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City awards three-year fuel contract to Bailey's Enterprises
Summary
The council awarded a three-year gasoline and diesel fuel service contract to Bailey's Enterprises after receiving a single bid; staff said the bidder complied with specifications and the city will pay per-gallon rack price plus the bidder’s markup.
The City Council awarded a three-year contract to Bailey's Enterprises on Sept. 2 to supply gasoline and diesel to the city fleet.
Staff reported the city publicly advertised the request for proposals in the Riverton Ranger and on the Public Purchase clearinghouse; only one responsive bid—Bailey's—was opened on Aug. 21. The bid complied with specifications, staff said, and council approved awarding the contract to Bailey's for a three-year term.
City staff explained the procurement asks bidders for their per-gallon cost at the time of bidding and a per-gallon markup. The rack or terminal price (cost of fuel) will fluctuate with the market over the contract; the bidder’s markup per gallon is fixed for the contract term. Estimated annual quantities were used only to compute a bid total; the city is not limited to those quantities but remains constrained by the adopted budget.
Council approved the award by voice vote; staff will finalize the contract documents with Bailey's Enterprises.
