Contract line item #S1001, differential price for LPG -- TERM9/30/26 to 9/30/27.

The California Department of Motor Vehicles awarded a statewide contract to Suburban Propane for the mandatory supply of liquefied petroleum gas (LPG) to service districts 3, 4, 7, 10, 11, and 12 at standard delivery locations. The contract was executed on September 30, 2022, with a completion date of September 29, 2026, and carries an annual value of approximately $9.9K. The contract encompasses three pricing components: a differential price of $0.19 per gallon, a weekly fuel posting base price of $1.18 per gallon, and an additional contingency allowance of up to $0.80 per gallon to accommodate price fluctuations tied to the Weekly Butane Propane Newsletter and potential tax increases.

The delivery structure specifies 4,200 gallons of LPG per contract term, with invoices requiring documentation of the applicable weekly base price listing. The contingency provision allocates $3,360 across the contract period to mitigate exposure to commodity price volatility and tax adjustments. All pricing terms are applicable through the final contract year ending September 30, 2027, establishing a mechanism for cost management while maintaining service continuity across the designated California districts.