HomeMy WebLinkAboutMemo - Defense Logistics AgencyTO :
Manuel Orosa
Chief of Police
(Through Channels)
FROI ergeafael Borroto 0503
Aviation Detail
Tactical Operations Section
CITY OF MIAMI, FLORIDA
OffriacEIERGIFEICE MEh ORANDUM
Chief of Police
Miami, Fla
MAY 17 2013
DA—E
RECEIVED'
May 16, 2013
A #4,X4'1A-- s-17-13
Defense Logistics Agency
Fuel Program
REFERENCES:
ENCLOSURES:
FILE :
Since 2006, the City of Miami has been involved in the Defense Logistics Agency's (DLA) fuel
reimbursement program. The terms of this program allow the city to pay jet fuel prices negotiated
by the federal government with private fuel suppliers for use in military aircraft. The end result is
a savings of two to three dollars per gallon from commercial retail fuel prices. The program
operates in the following manner. When the Aviation Detail purchases fuel at Opa-Locka Airport,
federal funds are encumbered and the DLA would pay the private contractor directly. At the end of
the month, the DLA would bill the City of Miami for reimbursement.
Due to budgetary pressures, the DLA re -formatted the program to insure that federal funds would
no longer be encumbered by state and municipal agencies. A request for bid was prepared and
Kropp Holdings Incorporated (KHI) was awarded the federal contract. The program will now
require that the City enter into an agreement with KHI and pay the vendor directly. KHI will bill
the city the negotiated DLA price when we use an approved DLA fuel vendor.
On today's date, the Aviation Detail received the new DLA card request form and the KHI account
application agreement. These forms need to be processed as soon as possible since the current
DLA contract terminates on June 30, 2013. Without the KHI card, the city will be paying full retail
jet fuel prices as of July 1, 2013.
ECEI
for 1b 2013
FIf�Q_ MIAMI POLICE
OPERATIONS DIVISION
MAY L S a e.f
' 1,SINESS WAAGEMEN