accounting for market volatility. Since petroleum prices change frequently, the Village’s price is based on a corresponding mark-up for each fuel type. 

Gas Depot has agreed to extend the contract for one additional year, with no price increase and with the corresponding delivery mark-up pricing of: -.0326 for regular unleaded fuel and +.0013 for bio-diesel fuel. Staff has been satisfied with their services and recommends award.

Funds for the fuel purchases are available in Account No, 101-7101-531.30-50.

RECOMMENDATION

It is recommended that the Village Board approve a one-year contract extension for unleaded gasoline and bio-diesel fuel to Gas Depot of Morton Grove, Illinois and authorize staff to execute the necessary documents.