CITY OF AUSTIN

SCOPE OF WORK

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

1. PURPOSE

The City of Austin (“City”) is seeking proposals to establish a fuel Contract aimed at procuring unleaded gasoline, ethanol- gasoline, diesel, biodiesel and/or renewable diesel, diesel exhaust fluid (DEF), and specialized fuel-related services for utilization by the City’s Fleet Services Department. The objective is to engage a singular vendor capable of delivering a comprehensive, cost-effective contract for bulk motor fuels and fuel-related products and services for the entirety of the City’s vehicle and equipment fleet.

1.1 The Contractor shall be required to provide the following products and/or services:

1) Motor Fuels (Unleaded, Ethanol-Gasoline, Diesel, Biodiesel and/or Renewable Diesel)

2) Diesel Exhaust Fluid

3) Special Fuel-Related Services

The City reserves the right to award a Contract for some, none, or all the products and services in this solicitation.

1.2 The City anticipates purchasing an estimated five (5) million gallons of fuel(s) and/or fuel-related product(s) annually. These estimates are based on previous usage and are not to be considered a commitment by the City to purchase any amount or type of fuel(s) and/or fuel-related product(s).

Table 1: Estimated Annual Orders and Estimated Total Annual Volume of Fuels

Fuel Type Estimated Annual Number of Fuel Orders

Estimated Total Annual Volume (Gallons)

LCP Biodiesel, and/or Renewable Diesel 2,000 2,900,000 (2,915,000)

Diesel 400 1,000,000 (1,015,000)

Ethanol-Gasoline 400 600,000 (615,000)

Regular Unleaded 1,400 1,432,000 (1,447,000)

Super Unleaded 50 50,000

DEF 10 80,000

Table 2: Tanks by Fuel and Tank Size Currently in Operation at City Sites*

Fuel Type and Fuel Tank Size Number of Tanks in Operation

Total Capacity of Tanks in Gallons

UNLEADED Tanks of < 1,000 GAL 13 6,500

UNLEADED Tanks of 1,000-5,999 GAL 8 12,000

UNLEADED Tanks of 6,000 + GAL 10 87,000

Ethanol-Gasoline Tanks of < 1,000 GAL 1 500

Ethanol-Gasoline Tanks of 1,000-5,999 GAL 5 13,000

Ethanol-Gasoline Tanks of 6,000 + GAL 5 53,000 TxLED Diesel, LCP BIODIESEL and/or Renewable Diesel Tanks of <

1,000 GAL

14 7,000

TxLED Diesel, LCP BIODIESEL and/or Renewable Diesel Tanks of

1,000-5,999 GAL

22 49,000

TxLED Diesel, LCP BIODIESEL and/or Renewable Diesel Tanks of

6,000 + GAL

11 101,500

DEF Tanks of 1,000-5,999 GAL 7 12,500

* The City reserves the right to add or remove tanks and fueling sites.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

2. DEFINITIONS

2.1 Definition of Terms

Term Definition

Additive

Any substance that is added to fuel to give it a desired quality (e.g., anti-icing, anticorrosive), must comply with EPA regulations and is compatible with the refiner’s product

Biocide

Chemical substance (such as algicide or fungicide) that destroys or inhibits the growth or activity of living organisms

Biodiesel A vegetable oil- or animal fat-based fuel consisting of long-chain alkyl (methyl, propyl or ethyl) esters that is mixed with Diesel.

Bobtail Load Tanker truck delivering a volume of less than the full capacity of a transport load.

Catastrophic Condition

Situation that has any negative impact to City operations.

Certificate of Analysis

A legal certification provided by the Contractor to ensure compliance to the agreed-upon fuel quality standard.

Cetane (cetane number)

An indicator of the combustion speed of diesel fuel and compression needed for ignition; is also an important factor in determining the quality of diesel fuel.

Cloud Point The temperature at which dissolved solids are no longer completely soluble, precipitating as a second phase giving the fluid a cloudy appearance.

Code Red A requirement for a scheduled delivery within six (6) hours after an order is placed.

Contamination

The act or an instance of fuel rendered unusable due to the influence of an unwanted substance such as water, foreign particulate matter, biological growth, or wax formation.

Dry Run The Contractor’s inability to unload fuel delivered to a location due to ordering error, a lack of ability to take on fuel at the site, or other error on part of the City.

Drop Services Dumping fuel from Contractor’s truck into a City tank after performing a pump out service.

Octane (octane rating or octane number)

Standard measure of the performance of a motor fuel. The higher the octane number, the more compression the fuel can withstand before detonating.

Pump Out Service Pumping fuel from a City tank into Contractor’s truck.

Renewable Diesel

A second-generation alternative diesel that is sustainable, ultra-clean burning, petroleum-free, pure paraffinic hydrocarbon fuel made from any vegetable oil, animal fat, or fish oil.

Splash Blending To blend or mix two or more products together by merely adding one product to the other in a cargo tank compartment, City tank, etc.

Transport Load Tanker truck delivering a volume of 4,000 gallons or greater of Unleaded, E-85, Diesel, or Biodiesel.

