Agenda Item
ii. (BL051-23) North Georgia Fuel Cooperative Contract Approval for the Purchase of Gasoline and Diesel Fuel on an Annual Contract; GCID#20230724 (Not to exceed $8,100,000)
Summary: Presented by: 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, Sunoco, LP as the secondary supplier, and Boswell Oil Company as the tertiary supplier through the North Georgia Fuel Cooperative (BL051-23) in an amount not-to-exceed $8,100,000 for the dates March 1st, 2024 through August 31, 2024.
Why: The district is requesting to purchase diesel and gasoline fuel utilizing the buying power of the North Georgia Fuel Cooperative. Board Policy DJE requires the Board of Education to approve the expenditure of any vendor that provides goods and/or services to the school system that may not exceed $8,100,000 in purchases for the fiscal year.
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
The North Georgia Fuel Cooperative bid was approved on August 15, 2023, by Gwinnett County Board of Commissioners, who acted as the Principal Procurement Agency for the North Georgia Fuel Cooperative.
This bid was formally solicited and awarded to James River Solutions, LLC as the primary supplier, and Sunoco, LP as the secondary and Boswell Oil Company as the tertiary. 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, Division of Operations, 678.676.1475
Mr. Cedric A. Burse, Director, Fleet Services, Division of Operations, 678.676.1385
Effective: Upon Board Approval
Status: Approved by General Counsel