Provision of DERV Fuels into the Council's Fuel Bunker System

Award outcome

Description

This Contract is to supply fuel into a "virtual bunker", for use by the Customer who has a high-volume of diesel usage for its Passenger Fleet Transport. The Council seeks a Service Provider to facilitate bulk purchase of EN590 white road grade diesel, and have the fuel purchased placed into the bunker network operated by UK Fuels and Key Fuels. The Customers' staff will then draw the fuel it has purchased from a number of forecourts located throughout the UK, by use of a fuel card issued by one of the UK fuel bunker card providers such as UK Fuels or Key Fuels. The contract has been awarded using the Direct Award procedure under ESPO Framework 301_22 for liquid fuels. The Framework pricing is based on a weekly PLATTS commodity price plus supplier margin price. Therefore, the value of the contract is permitted to either increase or decrease depending on the market price for diesel. Due to current volatility in the fuel markets, the Council cannot provide an accurate forecast of what it might pay over the course of the contract, however, the supplier's margin is fixed for the duration of this agreement. Only the tracked indexed commodity (PLATTS) cost element of the price is permitted to fluctuate under this contract.

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