TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 16, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order for Contract 19-609-11, Furnishing and Delivering Unleaded Gasoline and Diesel Grade Fuel Oil to Fulton County, Illinois, to Herr Petroleum Corporation, in an amount not to exceed $52,270.00, Account 101-66000-623820, Requisition 1495826
Body
Dear Sir:
On January 10, 2019, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 19-609-11, Furnishing and Delivering Unleaded Gasoline and Diesel Grade Fuel Oil to Fulton County, Illinois.
In response to a public advertisement of March 27, 2019, a bid opening was held on April 16, 2019. The bid tabulation for this contract is:
HERR PETROLEUM CORPORATION *$52,270.00
*corrected total
Two hundred and seventeen (217) companies were notified of this contract being advertised and nine (9) 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 this service has been adequately solicited. A planholders’ survey revealed the following reasons for not bidding: the number of gallons are too small to bid on. 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.
Herr Petroleum Corporation, the sole bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost of this contract is $50,000.00, placing their bid of $52,270.00 approximately 4.5 percent above the estimate.
The contract shall commence five calendar days after the mailing date of the purchase order and terminate December 31, 2020, or upon expenditure of available funds, whichever occurs sooner.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because it is primarily a furnish and deliver contract.
The Affirmative Action Ordinance, Revised Appendix D and Appendix V are not included in this contract because it is primarily a furnish and deliver contract.
The bid deposit, in the amount of $2,500.00, will be retained in lieu of a performance bond, which is satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order for Contract 19-609-11 to Herr Petroleum Corporation, in an amount not to exceed $52,270.00.
Funds for the 2019 expenditure, in the amount of $25,000.00, are available in Accounts 101-66000-623820. The estimated expenditures for 2020 are $27,270.00. Funds for the 2020 expenditures are contingent on 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:cm
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 May 16, 2019