HomeMy WebLinkAboutTR-91-89 TOWN OF NEWCASTLE
REPORT �`, , - .
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MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE: October 23, 1989
REPORT #: TR-91-89 FILE #:
SMECT: TENDER T89-34, OILS AND LUBRICANTS
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-91-89 be received;
2 . That Ken-Mar Energy Inc . , Bowmanville, Ontario, with a total
bid in the amount of $56,099 .46, being the lowest
responsible bidder meeting all terms, conditions and
specifications of Tender T89-34, be awarded the contract
to supply oils and lubricants as required by the Town of
Newcastle;
3 . That in accordance with Section 64 of the Ontario Municipal
Board Act, the contract award be subject to approval
by the Ontario Municipal Board; and
4 . That the funds expended be drawn from the Current
Years ' Operating Fleet budget.
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TR-91-89
TENDER T89-34, OILS AND LUBRICANTS
BACKGROUND AND COMMENT:
A Tender was publicly advertised and called for the supply and
delivery of oils and lubricant products as required by the Town of
Newcastle.
These products are ordered on an as required basis and the total
bid prices indicated are estimates only, based on the previous
year's consumption and the unit prices tendered.
Subsequently, the following bids were submitted:
Bidder Total Bid Amount
Petro Canada Inc . $ 24,787 . 34 **
North York, Ontario
Ken-Mar Energy Inc. $ 56,099 .46
Bowmanville, Ontario
RP Oil $ 56,906 .82
Whitby, Ontario
Shell Canada $ 58,919 .22
North York, Ontario
Esso Petroleum $ 67,679 . 92
Don Mills, Ontario
** incomplete bid - unable to supply all products
In previous years this contract has been awarded on an annual
basis . Standard varieties of motor oil were purchased in 205
litre drums .
It is proposed that the Town of Newcastle convert to a bulk
motor oil system. This system of purchasing and dispensing
motor oil in bulk is highly beneficial to the Town. It
virtually eliminates any handling of the product thus saving
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TR-91-89
TENDER T89-34, OILS AND LUBRICANTS
staff time and money. Another consideration is the elimination of the
majority of the drum deposits to be paid.
As part of the General Terms and Conditions of the tender, the
successful bidder must supply (on loan) and install the necessary
bulk tanks and fittings at the Public Works Depot in Hampton for the
dispensing of motor oils.
As this type of system requires a commitment from both the vendor
and the supplier, it is proposed that the contract be awarded for
a three (3) year term. Note, all unit prices tendered, as well as
the total bid amount indicated, are based on a three (3) years
consumption.
The quoted unit prices reflect an approximate five percent (5%)
decrease over the 1988 unit prices.
The required funds will be drawn from the Current Operating Fleet
budget from which there are adequate funds available. The Deputy
Treasurer has reviewed the funding requirements and concurs with the
recommendation. Queries with respect to department needs,
specifications, etc . , should be referred to the Director of Public
Works .
After tabulating and reviewing the bids, it was mutually agreed
by Purchasing and Public Works staff, that the bid from Ken-Mar
Energy Inc. , Bowmanville, Ontario, be recommended for the supply
contract of oils and lubricant products as required by the Town of
Newcastle.
Page - 4 -
TR-91-89
TENDER T89-34, OILS AND LUBRICANTS
Although the subject firm have not previously supplied the Town of
Newcastle, they have provided excellent service to several other area
businesses, such as Ron Robinson Ltd. , Country Truck and Trailer and
Oshawa Sand and Gravel Ltd.
Respectfully submitted, Recommended for presentation
to the Committee,
John Rze`s// t L wrenc . Kotseff,
Deputy Treasurer. Chief 'nistrative Officer
W.A. Evans, P. `Eng. ,
Director of Public Works .
LAB/hjl
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