FY2018-37 Petro Star Inc. dba North Pacific Fuel - Highway Fuel for KIBSD Owned Vehiclesy
IFIL o � Kodiak Island Borough School District
722 Mill Bay Road
Kodiak, Alaska 99615
To: Board of Education
Through: Lary LeDoux, Superintendent
From: Sandy Daws, Chief Financial Officer
Gregg Hacker, Maintenance/Facilities Director
Ferlene Fuentes, Purchasing Supervisor
Date: May 3, 2018
Subject: FYI Highway Fuel Bid Award
On April 3, 2018, the Purchasing and Maintenance/Facilities Departments sent
out invitations to bid for Highway Fuels for use in District motor vehicles and
Pupil Transportation. A legal notice was published in the Kodiak Daily Mirror
and the Anchorage Daily News on April 6, 13 and 18, 2018. The bids were
publicly opened at the District's Finance Office at 2:02 P.M. on April 30, 2018.
The terms and conditions of the bid are attached. Please note that the price per
gallon is in direct proportion to the previous months averaged Seattle OPIS (Oil
Price Information Services) rack price per gallon (the vendor's fuel cost) plus the
vendor's margin and may fluctuate monthly throughout the contract period.
The responsive bids were analyzed and we recommend Board action to award the
bid to Petro Star Inc. dba North Pacific Fuel for the supply of Highway Fuels
for a three-year term commencing July 1, 2018 and ending June 30, 2021.
HIBSD HIGHWAY FUEL BID SPECIFICATION
The Kodiak Island Borough School District (KIBSD) is soliciting bids from qualified firms for
the supply of"Highway Fuels" for the Districts Motor Vehicle Fleet to include School Buses,
The District shall award two (2) contracts, one for KIBSD Motor Vehicle Fuel and one for
KIBSD Pupil Transportation Fuel, for the following:
A three-year contract commencing July 1, 2018 and ending June 30, 2021 to the
contractor submitting the lowest margin above the averaged Seattle OPIS rack
price per gallon for the period commencing April 10 and ending May 08, 2018 for
each gallon delivered or supplied to the KIBSD. The contractor's margin must
remain firm for the term of the contract.
Documented price fluctuations throughout the contract period may change the delivered price per
gallon monthly in direct proportion the averaged daily Seattle OPIS rack price per gallon for the
previous month. Documentation of these price fluctuations, the calculations and the resulting
new price(s) per gallon shall be faxed to the KIBSD Maintenance Office by noon on the second
business day of the month.
Example: If the Vendors cost was $1.00, plus $.10 tax, plus a $.18 margin ($1.28 per gal) and the
averaged price change for the previous month was two cents per gallon, the price increase or
decrease to KIBSD would increase ($1.30) or decrease ($1.26) two cents per gallon for the new
month.
The price per gallon for the month of July 2018 shall be the averaged Seattle OPIS rack price per
gallon for the month of June 2018 plus any appropriate tax, (the District is exempt from most
fuel taxes under Title 15 of the Alaska Administrative Code) plus the Vendors margin.
All accounting and reporting shall at be separated into two (2) distinct contracts/accounts, one
for KIBSD Motor Vehicle Fuel and one for KIBSD Pupil Transportation Fuel. Each account
shall be further broke down by vehicle.
The Vendors delivery location must allow for easy and safe access to the pumps by large motor
vehicles (school busses).
The KIBSD reserves the right to reject any or all bids.
Please note that the following estimated annual quantities are for bid information only and
are not to be interpreted as guaranteed deliverable quantities.
KIBSD Motor Vehicle Fuel Estimate
KIBSD Motor Vehicle Fuel
5,500
KIBSD Pupil Transportation Fuel
1 30,000