Agenda Item
i. Amendment to “North Georgia Fuel Cooperative (BL113-20) Contract Extension Approval, (Year 1 of 4), Multiple Vendors in an Amount Not-to-Exceed $3,800,000 for the 2022 Fiscal Year”
Summary: Presented by: Mr. Richard Boyd, Interim Chief Operations Officer, Division of Operations
Request: It is requested that the Board of Education approve the Amendment to the October 18, 2021, approval of “North Georgia Fuel Cooperative (BL113-20) Contract Extension Approval, (Year 1 of 4), Multiple Vendors in an Amount Not-to-Exceed $3,800,000 for the 2022 Fiscal Year” for the purchase of diesel and gasoline fuel from James River Solutions, LLC as the primary supplier, Petroleum Traders Corporation as the secondary supplier, and Colonial Oil Industries, Inc. as the tertiary supplier through the North Georgia Fuel Cooperative (BL113-20). This amendment supplants and replaces the October 18, 2020 Board-approved first of four contract renewals.
The current requested amendment and renewal before the Board of Education is for approval of the North Georgia Fuel Cooperative (BLL-13320) Contract extension Approval. (Year 1 of 4), Multiple Vendors in an amount not-to-exceed $8,100,000 for the Cooperative contract term of March 1, 2022, through February 28, 2023. The renewal is for the purchase of fuel from James River Solutions, LLC as the primary supplier, Petroleum Traders Corporation as the secondary supplier, and Colonial Oil Industries, Inc. As the tertiary supplier through the North Georgia Fuel Cooperative (BL1130-20).
Why: The district is requesting to purchase additional diesel and gasoline fuel utilizing the buying power of the North Georgia Fuel Cooperative. The present amendment will supplant the October 18, 2021, contract extension by the DeKalb Board of Education to align with the timelines associated with the cooperative purchasing agreement. Due to increase in fuel costs and to align the District and cooperative agreement, the district requests this Amendment to increase the spend amount to $8,100,000 and to align with the Cooperative’s contract extension dates March 1, 2022, through February 28, 2023.
Details: Pursuant to Board Policy DJE D3(d), Exception to Competitive selection, the Purchasing Department is authorized to make purchases through contracts formally solicited and obtained by the State of Georgia and through “inter-governmental and educational cooperatives, alliances, and consortiums to achieve cost savings and administrative efficiencies based on economies scale”.
As such, the North Georgia Fuel Cooperative (NGFC) agreement is the result of several entities combining their fuel requirements to obtain the advantages of high-volume purchases, including administrative savings and other benefits. It was formed with the specific purpose of purchasing fuels at very high volumes to obtain the best discount and lowest pricing.
The North Georgia Fuel Cooperative bid was approved on December 9th, 2020 by Gwinnett County Board of Commissioners, who acted as the Principal Procurement Agency for the North Georgia Fuel Cooperative. On December 14, 2021, the Gwinnett County Board of Commissioners approved a renewal of the contract from March 1, 2022, through February 28, 2023. This was renewal year 2 of 4.
This bid was formally solicited and awarded to James River Solutions, LLC as the primary supplier, Petroleum Traders Corporation as the secondary supplier, and Colonial Oil Industries, Inc. as the tertiary supplier. These entities are all approved vendors of the North Georgia Fuel Cooperative. In the event the primary supplier is unable to fulfill their services or cannot provide services, the second and/or third supplier may be used. This allows the District to perform services without impeding the process due to lack of availability by any one vendor.
Financial impact: This purchase in an amount not-to-exceed $8,100,000 will be charged to the General Operations Energy fund code: 100.2700.562000.00011.7190.1320.8013.040.0000.
Contact: Mr. Richard Boyd, Interim Chief Operations Officer, Division of Operations, 678.676.1483
Mr. Cedric A. Burse, Director of Fleet and Special Transportation, Division of Operations, 678.676.1385
Effective: Upon Board Approval
Status: Approved by General Counsel
DeKalb County School District Meeting Date: October 18, 2021
Board of Education
Agenda Item Title: North Georgia Fuel Cooperative (BL113-20) Contract Extension
Approval, Year 1 of 4
Presented by: (Quick Summary Abstract):
Mr. Richard Boyd, Interim Chief Operations Officer, Operations Division
Requested Action:
It is requested that the Board of Education approve the purchase of diesel and gasoline fuel
from James River Solutions, LLC as the primary supplier, Petroleum Traders Corporation as the
secondary supplier, and Colonial Oil Industries, Inc. as the tertiary, supplier through the North
Georgia Fuel Cooperative (BL113-20) in an amount not-to-exceed $3,800,000.00 for the 2022
fiscal year.
Rationale:
The District is requesting to purchase diesel and gasoline fuel utilizing the buying power of the
North Georgia Fuel Cooperative. On December 9th, 2020, the DeKalb Board of Education
approved the use of this Cooperative Agreement. This request is for the approval of a six-month
extension ending on February 28, 2022.
Details:
Pursuant to Board Policy DJE C3 (c), Exception to Competitive selection, the Purchasing
Department is authorized to make purchases through contracts formally solicited and obtained
by the State of Georgia and through “inter-governmental and educational cooperatives,
alliances, and consortiums to achieve cost savings and administrative efficiencies based on
economies scale”.
