HD-5 Propane Supply and Delivery

The City of Austin, Texas has issued an Invitation for Bid (IFB 5000 MAS1001REBID) for HD-5 propane supply and delivery services across multiple city departments, including Austin Convention Center, Austin Energy, Austin Fire, Austin Resource Recovery, Austin Aviation, Austin Water, and Austin Transportation and Public Works. The contract involves providing HD-5 propane for 20-pound and 33.5-pound cylinders through regular scheduled and as-needed deliveries for equipment such as forklifts, outdoor heaters, and lawn equipment at city event facilities. Contractors must meet minimum qualifications including three consecutive years of HD-5 propane experience, maintain a Texas Railroad Commission license, employ at least two certified technicians with three years of hands-on experience, and maintain adequate inventory for timely delivery. The initial contract term is 12 months with options for up to four additional 12-month renewals at the city's discretion. Pricing will be structured using an indexed pricing model based on U.S. Energy Information Administration weekly HD-5 propane prices plus a firm contractor differential. A pre-offer meeting is scheduled for Thursday, January 15, 2026, at 10:00 AM CT, with offers due by 2:00 PM CT on Tuesday, February 3, 2025. Questions must be submitted by 2:00 PM CT on Tuesday, January 20, 2025.

The solicitation includes provisions for small business and local business preferences, though no mandatory M/WBE subcontracting goals were assigned due to insufficient subcontracting opportunities. Contractors must comply with the City of Austin's Living Wage Program, which mandates a minimum wage of $22.05 per hour for all employees directly assigned to the contract. The city has comprehensive insurance requirements, including Workers' Compensation, Commercial General Liability, Business Automobile Liability, and Environmental Impairment/Pollution Liability Insurance with various minimum coverage limits. Contractors must also complete Wage Theft Training within 30 days of contract award and certify compliance with various city ordinances, including restrictions on wage theft, boycotts, and ownership by hostile foreign entities. While no specific budget range is explicitly stated, the solicitation indicates estimated annual quantities for propane refills (4,500-12,500 gallons), cylinder exchanges (325-405 units), and additional services like expedited deliveries and tank certifications. The City reserves the right to make a single award or multiple awards and may reject all bids or utilize a cooperative purchasing agreement.