TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 6, 2018
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 18-030-12, Furnish and Deliver Miscellaneous Lubricants to Various Locations for a One-Year Period (Re-Bid), Items 1, 5, and 6 to Rilco, Inc., in an amount not to exceed $13,745.00, and Items 2, 4, and 7 to Superior Petroleum Products & Fuels Inc. in an amount not to exceed $15,407.00, Account 101-20000-623860
Body
Dear Sir:
On August 2, 2018, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 18-030-11 Furnish and Deliver Miscellaneous Lubricants to Various Locations for a One-Year Period, beginning approximately November 1, 2018 and ending October 31, 2019.
In response to a public advertisement of August 15, 2018, a bid opening was held on September 11, 2018. At the Board meeting of October 18, 2018, twenty-five (25) items were awarded and nine (9) items received no bids. The contract documents will be reviewed and revised prior to re-advertising.
In response to a public re-advertisement of October 24, 2018, a bid opening was held on November 6, 2018. The bid tabulation for this contract is:
item 1 - OIL, SYNTHETIC, DACNIS SE 68, 55 GAL
RILCO, INC. $6,150.00
INDI ENTERPRISE, INC. $8,475.00
R & R eQUIPMENT pLUS, INC. $8,860.65
item 2 - OIL, GEAR, MOBIL 600XP220, ISO GRADE 220
SUPERIOR PETROLEUM PRODUCTS & Fuels Inc. $3,912.00
RILCO, INC. $5,010.00
cHICAGO uNITED iNDUSTRIES $5,486.40
Mid-Town Petroleum Acquisitions, LLC, d.b.a. reladyne $6,600.00
INDI ENTERPRISE, INC. $6,930.00
R & R eQUIPMENT pLUS, INC. $8,103.60
item 3 - OIL, SYNTHETIC, MOBIL SHC 634, 55 GAL
RILCO, INC. $62,806.00
SUPERIOR PETROLEUM PRODUCTS & Fuels Inc. $64,738.85
Mid-Town Petroleum Acquisitions, LLC, d.b.a. reladyne $67,347.50
INDI ENTERPRISE, INC. $75,950.00
cHICAGO uNITED iNDUSTRIES $81,778.62
R & R eQUIPMENT pLUS, INC. *$92,903.28
*Corrected total
item 4 - OIL, HYDRAULIC, MOBIL DTE25, ISO 46
SUPERIOR PETROLEUM PRODUCTS & Fuels Inc. $6,237.00
RILCO, INC. $6,930.00
Mid-Town Petroleum Acquisitions, LLC, d.b.a. reladyne $7,905.15
cHICAGO uNITED iNDUSTRIES $8,672.40
INDI ENTERPRISE, INC. $8,883.00
R & R eQUIPMENT pLUS, INC. $34,595.01
item 5- OIL, HYDRAULIC, MOBIL DTE 10 SERIES 68
RILCO, INC. $1,850.00
SUPERIOR PETROLEUM PRODUCTS & Fuels Inc. $1,853.50
Mid-Town Petroleum Acquisitions, LLC, d.b.a. reladyne $2,432.10
cHICAGO uNITED iNDUSTRIES *$2,488.00
INDI ENTERPRISE, INC. $2,550.00
R & R eQUIPMENT pLUS, INC. $2,826.86
*Corrected total
item 6 - LUBE, SYNTHETIC, GEAR, MOBIL #SHC626, 55 GAL.
RILCO, INC. $5,745.00
SUPERIOR PETROLEUM PRODUCTS & Fuels Inc. $5,956.50
Mid-Town Petroleum Acquisitions, LLC, d.b.a. reladyne $5,989.50
INDI ENTERPRISE, INC. $6,243.00
Chicago united Industries $7,543.80
R & R eQUIPMENT pLUS, INC. $8,864.13
item 7 - LUBRICANT, SYNTHETIC, MOBIL GLYGOYLE HE460
R & R eQUIPMENT pLUS, INC. $1,935.50
SUPERIOR PETROLEUM PRODUCTS & Fuels Inc. $5,258.00
RILCO, INC. $5,590.00
cHICAGO uNITED iNDUSTRIES $6,336.00
INDI ENTERPRISE, INC. $6,450.00
Two hundred (200) companies were notified of the contract being advertised and nineteen (19) companies requested specifications.
Rilco, Inc., the lowest responsible bidder for items 1, 5, and 6, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 1, 5, and 6 was $13,900.00, placing the total bid of $13,745.00 approximately 1.12 percent below the estimate.
Item 3 contained an incorrect estimated quantity. This error resulted in bids for item 3 that exceeded the item’s estimated value of $13,000.00, with the low bid for this item being approximately 480% over the estimate. Therefore, all bids received for item 3 are rejected in the public’s best interest and this material will be procured on the open market. The Director of Procurement and Materials Management has informed all bidders of this action.
R & R Equipment Plus, Inc., the low bidder for Item 7, has advised the District that they misquoted the price for this item and will not be able to honor the pricing. Therefore, the bid from R & R Equipment Plus, Inc., for Item 7 has been rejected in the public’s best interest. The Director of Procurement and Materials Management has informed R & R Equipment Plus, Inc., of this action.
Superior Petroleum Products & Fuels Inc., the lowest responsible bidder for items 2, 4, and 7, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 2, 4, and 7 was $26,900.00, placing the total bid of $15,407.00 approximately 42.72 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 18-030-12, Furnish and Deliver Miscellaneous Lubricants to Various Locations for a One-Year Period (Re-Bid), Items 1, 5, and 6 to Rilco, Inc., in an amount not to exceed $13,745.00, and Items 2, 4, and 7 to Superior Petroleum Products & Fuels Inc., in an amount not to exceed $15,407.00.
Purchase orders will be issued for the material as required. Payment will be based on the unit cost as indicated in the contract documents. There was no bid deposit required for this contract.
Funds are being requested in 2019, in Account 101-20000-623860, and are contingent upon 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:MS: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 December 6, 2018
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