Quality Assurance Testing:

Regular testing procedures conducted by the Contractor to ensure that the delivered fuel meets agreed-upon quality standards, including but not limited to octane levels, cetane levels, and absence of contaminants.

Emergency Response Plan:

A detailed plan outlining procedures and responsibilities in the event of fuel-related emergencies, such as spills, leaks, or other hazardous incidents.

Delivery Schedule: A predefined timetable specifying regular delivery intervals, lead times, and any exceptions or adjustments based on City requirements.

Acceptance Criteria: Clearly defined criteria that the delivered fuel must meet to be considered acceptable, including but not limited to specifications on additives, purity, and compliance with regulatory

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

standards.

Force Majeure: A clause specifying conditions, such as natural disasters or other unforeseen events, that may relieve either party from their contractual obligations temporarily.

Environmental Compliance:

Obligations for the Contractor to comply with all environmental regulations, including waste disposal and spill containment, to minimize the environmental impact of fuel delivery and storage.

Price Adjustment Mechanism:

A provision outlining how and when adjustments to the contract price will be made based on changes in market conditions, taxes, or other relevant factors.

2.2 Definition of Acronyms

Acronym Meaning

API American Petroleum Institute

AST Above-ground Storage Tank

ASTM ASTM International, formerly known as the American Standards for Testing and Materials

B-20 A mixture composed of 20% Biodiesel with 80% of Diesel

B-99 99% Biodiesel

BQ 9000 National Biodiesel Accreditation Program

COA Certificate of Analysis

CDL Commercial Driver’s License

DEF Diesel Exhaust Fluid

EPA United States Environmental Protection Agency

EST Eastern Standard Time

FOB Free on Board

ISO International Organization for Standardization

LCP Low Cloud Point

MON Motor Octane Number

SDS Safety Data Sheet

NFPA National Fire Protection Association

OPIS Oil Price Information Service

OSHA Occupational Safety and Health Administration

RD Renewable Diesel

RON Research Octane Number

SPCC Spill Prevention, Control, and Countermeasure

TCEQ Texas Commission on Environmental Quality

TxLED Texas Low Emission Diesel

UST Underground Storage Tank

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

3. TERM OF CONTRACT:

3.1 The Contract shall commence upon execution, unless otherwise specified, and shall remain in effect for an initial term of twenty-four (24) months. The Contract may be extended beyond the initial term for up to three (3) additional twelve (12) month periods. If the City exercises any extension option, all terms, conditions, and provisions of the Contract shall remain in effect for that extension period, subject only to any economic price adjustment otherwise allowed under the Contract.

3.2 Upon expiration of the initial term or any period of extension, the Contractor agrees to hold over under the terms and conditions of this Contract for such a period as is reasonably necessary for the City to re-solicit and/or complete the deliverables due under this Contract. Any holdover period will not exceed 120 calendar days unless mutually agreed on by both parties in writing.

3.3 Market Differentials are firm for the life of the contract. Prices are firm and fixed for the first twelve months for the items listed in Price Sheet Category 2 – DEF and Category 3- Transportation and Delivery Related Services. Thereafter, price changes are subject to the Economic Price Adjustment provisions of this Contract.

4. CONTRACTOR QUALIFICATIONS

The Contractor shall:

4.1 Have minimum of five years of experience in providing fuel and fuel-related products and services.

4.2 Have or subcontract an operational facility that regularly engages in the business of providing fuel and fuel-related products and services for a minimum of five (5) years.

4.3 Have transportation drivers (in-house drivers preferred), fully qualified to fulfill the duties under the Contract. The Contractor shall be able to verify that all personnel providing services under the Contract have had sufficient CDL/Hazmat training with a minimum of one (1) years hands-on experience within the last two (2) years working with fuel and/or fuel-related products and/or services.

4.4 Ensure all delivery transport and bobtail vehicle operators (“drivers”), or subcontracted vehicle operators/drivers have a current Texas Commercial Driver's License (CDL) with required Hazmat Endorsement for all drivers and Transport Endorsement for transport drivers to operate fuel delivery vehicles. All drivers must have documentation to reflect current DOT 172.704 training, Transportation and Security Hazardous Materials every three years as required by 49 CFR (Code of Federal Regulations 172.704. 2) documentation to reflect Hazard Communication Standard training known as the “Right to Know and Understand Act” required by 29 CFR 1910.1200., 3) documentation to reflect Spill Prevention Control & Countermeasure Plan training as required by 40 CFR 112. Within five (5) business days of Contract effective date, the Contractor shall provide list of all drivers and criminal history background affidavit that all drivers have had the required criminal background check.

4.5 Utilize transport and bobtail vehicles whose capacities have been certified by the State of Texas. All bobtail vehicles shall have meters capable of accurately metering the volume of fuel or fuel- related products delivered. All transport and bobtail vehicles shall have the appropriate vapor recovery system.

