Title
AN ORDINANCE APPROVING THE AWARD OF RFP NO. 2017-122 FOR A YEARLY AGREEMENT WITH FOUR POSSIBLE ONE-YEAR RENEWALS FOR AVIATION FUEL SERVICES FOR THE AVIATION DIVISION OF PUBLIC WORKS TO AVFUEL CORPORATION FOR AN AMOUNT NOT TO EXCEED $686,354.00 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME BY AND ON BEHALF OF THE CITY. (F&BC 10-2-17)
Body
Issue/Request:
AN ORDINANCE APPROVING THE AWARD OF RFP NO. 2017-122 FOR A YEARLY AGREEMENT WITH FOUR POSSIBLE ONE-YEAR RENEWALS FOR AVIATION FUEL SERVICES FOR THE AVIATION DIVISION OF PUBLIC WORKS TO AVFUEL CORPORATION FOR AN AMOUNT NOT TO EXCEED $686,354.00 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME BY AND ON BEHALF OF THE CITY.
Proposed City Council Motion:
FIRST MOTION: I move for second reading of AN ORDINANCE APPROVING THE AWARD OF RFP NO. 2017-122 FOR A YEARLY AGREEMENT WITH FOUR POSSIBLE ONE-YEAR RENEWALS FOR AVIATION FUEL SERVICES FOR THE AVIATION DIVISION OF PUBLIC WORKS TO AVFUEL CORPORATION FOR AN AMOUNT NOT TO EXCEED $686,354.00 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME BY AND ON BEHALF OF THE CITY.
SECOND MOTION: I move for adoption of AN ORDINANCE APPROVING THE AWARD OF RFP NO. 2017-122 FOR A YEARLY AGREEMENT WITH FOUR POSSIBLE ONE-YEAR RENEWALS FOR AVIATION FUEL SERVICES FOR THE AVIATION DIVISION OF PUBLIC WORKS TO AVFUEL CORPORATION FOR AN AMOUNT NOT TO EXCEED $686,354.00 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME BY AND ON BEHALF OF THE CITY.
Key Issues:
Ø RFP 2017-122 closed on 06/06/2017. The RFP was advertised on the City’s E-Procurement System, Public Purchase and also on the City of Lee’s Summit Website.
Ø A grand total of 63 vendors were notified of this request for proposal via the City’s E-Procurement system, Public Purchase.
Ø Four proposals were received including proposals from Arrow Energy Inc., AVFUEL Corporation, Epic Aviation, LLC & World Fuel Services.
Ø Based on the review of the Proposals, and interviewing of the three top ranked firms, the Aviation Division for the Lee’s Summit Municipal Airport is recommending award to AVFUEL. AVFUEL was the highest ranking firm as identified on both the proposal and interview composite score sheets.
Ø AVFUEL Corporation is the City’s current Aviation fuel Supplier & has provided good customer service for the past estimated 5 years.
Ø The budget amount for Aviation Fuel as a Yearly Agreement is $686,354.
Background:
The Airport provides fuel service to the General Aviation users of the airport. This service involves the sale of 100LL AVGAS, JET-A and the rental of mobile refuelers to meet the expectation of the aviation public.
The Procurement and Contract Services Division issued RFP Number 2017-122 that closed on 6-06-17 for aviation fuel services for one (1) year with the possibility of (4) four one-year renewals. The RFP was advertised on the City’s E-Procurement System, Public Purchase, and also on the City of Lee’s Summit Website. A grand total of 63 Contractors were notified of this RFP solicitation. Four proposals were received with three of the respondents being selected for interviews. The RFP was evaluated by staff from the Public Works Airport Division and the Procurement and Contract Services Division. AVFUEL was the highest ranking firm and is being recommended for award to provide aviation fuel services for the Aviation Division. A copy of the proposal and interview composite scoresheets are attached. Upon award by the City Council, a yearly agreement will be entered into with AVFUEL Corporation for this service.
The Aviation Fuel agreement with AVFUEL provides for not only the supply of aviation fuels for resale, but the rental of mobile refuellers, technical training for line service and customer employees, a promoting and marketing program and point of sale (POS) services for credit card processing as a Branded Dealer. As a Branded Dealer, the City is assured of a steady supply of fuel during fuel shortage situations.
Impact/Analysis:
The sale of aviation fuel currently provides the Aviation Division with over 50-percent of its revenue for daily operations of the Airport. The intial budgeted amount for this service includes the purchase of both 100LL AVGAS and JET-A as well as the rental of mobile refuellers, fuel quality control testing equipment and participation in several aviation trade shows.
Committee Recommendation
Committee Recommendation: A motion was made by Councilmember Faith, seconded by Alternate DeMoro that this Ordinance be recommended for approval to the City Council - Regular Session due back on 10/19/2017. The vote was unanimous.