The initial contract to Anderson Oil Company was approved by the Board of Supervisors and awarded on April 22, 2014 for the purchase of delivered heating oil for County operations. This is the last renewal year of a four year renewable contract at the option of the County.
Anderson Oil Company will deliver heating oil to various locations and facilities. Differential price per gallon remains at $0.09 cents per gallon. This price is inclusive of all services.
The differential price per gallon is the factor used to determine the cost on a monthly basis for invoicing. The Base Purchase Price per gallon is based on the OPIS PAD 1 Report which would be the Terminal price for that period. The formula for our cost: (Base Purchase Price per gallon + Differential price per gallon = Cost to the County for the Period).
In researching the methods of pricing used in soliciting these goods and services, we found that other localities and state agencies awarded with the differential price per gallon as the determination of the awarded factor. In the State Department of General Service, Office of Fleet Management Service under the State Motor Fuel Program a contract was awarded under the differential price per gallon for gasoline, low sulfur diesel, and biodiesel plus different types of service fees added such as demurrage charges, diversion fees, and above ground tank fees. A transport load fee for a minimum of gallons for gasoline and diesel fuel was another additional fee.