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Court accepts fuel bids based on lowest wholesale plus markup; DUCO recommended as lowest
Summary
After debate over whether to judge fuel bids by total price or wholesale (rack) price plus vendor markup, the court accepted fuel bids for 06/01/2026–05/31/2027 on a lowest wholesale‑plus‑markup basis and moved to award accordingly; DUCO/Oil (appeared as DUCO in the record) was named as the lowest on that criteria and the motion passed.
Commissioners considered fuel bids for the county's fuel contract year (06/01/2026–05/31/2027) and resolved how to evaluate fluctuating wholesale prices.
The chief question was whether to base awards on total price presented in the bid or on wholesale (rack) price plus the vendor's markup. Commissioners noted that wholesale rack prices can change daily and that bid day pricing plus markup can differ across vendors. One commissioner summarized the compromise: accept the lowest wholesale price on the bid date combined with the lowest submitted markup.
A commissioner moved to accept bids using the wholesale‑plus‑markup method across fuel items; the motion was seconded and carried. That approach produced DUCO as the lowest on the submitted bids for regular unleaded and diesel on the bid date; the court accepted the fuel bid awards by voice vote and instructed staff to include audit rights and clarify tax/exemption language in bid specifications where necessary.
Staff noted the county recently gained an exemption from the state motor fuels tax and advised the court to revise bid packages to reflect the tax exemption and to reserve the right to audit vendor claims about wholesale pricing during the contract year.
