THE TRANSPORTATION DEPARTMENT/TRANSIT DIVISION AND THE PURCHASING DIVISION APPROVAL THE ABOVE MOTION.
On January 6, 2015 (Item No. 16), the Board approved an open-end contract with AmeriGas Propane, L.P., (AmeriGas) for Propane Gas and Tanks for Paratransit Vehicles, Bid No. V1294303B1, for the Transit Division, in the four-year estimated amount of $5,257,306 and authorized the Director of Purchasing to renew the contract for a one-year period for a maximum five-year estimated potential amount of $6,571,633.
The Transit Division (BCT) is requesting an increase in the overall contract threshold with AmeriGas in the amount of $3,183,211, due to the unanticipated growth in the number of paratransit trips provided. When the initial contract was bid, the estimated propane usage was estimated at 3,361,320 gallons over four years, or an average of 840,330 gallons per year. The bid set the price per gallon of propane fuel on a pass-through basis, using the average price of propane for Mont Belvieu, Texas as reported by the Butane-Propane News (BPN) Weekly Newsletter, plus a fixed $0.555 mark-up per gallon equivalent ($1.0091 at the time) which provided the overall five-year contract estimate of $5,257,306.
As of December 1, 2017, the paratransit program has exceeded the estimated gallon usage by a 59.6% growth margin (4,024,908 gal. vs. 3,361,320 gal.). Due to a lower than estimated price per gallon, BCT has absorbed the higher consumption up to this point; however, with the growth in the number of trips over the past three years, this threshold increase is needed to continue Paratransit service and maintain the terms of the five-year agreement. |