NIGP 40509: Fuel Oil, Diesel (Use 405-02 for Biodiesel)

NIGP 40509, Fuel Oil, Diesel (Item), describes the supply and delivery of bulk diesel fuel to state and local government fleets, facilities, and operations. State and local governments use this code to procure diesel for fleet vehicles, heavy equipment, emergency generators, and heating systems, often indexed to commodity pricing benchmarks such as OPIS rack rates with vendor markups or markdowns applied daily or weekly. Issuing bodies span state departments of transportation, county governments, municipalities, public transit authorities, school districts, and special-purpose districts. The Illinois Department of Transportation, City of Wichita, Salt Lake County, City of Austin, and regional transit agencies represent the repeat buyers in current activity, with volumes ranging from tens of thousands of gallons annually for smaller jurisdictions to millions for large municipal fleets.

Recent solicitations reflect consistent procurement patterns across geographic regions. The Illinois Department of Transportation issued IFB B-54453 on October 19, 2026 (bids due November 12, 2026) seeking Diesel #1, Diesel #2, and biodiesel supply and delivery to its Waterman facility with weekly OPIS-indexed pricing and a 4% Business Enterprise Program goal. The City of Austin's IFB 7800 MLJ1046 (bids due October 29, 2026) targets a single vendor to supply approximately 5 million gallons annually across unleaded gasoline, E10, E85, diesel, biodiesel, renewable diesel, and DEF over 24 months with optional 12-month extensions and local business preference discounts of 3–5%. The City of Wichita issued RFQ 260260 (bids due November 6, 2026) for 750,000 gallons of lead-free gasoline and 735,000 gallons of diesel annually to multiple city departments including transit, fire, and police. Procurement activity concentrates in Texas, California, Illinois, and Florida, with secondary activity in Massachusetts, Georgia, Michigan, Idaho, Arizona, New Mexico, Hawaii, and Minnesota. Pricing across solicitations consistently uses OPIS or similar published indices with firm bidder markups per gallon; delivery windows typically require 24-hour turnaround, and contract terms range from one to three years with optional renewals. Insurance requirements uniformly mandate commercial general liability of $1 million per occurrence and pollution liability coverage, with several jurisdictions requiring dedicated tank storage, monitoring systems, and emergency delivery capacity. State preferences (New Mexico resident businesses, California small business, Massachusetts prevailing wage) appear selectively; no federal set-asides apply to this Item code.