Forward Fuel Contracts

Summary (Newest Update)

Background The City of Fargo is seeking price quotations for fuel purchases and delivery of products to multiple city facilities. This solicitation is for the third and fourth quarters of 2026, specifically targeting #2 Diesel and No-Lead 10% Ethanol 87 octane gasoline. The fuel purchases are partially funded by the Federal Transit Administration (FTA), aligning with the city's mission to maintain efficient transportation services. Work Details The contract entails the delivery of 288,000 gallons of #2 Diesel Fuel (144,000 gallons for each quarter) and 160,000 gallons of No-Lead Ethanol 87 Octane (80,000 gallons for each quarter). The quoted fuel price must include local freight charges, the Federal LUST fee (one-tenth of one cent per gallon), North Dakota State Inspection fee (one-fortieth of one cent per gallon), and the Federal Oil Spill Recovery fee. In case of product shortages at the pipeline leading to long wait times, a demurrage charge will apply after the first hour. The City may also utilize various mixtures of fuel depending on seasonal requirements, including a blend of #1 and #2 diesel with cold weather additives in winter and bio-diesel in summer. Delivery will occur at three designated fueling sites within Fargo, requiring specific equipment such as a vent hose for safe transfer. Period of Performance The contract will be performed during the third and fourth quarters of 2026, specifically from July 1 to December 31. Place of Performance Delivery will be made to three locations within Fargo: Public Works at 402 23rd Street North, Metro Transit Garage at 650 23rd Street North, and Landfill at 4501 7th Avenue North. Bidder Requirements Bidders must register and be pre-qualified by January 21, 2026. They are required to submit their quotations via email or fax; verbal quotes will not be accepted. Additionally, bidders must comply with federal regulations regarding debarment and suspension as outlined in U.S. DOT regulations.