Jun
18
To save $60 million a year, a better deal on bus fuel
ByNot known for efficiencies in contracting, the MTA came under fire in September when the Daily News reported of a no-win fuel contract. Because no other suppliers bid on a bus fuel contract, the MTA had to stick with Sprague Energy Corp., and the company ended up exercising a contractual option that allowed it to charge $206 million for fuel with a windfall in the tens of millions. At the time, Transit spokesman Paul Fleuranges said the agency would “ensure that this never happens again.”
Today, that goal came to fruition. While the agency is sticking with Sprague, they have negotiated a five-year, $700-million contract for the cheaper ultra-low sulfur diesel fuel. Not only is this fuel better for the environment, but the contract will save the cash-strapped agency $60 million a year over its current one-year deal with Sprague.
ShareTweet
