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City of Modesto, CA·California

Propane Services

Closes 10/13/2026$20k – $50kInvitation for Bid
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Description

The City of Modesto’s Utilities Department (Water Division) is seeking qualified vendors to supply, deliver, and fill two 1,000‑gallon propane tanks at the Water Corporation Yard on an as‑needed basis. The contract will run for an initial two‑year term with up to three one‑year extensions (maximum five years). Bidders must provide all labor, equipment, fuel, licenses, insurance, and related services, and must maintain a City business license throughout the agreement. Pricing is fixed for the first two years; later years may see CPI‑linked adjustments. Delivery is limited to Monday‑Thursday, 7 am‑4 pm, at the Modesto Northeast Corporation Yard. The City will evaluate bids on price, quality, and performance criteria, and gives preference to local vendors within 5 % of the lowest price.

Attached files

The solicitation documents live at the source — open the bid source above to download them.

Contact

Manuel Martinez(Buyer)

[email protected]

(209) 342-2246

Key dates

Opened
9/15/2026
Questions due
9/22/2026
Closes
10/13/2026
Projected award
12/1/2026
Duration
2 years

Last updated

Details

Type
Invitation for Bid
Industry
Energy and Utilities
NAICS
424720
Solicitation №
INF-IFB-00112

Budget estimate

$20,000 – $50,000

Based on the estimated annual volume of 4,600 gallons of propane and an assumed market price of $2.50‑$3.00 per gallon, the material cost alone is roughly $11,500‑$13,800 per year. Adding rental fees for tanks, service trips, insurance, licensing, and a modest profit margin brings the total annual contract value to approximately $15,000‑$20,000. Over the base two‑year term, the expected revenue range is therefore about $30,000‑$40,000, with potential extensions increasing the total to $50,000‑$80,000. Factors influencing the final budget include fluctuations in propane market price, CPI‑linked adjustments after year 2, and any additional service fees (e.g., tank inspections, emergency deliveries).

AI estimate from the solicitation

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