In procurement, each penny counts. When it comes to government fuel procurement, the objective is to extend the impact of that penny to the max. The responsibility of public agencies is substantial – they must guarantee the best investment of tax payer’s funds, while keeping stringent standards of accuracy and legality in every contract.
Government fleets usually offer a wide range of functions, from military agencies transporting heavy-duty equipment nationwide to transit authorities and state agencies requiring fuel for a different types of operations. This mix of different needs often ends up in complicated requests for fuel proposals, which means procurement teams have to put in a lot of time and effort. In today’s article we’re going to dive into some effective methods that work well for government fleets.
Price Risk Management
Unlike commercial organizations, government agencies do not have the ability to pass on fuel costs to consumers. This means that they cannot impose additional financial burdens on taxpayers beyond what they currently contribute.
By establishing fixed price contracts, government agencies can protect their budget from the impact of price fluctuations. This approach ensures financial stability and allows them to prepare for unexpected circumstances without the worry of sudden fuel price increases. With stable costs in place, agencies can confidently meet their budget targets and have peace of mind.
It is not a secret that many government vehicle fleets are following a directive to decrease pollution and minimize waste. Some state agencies are already fueling up their fleet with biofuels or other renewable options that are better for the environment.
To ensure a steady supply of fuel, government agencies must partner with dependable suppliers able to fulfill their specific energy requirements and offer the necessary tools to keep tracking vehicle efficiency.
The Power of Data
Transparency and accountability take main stage in the government sphere. Clear visibility into fuel transactions allows fleet managers to maintain accountability and promote efficient fueling practices.
Data collected from tools like fleet cards and backyard fueling equipment can help prevent fraud and monitor fuel consumption. This data becomes essential for efficient fleet management, as it enables the detection of irregular transactions, that can indicate misuse or efficiency issues.
Planning for the Unplanned
Being prepared for emergencies is critical for government fleets. In the case of hurricanes, earthquakes, or wildfires, government fleets need a strategic plan to ensure their equipment continues to operate during these events.
In addition to having a secondary fuel supplier on standby, it’s crucial to have dedicated fueling assets ready to provide fuel from the nearest safe market during disasters. For fleets in disaster-prone areas, having a reliable emergency fueling plan should be a non-negotiable option.
Streamlining Government Procurement
Government fuel procurement is a demanding task, often pushing procurement staff to stretch their working hours. Choosing a fuel supplier involves more than comparing prices. It includes consideration of price risk management, reporting capabilities, innovative sophistication, and emergency preparedness. An ideal fuel partner should simplify purchasing, bringing expertise and unique solutions to save governments from overspending on fuel, thereby respecting the hard-earned money of the taxpayers.
That’s where Mansfield Energy’s cooperative purchasing options with Sourcewell and OMNIA come into the picture. Mansfield offers nationwide fuel supply and fuel management through awarded contracts with both entities that satisfy the competitive bidding process while offering agencies our full line of contracted solutions. Government Program comes into the picture. Mansfield provides government agencies and organizations of any size with the necessary petroleum products, logistics, and services to enhance their operations. Mansfield offers intelligent, technology-driven solutions to address a wide range of challenges, including minimizing risks and achieving sustainability objectives.
Contact us today to learn more about our services and products.