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Scotts Bluff County to seek bids for fuel supply after discussion on pricing and logistics
Summary
After debate on whether to buy off the rail or lock prices, commissioners directed staff to issue an RFP for fuel with 6‑ and 12‑month pricing options and to explore combining county fuel purchases to seek lower rates.
Scotts Bluff County commissioners voted to send a request for proposals for fuel supply for the county bus barn and related county fueling needs after a discussion about price volatility, delivery logistics and prospects for volume discounts.
Kirk (county transit/staff) and county administrators outlined recent purchase prices: the county paid $2.765 per gallon under last year’s agreement with a supplier and had purchased off‑rail for $2.575 most recently; staff said off‑rail price had risen to about $2.60 per gallon since that purchase. Commissioners debated whether to lock in a contract price through an RFP or continue to purchase from the spot/rail market.
Several commissioners said combining county fuel needs (diesel plus gasoline used by other departments) could increase leverage in bidding and potentially lower per‑gallon cost, but they also noted logistical complications such as delivery tanker size and staggered local demand. Staff reported diesel consumption roughly 90,000 gallons annually for county fleets; gasoline usage for some county accounts is substantially lower and handled in smaller truckloads.
The board directed staff to: - Issue an RFP for fuel with two contract options: a 6‑month and a 12‑month term, each with price proposals; and - Explore whether multiple county departments/agencies can be combined in the procurement to increase purchase volume and improve pricing. Staff was also asked to request firm offers from local suppliers (including Satt Brothers and West Coast/Sac Brothers) for comparison and to pursue short‑term purchases to maintain existing inventory as an interim measure.
Commissioners said they want both the market (spot) price option and a locked contract price returned for the board’s consideration. The motion to ask staff to proceed with an RFP including the two term options passed 5–0.
What the board asked staff to return with: price quotes for 6‑ and 12‑month contract terms, separate and combined gallon quantities (diesel and gasoline), supplier responses for rail and local delivery options, and an estimate of short‑term inventory purchases needed before an RFP contract could begin.
