NIGP 40507: Fuel Additives, Extenders, Octane Enhancers, etc.

NIGP 40507 Fuel Additives, Extenders, Octane Enhancers, Etc., an Item code, describes state and local procurement of bulk fuel supply and delivery services for unleaded gasoline, diesel, biodiesel, renewable diesel, and heating oil to support fleet operations, public works, public safety, and essential services. Despite the code's legacy name referencing additives and octane enhancers, recent state and local solicitations under this code focus on the procurement and delivery of finished fuels themselves—not fuel additives or treatment products. State and local issuing bodies pursuing fuel supply under this code include county governments (Hunt County, Texas; Solano County, California; Walton County, Florida; Alameda County Water District, California), state departments (Illinois Department of Transportation), special-purpose districts, and regional cooperative purchasing programs serving municipal consortiums (Berkshire Regional Group Purchasing Program, Massachusetts, representing 32 Berkshire County municipalities). Solicitations typically require vendors to install tank monitoring systems, provide scheduled and on-demand delivery within specified windows (often 24-hour emergency response), structure pricing as a daily index adjustment (OPIS Rack Price or DTN Energy FastRacks differential) to ensure price stability, comply with state air-quality regulations (CARB, LCFS, and Low Carbon Fuel Standards), and maintain comprehensive insurance with liability minimums of $1,000,000 or higher. Several jurisdictions apply local-business preference provisions allowing local vendors within a specified percentage of the low bid to match and win the award.

Recent activity spans California (Solano County IFB for 450,000 gallons annually of unleaded and renewable diesel through June 30, 2027; Alameda County Water District IFB for 118,500 gallons annually through May 15, 2026), Texas (Hunt County ITB for gasoline and diesel with response due August 11, 2026), Florida (Walton County ITB for fuel supply to eight distribution locations due May 13, 2026), Illinois (IDOT District 3 IFB for diesel, biodiesel, and gasoline to four locations through April 3, 2026), and Massachusetts (Berkshire Regional Group Purchasing Program cooperative bid for FY27 fuel products—gasoline, diesel, heating oil, and liquid propane—through April 17, 2026). Pricing structures uniformly employ rack-index formulas with fixed mark-up or mark-down differentials to isolate fuel cost volatility from vendor margins. Contract terms typically run one to two years with optional renewal periods at the issuing body's discretion. Several jurisdictions (Solano County, Walton County, Illinois IDOT) impose Business Enterprise Program utilization goals or small-business set-asides, and prevailing-wage requirements apply in union-preference states such as Massachusetts.