TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 12-022-11, Furnish and Deliver Diesel Grade Fuel Oil to Various Locations, for a One (1) Year Period, to Avalon Petroleum Company in an amount not to exceed $470,000.00, Accounts 101-16000, 66000, 67000, 68000, 69000-623820, Requisitions 1330442, 1330437, 1331298, 1330422, 1330411, 1330421, and 1330429
Body
Dear Sir:
On November 3, 2011, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 12-022-11 Furnish and Deliver Diesel Grade Fuel Oil to Various Locations for a One (1) Year Period, beginning approximately January 1, 2012 and ending December 31, 2012.
In response to a public advertisement of November 16, 2011, a bid opening was held on November 29, 2011. The bid tabulation for this contract is:
AVALON PETROLEUM COMPANY $485,018.00
One hundred fifty-two (152) companies were notified of the contract being advertised and ten (10) companies requested specifications.
The Director of Procurement and Materials Management has reviewed the bidders’ list for this contract and is satisfied that the market for these services has been adequately solicited. A plan holders’ survey revealed the following reasons for not bidding: they declined to bid because they could not commit due to market pricing volatility, and the services required were outside their area of business. In light of these findings, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
The quantities specified in the contract documents were used for the purpose of comparing bids and establishing unit prices. The total amount to be expended on this contract, should usage differ from the estimated quantities, is not to exceed $470,000.00.
Avalon Petroleum Company, the sole responsible bidder, proposes to perform this contract, all in accordance with the specifications.
Avalon Petroleum Company is registered and in good standing with the State of Illinois.
The estimated cost for this contract was $470,000.00, placing the sole bid of $485,018.00 approximately 3.2 percent above the estimate.
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 12-022-11, to Avalon Petroleum Company, in an amount not to exceed $470,000.00. Purchase orders will be issued for the diesel grade fuel oil required. Payment will be based on the unit prices as indicated in the contract documents. There is no bid deposit for this contract.
Funds are available in Accounts 101-16000, 66000, 67000, 68000, 69000-623820.
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 January 5, 2012