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Council approves Avfuel as airport fuel supplier; vendor pricing questioned by competitor
Summary
The council approved a two-year aviation fuel supply agreement with Avfuel Corporation (with two one-year options) that staff said will generate revenue for the airports; a public speaker representing a competing bidder raised questions about a pricing irregularity in the RFP submissions.
The Killeen City Council approved a memorandum resolution awarding the aviation fuel supplier contract for Killeen Regional Airport and Skylark Field to Avfuel Corporation, authorizing an agreement with a base term of Oct. 1, 2025, through Sept. 30, 2027, with two one-year options. Staff said the contract is expected to generate approximately $541,724 in revenue while the city will incur estimated expenses of about $340,000; the agreement includes value-added services such as three fuel trucks, regulatory training and quality-control equipment at no additional cost.
The airport department presented the procurement as a competitive process: the RFP was advertised June 23, three proposals were received July 30 — Avfuel Corporation, AEG Fuels and Titan Aviation Fuels — and staff recommended Avfuel as the best value after review. The staff presentation noted negotiation of the supply agreement and the package of services offered by Avfuel.
During the public comment period, a representative of AEG Fuels, who identified himself as Mark Grantham, urged council to set aside the recommendation and re-bid the procurement. Grantham said Avfuel had submitted an anomalous fuel price in the RFP and later acknowledged a misprint; he said staff told bidders they would confirm pricing and that the contract award process should have addressed the irregularity more transparently. “As we went through... Avfuel had published a price of $2.32 per gallon for fuel, and then said they made a mistake and picked the wrong week,” Grantham said. Airport staff explained that all three bidders used the same price source (a single pump/plat) as required by the solicitation, that Avfuel’s entry appeared irregular when compared with others, and that staff called Avfuel to verify the pricing; Avfuel confirmed the misprint and staff proceeded with the evaluation and recommendation.
Council approved the fuel-supplier agreement as presented in the meeting packet; staff said the contract will provide a reliable fuel supply, competitive pricing and additional equipment and training. No further council amendment was recorded on the item at the meeting.
