HomeMy WebLinkAboutCOD-027-09CI~I'li[l~Oll
Leading the Way
REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE1 D n 9
Date: Monday, March 30, 2009 ~'+=5~1.~`tOr~~P It ~~5~^d l
Report #: COD-027-09 File # By-law #
Subject: Co-operative Tender T257A-2008, Supply & Delivery of Domestic Furnace Oil
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
THAT Report COD-027-09 be received;
2. THAT Ultramar Limited, Belleville, Ontario with an approximate annual value of
$32,493.75, being the lowest responsible bidder meeting all terms, conditions, and
specifications be awarded the Municipality of Clarington requirements for Co-operative
Tender T257A-2008 Supply and Delivery of Domestic Furnace Oil 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
Budgets.
Submitted by: Reviewed by: ( / (/'~--'~`~~ ~~
ie Marano, H.B.Sc., C.M.O., Franklin Wu,
Director of Corporate Services Chief Administrative Officer
MMWD618H
REPORT NO.: COD-027-09
PAGE 2
1. BACKGROUND AND COMMENT
1.1 A tender for the Supply and Delivery of Domestic Furnace Oil was issued on a
Co-operative basis with the Municipality of Clarington, City of Pickering, Town of
Whitby, Township of Uxbridge, Lakeridge Health Corporation, Durham District
School Board 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 Domestic Furnace Oil as required by the co-operative agencies.
1.3 The contract resulting from this tender will cover the supply and delivery of
furnace oil 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 four (4) bids were received, the bid submission from Lambert Oil was
disqualified as the bid was not authorized and the bid submission from Petro
Canada was disqualified as they submitted a qualified bid. The low compliant bid
was received from Ultramar Limited.
2.2 A bid for Clarington's requirements was received and tabulated as follows
Product
Domestic Furnace Oil
Estimated Requirements
62,500 U ear $32,493.75
$34,625.00
2.3 Price adjustments throughout the contract are made in accordance with the
formula supplied in the tender document (Le., based on daily rack pricing);
however the firm mark up price is fixed for the three (3) year term.
REPORT NO.: COD-027-09
PAGE 3
3. FINANCIAL IMPLICATIONS
3.1 The annual consumption of domestic fuel oil from 2005 has decreased by
approximately 30% as municipal buildings are changed over from oil to gas
and/or propane. The prices are subject to the fluctuations in the marketplace.
3.2 The 2007/2008 expenditure for this contract was approximately $39,800.00 for
municipal facilities. The community halls located in Tyrone, Brownsdale and
Hayden represent an additional $13,400.00. The total expenditure was
$53,200.00.
3.3 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. A comparison of the unit cost provided with the tender
compared to the average price paid in 2008 reflects a 37% decrease. When the
market changes this unit price comparison will change significantly.
3.4 Funding will be provided from the current year's respective departments
Operating 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 Ultramar
Limited be awarded the contract.
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 L 1C 3A6 T(905)623-3379 F (905)623-4169