TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 5, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 23-030-11, Furnish and Deliver Lubricants to Various Locations for a One-Year Period, Items 1, 2, 3, 4, 5, and 7 to Safety-Kleen Systems, Inc., in an amount not to exceed $22,002.44; Items 6, 8, 10, 11, 15, 17,18, 19, 21, and 22 to Valdes, LLC in an amount not to exceed $82,853.82; Item 9 to Quimex, Inc., in an amount not to exceed $8,905.95; Items 12, 13, 14, 16, and 23 to Petroleum Service Company, in an amount not to exceed $44,062.55; and Item 20 to Al Warren Oil Company, Inc., in an amount not to exceed $2,376.00, Account 101-20000-623860
Body
Dear Sir:
On July 13, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 23-030-11 Furnish and Deliver Lubricants to Various Locations for a One-Year Period, beginning approximately November 1, 2023, and ending October 31, 2024.
In response to a public advertisement of July 26, 2023, a bid opening was held on August 22, 2023. The bid tabulation for this contract is attached.
The low bidder for Items 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, and 23, Advance Energy LLC, submitted their bid on a generic form which was not part of the contract document. As per the terms of the contract: “All proposals must be submitted upon the blank form of proposal furnished with these Contract Documents by the District and shall conform to the terms and conditions set forth in these “General Requirements, Specifications, and Conditions.” The low bidder did not use the District-issued bid pricing spreadsheet to record their bid, but instead substituted a generic form that did not include key aspects of the bid, such as: the MWRD item number, the estimated usage, the unit of measure, the short-text material description, the declaration of any substitutions being proposed, and the extension cost. The low bidder also removed the material description information for each item, and instead listed the substitute items they were offering. Due to the extensive modifications made on the generic form that was submitted, Advance Energy LLC’s bid for these items is rejected for not complying with the terms and conditions of this contract and in the public’s best interest. The Director of Procurement and Materials Management has notified Advance Energy LLC of this action.
The low bidder for Items 12 and 13, Quimex, Inc., proposed a substitute for these items. The proposed substitutes were reviewed by the M&O Department, and it was recommended to not accept the substitutes being offered. The reason for not accepting the substitutes is because lubricants from different synthetic oil manufacturers can react with each other and degrade the oil, which may cause a problem with the equipment. To change brands of synthetic oil would require thorough cleaning of the equipment that use these items. This cleaning would require purchase of cleaning solvents, disassembly, cleaning, reassembly, and reinstallation of the equipment. The undertaking in terms of manpower, equipment down time, and cost would negate any savings that Quimex’s proposed substitute would offer, if it were accepted. Examples of equipment that would be affected include various gear boxes for screen conveyors, preliminary tanks, aerated grit tanks, and final tanks at the O’ Brien plant. Therefore, Quimex’s bid for these items is rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Quimex, Inc., of this action.
Safety-Kleen Systems, Inc., the lowest responsible bidder for items 1, 2, 3, 4, 5, and 7, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 1, 2, 3, 4, 5, and 7 was $78,000.00, placing the total bid of $22,002.44 approximately 71.79 percent below the estimate.
Valdes, LLC, the lowest responsible bidder for items 6, 8, 10, 11, 15, 17, 18, 19, 21, and 22, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 6, 8, 10, 11, 15, 17, 18, 19, 21, and 22 was $149,000.00, placing the total bid of $82,853.82 approximately 44.39 percent below the estimate.
Quimex, Inc., the lowest responsible bidder for item 9, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 9 was $12,000.00, placing the total bid of $8,905.95 approximately 25.78 percent below the estimate.
Petroleum Service Company, the lowest responsible bidder for items 12, 13, 14, 16, and 23, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 12, 13, 14, 16, and 23 was $61,000.00, placing the total bid of $44,062.55 approximately 27.77 percent below the estimate. Petroleum Service Company is licensed and in good standing in the State of Pennsylvania.
Al Warren Oil Company, Inc., the lowest responsible bidder for item 20, is proposing to perform the contract in accordance with the specifications. The estimated cost for item 20 was $3,000.00, placing the total bid of $2,376.00 approximately 20.80 percent below the estimate.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it does not fall under the provisions of the MPLA.
The Affirmative Action Ordinance, Revised Appendix D and Appendix V, will not be included in this contract because the estimate, per each individually awarded group of the contract, is less than the minimum threshold established by Section 4 of the Affirmative Action Ordinance.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 23-030-11, Items 1, 2, 3, 4, 5, and 7 to Safety-Kleen Systems, Inc., in an amount not to exceed $22,002.44; Items 6, 8, 10, 11, 15, 17,18, 19, 21, and 22 to Valdes, LLC in an amount not to exceed $82,853.82; Item 9 to Quimex, Inc., in an amount not to exceed $8,905.95; Items 12, 13, 14, 16, and 23 to Petroleum Service Company, in an amount not to exceed $44,062.55; and Item 20 to Al Warren Oil Company, Inc., in an amount not to exceed $2,376.00.
No bid deposit was required 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. There was no bid deposit required for this contract. Funds are available in Account 101-20000-623860.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:MS:sk
Respectfully Submitted, Marcelino Garcia, 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 5, 2023
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