4.6 Bulk Storage Tank Capacity and Testing: The Contractor must possess sufficient bulk storage tank capacity to meet the anticipated demand for the diesel fuels specified under this Contract, including but not limited to biodiesel blends and renewable diesel formulations. All bulk storage tanks shall undergo regular testing and inspection to ensure the integrity and quality of the stored fuel. Required testing includes, but is not limited to, corrosion monitoring, leakage prevention measures, and compliance with applicable industry standards for bulk fuel storage. The Contractor is responsible for maintaining storage systems that preserve fuel quality for any diesel products supplied under the Contract.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

4.7 Additive Blending Capability: The Contractor should have the capability to blend additives into the fuel as required by the Contract specifications. This capability ensures flexibility and customization of fuel products to meet specific client needs, such as meeting certain regulatory requirements or enhancing fuel performance.

4.8 Emergency Response and Business Continuity Plan: The Contractor must have a comprehensive

Emergency Response and Business Continuity Plan in place. This plan should outline procedures for responding to emergencies, such as spills, accidents, or supply chain disruptions. It should include communication protocols, emergency contacts, and measures to ensure the continuous supply of fuel even in adverse conditions. Regular drills and updates to the plan should be conducted to maintain its effectiveness.

4.9 The Contractor shall demonstrate proven regional supply capability, including ownership or long‑term operational control of bulk fuel storage facilities within the Central Texas region or surrounding markets capable of reliably supporting the City’s annual fuel demand. Documentation of storage capacity, throughput capability, and terminal access agreements shall be required.

4.10 The Contractor shall provide evidence, at the time of the bid submission, of proven performance maintaining fuel supply and delivery operations during adverse conditions, including but not limited to severe weather, regional fuel shortages, pipeline disruptions, or declared emergency events.

References or records demonstrating continuity of service will be required.

4.11 The Contractor shall maintain business continuity and emergency response plans sufficient to meet required service levels in the event of supply interruptions, terminal outages, transportation blockages, or other operational disruptions. Redundant supply points and logistical contingencies must be identified.

4.12 The Contractor shall guarantee scheduling priority for the City of Austin over all non-governmental customers. No City delivery may be rescheduled, delayed, or deprioritized due to higher volume commercial, private sector, or national account orders. Priority must be enforced across Contractor owned assets and any subcontracted carriers.

4.13 The Contractor shall not “bump,” replace, or delay any City order for any reason other than force majeure. If conflicting dispatch demands arise, the City’s orders shall be fulfilled first, unless the City authorizes an exception in writing.

4.14 The Contractor shall maintain pre-authorized backup carriers sufficient to meet all City standard and emergency delivery requirements. Backup carriers must be contractually bound to meet all delivery priority and non-bump requirements contained herein.

4.15 The Contractor shall maintain an Emergency Delivery Tier structure, including:

Tier 1: Fire, EMS, Police, critical infrastructure, and essential fleet sites.

Tier 2: High volume operational sites.

Tier 3: All other City fuel sites.

Tier 1 sites must receive accelerated service during emergency conditions ahead of all other customers.

5. COMPLIANCE WITH APPLICABLE LAWS

5.1 Compliance with Applicable Laws: Comply with and perform work in strict accordance with all applicable federal, state, and local statutes, regulations, rules, and ordinances concerning the purchase, sale, transport and delivery of products and/or services herein, including, but not limited to, those pertaining to health, safety, and environmental compliance and protection.

5.2 Establish and maintain a comprehensive compliance program that includes regular audits and assessments to ensure adherence to all applicable laws, regulations, and requirements.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

5.3 Provide the City with periodic reports, at intervals mutually agreed upon, detailing the Contractor’s ongoing compliance efforts, potential risks, and any corrective actions taken to address identified non-compliance issues.

5.4 Notification of Variances: Notify the City in writing and address any necessary changes to be made by appropriate modification to the contract if the Contractor observes that any contract documents or provisions are at variance with applicable laws, ordinances, rules, regulations, and/or orders in any respect.

5.5 Responsibility for Non-Compliance: Bear the full responsibility and costs attributable to any contractor or subcontractor performance contrary to applicable laws, rules, ordinances, regulations.

5.6 Notification of Citations or Violations: Notify the City immediately of notice of any Texas Commission on Environmental Quality citation or violation, which the Contractor may receive during the life of the contract.

5.7 Cooperation with Audits or Investigations: Cooperate fully with any audits or investigations conducted by regulatory authorities related to the products or services provided under this contract, and promptly provide the City with all necessary information and documentation.

5.8 Contract Modification due to Legal Changes: Immediately inform the City of any changes in relevant laws, regulations, or ordinances that may impact the performance of the contract and work collaboratively to modify the contract accordingly.

6. CONTRACTOR RESPONSIBILIITIES

6.1 Submit sample(s) of fuel(s) and/or fuel-related product(s) associated with the Contract within one

(1) working day of the City’s written request and without charge to the City. The sample shall be one

(1) gallon of the product requested. The City will retain the sample to verify compliance with Contract specifications. The City will be responsible for the disposition of samples.

6.2 Ensure that all motor fuels and fuel-related products delivered under the Contract are free from contamination and meets all specifications as described in the Contract. The Contractor shall further ensure that products delivered will not contain any foreign substances or water which may damage City vehicles and equipment or contaminate the City’s storage tanks.

