200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: FEBRUARY 28, 2023
FROM: FINANCE DEPARTMENT
SUBJECT: ACCEPTANCE OF BID FOR AIRCRAFT JET A FUEL
ATTACHMENT (Y/N): NO ITEM # 10
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, accept the lowest responsive bid from Ascent Aviation Group, Inc., in the amount of $477,853.52 (plus applicable taxes and fees), for the as-needed purchases of aircraft Jet A fuel for the Anaheim Police Department (APD) and Orange County Fire Authority (OCFA) for a one year period, with four one-year optional renewals; and authorize the Purchasing Agent to increase the annual not to exceed amount, subject to available budget appropriations, and to execute the renewal options, all in accordance with Bid # 9649.
DISCUSSION:
Purchasing, in collaboration with the Orange County Fire Authority (OCFA), solicited bids for Jet A fuel from known suppliers and posted the bid on the City’s bid portal.
Sealed bids were received by 2:00 p.m., February 2, 2023, from the following bidders and were publicly opened immediately thereafter.
Bidders Bid Price
Epic Fuels $473,588.36*
Irving, Texas
Ascent Aviation Group, Inc. $477,853.52
Parish, New York
Merrimac Energy Group $484,280.32
Long Beach, California
*Vendor was deemed non-responsive due to pricing exceptions in their bid.
The Anaheim Police Department’s Air Support Section operates four aircraft supporting all department functions including, but not limited to, Patrol, Investigations, and Special Enforcement. All of these aircraft require Jet A fuel for their operation and the Air Support Heliport facility allows the ability to buy this fuel in bulk quantities, thereby realizing significant cost savings.
Acceptance of Bid for Aircraft Jet A Fuel
February 28, 2023
For bidding purposes, the requirements for APD and OCFA were estimated to be 146,800 gallons annually. Purchases for the APD will equal approximately two thirds of the bid amount (approx. $318,251.00). The bid was based on the Los Angeles Area Pipeline Mean (LAPM) spot price plus vendor’s mark-up margin ($.05/gallon), which will remain firm through the term of the agreement. Vendors were also asked to provide pricing for fuel system icing inhibitor, delivery costs, and surcharges. Aircraft fuel will be purchased on an as-needed basis; there is no guarantee or implied commitment to purchase any minimum quantity during the one-year term. The price per gallon for Jet A Fuel will fluctuate according the LAPM at the time of each delivery with the vendor markup to remain firm. In the event the LAPM rises, Staff requests Council authorize the Purchasing Agent to increase the annual not to exceed amount, subject to available budget appropriations.
IMPACT ON BUDGET:
Sufficient funds are available in the Police Department’s Fiscal Year 2022/2023 General Fund Budget. Subsequent years’ renewal options will be subject to Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Barrick L. Bartlett Jorge Cisneros
Purchasing Agent Chief of Police