FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
title
COOPERATIVE PROCUREMENT WITH STATE OF CALIFORNIA, DEPARTMENT OF GENERAL SERVICES FOR FUEL PURCHASE PROGRAM
end
GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Change Order amount of $135,000 to Blanket Purchase Order 109745-OB for the Fleet Fuel Program under the State of California Department of General Services Master Agreement No. 5-19-99-19 with WEX Bank, for a total amount not to exceed $275,000 for the term July 1, 2026, through June 30, 2027;
B. Approve a one (1) year renewal option at an amount not to exceed $275,000; and
C. Approve an annual contingency of $55,000 (20%).
body
BACKGROUND
Approval of this action allows the Orange County Sanitation District (OC San) to continue participating in the State of California Fleet Card Program. Under this program, OC San purchases fuel from fueling stations at a discounted rate. OC San has purchased fuel for vehicles and the ocean monitoring vessel through the state program since 2009, which provides lower unit fuel costs resulting from larger fuel volumes associated with the cooperative procurement.
The State of California, Department of General Services (DGS), and WEX Bank have recently entered into a new Agreement for the fuel card payment service. This Agreement with WEX Bank provides OC San a fuel card service. Local political subdivisions are allowed and encouraged to participate under this Cooperative Agreement. Every OC San vehicle and ocean monitoring vessel has a charge card to purchase gasoline or diesel fuel from local fueling stations.
In June of 2021 the Board of Directors authorized the use of the State of California, Department of General Services Master Service Agreement No. 5-19-99-19 with WEX Bank for Fleet Payment System Services for the period beginning July 1, 2021, through June 30, 2022, for a total not to exceed $250,000, with four one-year renewal options; and approved a $50,000 (20%) contingency per year. The purchase order has expired, and a new Blanket Purchase Order was approved under the General Manager’s authority for $140,000.
RELEVANT STANDARDS
• Ensure the public’s money is wisely spent
• Participate in local, state, and national cooperative purchasing programs
PROBLEM
The current purchase order amount is not sufficient for the remainder of the term; therefore, additional funds are required.
PROPOSED SOLUTION
Approve change order funds to the current Blanket Purchase Order and a one-year renewal option to continue operations under the program and align the term with the DGS Master Agreement.
TIMING CONCERNS
Timely approval is necessary to maintain uninterrupted participation in the State of California Fleet Card Program and ensure continued access to WEX Bank fuel card services for OC San fleet operations.
RAMIFICATIONS OF NOT TAKING ACTION
Without approval, OC San may experience an interruption in its ability to purchase fuel from commercial fueling stations using fleet cards.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The Master Services Agreement was competitively procured by the State of California DGS. Through the DGS competitive procurement process, WEX Bank submitted the lowest bid and was awarded the Master Services Agreement. A 20% contingency is requested to allow for variances in market fuel prices and usage rates.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance. This item has been budgeted (Budget FY 2026-27 & 2027-28, Section 6, Page 107, Fleet Services) and the budget is sufficient for the recommended action.
|
Date of Approval |
Contract Amount |
Contingency |
|
09/23/2026 |
$275,000 |
$55,000 (20%) |
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
N/A
RM/NO/ls