HomeMy WebLinkAboutCOD-021-09~~I"liil~Oll
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REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE /' /~
Date: Monday, March 9, 2009 ~i-Fs~f ~~i rn ~ q l" ~'~~~
Report #: COD-021-09 File # By-law #
Subject: Co-operative Tender T257-2008, Supply & Delivery of Gasoline and Diesel Fuel
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-021-09 be received;
2. THAT Petro-Canada, Oakville, Ontario with an approximate annual value of
$353,122.40, being. the lowest responsible bidder meeting all terms, conditions, and
specifications be awarded the Municipality of Clarington requirements for Co-operative
TenderT257-2008 Gasoline and Diesel Fuel for a three year term;
3. THAT pending satisfactory pricing and service the contract be extended for an additional
two years; and
4. THAT funding be provided from the current year's respective departments Operating
Fleet Budgets. _,
Submitted by: ~///~ifl~'- Reviewed by:
Marie Marano, H.B.Sc., C.M.O., ranklin Wu,
Director f Corporate Services ~ Chief Administrative Officer
~~ Nan y Taylor, B.B.A., C.A.,
Director of Finance
MM\JDB16H
REPORT NO.: COD-021-09
PAGE2
1. BACKGROUND AND COMMENT
1.1 A tender for the supply and delivery of Gasoline and Diesel Fuel was issued on a
Co-operative basis with the Municipality of Clarington, City of Oshawa, City of
Pickering, Town of Ajax, Town of Whitby, Township of Uxbridge, Durham
Regional Police, Lakeridge Health Corporation and the Region of Durham
participating. The host agency for the tender call was the Region of Durham.
1.2 The tender was publicly advertised and called for bids for the Supply and
Delivery of Gasoline and Diesel Fuel as required by the co-operative agencies.
1.3 The contract resulting from this tender will cover the supply and delivery of
gasoline and diesel fuel on an as required basis for a three year term with the
option to extend for two additional years.
2. ANALYSIS
2.1 A total of five (5) bids were received, the bid submission from Lambert Oil was
disqualified as their information was incomplete. The low compliant bid was
received from Petro-Canada for all fuels except for biodiesel which was not bid
upon. The low compliant bid for biodiesel fuel is Ultramar.
2.2 A bid for Clarington's requirements was received and tabulated as per Schedule
"A" attached.
2.3 Price adjustments throughout the contract are made in accordance with the
formula supplied in the tender document (i.e., based on daily rack pricing);
however the firm mark up price is fixed for the three (3) year term.
3. FINANCIAL IMPLICATIONS
3.1 The annual consumption of fuel products has increase by 12%. The prices are
subject to the fluctuations in the marketplace.
REPORT NO.: COD-027-09
PAGE 3
3.2 Due to the volatility of the petroleum market, pricing is based on the daily rack
pricing (i.e., price fluctuations daily as per the market conditions) and is subject
to a fixed mark up price.
3.3 Funding will be provided from the current year's respective departments
Operating Fleet Budgets.
4. CONCLUSION
4.1 After review and analysis of the bids by Purchasing, the Operations Department
and the Durham Purchasing Co-operative, it is recommended that Petro-
Canada Prodacts be awarded the contract (i.e., with the exception of biodiesel).
5. INPUT FROM OTHER SOURCES
5.1 This report has been reviewed for recommendation by the Purchasing Manager
with the appropriate departments and circulated as follows.
Concurrence: Director of Operations
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE; ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169
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