Purchase and Delivery of Propane Fuel for Santa Monica Public Works

The City of Santa Monica's Fleet Management Division is seeking a vendor to furnish and deliver propane fuel for city vehicles under a five-year fixed-term contract, with bids due July 22, 2026 at 3:00 p.m. Pacific Time and vendor questions due July 8, 2026. The vendor must comply with Santa Monica Living Wage Ordinance ($25.00 per hour minimum) and be physically located in or conduct business in Santa Monica with appropriate business licensing. Prevailing wage requirements apply to workers performing delivery and related services under California Labor Code.

The scope encompasses all labor, materials, equipment, supervision, and appurtenances to supply propane fuel at three delivery locations within Santa Monica: Fleet Management (2500 Michigan Avenue), Beach Maintenance Facility (1540 Appian Way), and Promenade Maintenance Yard (1444 7th Street). Monthly deliveries are currently required, with an estimated annual consumption of 22,000 gallons across three 500-gallon capacity tanks. The vendor must conduct monthly site visits to assess fuel needs and may be required to replace existing propane storage tanks and dispensing equipment; if replacement is necessary, the vendor must supply and install three 500-gallon aboveground propane storage tanks compliant with NFPA 58, new dispensing equipment, piping, regulators, manifolds, and fittings, conduct permitting and regulatory compliance activities, perform system commissioning with pressure testing and leak detection, and provide safety training to City staff.

Pricing consists of a firm, fixed monthly transportation charge and a fuel price component adjusted monthly based on the AePEX Energy Los Angeles Butane Propane Newsletter Market Base Rate (baseline as of March 13, 2026: $1.06 per gallon). The vendor must provide a cost estimate for tank and equipment replacement if required. No guaranteed usage quantities apply.

Award criteria include price, quality, vendor capacity and experience, ability to perform promptly, financial resources, character and reputation, and future maintenance capability. The vendor must maintain commercial general liability and automobile liability insurance with minimum limits of $1 million each and hold valid California contractor licensing. Bids will be electronically opened July 22, 2026, with award contingent upon City Council approval.