Title
RESOLUTION AWARDING A CONTRACT TO HOLIDAY STATIONSTORES FOR SERVICE STATION FUELS FOR 2022 FOR AN AMOUNT NOT TO EXCEED $1,060,000.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a contract with Holiday Stationstores, for the purchase of service station fuels as-needed for year 2022 for an amount not exceed $1,060,000, payable from 660-015-5212 (fleet services fund; public administration; motor fuels)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution awards a contract to Holiday Stationstores (Holiday) for service station fuels in 2022. The initial contract period will run from January 1, 2022 through December 31, 2022 with four one-year renewal options.
The final fuel price is based on a fixed constant of $.02 cents per gallon over the Duluth daily refinery rack rate average. This is the same rate as the current price. The estimated contract cost is based on historical usage and rack rates.
The purchasing division posted an Invitation for Bids on October 4, 2022 and received two responsive bids by the due date. The bids were evaluated based on the total overall cost to the City, factoring in the bid price, location and accessibility of service stations, and data and reporting capabilities.
Bid Price per Gallon Number of Stores
Holiday Stationstores $.02 over rack rate 11
Kwik Trip, Inc. $.02 over rack rate 9