Diesel_BID_PrevailingWageEmail_9.24.25

This email correspondence documents a prevailing wage inquiry between the City of Santa Monica Fleet Management Division and GCAP Services, Inc., a labor compliance analyst firm, regarding a renewable diesel fuel procurement. The City's Fleet Management Division and Santa Monica Fire Department issued an Invitation to Bid for the purchase and delivery of Renewable Diesel Fuel (RD-99 Clear Diesel meeting ASTM D975 and CARB specifications) to support approximately 100 vehicles and equipment over a five-year contract term. The procurement requires delivery to six City facilities including City Yards, Beach Maintenance facility, and Fire Stations 1, 2, 3, and 5, with projected volumes of 50,000 gallons annually and 5,000 gallons monthly. Deliveries must occur during business hours (Monday-Friday, 8 AM-5 PM) within 2-3 business days of order receipt. The question submission deadline is February 9, 2026, at 3:00 PM Pacific Time, with addendum responses due by February 23, 2026, at 5:00 PM, and bids due March 2, 2026, at 3:00 PM via the City's online vendor portal.

The estimated annual spend for this procurement is $1,250,000.00 over the five-year contract period. Kim Morales, Labor Compliance Analyst at GCAP Services, confirmed that the purchase of renewable diesel fuel would not be subject to prevailing wage requirements, as this procurement is classified as a professional service rather than a construction or service contract subject to prevailing wage obligations. Qualified vendors must demonstrate five years of recent experience delivering diesel fuel to fire departments and city fuel sites in southern California and possess all required licenses, endorsements, permits, and placards. Successful bidders must obtain a City of Santa Monica Business License and maintain Commercial General Liability insurance ($1,000,000 per occurrence), Automobile Liability coverage ($1,000,000 per accident), and Workers' Compensation insurance with Statutory Limits and Employers' Liability coverage of at least $1,000,000 per accident, with the City named as additional insured. Payment terms are net thirty days from delivery and invoice receipt, and the City reserves the right to increase or decrease quantities, award to multiple bidders, or reject any or all bids.