As such, the North Georgia Fuel Cooperative (NGFC) agreement is the result of several entities
combining their fuel requirements to obtain advantages of high volume purchases, including
administrative savings and other benefits. It was formed with the specific purpose of
purchasing fuels at very high volumes to obtain the best discount and lowest pricing. This
renewal is the first of the four (4) year contract.
The North Georgia Fuel Cooperative bid was approved on December 9th, 2020 by Gwinnett
County Board of Commissioners, who acted as the Principal Procurement Agency for the North
Georgia Fuel Cooperative. On February 2nd, 2021, the Gwinnett County Board of Commissioners
approved a renewal of the contract for FY2022. The renewal contract dates are March 1st, 2021
through February 28th, 2022.
This bid was formally solicited and awarded to James River Solutions, LLC as the primary
supplier, and Petroleum Traders Corporation as the secondary. These entities are all approved
vendors of the North Georgia Fuel Cooperative. In the event the primary supplier is unable to
fulfill their services or cannot provide services, the second and/or third supplier may be used.
This allows the District to perform services without impeding the process due lack of availability
by any one vendor.
Summary:
The use of the North Georgia Fuel Cooperative increases economies of scale and administrative
costs resulting in efficiencies in regards to reduced unit costs as well as administrative
oversight. Using the buying power of the NGFC to purchase fuel will result in the lowest cost to
the district.
Financial Impact:
This purchase in an amount not-to-exceed $3,800,000.00 will be charged to the General
Operations Energy fund code: 100.2700.562000.00011.7190.1320.8013.040.0000.
Contacts:
Mr. Richard Boyd, Interim Chief Operations Officer, Operations Division, 678.676.1446
Cedric A. Burse, Director; Fleet and Special Transportation Operations Department, Division
of Operations, 678.676.1385
Supporting Documents (list and attach to recommendation):
1) Chronology
2) Notice of Award Letter(s) – Bid BL113-20
On-line Documentation (Specify URL):
Goals:
Strategic Goal Area 1. Student Success with Equity and Access
Strategic Goal Area 2. Stakeholder Engagement
Strategic Goal Area 3. Staff Efficacy and Excellence
Strategic Goal Area 4. Internal and External Communication
Strategic Goal Area 5. Organizational Effectiveness and Efficiency
AdvancED Standards:
Standard 1: Purpose and Direction
Standard 2: Governance and Leadership
Standard 3: Teaching and Assessing for Learning
Standard 4: Resources and Support Systems
Standard 5: Using Results for Continuous Improvement
Status:
Approved by General Counsel
Implementation Date:
Upon Board Approval
February 2, 2021
James River Solutions
Attn: Tracy Little
10487 Lakeridge Parkway, Suite 100
Ashland, VA 23005
Email: bbailey@jrpenergy.com
RE: NOTICE OF AWARD – BL113-20, Purchase of Gasoline and Diesel Fuel on an Annual
Contract; GCID# 20210160
Dear Ms. Little:
The Board of Commissioners at its Tuesday, February 2, 2021 meeting approved your company
as one of the successful suppliers for bid, BL113-20, Purchase of Gasoline and Diesel Fuel on
an Annual Contract in the amount of $13,650,000.00. Please note the enclosed tabulation.
The contract dates will be March 1, 2021 through February 28, 2022. Please reference the
above bid number on all invoices and correspondence regarding this award.
Sincerely,
Marlo Dial, CPPB
Purchasing Associate III
MD/bc
Enclosure
c: Wanda Cain, Department of Support Services
Holly Day, Department of Support Services
Miria Gamble, Department of Support Services
February 2, 2021
AWARD NOTICE
BL113-20
Purchase of Gasoline and Diesel Fuel on an Annual Contract
Pursuant to the bids received on December 3, 2020 for BL113-20, Purchase of Gasoline
and Diesel Fuel on an Annual Contract the bid has been awarded to James River
Solutions; Colonial Oil Industries, Inc., and Petroleum Traders Corporation in the
amount of $13,650,000.00. Please note the enclosed bid tabulation.
We appreciate your bids and interest in Gwinnett County.
Sincerely,
Marlo Dial, CPPB
Purchasing Associate III
MD/bc
Enclosure
CHRONOLOGY OF THE AGENDA ITEM
In accordance with the District’s Strategic Plan and Board Policy DJE C3 (c), Exception
to Competitive selection, the purchase of fuel both diesel and unleaded gasoline
through the purchasing power of the North Georgia Fuel Cooperative reduces cost to
the District.
The North Georgia Fuel Cooperative was approved on December 9th 2020 by Gwinnett
County Board of Commissioners, who acted as the Principal Procurement Agency for
the North Georgia Fuel Cooperative. The first renewal dates occur on March 1st, 2021
and run through February 28th, 2022. The NGFC was formed with the specific purpose
of purchasing fuels at very high volumes to obtain the best discount and lowest pricing.
The use of the North Georgia Fuel Cooperative increases economies of scale and
administrative costs resulting in efficiencies in regards to reduced unit costs as well as
administrative oversight. Using the buying power of the NGFC to purchase fuel will
result in the lowest cost to the district.
This is the first year of a four (4) year contract. Using the buying power of the NGFC to
purchase fuel will result in the lowest cost to the district.