Back in September, I blogged about MTA NYC Transit being price gouged on their bus fuel contract with long time supplier Sprague Energy Corporation. The gouging occurred when the MTA saw its cost rise by approximately $26M which was triple what they had paid the previous year. These events led NYC Transit to request a review of their bus fuel contract a few days later.
Lets fast forward to today where NY1 broke the story that the agency has agreed to a 5 year contract worth $700M with Sprague Energy Corporation which with pending board approval, would provide them with 55M gallons a year of ultra-low sulfur diesel.
Click here for the complete report.
The savings accomplished with this potential deal are pretty decent. My main concern is whether or not this was the best deal possible. I am skeptical on that being the case considering Sprague’s past actions. I would love to know if the MTA received any other offers. If so, was this truly the best they could get?
xoxo Transit Blogger