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~. <br /> <br />• <br />INTER-OFFICE MEMORANDUM <br />MAY 2, 1984 <br />T0: B. Herrera - Director of Q m i rative Servicesr <br />FROM: J. Ray - Purchasing Agent <br />i <br />SUBJECT: Sealed Bid 40041 - Motor ~ls <br />7 <br />• <br />Advertised, sealed bids440041 for the purchase of various types of motor <br />fuels were opened and read in City Council Chambers April 30, 1984 at <br />4 p.m. Bid invitations were mailed to eleven major refiners, wholesalers, <br />and jobbers in the Houston area. <br />The current motor fuels contract (44029-10-83) is held by Exxon Company U.S.A. <br />and is serviced by their Baytown refinery. Pricing under the current contract <br />is handled under a daily fluctuating price schedule with prices averaging 5y <br />to 7~ above wholesale. <br />A total of five gasoline wholesalers responded to the bid invitation. Vendors <br />were asked to offer a fixed price for a 14-day period and tie the future price <br />to manufacturers posted rack price plus a percentage of profit. The apparent <br />low bid submitted by Texas Gulf Gas of Houston, Texas provided only a firm <br />price for 14 days. No indication was given as to how the future price of fuel <br />was to be determined. Low bid meeting specifications was submitted by Angel's <br />• Wholesale Inc. of La Porte, Texas. Pricing averaged .005 to .0075 higher than <br />apparent low bid but future pricing was based upon actual cost (invoice supported) <br />plus a $175 delivery charge. <br />I hereby recommend that the City of La Porte award the 1984-85 contract for <br />motor fuels to Angel's Wholesale Inc. of La Porte on the basis of low bid <br />meeting specifications. I trust this recommendation will meet with your approval. <br />JR/mb <br />cc: J. Hodge <br />D. Root <br />Attachment <br />N/ <br /> <br />,_..... . <br />.....~.~ <br />