Agenda Item
ii. North Georgia Fuel Cooperative (BL113-20) Contract Extension Approval, (Year 2 of 4) (not to exceed the amount of $8,100,000)
Summary: Presented by: Mr. Richard H. Boyd, Director of Design & Construction, Division of Operations
Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
Request: 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 $8,100,000 for the dates March 1st, 2023 through February 29th, 2024, subject to a renewal of the same period by the Gwinnett County Board of Commissioners.
Why: The district is requesting to purchase diesel and gasoline fuel utilizing the buying power of the North Georgia Fuel Cooperative. On March 15, 2021, the DeKalb Board of Education approved the use of this Cooperative Agreement. On October 18, 2021, the DeKalb Board of Education approved the first one-year extension of the North Georgia Fuel Cooperative agreement. On November 14, 2022, the DeKalb Board of Education approved the amendment of the first extension of the North Georgia Fuel
Details: Pursuant to Board Policy DJE III D(3)(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. This renewal is year two (2) of four (4) contract renewal options.
The North Georgia Fuel Cooperative bid was approved on December 9th, 2020, by the 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 for the dates March 1, 2022, through February 28th, 2023. We anticipate a similar renewal for the period March 1, 2023, through February 29th, 2024.
This bid was formally solicited and awarded to James River Solutions, LLC as the primary supplier, and Petroleum Traders Corporation and Colonial Oil Industries, Inc. 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 to lack of availability by any one vendor.
Financial impact: This purchase in an amount not-to-exceed $8,100,000.00 will be charged to the General Operations Energy fund code: 100.2700.562000.00011.7190.1320.8013.040.0000.
Contact: Mr. Erick Hofstetter, Chief Operating Officer, 678.676.1470
Mr. Richard H. Boyd, Director of Design & Construction, 678.676.1483
Mr. Cedric A. Burse, Director; Fleet and Special Transportation Operations Department, 678.676.1385
Effective: Upon Board Approval
Status: Approved by General Counsel