Recommend approval to authorize the City Manager to renew an annual contract with Colonial Oil and Barrett Oil Distributors for oils, lubricants and anti-freeze in the amount of $70,468.12 and $37,007.53 respectively, for a total contract amount of $107,475.65. The oils, lubricants, and anti-freeze will be used by the Fleet Services Department and other City departments to provide routine preventive maintenance for City vehicles and other equipment. Several items are maintained in inventory at the Central Warehouse; others are in inventory at the Fleet Services Department.

The low bidder was selected for all items except for one. The apparent low bidder proposed a 50/50 blend of anti-freeze for trucks; however, specifications require a full force anti-freeze.

For this renewal period, both vendors are requesting an increase. This increase is driven primarily by industrywide escalations in base oil, additives cost, and raw materials. Colonial Fuel & Lubricant is requesting a 5% increase, which comes to a total amount of $56,374.50 annually. Barrett Oil Distributors is requesting an 8% increase, which comes to a total amount of $29,606.03 annually.  The new contract will be for 15 months, totaling $107,475.65. 

All the major suppliers of oils and lubricants (Chevron, Exxon, Citgo, etc.) notified Colonial Fuel and Barrett Oil of this increase. In turn, Colonial Fuel & Lubricant Services and Barrett Oil Distributors notified the City of Savannah of the scheduled increase for the renewal period. Such an increase is allowed based on the terms and conditions of this contract, specifically Section 4.19, which states that “due to historical price volatility, this contract allows for changes on a quarterly basis.” 

Responses to this event were received on May 2, 2017. Council originally approved this contract on June 22, 2017.  This is the last of three renewals available.

The contract term shall be from September 12, 2019 through December 31, 2020.

Approval