Court accepts fuel bids based on lowest wholesale plus markup; DUCO recommended as lowest
March 26, 2026 | Van Zandt County, Texas
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Commissioners considered fuel bids for the county's fuel contract year (06/01/2026–05/31/2027) and resolved how to evaluate fluctuating wholesale prices.
The chief question was whether to base awards on total price presented in the bid or on wholesale (rack) price plus the vendor's markup. Commissioners noted that wholesale rack prices can change daily and that bid day pricing plus markup can differ across vendors. One commissioner summarized the compromise: accept the lowest wholesale price on the bid date combined with the lowest submitted markup.
A commissioner moved to accept bids using the wholesale‑plus‑markup method across fuel items; the motion was seconded and carried. That approach produced DUCO as the lowest on the submitted bids for regular unleaded and diesel on the bid date; the court accepted the fuel bid awards by voice vote and instructed staff to include audit rights and clarify tax/exemption language in bid specifications where necessary.
Staff noted the county recently gained an exemption from the state motor fuels tax and advised the court to revise bid packages to reflect the tax exemption and to reserve the right to audit vendor claims about wholesale pricing during the contract year.
The chief question was whether to base awards on total price presented in the bid or on wholesale (rack) price plus the vendor's markup. Commissioners noted that wholesale rack prices can change daily and that bid day pricing plus markup can differ across vendors. One commissioner summarized the compromise: accept the lowest wholesale price on the bid date combined with the lowest submitted markup.
A commissioner moved to accept bids using the wholesale‑plus‑markup method across fuel items; the motion was seconded and carried. That approach produced DUCO as the lowest on the submitted bids for regular unleaded and diesel on the bid date; the court accepted the fuel bid awards by voice vote and instructed staff to include audit rights and clarify tax/exemption language in bid specifications where necessary.
Staff noted the county recently gained an exemption from the state motor fuels tax and advised the court to revise bid packages to reflect the tax exemption and to reserve the right to audit vendor claims about wholesale pricing during the contract year.
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