6.2.1 Offerors shall submit with their Offer, or within five (5) business days of request from the

City, a draft Fuel Test and Quality Assurance Plan (“Test Plan”). The Contractor shall work with the City to mutually agree upon a final Test Plan within 30 business days of the contract effective date or another mutually agreed to time to document all Contractor provided testing of B99 and all other fuel products to ensure compliance with specifications. All tests shall be made as per methods specified or approved by the ASTM, unless otherwise specified in the Contract. If any change occurs to the Contractor’s fuel product testing, the Contractor shall immediately provide a revised Test Plan to the City for approval that reflects that change.

6.2.2 The City and its authorized representatives reserve the right to test fuels and its fuel-related products quality, before, during and after unloading. All tests will be done as per methods outlined by ASTM International, unless otherwise specified.

• Should the City’s test results show that the fuels or fuel-related products contain contamination, or do not meet established specifications, the City will reject the fuel or fuel-related products and the Contractor shall reimburse the City for all testing and associated costs.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

The Contractor shall be responsible for the removal of the non-conforming fuel or fuel-related products from City property within twenty-four (24) hours after the City rejects the products and notifies the Contractor. Furthermore, in the event that the fuels or fuel-related products are rejected, the City reserves the right to either purchase the fuel or fuel-related products from another source and charge the Contractor the difference, or require the Contractor to certify the amount of removed fuel or fuel-related products and be fully responsible for the replacement of all removed contaminated or non-specification products at no expense to the City and without any additional notification required on behalf of the City.

6.2.3 Be responsible for all cleanup and associated costs required at City properties, storage facilities, equipment and/or vehicles as a result of contaminants or noncompliance with Contract specifications. Furthermore, the Contractor shall be fully responsible for all costs incurred by the City for any property, equipment or vehicles sustaining damage attributed to Contractor activities or contaminated fuel.

6.2.4 Contractor shall remove and dispose of all spills (including those into spill containers) that occur in the performance of this Contract. Offerors shall provide the City with a Contractor Spill Response Plan to outline actions to be taken in the event of a spill as part of their Offer or within five (5) business days of request from the City. The Contractor shall work with the City to mutually agree upon a final Spill Response Plan within 30 business days of the contract effective date or another mutually agreed to time. Any cost incurred as a result of fuel and fuel-related product spills on the part of the Contractor, its agents or employees, or due to equipment malfunction, shall be borne by the Contractor.

6.3 Ensure compliance with Contract specifications and shall provide detailed specification documents for all fuels and fuel-related products with their Offer or within five (5) business days of request from the City. The Contractor shall provide updated specifications documents within ten (10) business days following a change in specifications during the life of the Contract.

Contractor shall provide a Certificate of Analysis (COA) for all loads of B99 and a Safety Data Sheet for all other fuel products documenting compliance to Contract specifications with any changes to products delivered during the Contract. COA shall contain the following, at a minimum:

• Manufacturing/Blending locations;

• Lot or batch identification;

• Product name;

• Date of analysis;

• Test methods performed;

• Test results; and,

• Signature of person performing analysis or certifying product.

The City reserves the right to accept or reject new specifications prior to delivery of any fuel or fuel-related products.

6.4 Provide the City, within five (5) business days of the Contract effective date, SDS, for all chemicals and hazardous materials specifying the generic and trade name of product, product specification, and full hazard information including receiving and storage hazards. Instructions, special equipment needed for handling, information on approved containers, and instructions for the disposal of the material are also required. Contractor must provide any additional requested SDS within 48 hours of the City’s request.

6.5 Provide the City with secondary product testing services for B100 biodiesel, renewable diesel, and diesel. The Contractor shall have secondary quality control tests (“Secondary Product Testing”) run by an independent testing laboratory un-related to the fuel supplier or the Contractor on each different lot of B100 biodiesel, renewable diesel, and diesel before any B20 biodiesel or other diesel blends are produced and delivered to the City. The independent testing laboratory shall be mutually agreed upon, in writing, by the City and the Contractor and shall serve as the City’s authorized representative. Testing shall confirm compliance with all applicable ASTM requirements.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

6.5.1 Secondary Product Testing shall be performed in conjunction with the Contractor’s Test

Plan and in a manner so that there are no delays in delivering B20 biodiesel, renewable diesel, or diesel to the City.

6.5.2 Secondary Product Test results shall be submitted to the City with a COA from the independent testing lab and shall be sent via email to the Fleet Fuel Operations group at fleetfueloperations@austintexas.gov. If the test results are within specification, blending and delivery to the City of Austin may commence. The City of Austin does not require acknowledgement that the testing results are within specifications for the contractor to start blending and fulfilling the city’s orders.

6.5.3 Any lot of fuel intended for blending—whether biodiesel, renewable diesel, or any other diesel formulation supplied under this Contract—that is shown through testing to contain contamination or to not meet established specifications shall not be used for blending or delivery to the City.

6.5.4 The City will be responsible for the cost of this Secondary Product Testing, including the cost for test kits supplied by the testing facility. Invoices for Secondary Product Testing shall pass through the Contractor at no additional markup to the City. A copy of the testing facility’s invoice shall be submitted with the Contractor’s invoice.

