FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT:
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COOPERATIVE PROCUREMENT WITH STATE OF CALIFORNIA, DEPARTMENT OF GENERAL SERVICES FOR FUEL PURCHASE PROGRAM
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
A. Authorize 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
B. Approve a $50,000 (20%) contingency per year.
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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.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
* Participate in local, state, and national cooperative purchasing programs
PROBLEM
The current Agreement between the State of California and the US Bank National Association dba Voyager Fleet Systems (Voyager) for the services of a fuel card payment system expires on June 30, 2021. The State of California went th...
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