REPORT TO THE CITY COUNCIL
FROM: GREGORY A. BARFIELD, M.A., Director
Department of Transportation
BY: FRANK ADAM PETER, Fleet Manager
Department of Transportation
BRYANT KENNEDY, M.P.A., Fleet Operations Specialist
Department of Transportation
SUBJECT
Title
Approve the award of a Product Requirements contract for transit bus oil to Greg’s Petroleum Service for the purchase of Compressed Natural Gas (CNG) engine oil, automatic transmission fluid, and gear oil in the amount of $203,442.29 for the initial one-year base term and authorize execution of the agreement to the Director of Transportation/Fresno Area Express (FAX) or their designee. Product costs for the option years will adjust in accordance with the relevant Consumer Price Index (CPI), but not to exceed 5% per year. The total for all five potential years will not exceed $1,200,000 (Bid File 12601827)
Body
RECOMMENDATION
Staff recommends that Council approve the award of a Product Requirements contract for transit bus oil to Greg’s Petroleum Service for the purchase of CNG engine oil, automatic transmission fluid, and gear oil in the amount of $203,442.29 for the initial one-year base term and authorize execution of the agreement to the Director of Transportation/Fresno Area Express (FAX) or their designee. Product costs for the option years will adjust in accordance with the relevant Consumer Price Index (CPI), but not to exceed 5% per year. The total for all five potential years will not exceed $1,200,000. (Bid File 12601827)
EXECUTIVE SUMMARY
The Department of Transportation/Fresno Area Express (FAX) requires a competitively awarded Product Requirements contract to support ongoing fixed-route transit bus oils and transmission fluid needs. Due to the volatile market for oil, FAX sought to establish a one-year base contract with four optional extensions to allow for CPI adjustments to make the contract more viable for vendors.
FAX issued an Invitation to Bid (IFB) seeking bids for the oils and fluids. The IFB was posted to Planet Bids on April 24, 2026. There were six prospective bidders, no building exchanges, and when the bid opened on May 19, 2026, there were two bids received. Greg’s Petroleum Services is recommended for award due to being the lowest bid in pricing.
BACKGROUND
FAX utilizes specific engine oils, automatic transmission fluids, and gear oils to support the operation and longevity of our CNG transit bus fleet. These products are essential for protecting critical components, reducing wear, and supporting compliance with manufacturer specifications and state emission standards.
Currently, FAX procures these oil products on an as needed basis. While effective for short-term needs, the decentralized process creates some challenges. This method of “spot buying” exposes the department to fluctuating market pricing and reduces budget predictability. Further, tracking oil usage across the fleet is less efficient without a standardized supply system.
A competitively bid Product Requirements contract will address these challenges by securing consistent pricing, strengthening purchasing controls, and ensuring uninterrupted availability of required lubricants. It will also support FAX’s broader fleet management goals by promoting efficient oil usage, enhancing documentation, and aligning maintenance practices with regulatory and operational requirements.
On April 24, 2026, FAX issued an Invitation to Bid (IFB) seeking bids for the oils and fluids. There were six prospective bidders, no building exchanges, and when the bid opened on May 19, 2026, there were two bids received. Greg’s Petroleum Services is recommended for award due to being the lowest bid in pricing.
The Purchasing Division has approved this product contract and recommends Council to approve. The City Attorney has reviewed and approved as to form.
ENVIRONMENTAL FINDING
Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, this purchase does not constitute a project for the purposes of CEQA.
LOCAL PREFERENCE
Local preference was not implemented because the federal funding that supports the FAX vehicle maintenance program precludes the use of geographical preferences.
FISCAL IMPACT
There is no impact to the General Fund from this action. Purchases made under this requirements contract will be funded through the State Transportation Development Act (TDA) or other approved FAX maintenance funding sources. Sufficient appropriations were included and are available in the FY 2027 budget.
Attachments:
12601827 Formal Procurement Evaluation
Product Purchase Contract
12601827 IFB Transit Oil Specifications
Greg’s Petroleum Services Bid