Summary Sheet- RFCA SUMMARY
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CITY OF TEMPE Meeting Date: 6/25/2026 REQUEST FOR COUNCIL ACTION Agenda Item: 8A15 ACTION: Approve a one-year contract renewal with Rebel Oil Company, Inc. dba ROC, Tartan Oil LLC, and Supreme Oil Company for the purchase of vehicle and equipment fuels. FISCAL IMPACT: The total cost of these contracts will not exceed $2,500,000. Sufficient funds have been appropriated in the General Fund, Cost Center 3324 (Fleet Management Inventory) and Transit Fund, Cost Center 3914 (Transit Operations), for the anticipated expenditure during the current fiscal year and next fiscal year contingent upon City Council approval of the City’s annual budget. RECOMMENDATION: Approve the contract renewals. BACKGROUND INFORMATION: (T24-110-01,02,03) On August 26, 2024, City Council awarded a one-year contract with four, one-year renewal options to Rebel Oil Company, Inc. dba ROC, Tartan Oil, LLC, and Supreme Oil Company for the purchase of vehicle and equipment fuels. If approved, this will be the second of four available renewal options. Fleet Services oversees the fuel requirements for approximately 1,000 fuel-powered vehicles and equipment. Street-operating vehicles travel approximately 5,400,000 miles annually. Small-fuel powered equipment (mowers, backhoes, etc.) operate approximately 28,000 hours annually. Transit currently uses about 4,000 gallons of diesel per week plus 50,000 gallons of unleaded that is dispensed through the Fleet Services fueling system. The anticipated combined annual gallons to be purchased for the contracts are as follows: Estimated Annual Usage (Gallons) Diesel Red Dye Diesel Unleaded 1,154,000 180,000 910,000 Contractor Performance Staff rated the performance of the Contractors as follows: Rebel Oil Company Inc Tartan Oil LLC Supreme Oil Company Criteria Meets Contract Requirements Meets Contract Requirements Meets Contract Requirements Contract personnel are responsive, cooperative and available X X X The quality of products or services delivered X X X Timeliness of performance X X X Follow-up skills in resolving complaints or problems brought to their attention X X X Promptness and accuracy of pricing on submitted invoices. X X X 2 Renewal Pricing Tartan Oil, LLC and Supreme Oil Company agreed to renew their contracts with no price adjustment. Rebel Oil Company, Inc., requested a $0.01 per gallon increase. Procurement negotiated this increase down to $0.005. This increase is the result of higher costs related to fuel, labor and raw materials and is supported by the Producer Price Index – Fuels (unleaded gasoline and #2 diesel). This increase, if approved, will be the first granted since the contract's commencement in 2024. Staff considers this negotiated increase reasonable based on current market conditions. ATTACHMENTS: N/A STAFF CONTACT(S): David Tavares, Deputy Public Works Director - Field Operations, (480) 350- 2819 Department Director: Laura Calder, Financial Services Director Legal review by: Dave Park, Senior Assistant City Attorney Prepared by: Alicia Ruiz, Procurement Officer