Title
MOTION TO APPROVE THE AWARD OF IFB #CS-25-03, “PROPANE WET FUELING FOR COMMUNITY SERVICES SHUTTLE BUSES,” TO THE SOLE BIDDER, BLOSSMAN GAS INC., IN AN ANNUAL AMOUNT NOT TO EXCEED $112,000.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.15 defines an Invitation for Bid as “A written solicitation for competitive sealed bids with the title, date and hour of the public bid opening designated therein and specifically defining the commodities or services for which bids are sought. The invitation for bid shall be used when the city is capable of specifically defining the scope of work for which a service is required or when the city is capable of establishing 15 precise specifications defining the actual commodities required. The invitation for bid shall include instructions to bidders, plans, drawings and specifications, if any, bid form and other required forms and documents to be submitted with the bid.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS.
- Section 35.18(A) states, "A purchase of or contracts for commodities or services that is estimated by the Chief Procurement Officer to cost more than $25,000 shall be based on sealed competitive solicitations as determined by the Chief Procurement Officer, except as specifically provided herein."
- Section 35.19 of the City's Code of Ordinances is titled "SEALED COMPETITIVE BIDDING PROCEDURE."
- Section 35.19(A) states "All sealed competitive solicitations as defined in § 35.18 shall be presented to the City Commission for their consideration prior to advertisement."
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval.
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. On June 18, 2025, the City Commission authorized the release of IFB #CS-25-03, “Propane Wet Fueling for Community Services Shuttle Buses.” The solicitation was advertised on June 24, 2025.
2. The intent of the solicitation was to secure bids from qualified and experienced vendors to provide reliable wet fueling services for the City’s community shuttle fleet.
On November 2024, Broward County began transitioning the City’s White Community Shuttle Buses to propane. Currently, the City is purchasing small quantities of propane on an as-needed basis to fuel the converted buses. However, the City is seeking a long-term fueling solution. Additionally, the City is working toward installing propane fueling infrastructure to allow for on-site refueling in the future.
3. The City will be utilizing an index-based pricing structure. The vendor must provide pricing based on the Mont Belvieu average price as published in the Butane-Propane New's (BPN) "Weekly Propane Newsletter", plus a fixed margin rate for the duration of the contract.
4. On July 22, 2025, the City opened one (1) bid from Blossman Gas Inc. The margin rate is outlined in the table below:
|
Blossman Gas, INC |
|
Description |
Quantity |
Unit of Measure |
Unit Cost |
|
Fixed Markup Over Index |
1 |
Per Gallon |
$0.9675 |
|
Emergency/After-Hours Delivery Fee |
1 |
Per Delivery |
$150.00 |
|
|
|
|
|
5. Following an evaluation of the bid received, the Community Services Department determined that Blossman Gas Inc. was the sole responsive/responsible bidder.
6. The Community Services Department estimates the yearly cost of Wet Fueling Services for their shuttle buses to be $112,000 annually. The annual cost was calculated using the fixed markup quoted by Blossman Gass Inc., historical fiscal year charges, and projecting them against the increased quantities of converted buses.
7. Blossman Gas Inc. has submitted the Equal Benefits Certification Form and affirmed that the firm is currently in compliance with the City’s Equal Benefits Ordinance.
8. Request Commission to approve the award of IFB #CS-25-03, “Propane Wet Fueling for Community Services Shuttle Buses,” to the sole bidder, Blossman Gas Inc., in an annual amount not to exceed $112,000.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $112,000 annually for an initial three-year period.
b) Amount budgeted for this item in Account No:
128-544-8004-552545-0000-000-0000-00042 (Buses 8920-8921)
128-544-8004-552545-0000-000-0000 (Buses 8922-8923-8924-8925-8926-8927)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project:
|
|
FY 2026 |
FY 2027 |
FY 2028 |
FY 2029 |
FY 2030 |
|
Revenues |
$0 |
$0 |
N/A |
N/A |
N/A |
|
Expenditures |
$112,000 |
$112,000 |
$112.000 |
N/A |
N/A |
|
Net Cost |
$112,000 |
$112,000 |
$112,000 |
N/A |
N/A |
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.