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OCA secures $107.5 million fuel spending cap after updated invoices; budget analyst concurs
Summary
Office of Contract Administration asked for a $107.5 million not-to-exceed cap for citywide fuel purchases; updated invoice data presented during the hearing led the budget analyst to withdraw an earlier recommendation to lower the cap.
The committee approved a sixth amendment to the city’s fuel procurement contract to raise the not-to-exceed cap to $107.5 million for gasoline, diesel and biodiesel, following an update to month-end invoice data.
Jennifer Brown of the Office of Contract Administration told the subcommittee that earlier data pulled before June books were closed undercounted monthly fuel expenses. "Updated data from our financial system showed that the average monthly spend is actually as we originally projected, about $2,300,000 a month," Brown said. She asked the committee to approve the original requested cap so departments can continue purchasing fuel while the OCA prepares to rebid the contract.
The budget analyst had earlier proposed reducing the requested authority by $1.3 million based on preliminary data, but after receiving the updated invoices the analyst concurred with OCA’s updated projection and withdrew that recommendation. Committee members forwarded the item to the full Board with the analyst’s concurrence.
Next steps: The Office of Contract Administration plans to rebid the fuel contract during the fiscal year; the authorized cap is a ceiling and does not represent a committed spend.
