GWA bulk buying power means gasoline $2 a gallon lower

GWA bulk buying power means gasoline $2 a gallon lower

  02 Dec 2016

 

Information filed with the Office of Public Accountability in connection with a procurement appeal shows that Guam motorists pay nearly double the price for regular gasoline at the pump, compared to government of Guam agencies, who buy fuel in bulk. [restrict]

The suppliers of all three gasoline brands available on island — Mobil, Shell and 76 — quoted prices of $1.523, $1.528, and $1.96 a gallon, respectively, when bidding for Guam Waterworks Authority’s planned bulk purchase of regular unleaded gasoline, procurement documents with the Guam Office of Public Accountability show.

At retail service stations, the price per gallon for private consumers has reached $3.65 for all three gasoline brands.

GWA sought offers from suppliers for an estimated 115,000 gallons of regular gasoline, which was followed by the submission of bids by IP&E, retailer for the Shell brand; Mobil; and South Pacific Petroleum, supplier of 76.

GWA’s evaluation committee recommended issuing the award to Mobil Oil Guam, at a cost of $1.523 per gallon for regular grade gasoline, and $1.33 per gallon for diesel.

On Sept. 16, GWA issued a notice of conditional award of the fuel purchase contract to Mobil, both for diesel and gasoline.

In its bid, Mobil cited the advantage of its fuel distribution network and high-flow diesel dispensers as most advantageous for GWA, according to the procurement appeal decision.

IP&E filed a procurement appeal with the Guam Office of Public Accountability on Sept. 21.

IP&E argued, in part, that the invitation for bid stated an estimated requirement of 50,000 gallons of diesel and 115,000 gallons of gasoline, but GWA’s award evaluation stated different quantities — 31,270 gallons of diesel and 159,000 gallons of gasoline.

Public Auditor Doris Flores Brooks found, in her Nov. 23 decision, “that it is in the best interests of the territory that GWA purchase diesel and unleaded gasoline at the lowest prices offered.”

IP&E had the lowest bid for diesel, at $1.32 a gallon, and Mobil submitted the lowest bid for gasoline, at $1.523 a gallon, according to the public auditor.

The public auditor told GWA to award the diesel contract to IP&E and the regular unleaded gasoline contract to Mobil. PDN [/restrict]