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County to seek proposals for pooled natural-gas buying for nine facilities in one-year trial
Summary
Facilities staff told supervisors that pooling nine county facilities under a third-party consultant could increase buying power, stabilize costs and consolidate billing. The board authorized an RFP and asked staff to return with proposals; staff estimated approximate net savings if current market conditions persist.
The Black Hawk County Board of Supervisors on July 8 authorized staff to issue a request for proposals to evaluate using a third-party consultant to pool natural-gas purchasing for nine county facilities for one year.
Facilities Director Rory explained that the county historically brokered gas only for the jail, where usage justified direct contracting; smaller sites had not benefited after transportation and administrative fees were factored in. A consultant could aggregate all nine sites into a single purchasing pool to increase negotiating leverage, consolidate billing and provide monthly usage and rate reports to county staff.
Using current market rates the director estimated potential annual savings of about $13,000; typical consultant fees were described as approximately $0.39 per therm (presented as roughly $5,000 per year in staff estimates). Rory recommended a one-year trial with performance reporting and the ability to reject proposals if costs outweighed benefits.
Supervisors questioned contract terms, transparency of submissions and how staff would measure outcomes; Rory said staff would compare historical spending to contract offerings and require monthly reports from any selected consultant. The board approved issuing the RFP and instructed staff to report back with received proposals and an evaluation for the board to consider.
