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
CHRONOLOGY OF THE AGENDA ITEM
At its business meeting on Monday, March 15, 2021, The Dekalb County
Board of Education approved the North Georgia Fuel Cooperative, to
purchase diesel and gasoline 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 to the Dekalb County
School District, for a one-year term with four one-year options to renew
subject to Board approval on a year-to-year basis.
On October 18, 2021, the DeKalb Board of Education approved the first one-
year extension of the North Georgia Fuel Cooperative agreement.
To address raising fuel costs, and to align the District extension with the
purchasing cooperative Agreement, this agenda item seeks the Board of
Education approval to supplant and replace the October 18, 2021, extension;
to increase the spend amount to $8,100,000; and to align the extension
duration with the Cooperative’s contract extension dates of March 1, 2022,
through February 28, 2023.