Purchase of Renewable Liquid Natural Gas (RLNG) for Santa Monica Department of Transportation

The City of Santa Monica's Department of Transportation (SMDOT) is issuing an Invitation to Bid for the supply and delivery of Renewable Liquid Natural Gas (RLNG) produced entirely from organic waste sources to fuel its municipal transit fleet on an as-needed basis. The procurement seeks a vendor to provide approximately 310,000 gallons per month (2,683,710 gallons annually) with six deliveries per week between 6:00 a.m. and 10:00 a.m. to the fueling station at 1620 6th Street, Santa Monica, requiring 24-hour advance notice for orders. The RLNG must meet strict product specifications including minimum 97 percent methane content, maximum one percent ethane, and 0.5 percent other hydrocarbons, with saturation pressure not exceeding 15 PSI, and must be sourced from qualifying biogas facilities (landfills, wastewater treatment, agricultural digesters, or municipal solid waste digesters). Bidders must demonstrate minimum three years of experience supplying RLNG to California municipal or transit agencies, provide current client references, submit CARB-approved carbon intensity values, document Low-Carbon Fuel Standard (LCFS) credit revenue sharing proposals, and maintain primary and secondary fuel sources with liquidated damages of $300 per bus per day for failure to meet 24-hour delivery requirements. The contract term spans five years with four optional one-year renewals at the same price, terms, and conditions, with the City paying invoices within 30 days of delivery and receipt of documentation. Key timeline dates include bid release on February 5, 2026; vendor question deadline of February 11, 2026, at 3:00 p.m. Pacific Time; response posting by February 17, 2026; electronic bid opening on February 16, 2026, at 3:00 p.m.; and bid submission deadline of February 27, 2026, at 3:00 p.m. Pacific Time. Evaluation will be based on cost, experience, quality, vendor capacity and capability, financial sufficiency, character and reputation, and ability to provide future maintenance and service, with the City reserving the right to award to multiple bidders and reject any or all bids.

The solicitation documents do not identify any specific set-aside designations for disadvantaged enterprises or restrictions limiting organizational types eligible to respond, nor do they reference any incumbent vendors or current contractors. Bidders must comply with all federal, state, and local regulations and maintain Commercial General Liability insurance of at least $1,000,000 per occurrence, Automobile Liability coverage of $1,000,000 per accident, and Workers' Compensation insurance with Employers' Liability coverage of $1,000,000 per accident, with the City named as an additional insured. All RLNG tanker trucks must be state-certified, drivers must hold Hazardous Materials endorsements, and bidders must maintain minimum 40,000 gallons of RLNG in City storage tanks at all times while demonstrating AB32 compliance. The procurement specifies that pricing structures include per-gallon RLNG costs, freight and weighing charges, delivery delay charges, and can be indexed to the Southern California Border Natural Gas Price Index or offered as a fixed price for two years, with LCFS credit revenue sharing through fixed or variable models. No specific budget range or award value is disclosed in the available documents; pricing will be determined based on competitive bid responses and the cost evaluation criteria established in the solicitation.