WEX takes over state fuel card pact
The state has awarded South Portland-based WEX Inc. a three-year contract to handle the state's fleet fuel card services.
The contract will give WEX a portion of interchange fees — paid by merchants accepting the card — from the state's fuel transactions over the three years and makes Maine the 23rd state among the company's clients.
David Heidrich, a spokesman for the state's Department of Administrative and Financial Services, says the contract covers 46 state agencies and 13 political subdivisions in the state, including various municipalities and sheriff's departments around the state, totaling 5,655 fuel cards.
The contract was previously held by Tennessee-based Comdata. The company made an offer to the state to extend its 0.9% rebate deal to the state before bidding for the contract opened, which the state did not accept. Heidrich says the company did submit a bid for the contract but that it was accepted after past the deadline for submissions.
WEX's proposal will reimburse the state for 1.5% of its purchases, Heidrich says. Extending Comdata's contract would have given the state 0.9% back on fuel card purchases.
The state estimates the rebate will save around $200,000 in costs over the next biennium.
U.S. Bank also submitted a proposal for the contract, but that bid came in after the deadline and was not considered, Heidrich says.
Correction: A previous version of this story indicated that Comdata submitted a competing bid, offering the state a 0.9% rebate. Rather, the company asked to extend its previous 0.9% rebate deal with the state. Comdata's bid for the contract awarded to WEX came in past a deadline and was not considered.
Most Recent
Most Recent
Comments