TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 3, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 16-021-11, Furnish and Deliver Unleaded Gasoline to Various Locations for a One (1) Year Period, Item 1 to Petroleum Traders Corporation, in an amount not to exceed $189,851.13, and Item 2 to Avalon Petroleum Company, Inc., in an amount not to exceed $76,073.31, Accounts 101-16000, 20000, 66000-623820
Body
Dear Sir:
On September 3, 2015, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 16-021-11 Furnish and Deliver Unleaded Gasoline to Various Locations for a One (1) Year Period, beginning approximately January 1, 2016 and ending December 31, 2016.
In response to a public advertisement of October 7, 2015, a bid opening was held on November 3, 2015. The bid tabulation for this contract is:
ITEM 1: TRUCK TRANSPORT DELIVERY
Petroleum Traders Corporation $189,851.13
Black Dog Chicago Corporation $190,781.13
G. Cooper Oil Company, Inc. $191,153.13
Avalon Petroleum Company, Inc. $192,036.63
ITEM 2: TANK WAGON DELIVERY
Avalon Petroleum Company, Inc. $76,073.31
Black Dog Chicago Corporation $76,073.31
G. Cooper Oil Company, Inc. $76,162.06
One hundred seventy-four (174) companies were notified of this contract being advertised and seventeen (17) companies requested specifications.
Petroleum Traders Corporation, the lowest responsible bidder for Item 1, is proposing to perform the contract in accordance with the specifications. The estimated cost for Item 1 of this contract was $309,000.00, placing the total bid of $189,851.13 approximately 38.5 percent below the estimate.
Two vendors, Avalon Petroleum Company, Inc., and Black Dog Chicago Corporation, bid the same price for contract Item 2. A drawing was held on November 10, 2015 to break the tie. Both vendors were invited to witness the drawing and both declined. The winner of the drawing was Avalon Petroleum Company, Inc.
Avalon Petroleum Company, Inc., the lowest responsible bidder for Item 2, is proposing to perform the contract in accordance with the specifications. The estimated cost for Item 2 of this contract was $90,600.00, placing the total bid of $76,073.31 approximately 16.0 percent below the estimate.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it is primarily a furnish and deliver contract.
The Affirmative Action Ordinance, Revised Appendix D is not included in this contract because it is primarily a furnish and deliver contract.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 16-021-11, Item 1 to Petroleum Traders Corporation, in an amount not to exceed $189,851.13 and Item 2 to Avalon Petroleum Company, Inc., in an amount not to exceed $76,073.31.
Purchase orders will be issued for the material as required. Payment will be based on the bi-monthly gallon prices as indicated in the contract documents.
Funds are being requested for 2016 in Accounts 101-16000, 20000, 66000-623820, and are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:JN:dp
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 3, 2015
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