ENE53 Ultra-Low Sulfur Diesel and Biodiesel

The Commonwealth of Massachusetts Operational Services Division and the Ultra-Low Sulfur Diesel & Biodiesel Strategic Sourcing Team are issuing a Request for Response (RFR) for the acquisition of (1) Ultra-Low Sulfur Diesel (ULSD) and (2) Biodiesel (B5, B10, B15, B20) for year-round delivery. The resulting contract will serve as the primary Statewide Contract for Executive Agencies and will be available for use by other eligible entities. The RFR has four categories: Category 1 - ULSD, Category 2 - Biodiesel, Category 3 - Fixed Pricing for ULSD, and Category 4 - Fixed Pricing for Biodiesel. Bidders must meet various mandatory requirements including insurance, financial stability, and quality control plans for the biodiesel categories. The estimated contract start date is August 1, 2024 for a term of 5 years with no renewal options. The pricing structures include differential pricing based on the lowest wholesale Boston price (Categories 1 and 2) and fixed pricing with a fixed adder over the weighted average of the NYMEX price (Categories 3 and 4). The Commonwealth estimates annual purchases of 5 million gallons for ULSD, 110,000 gallons for Biodiesel, and 842,000 gallons for Fixed Pricing ULSD, but makes no guarantees of purchase volumes.

The RFR requires a minimum 1% Supplier Diversity Program commitment from all bidders. The contract will be awarded to the responsive and responsible bidder(s) that provide the best value to the Commonwealth. The contract has been awarded to five vendors: Global Montello Group Corp, Dennis K. Burke Inc., Carmyn, Inc., Sprague Operating Resources, LLC, and Broco Oil Company. The contract term is for one year, commencing on July 1, 2024. No additional details on incumbent vendors, funding sources, or budget ranges are provided.