6.6 The Contractor shall maintain facilities and equipment capable of blending Biodiesel, Renewable

Diesel, additives, and other fuel components to meet all Contract specifications. The Contractor shall conduct in‑house or contracted laboratory testing to verify ASTM, TxLED, and City requirements. Such capability must include routine batch analysis, contamination testing, additive verification, and quality documentation.

6.7 The Contractor shall support the City in evaluating and testing new fuel formulations, renewable alternatives, and emerging low‑carbon energy products. Upon request, the Contractor shall provide test batches, technical specifications, emissions data, or pilot‑scale quantities without disruption to normal supply operations. The Contractor shall collaborate with the City to facilitate pilot programs for evaluating alternative fuels or energy sources.

6.8 In addition to standard spill response requirements, the Contractor shall maintain the ability to sustain accelerated delivery schedules, increased order frequency, and rapid deployment of transport assets during emergency conditions. The Contractor shall maintain documented procedures for emergency fuel allocation, prioritized routing, and communication protocols with the City during high‑impact events.

6.9 During supply disruptions, pipeline outages, rack shutdowns, or terminal constraints, the Contractor shall allocate fuel to the City ahead of non-governmental customers. The City’s minimum guaranteed allocation shall be no less than the City’s prior 12-month average monthly volume.

6.10 During severe weather, disasters, declared emergencies, or catastrophic conditions, the Contractor shall reroute transport assets toward City deliveries before fulfilling commercial orders. The Contractor must maintain the ability to dispatch emergency loads within the timelines defined in Section 7.2.5 and 7.2.5.1.

6.11 If any delay risk arises—including terminal delays, truck shortages, or subcontractor non performance—the Contractor must notify Fleet Fuel Operations within 15 minutes and provide:

6.11.1 The cause of delay

6.11.2 The revised ETA

6.11.3 The assigned backup carrier

6.11.4 Confirmation of compliance with Tier 1 prioritization

No delay may be executed without City approval.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

6.12 Any subcontractor engaged in City deliveries must comply with all delivery priority, non-bump, and emergency routing requirements. Subcontractors shall not reassign trucks from City orders to private customers.

7. ORDER, TRANSPORT & DELIVERY REQUIREMENTS

7.1 Order Requirements

The contractor shall:

7.1.1 Accept and confirm orders by phone and electronically by email or another electronic format approved by the City.

7.1.2 Confirm all orders within two (2) hours after the order is sent utilizing the confirmation process outlined for the ordering method.

7.1.3 Provide a point of contact and contact information for the person responsible for receiving orders from the City within five (5) business days of Contract effective date.

7.2 Transport and Delivery Requirements

General Requirements The Contractor shall:

7.2.1 Ensure that all transport and bobtail trucks are properly sized and equipped for delivery locations; that the proper fuel types and quantities match the order and location; that all Contractor’s measuring, safety, and operation devices as well as City’s tanks are functioning correctly; that all paperwork required by the City is properly completed; and that delivery can be made in a safe and timely manner.

7.2.2 Make all deliveries for bulk deliveries of fuel or fuel-related products from the fuel supplier’s rack/terminal or Contractor’s storage location to delivery locations.

7.2.3 The Contractor shall assess no more than one delivery charge per site per calendar day, regardless of the number of tanks serviced, truck compartments used, or fuel types delivered at that location. Deliveries to multiple tanks at the same site on the same day shall be treated as a single delivery event for billing purposes.

7.2.4 The Contractor shall consolidate deliveries to minimize trips and avoid unnecessary split loads. Deliveries shall be planned in coordination with the City’s ordering patterns to support the minimum number of delivery events necessary, except where safety, regulatory, or operational requirements make consolidation impractical.

7.2.5 Ensure that all deliveries shall be made within twenty-four (24) hours after receipt and confirmation of order (either verbally or by electronic mail), or as otherwise specified in writing by the City. The Contractor shall schedule standard deliveries seven days per week, including holidays according to the hours of operation for each site. Standard delivery is between 7:30 AM and 4:00 PM Central Standard Time.

• The City will, from time to time require the Contractor to schedule deliveries within six (6) hours after the order is sent, referred to by the City as a “Code Red” delivery. An additional fee, above and beyond the standard charge, may be assessed for any “Code Red” orders placed by and approved by Fleet Fuel Operations as indicated on the written order and in accordance with pricing identified on the Bid Sheet. “Code Red” must be clearly identified on the invoice when an order of this type is authorized by the City.

7.2.6 The Contractor shall ship all orders for fuel(s) and/or fuel-related product(s) complete unless arrangements for partial shipments are made in advance with the City.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

7.2.7 The Contractor shall fill the City fuel storage tanks as close to ninety percent (90%) of the total fuel tank capacity as possible. The Contractor shall take a manual (stick) reading of the tank volume prior to and immediately following each delivery. The contractor is responsible for supplying and maintaining its own manual measuring stick for this purpose. The City will provide the corresponding tanks charts for each location and will validate the Contractor’s manual reading through the City’s Veeder Root tank level monitoring system where such equipment is installed.

7.2.8 The Contractor shall ensure that all deliveries are accompanied by a bill of lading or manifest identifying, at a minimum, the fuel and fuel-related products being delivered, the number of gallons delivered and the terminal or loading location.

