Authorize Annual Agreement for Fleet Fuel Cards and Related Services with Mansfield Oil Company of Gainesville, Inc., in an Amount Up to $3,500,000.00, Using a Cooperative Contract for the Property Management Department (ALL COUNCIL DISTRICTS)

It is recommended that the City Council authorize an annual Agreement for fleet fuel cards and related services with Mansfield Oil Company of Gainesville, Inc., in an amount up to $3,500,000.00 using the City of Plano Cooperative Contract No. 2016-0217-C for the Property Management Department.

City Departments will utilize these fuel cards to refuel City vehicles and equipment when service centers are not available in their area or when vehicles travel out of town.  Mansfield Oil Company of Gainesville, Inc. (Mansfield) will provide fleet fuel cards with pricing of 0.50 percent (1/2 of 1 percent) discount off of retail pricing for all types of fuel (Unleaded, Unleaded – Mid Grade, Unleaded – Premium, E85 and Diesel – Regular).  There are 1,869 fueling locations that accept Mansfield's fleet fuel card in Tarrant County, Dallas County, Denton County and Collin County. Also, there are 10,440 fueling locations that accept Mansfield's fleet fuel card in the State of Texas.

City of Plano Solicitation No. 2016-0217-C was advertised in the Dallas Morning News on February 13, 2016 and February 20, 2016 as well as being posted on www.dallasnews.com and www.bidsync.com.  
The City of Plano received two proposals in response to the RFP for Fleet Fuel Card and Related Services.  The proposals were evaluated by a committee that included a representative of the City of Fort Worth.  Evaluation factors included Past Performance, Card Acceptance, Coverage Area, Electronic Capability, Card Control, Customer Support and Pricing.  Mansfield's proposal was determined to be the best evaluated offer.

COOPERATIVE PURCHASE – Mansfield agreed to extend prices and terms to all entities who have entered into or will enter into Cooperative Purchasing Agreements.  State Law provides that a local government is authorized to purchase from a cooperative purchasing program with another local government or a local cooperative organization pursuant to Chapter 271 Subchapter F of the Local Government Code and by doing so satisfies any state law requiring local governments to seek competitive bids for items.  City of Plano Contract No. 2016-0217-C was competitively bid to increase and simplify the purchasing power of local government entities.

PRICE ANALYSIS – Mansfield's pricing model is based off the posted retail/pump price at the applicable fueling location.  Previous contract pricing model was based on Oil Price Information Service (OPIS) which varied among dealers and cannot be compared to current pricing.

ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to $50,000.00, and does not require specific City Council approval as long as sufficient funds have been appropriated.

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.

AGREEMENT TERM - Upon the City Council's approval, the term of the Agreement will begin June 29, 2016 and expire May 31, 2017 to correspond with the City of Plano's Cooperative Contract.

RENEWAL OPTIONS – This Agreement may be renewed for up to five additional one-year terms at the City's option in accordance with the City of Plano's contract.  This action does not require specific City Council approval, provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term.