Recommend approval to modify an annual contract for oils, lubricants and anti-freeze to Colonial Fuel & Lubricant Services in the amount of $2,644.60.  This contract modification is necessary due to an industry-wide price increase of lubricants by 6%.

On June 22, 2017, Council awarded an annual contract totaling $68,410.28, of which $44,076.70 was awarded to Colonial Fuel & Lubricant Services.   As a result of the contract modification, the new contracted amount for this portion of the contract will be $46,721.30.

Per Section 4.19 of the event contract, due to historical price volatility, this contract allows for changes on a quarterly basis. All major suppliers notified Colonial Fuel & Lubricant Services of this increase for 2018. In turn, Colonial Oil notified the City of Savannah of the scheduled increase. The new prices will go into effect on February 2, 2018.

The new total contracted amount will be $71,054.88.  

The contract term is from June 22, 2017 through June 21, 2018.

Approval