Annual Supply of Fuel

Brownsville Public Utilities Board is soliciting sealed or electronic bids for an annual supply of fuel—regular unleaded gasoline (87 Octane), diesel fuel (Ultra Low Sulfur), and low-sulfur fuel oil—with bids due August 12, 2026 at 5:00 PM, public opening and reading on August 13 at 10:30 AM, and Board approval anticipated September 14.

The scope covers fuel delivery for a fleet of over 550 vehicles and 30 backup generators across multiple locations on an as-needed basis over a 12-month period. Estimated annual quantities are 185,000 gallons of regular unleaded gasoline and 160,000 gallons of ultra-low-sulfur diesel for fleet vehicles, with additional low-sulfur diesel for generators. All fuel must be new and in first-class condition. Each fuel release is subject to daily escalation or de-escalation adjustments based on OPIS Pad 3, Brownsville, Texas closing prices on the day the release is received; bidders must submit pricing on a base price plus escalation/de-escalation basis using OPIS closing prices at 1:00–2:00 PM on August 10, with profit margins and payment discounts remaining firm for 12 months from the purchase order date.

The contract term is one year from the purchase order date with options to renew annually for two additional one-year periods if service and price remain satisfactory and both parties agree in writing. Award will be made to the lowest responsive, responsible overall bid total, with evaluation considering stock availability, brand reputation, vendor reputation and location, delivery capabilities, and safety record. The successful vendor must accept payment via ACH direct deposit and comply with W9 or W8 tax identification requirements. Brownsville PUB is exempt from federal excise and local taxes but must pay state fuel and diesel taxes, which bidders must include in cost sheets. A bid bond or cashier's check equal to 5% of the total bid amount is required. Questions are due August 4, 2026.