7.2.9 If the City has ordered fuel in error (e.g. duplicate order) or the Contractor is unable to drop the fuel (e.g., tanks are not empty or ready to take on fuel), the Contractor shall call Fleet Fuel Operations to determine if the delivery can be made at another site. If no alternative delivery can be arranged, the Contractor shall obtain an authorization code from the Fleet Fuel Operations to charge the City for a Dry Run. The City shall not be charged when a Dry Run results from the Contractor’s error.

7.2.10 The Contractor shall make split deliveries of fuel product whenever possible so that the

City may take advantage of transport load fuel prices. The delivery of any combination of 4,000 gallons or more of any fuel type to a single fuel site by the same delivery truck shall be considered a transport load. Similarly, a delivery of a total of 4,000 or more gallons of fuel on a transport truck to two or more City locations within five (5) miles, on the same day shall be considered a transport load. The Contractor shall not charge an additional fee for split deliveries. Generally, the City aims to order between 6,500 gallons and 8,000 gallons for a transport load.

7.2.11 The Contractor shall, from time to time, as requested by the City, transfer fuel from one

City tank to another. The Contractor shall charge the City a pump-out and/or drop fee for this service, as indicated on the Bid Sheet.

7.2.12 If the Contractor is observed not conforming to Contract delivery procedures, the City will document the incident and send it to the Contractor. The Contractor will be provided five

(5) business days from receipt of the written incident report to respond in writing to the Fleet Contract Manager. Response shall include a plan for corrective action. If necessary, a meeting between the Contractor, the Fleet Contract Manager and Fleet Fuel Operations will be held to review and agree upon the plan for corrective action.

7.2.13 The Contractor shall report any incidents, spills and/or violations of Contract requirements that occur in the performance of the Contract to Fleet Fuel Operations within one (1) hour of the incident.

7.2.14 Contractor personnel shall read, understand, and follow Fleet Fuel Operations’ Fuel

Transport and Delivery Procedures as described in Attachment B. In addition, the Contractor shall follow U.S. Environmental Protection Agency’s (EPA) Oil Pollution Prevention and Response Regulation (40 CFR 112) and the U.S. Department of Health and Human Services/National Institutes of Health’s Spill Prevention Control and Countermeasure regulations for the delivery and transfer of fuel. The City will notify the Contractor in writing of any changes to the Fuel Transport and Delivery Procedures within 30 days of modifications to the document.

7.2.15 The Contractor shall ensure that deliveries of DEF conform to the chain of custody requirements detailed in ISO 22241 and Attachment B. The Contractor shall utilize dedicated equipment that is compatible with DEF to eliminate the potential for contamination (e.g. cannot be mixed with fuel).

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

7.2.16 Within five (5) business days of Contract effective date, Contractor shall confirm all City delivery location specifics with Fleet Fuel Operations. Attachment A outlines the following information for each delivery location:

• Entity

• Address

• Size (Gallons)

• Type of City-Owned Tank (Aboveground (AST) or Underground (UST))

• Product Type

• Hours of Operations

• Fueling Hours

• Truck Access (Transport/Bobtail)

7.2.17 The Contractor shall treat all City deliveries as priority orders. Under no circumstances shall City deliveries be delayed due to other customer demands or internal fleet scheduling decisions by the Contractor.

7.2.18 Once a City delivery is scheduled, the Contractor shall not cancel, reduce, reassign, or postpone the delivery window for any reason attributable to commercial or cooperative customer volume, terminal congestion, or asset reallocation.

7.2.19 For all standard orders, the Contractor must meet the 24-hour delivery window. For Tier

1 emergency orders, the Contractor must meet the 6-hour Code Red window. Failure to meet either delivery window shall result in the Contractor providing a corrective action plan and routing City deliveries first for the subsequent 48 hours.

7.2.20 If the Contractor is unable to meet delivery timelines using its primary fleet, it must immediately dispatch backup carriers or shift transport assets from non-City orders to fulfill City requirements.

7.2.21 City orders shall not be preempted by commercial orders at any stage of dispatch, loading, racking time, or routing.

7.2.22 If the Contractor violates any delivery priority or non-bump provision, the City reserves the right to:

• Assess damages

• Issue cure notices

• Revoke delivery routing preferences

• Reassign orders to backup carriers at Contractor expense

• Reduce future allocations

• Terminate the Contract for non-performance

8. FUEL AND FUEL-RELATED PRODUCTS SPECIFICATIONS

8.1 Unleaded and Ethanol Fuels. The Contractor shall supply the City with following Unleaded and

Ethanol fuels. All grades of gasoline furnished and delivered shall contain required rust inhibitors, oxidation inhibitors and detergent additives for use in, engines with fuel injector systems and catalytic converters. The Contractor shall determine the octane rating by adding the research octane number (RON) and the motor octane number (MON), then dividing by two (2) (“Octane Rating = (RON + MON) / 2,”). It is not acceptable for the Contractor to mix or blend lower octane rated gasoline with higher octane rated gasoline to meet minimum standard requirements.

