Bus Fuel Contract Update

Four days ago, I blogged about how the MTA will save money on their next bus fuel contract with longtime provider Sprague Energy Corporation. In that same entry, I alluded to the recent issue between the two parties due to the price gouging that appeared to be going on in the last contract. Towards the end of the entry, I questioned the integrity of Sprague providing the best deal due to their recent actions. The NY1 report I linked to, did not specify any details on other potential bidders.

However this past Friday, MTA NYC Transit V.P. of Corporate Communications, Paul J. Fleuranges took the time to respond to my curiosity/skepticism. Here is what he had to say in his e-mail:

All things being equal, Sprague did in fact provide us with the best (lowest) price going forward for USDL#2

We made a determined effort to garner as much competition as possible for this fuel procurement.

At the end, we had 5 solid proposers —- major distributors and a refining company — and sprague came in well below the others. I don’t have the exact cost per gallon savings but it is substantial over the course of the contract.

I would like to take this moment to thank Mr. Fleuranges for being a loyal reader & taking time out of his busy day to send that e-mail. Lastly, I am glad to hear that competition existed as part of the bidding process as saving money during these tough times is a major priority.

xoxo Transit Blogger

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