TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 17, 2011
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 11-030-13 (Re-bid), Furnish and Deliver Miscellaneous Lubricants to Various Locations, for a One (1) Year Period, Items 1 & 2 to Chicago United Industries, LTD., in an amount not to exceed $128,054.00, Item 3 to Palm Petroleum, LLC, in an amount not to exceed $8,241.75, and Items 4 & 5 to Parent Petroleum, Inc., in an amount not to exceed $22,384.25, Account 101-20000-623860
Body
Dear Sir:
On June 16, 2011, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 11-030-11 Furnish and Deliver Miscellaneous Lubricants to Various Locations for a One (1) Year Period, beginning approximately November 1, 2011 and ending October 31, 2012.
In response to a public advertisement of June 29, 2011, a bid opening was held on July 19, 2011. All bids received for this Contract were rejected at the Board Meeting of August 11, 2011.
In response to a public re-advertisement of August 17, 2011, a bid opening was held on August 30, 2011. All bids received for this Contract were rejected at the Board Meeting of October 6, 2011.
In response to a public re-advertisement of October 12, 2011, a bid opening was held on October 25, 2011. The bid tabulation for this contract is:
ITEM 1: SDC #2
CHICAGO UNITED INDUSTRIES LTD $41,804.00
PALM PETROLEUM LLC $44,275.00
PARENT PETROLEUM, INC. $45,045.00
ITEM 2: SDC #3
CHICAGO UNITED INDUSTRIES LTD $86,250.00
PALM PETROLEUM LLC $87,780.00
PARENT PETROLEUM, INC. $99,165.00
ITEM 3: SDC #4
PALM PETROLEUM LLC $8,241.75
CHICAGO UNITED INDUSTRIES LTD $8,267.40
PARENT PETROLEUM, INC. $8,332.50
ITEM 4: SDC #5
PARENT PETROLEUM, INC. $5,555.50
PALM PETROLEUM LLC $5,736.50
CHICAGO UNITED INDUSTRIES LTD $5,800.00
ITEM 5: SDC #107
PARENT PETROLEUM, INC. $16,828.75
CHICAGO UNITED INDUSTRIES LTD $17,710.00
PALM PETROLEUM LLC $17,900.00
One hundred fifty-four (154) companies were notified of the contract being advertised and twelve (12) companies requested specifications.
Chicago United Industries LTD, the lowest responsible bidder for Items 1 & 2, is proposing to perform the contract in accordance with the specifications. The estimated cost for Items 1 & 2 of this contract was $108,000.00, placing the total bid of $128,054.00 approximately 18.6 percent above the estimate.
Palm Petroleum, LLC, the lowest responsible bidder for Item 3, is proposing to perform the contract in accordance with the specifications. The estimated cost for Item 3 of this contract was $5,500.00, placing the total bid of $8,241.75 approximately 49.9 percent above the estimate. All bids received exceeded District estimates due to market volatility. Based on bids received, the Director of Procurement and Materials Management is satisfied that the pricing adequately represents the market place.
Parent Petroleum, Inc., the lowest responsible bidder for Items 4 & 5, is proposing to perform the contract in accordance with the specifications. The estimated cost for Items 4 & 5 of this contract was $11,500.00, placing the total bid of $22,384.25 approximately 94.7 percent above the estimate. All bids received exceeded District estimates due to market volatility. Based on bids received, the Director of Procurement and Materials Management is satisfied that the pricing adequately represents the market place.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it is primarily a furnish and deliver contract.
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 11-030-13, Items 1 & 2 to Chicago United Industries, LTD., in an amount not to exceed $128,054.00, Item 3 to Palm Petroleum, LLC, in an amount not to exceed $8,241.75, and Items 4 & 5 to Parent Petroleum, Inc., in an amount not to exceed $22,384.25.
There is no bid deposit for this contract.
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:MB:jt
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 November 17, 2011