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RESOLUTION TO APPROVE CHANGE ORDER #1 TO
PETROLEUM TRADERS CORPORATION FOR DIESEL FUEL
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WHEREAS, The Memphis Area Transit Authority (MATA) Board of Commissioners awarded a contract for diesel fuel to Petroleum Traders Corporation for a term of one-year by Resolution 23-39, July 25, 2023; and
WHEREAS, MATA would like to extend the contract for an additional year and allow time to use the remaining 200,000 gallons from the previous contract and;
WHEREAS, This needed service exceeds the existing 1,200,000 gallon, $3,422,400 one-year not to exceed contract amount and MATA agreed to increase the current one-year contract amount by 600,000 gallons and $1,525,740 making the current contract not to exceed 1,800,000 gallons and $4,948,140; and
WHEREAS, MATA staff recommends approval of Change Order #1 to Petroleum Traders Corporation to increase the current one-year contract for an additional year with 1,200,000 gallons of diesel by 600,000 gallons making the current contract not to exceed 1,800,000 gallons and $4,948,140; and
NOW, THEREFORE, BE IT RESOLVED BY THE MEMPHIS AREA TRANSIT AUTHORITY BOARD OF COMMISSIONERS That Change Order #1 be approved to Petroleum Traders Corporation at an amount not to exceed 1,800,000 gallons and $4,948,140 through the remaining contract period ending October 31, 2025.
BE IT FURTHER RESOLVED That the Interim Chief Executive Officer, Chairman or Vice-Chairman is authorized to execute the necessary documents.
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TO: MATA Board of Commissioners
FROM: Bacarra Mauldin, Interim Chief Executive Officer
DATE: November 19, 2024
SUBJECT: Change Order 1 Petroleum Traders Diesel Fuel
MATA staff feel it would be in its best interests to extend the current diesel fuel contract with Petroleum Traders for an additional year. This change will allow MATA to use all unused 200,000 gallons from the previous contract. With this extension a contractual language change will also take effect for NET 90 payment terms.
Staff were able to secure pricing at a lower cost than the previous year. Diesel was reduced from $2.8520 per gallon to $2.5429 per gallon. With the addition of 600,000 gallons cost was reduced from $3,422,400 to $1,525,740, which is a $1,896,660 reduction in costs. MATA staff will check daily spot market pricing to take advantage of possible lower pricing in addition to contracted prices and gallons.
MATA staff recommend that change order 1 for Petroleum Traders diesel fuel contract be awarded at a not to exceed 600,000 gallons and not to exceed cost of $1,525,740. This change will bring the contract total to at not to exceed amount of 1,800,000 gallons and $4,948,140.