Subject
title
Award, and Authorize the City Manager or Designee to Execute, a Contract in the Form of a Master Agreement to Mansfield Energy Corp. of Gainesville, Georgia, for the Purchase and Delivery of Diesel Fuel to the Rothgeb Facility on an As-Needed Basis in the Amount of $775,000 from the Effective Date of the Master Agreement Through February 10, 2027, with the Option to Extend the Contract for One Year, Consistent with the Terms and Conditions of Sourcewell Contract #121522-MNF Issued after Solicitation Number: RFP #121522 on Behalf of all Government Entities that Participate in Sourcewell Cooperative Procurement.
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Department
PW - Fleet Services
Recommendation
Staff recommends that the Mayor and Council award, and authorize the City Manager or Designee to Execute, a contract in the form of a master agreement to Mansfield Energy Corp. of Gainesville, Georgia, for the purchase and delivery of diesel fuel to the Rothgeb Facility on an as-needed basis in the amount of $775,000.00 for the period from the effective date of the master agreement through February 10, 2027, with the option to extend the contract for one year, consistent with the terms and conditions of the Sourcewell Contract #121522-MNF issued after Solicitation Number: RFP #121522 on behalf of all government entities that participate in Sourcewell Cooperative Procurement.
Discussion
This agenda item is for the award of a contract in the form of a master agreement to Mansfield Energy Corp. of Gainesville, Georgia in the amount of $775,000.00 for the purchase and delivery of diesel fuel at the Rothgeb Facility.
The City’s fleet of heavy-duty dump trucks, refuse trucks, and construction equipment use diesel on a daily basis.
Mayor and Council History
This is the first time this item has been brought to the Mayor and Council.
Procurement
This purchase utilizes Sourcewell Contract #121522-MNF for Fuel Delivery with Related Services issued by Sourcewell, a service cooperative created by the Minnesota legislature as a local unit of government.
The Mayor and Council of Rockville (City) is a member of Sourcewell, formerly known as the National Joint Powers Authority (NJPA).
The City has previously purchased diesel fuel from Mansfield Energy Corp., of Gainesville, Georgia. Sourcewell conducted a competitive process for the contract with Mansfield Oil similar to the process used by the City. The pricing from Mansfield Oil under the Sourcewell contract is reasonable and this purchase is authorized by Rockville City Code, Section 17-71.
In accordance with Section 17-71(b) of the Rockville City Code, Cooperative Procurement, the City may contract with any contractor who offers goods, services, insurance, or construction on the same terms as provided to other State or local governments or agencies thereof, who have arrived at those terms through a competitive procurement procedure similar to the procedures used by the City.
In accordance with Rockville City Code, Section 17-39(a), Awarding Authority, all contracts involving over $250,000 shall be awarded by Mayor and Council. Master Agreements are used by the City to purchase commodities. The Master Agreement locks in the price, terms, and condition, but does not appropriate the funds until the commodities are needed and purchased. The contract in the form of the master agreement incorporates the terms and conditions of the Sourcewell Contract applicable to this purchase as well as terms and conditions required by the City. The Master Agreement will be signed by both the City and the vendor.
The draft master agreement is attached as Attachment 1 and the contract documents are provided in the link below:
<https://www.swisstransfer.com/d/05335376-3101-4328-8c46-bfc6fafb95b1>
Mansfield Energy Corp. is a non-Minority, Female, Disabled or Veteran (non-MFD-V) business.
Fiscal Impact
Budget capacity is available in FY 2025 to accommodate fuel costs for the remainder of the year. The FY25 budget includes $234,157 across all funds in the Fleet Services Division for the purchase of diesel fuel. Fuel is charged to each appropriate fund at the time of delivery and is based on the actual fuel usage within each fund during the time period between deliveries. Funding in future fiscal years is subject to Mayor and Council appropriations.
Next Steps
Upon Mayor and Council award, the Procurement Division will execute the Master Agreement with Mansfield Energy Corp.