S80-E32410 – Approve an ordinance awarding a contract to Motiva Enterprises, LLC. in an amount not to exceed $41,861,790.47 for the purchase of low emission diesel fuel, through an inter-local purchase with the Metropolitan Transit Authority of Harris County, Texas for the Fleet Management Department.
SPECIFIC EXPLANATION:
The Director of the Fleet Management Department and the Interim Chief Procurement Officer recommend that City Council approve an ordinance awarding a three (3) year contract to Motiva Enterprises, LLC. (MOTIVA) for the purchase of low emission diesel fuel through an interlocal agreement with the Metropolitan Transit Authority’s (METRO) existing contract with MOTIVA, in the maximum contract amount of $41,861,790.47 for the Fleet Management Department.
This contract also includes $1,832,636.00 in pre-contract services to cover the purchase of low emission diesel fuel for the time-period between the expiration of the prior contract and the effective date of this contract. The pre-contract services were required to prevent an interruption in services for the provision of diesel fuel to the City’s fleet of vehicles.
The scope of work requires MOTIVA to provide all supervision, labor, parts, tools, equipment permits, insurance, including all applicable hazardous material and fuel certifications promulgated by state and federal regulations, and fueling terminal access necessary to supply, as ordered, low emission diesel fuel (aka low sulfur diesel) to support the City’s daily fleet operations. The scope of services also guarantees the City fuel access during a hurricane or similar force majeure event. The fuel order will be picked up by the City’s fuel transportation services contractor from MOTIVA fuel loading terminals in Pasadena and Houston and transported to various fuel storage facilities and satellite sites throughout the City of Houston. The Department’s estimated volume for low emission diesel is 9,360,000 gallons, which includes hurricane and force majeure related contingencies.
This recommendation is made pursuant to subsection 271.102(c) of the Texas Local Government Code, which provides that "a local government that purchases goods or services [from a cooperative purchasing program or organization] satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services.”
M/WBE Subcontracting:
M/WBE Zero Percentage Goal document approved by the Office of Business Opportunity.
Hire Houston First:
This procurement is exempt from the City’s Hire Houston Ordinance. Bids/proposals were not solicited because the department is utilizing an Interlocal Purchasing Agreement for this purchase.
Fiscal Note:
Funding for this item is included in the FY 2023 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Jedediah Greenfield
Interim Chief Procurement Officer
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Department Approval Authority
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Estimated Spending Authority
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Department
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FY2023
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Out-Years
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Award Amount
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Fleet Management Department
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$8,372,358.09
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$33,489,432.38
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$41,861,790.47
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