TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 20, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 16-030-11, Furnish and Deliver Miscellaneous Lubricants to Various Locations for a One (1) Year Period, Items 1, 8, 26, and 28 to Rock Island Lubricants, d.b.a. Rilco, Inc., in an amount not to exceed $26,253.00; Item 2 to Indi Enterprise, Inc. in an amount not to exceed $6,500.00; Items 3, 14, 17, 21, and 24 to Feece Oil Company in an amount not to exceed $8,334.78; Items 4, 7, 9, 11, 12, 15, 16, 19, 20, and 29 to Midtown Petroleum Acquisition, LLC, d.b.a. RelaDyne, in an amount not to exceed $82,172.45; Items 5, 6, and 13 to Parent Petroleum, Inc., in an amount not to exceed $7,730.44; Items 10 & 27 to Atlas & Associates, Inc., in an amount not to exceed $9,180.00; and Items 18, 22, 23, 25, and 30 to Valdes, LLC, in an amount not to exceed $47,248.00, Account 101-20000-623860
Body
Dear Sir:
On July 7, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 16-030-11 Furnish and Deliver Miscellaneous Lubricants to Various Locations for a One (1) Year Period, beginning approximately November 1, 2016 and ending October 31, 2017.
In response to a public advertisement of July 20, 2016, a bid opening was held on August 9, 2016. The bid tabulation for this contract is attached.
One hundred seventy-seven (177) companies were notified of the contract being advertised and twenty-five (25) companies requested specifications.
Atlas & Associates, Inc., the lowest bidder for items 8 and 23, has advised the Director of Procurement and Materials Management that they misquoted these items and they cannot honor their bid prices. Therefore, Atlas & Associates’ bid for these items is considered non-responsive and rejected in the public’s interest. The Director of Procurement and Materials Management has notified Atlas & Associates, Inc., of this action.
Rock Island Lubricants, d.b.a. Rilco, Inc., and Valdes, LLC bid the same price for contract item 8. A drawing was held on September 21, 2016 to break the tie. Both vendors were invited to witness the drawing and both declined. The winner of the tie-breaker drawing is Rock Island Lubricants, d.b.a. Rilco, Inc.
Rock Island Lubricants, d.b.a. Rilco, Inc., the lowest bidder for Item 10, proposed an alternate for this item. The proposed alternate was rejected, because changing brands of synthetic oil would require thorough cleaning of the equipment that uses this item. This cleaning would require purchase of a cleaning solvent, disassembly, cleaning, reassembly, and reinstallation of the equipment. The undertaking in terms of manpower and cost would negate any savings if Rilco’s proposed substitution were accepted. Therefore, Rilco’s bid for this item is considered non-responsive and rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Rock Island Lubricants, d.b.a. Rilco, Inc., of this action.
Rely Supply, LLC, the lowest bidder for Item 29, qualified their bid with a minimum order requirement. Therefore, Rely Supply’s bid is considered non-responsive and rejected in the public’s best interest. The Director of Procurement and Materials Management has informed Rely Supply, LLC, of this action.
Indi Enterprise, Inc., the lowest bidder for Item 30, has informed the Director of Procurement & Materials Management that they misquoted this item and cannot hold the bid price for the contract term. Therefore, Indi Enterprise’s bid for this item is considered non-responsive and rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Indi Enterprise Inc., of this action.
Atlas & Associates, Inc., the next lowest bidder for Item 30, has informed the Director of Procurement & Materials Management that they misquoted this item and cannot hold the bid price for the contract term. Therefore, Atlas & Associates’ bid for this item is considered non-responsive and rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Atlas & Associates, Inc., of this action.
Rock Island Lubricants, d.b.a. Rilco, Inc., the lowest responsible bidder for Items 1, 8, 26, and 28, is proposing to perform the contract in accordance with the specifications. The estimated cost for Items 1, 8, 26, and 28 was $35,300.00, placing the total bid of $26,253.00 approximately 25.6 percent below the estimate.
Indi Enterprise, 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 was $5,750.00, placing the bid of $6,500.00 approximately 13 percent over the estimate.
Feece Oil Company, the lowest responsible bidder for Items 3, 14, 17, 21, and 24, is proposing to perform the contract in accordance with the specifications. The estimated cost for Items 3, 14, 17, 21, and 24 was $10,350.00, placing the total bid of $8,334.78 approximately 19.5 percent below the estimate.
Midtown Petroleum Acquisition, LLC, d.b.a. RelaDyne, the lowest responsible bidder for Items 4, 7, 9, 11, 12, 15, 16, 19, 20, and 29, is proposing to perform the contract in accordance with the specifications. The estimated cost for Items 4, 7, 9, 11, 12, 15, 16, 19, 20, and 29 was $105,200.00, placing the total bid of $82,172.45 approximately 21.9 percent below the estimate.
Parent Petroleum, Inc., the lowest responsible bidder for Items 5, 6, and 13, is proposing to perform the contract in accordance with the specifications. The estimated cost for Items 5, 6, and 13 was $10,100.00, placing the total bid of $7,730.44 approximately 23.5 percent below the estimate.
Atlas & Associates, Inc., the lowest responsible bidder for Items 10 & 27, is proposing to perform the contract in accordance with the specifications. The estimated cost for Items 10 & 27 was $10,600.00, placing the total bid of 9,180.00 approximately 13.4 percent below the estimate.
Valdes, LLC, the lowest responsible bidder for Items 18, 22, 23, 25, and 30, is proposing to perform the contract in accordance with the specifications. The estimated cost for Items 18, 22, 23, 25, and 30 was $47,700.00, placing the total bid of $47,248.00 approximately 0.95 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 16-030-11, Items 1, 8, 26, and 28 to Rock Island Lubricants, d.b.a. Rilco, Inc., in an amount not to exceed $26,253.00; Item 2 to Indi Enterprise, Inc. in an amount not to exceed $6,500.00; Items 3, 14, 17, 21, and 24 to Feece Oil Company in an amount not to exceed $8,334.78; Items 4, 7, 9, 11, 12, 15, 16, 19, 20, and 29 to Midtown Petroleum Acquisition, LLC, d.b.a. RelaDyne, in an amount not to exceed $82,172.45; Items 5, 6, and 13 to Parent Petroleum, Inc., in an amount not to exceed $7,730.44; Items 10 & 27 to Atlas & Associates, Inc., in an amount not to exceed $9,180.00; and Items 18, 22, 23, 25, and 30 to Valdes, LLC, in an amount not to exceed $47,248.00.
Purchase orders will be issued for the material as required. Payment will be based on the unit cost as indicated in the contract documents. Funds are available in Account 101-20000-623860.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:CD:np
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 October 20, 2016
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