Broken Arrow Municipal Authority
Meeting of: 06-16-2025
Title:
title
Approval of and authorization to renew bid 25.100 for gasoline and diesel to Offen Petroleum LLC
End
Background:
The City of Broken Arrow utilizes approximately 255,000 gallons of gasoline and 268,000 gallons of diesel annually to support City operations. In FY 2024, the total fuel cost was $1,750,400. For FY 2025, projected fuel costs are estimated at approximately $1,900,000. Fuel is typically purchased on a weekly basis and delivered via tanker to the City's designated fuel sites. In addition, diesel fuel is procured as needed for emergency generators across Broken Arrow.
The Purchasing Division monitors fuel levels and places orders once inventory reaches predetermined thresholds. Area fuel prices are tracked using OPIS (Oil Price Information Service), a widely accepted benchmark for fuel pricing. While the City cannot control fluctuations in fuel prices, the primary cost variables are delivery charges and supplier markups.
To manage fuel costs and simplify the procurement process, the City previously solicited annual bids based on the unit cost per gallon relative to the OPIS rack average. This approach allows for consistent markups and delivery fees, reducing the impact of market volatility.
Bids were originally advertised and opened on August 7, 2024, with six vendors responding. The City awarded the base fuel supply contract to Offen Petroleum as the most advantageous bidder.
As part of the renewal for FY 2025, the City of Broken Arrow recommends continuing the fuel supply contract with Offen Petroleum under the same pricing structure and delivery terms.
Fuel expenses are budgeted annually by each department.
Cost: Cost of fuel
Funding Source: Various department operational funds
Requested By: Ryan Baze, Maintenance Services Director
Approved By: City Manager Office
Attachments: 25.100 Gasoline Diesel Bid Tab, Offen Petroleum LLC Bid.
Recommendation:
recommend
Approval of ...
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