Impact
WARD / COUNCILMEMBER: City wide
$ IMPACT:
Title
Approval to enter into a contract on the Omnia Partners Cooperative with Mansfield Oil, Gainesville, Georgia, to provide the City with gasoline and diesel fuel and authorize the Mayor to sign and execute all related documents.
Ward: City wide
Body
ISSUE AND BACKGROUND:
The City of Smyrna has been a member of the Gwinnett County Fuel Co-op with several other agencies since approximately 2012. At that time, Mansfield Oil was the awarded vendor. Gwinnett County awarded a new contract to primary contractor James River Solutions in February 2021 and since that time we have continued participation. Service, delivery, price and billing consistency has continued to decline. Mansfield Oil has provided a solution on the Omnia Partners Cooperative.
The Fuel Cost is based on the following formula:
(OPIS rate + Discount) + Freight = Price per Gallon
• Product
Diesel: OPIS Average -$.0075
Gas: OPIS Average -$.0094
• Freight Charges (Freight charges are a pass through under the OMNIA contract)
Estimated Freight - Diesel: $.0279/gallon
Gas: $.0239/gallon
Pump Fee: $Cost
Split Fee: $Cost
Min Freight: $Cost
Example Cost Comparisons:
Mansfield Oil (Gainesville, GA)
Date Type Qty/Gallons OPIS Discount Freight Price / Gal Total
3/18/21 Diesel 6,015 2.0132 -0.0075 0.0279 2.0336 $12,232.10
3/18/21 Gas 2,298 1.9931 -0.0094 0.0239 2.0076 $ 4,613.46
4/1/21 Diesel 3,498 1.8534 -0.0070 0.0279 1.8738 $ 6,554.55
James River Solutions (Richmond, VA)
Date Type Qty/Gallons OPIS Discount Freight Price / Gal Total
3/18/21 Diesel 6,015 2.0132 -0.016 0.075 2.0718 $12,461.88
3/18/21 Gas 2,298 1.9931 -0.023 0.128 2.0981 $ 4,821.43
4/1/21 Diesel 3,498 1.8534 -0.016 0.0287 1.8661 $ 6,527.62
Summary of benefits of transitioning to Omnia contract with Mansfield:
• Regain service level standards that Mansfield provided.
• Reduced freight charges.
o Freight rates are a straight pass through to the customer without any kind of markup
• Access to multiple other products and product lines
o DEF
o Inventory Management/Automatic Dispatch
o Fuel Cards
o Fixed Price
o Fuel Island Maintenance & Repair Services
o Biofuels
o FuelNet Online Delivery - Invoice Portal & more
It is the recommendation of Public Works, Fleet Maintenance and Purchasing that the city award the purchase of Gasoline & Diesel Fuel to Mansfield Oil. The city’s annual spend for fuel purchases is approximately $400,000.00.
RECOMMENDATION / REQUESTED ACTION: Public Works and Purchasing staff recommend approval to enter into a contract on the Omnia Partners Cooperative with Mansfield Oil of Gainesville, Georgia to provide the City with gasoline and diesel fuel and authorize the Mayor to sign and execute all related documents.