8.1.1 Regular Unleaded Gasoline, meeting Active Standard ASTM D4814-(Most Recent Issue) for Automotive Spark Ignition Engine Fuel (most recent issue) with minimum octane rating of 87.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

8.1.2 Super Unleaded Gasoline, meeting Active Standard ASTM D4814-(Most Recent Issue) for Automotive Spark Ignition Engine Fuel (most recent issue) with minimum octane rating of 93.

8.1.3 Ethanol Gasoline, meeting Active Standard ASTM D5798-(Most Recent Issue) for Ethanol Fuel Blends for Flexible-Fuel Automotive Spark Ignition Engines (most recent issue).

8.2 Diesel, Biodiesel and Renewable Diesel Fuels. The Contractor shall supply the City with

Diesel, Biodiesel, and Renewable Diesel fuels. All Diesel, Biodiesel (excluding B100), and Renewable Diesel products shall be Texas Low Emission Diesel (TxLED) or TCEQ approved alternative Diesel fuel formulation. It is preferred that the Contractor supplying Biodiesel be BQ9000 certified. Where Biodiesel blended fuels are not available pre-blended at the terminal, Contractor shall blend the Biodiesel blended fuel at the Contractor’s facility prior to delivery. This requirement applies to both transport and bobtail orders. The resultant blended Biodiesel product must meet all Contract specifications. The Offerors shall submit with their Offer, or within five (5) business days of request from the City, provide detailed description of all blending processes to the City. Manifold blending in City’s tank (Splash Blending) is permitted on transport loads only. Splash blending is not allowed on Bobtail loads. The Contractor shall pre-blend Bobtail loads of B20 prior to loading into delivery truck. There is no minimum order quantity for a bobtail load, though the City aims to not order less than 250 gallons per delivery for a bobtail load.

8.2.1 TxLED or TCEQ approved alternative Diesel fuel formulation, meeting Active Standard

ASTM D975-(Most Recent Issue) for Diesel Fuel Oils (most recent issues) with the following additional requirements:

• Maximum aromatic hydrocarbon content of 10% by volume;

• Minimum Cetane number of 48; and,

• Sulfur content less than 15 parts per million.

8.2.2 Low Cloud Point (LCP) B100 Biodiesel, meeting Active Standard ASTM D6751-(Most

Recent Issue), Table 1 – Detailed Requirements for Biodiesel (B100) Blend Stocks, Grade No. 1-B, S15. (most recent issues) with the following additional requirements:

• Cloud point of 4.5 degrees Celsius or lower (ASTM D2500 Test)

• Required soybean only feedstock, or City-approved alternative. No animal tallow feedstock will be allowed.

8.2.3 Low Cloud Point (LCP) B20 Biodiesel, meeting Active Standard ASTM D7467-(Most Recent Issue) for Diesel Fuel Oil, Biodiesel Blend (B6 to B20) (most recent issues) with the following additional requirements:

• Fuel blended utilizing the TxLED and LCP B100 fuels specified above

• Shall contain Kern or equivalent TCEQ-approved NOx reduction additive and

Contractor proposed biocide additive.

8.2.4 Renewable Hydrocarbon Diesel shall meet the Active Standard ASTM D975 and shall comply with all TxLED requirements or other TCEQ‑approved alternative Diesel fuel formulations.

8.2.5 Diesel Exhaust Fluid. The Contractor shall supply DEF which meets or exceeds ISO 22241 standards (most recent issues); test limits for purity, concentration, and composition; and must be an American Petroleum Institute (API) certified DEF. The Contractor shall be able to deliver the following containerized quantities of DEF; All DEF jugs shall be palletized for delivery. The City of Austin maintains its own DEF dispensing equipment (including nozzles and pumps) for use at City fueling sites; therefore, the Contractor is not required to provide dispensing equipment for DEF deliveries.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

• 1 Gallon Jug

• 2.5 Gallon Jug

• 55 Gallon Drum

• 275 Gallon Tote

• 330 Gallon Tote

8.3 All fuels delivered under this Contract shall be supported by the Contractor’s established blending and laboratory testing capabilities. The Contractor shall ensure that each batch of blended product meets or exceeds all ASTM, TxLED, ISO, and City specifications. Testing documentation shall be made available upon request and shall include representative results for octane/cetane, cloud point, additive levels, and contamination screening.

8.4 The City reserves the right to request evaluation or trial quantities of alternative or emerging fuel products. The Contractor shall maintain the technical capability to supply, test, and document such fuels, including renewable hydrocarbons, advanced biodiesel blends, synthetic fuels, or other low‑carbon energy formulations as may become available. All evaluation or test fuels shall meet applicable federal, state, TCEQ, ASTM, TxLED, or other regulatory requirements, as well as any mutually agreed‑upon performance specifications established between the City and the Contractor. The Contractor shall support the City in all necessary fuel documentation, testing protocols, safety data, certification information, and delivery requirements for such test quantities.

9. PRICING

9.1 Motor Fuels Pricing

9.1.1 Benchmark. The Contractor shall price all motor fuels utilizing the Oil Price Information Service (OPIS) Contract benchmark file to establish the benchmark for each rack market.

