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Committee forwards new five‑year city fuel contracts (diesel and gasoline) with contingency for market volatility
Summary
The Budget and Finance Committee voted to forward two resolutions approving five‑year contracts (with up to three one‑year extensions) for diesel fuel with Golden Gate Petroleum (NTE $195 million) and gasoline with Pacific Coast Petroleum (NTE $93 million), derived from four‑year historical spend projections plus a 20% contingency.
The Budget and Finance Committee on Oct. 1 voted 2-0 to forward two resolutions approving competitive five‑year contracts, with up to three one‑year extension options, for city fuel supplies: a diesel contract with Golden Gate Petroleum with a not‑to‑exceed (NTE) value of $195,000,000, and a gasoline contract with Pacific Coast Petroleum with an NTE value of $93,000,000. Both contracts begin Nov. 1, 2025, and include market‑price indexing tied to the Oil Price Information Service.
Office of Contract Administration (OCA) staff said the contract NTE values are based on average annual spending over the last four years plus a 20% contingency to account for market volatility. Golden Gate was the lowest responsive bidder for diesel among four bidders; Pacific Coast Petroleum was the lowest responsive bidder for gasoline among four bidders. Major city users were identified: MTA accounts for about 80% of diesel purchases; Fleet Management accounts for over 60% of gasoline purchases.
The BLA recommended approval and noted contract performance measures (delivery time, product availability and reporting) and recommended OCA oversight. Committee members accepted a technical correction to the Pacific Coast contract number before forwarding both items to the full Board with a positive recommendation. No public comment was submitted on the items.