The 10:00 A.M. Eastern Standard Time (EST) Contract Low Rack prices for Regular Unleaded, Super Unleaded E-85 Ethanol, and TxLED Diesel shall be the benchmark index on the day of delivery. The 10:00 A.M. Eastern Standard Time (EST) Dallas Metro OPIS Gross SME Bio Diesel Non Tax Adjusted W/O Rin ULS NO. 2 LED shall be the benchmark index for B20 biodiesel on the day of delivery.

9.1.2 Market Differential. The Contractor shall charge the City for fuel according to a Market

Differential for rack markets identified on the Bid Sheet.

The Market Differential shall be a four-digit decimal numerical value that is added to or subtracted from the benchmark index for the given fuel product by rack market. The Market Differential shall be inclusive of all cost and profit components but shall exclude any applicable fuel credits, regulatory fees, and taxes. The Market Differential prices offered shall include all costs for blending, transportation and delivery of all fuel products.

Contract Market Differential prices shall be fixed for the life of the Contract.

9.1.3 OPIS Report. Daily, on or before 10 a.m. Central Standard Time, the Contractor shall furnish to Fleet Fuel Operations via email at fleetfueloperations@austintexas.gov an updated OPIS Report in a Microsoft Excel spreadsheet. The report shall include the OPIS benchmark pricing for motor fuels and include the Contract Market Differential listed for each fuel product. An example of the daily OPIS Report is attached as Attachment C.

9.2 Diesel Exhaust Fluid Pricing. The Contractor shall price DEF per gallon, using a flat price based on the container size/quantity being purchased. Prices for DEF shall be subject to the Economic Price Adjustment paragraph of the Terms and Conditions. Transport and delivery of DEF shall be included in the individual product pricing.

mailto:fleetfueloperations@austintexas.gov

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

10. INVOICES and PAYMENT:

10.1 Invoices shall contain a unique invoice number, a unique Purchase or Delivery Order Number, Contractor's business name, "remit to" name and address, and if applicable, taxpayer identification number on the invoice and all information must exactly match the information in the Vendor's registration with the City. Invoices received without all the required information cannot be processed and will be returned to the Contractor.

10.1.1 The Contractor shall provide the following information for all motor fuels, including

Unleaded, E-85, Diesel, Biodiesel, Renewable Diesel, and fuels on each invoice in the order presented:

• Contract Number and Purchase or Delivery Order Number

• Fuel pricing information for each fuel delivered, including:

• Date of delivery

• Fuel type

• Gallons delivered

• OPIS or other Benchmark Price per gallon

• Contract Market Differential per gallon

• Total Fuel Cost

• Transportation pricing, including:

• Type of transportation provided (e.g., bobtail or transport)

• Any applicable special Contract fees (e.g., Code Red, Dry-Run, Pump Out

Service, etc.)

10.1.2 Any applicable credits, taxes and/or fees

10.1.3 Total price for invoice

10.1.4 The Contractor shall provide the following information for Diesel Exhaust Fluid (DEF) on each invoices in the order presented:

• Contract Number and Purchase or Delivery Order Number

• Pricing information for each DEF delivered, including:

• Date of delivery

• Gallons delivered

• Contract price per gallon

• Total price

10.1.5 Any applicable credits, taxes, or fees

10.1.6 Total price for invoice

10.2 Unless otherwise instructed in writing, the City may rely on the remittance address specified on the Contractor’s invoice. The City cannot process payments to or for a Third Party on behalf of the Contractor until the Third Party has been approved by the City and included in the City’s Vendor Registration system.

10.3 Within ten (10) business days after the Contract effective date, the Contractor shall meet with the City’s Fleet Services Accounts Payable group to review invoicing, billing formats, and other requirements.

BULK MOTOR FUELS AND FUEL-RELATED PRODUCTS & SERVICES

SOLICITATION NO.: IFB 7800 MLJ1046

10.4 The Contractor shall submit invoices electronically to the Fleet Fuel Operations group at fleetfueloperations@austintexas.gov within 48 hours after delivery. This requirement is necessary for inventory control purposes.

10.5 The Contractor agrees to accept payment by check or Electronic Funds Transfer (EFT) for all goods and/or services provided under the Contract.

10.6 The Contractor shall submit to the Fleet Services Accounts Payable group at

COAFleetAP@austintexas.gov and Fleet Fuel Operations group at fleetfueloperations@austintexas.gov within three days of the end of the month, a monthly statement in Microsoft Excel format, listing all invoices for the month and a separate statement listing any open, unpaid invoices. The City will use these statements to confirm that purchase orders are correct, orders placed were delivered, invoices for deliveries were received, and that timely payments are issued to the Contractor.

10.7 Final invoices at the end of the Contract must be received by Fleet Fuel Operations at fleetfueloperations@austintexas.gov within thirty (30) calendar days after the Contract expiration date to be considered for payment. The City will not consider any exceptions to this 30-day submission requirement.

mailto:fleetfueloperations@austintexas.gov mailto:COAFleetAP@austintexas.gov mailto:fleetfueloperations@austintexas.gov mailto:fleetfueloperations@austintexas.gov