HomeMy WebLinkAboutTR-97-86 TOWN OF NEWCASTLE
REPORT File
Res.
By-Law #
MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE: December 1 , 1986
REPORT #: TR-97-86 FILE #:
SUO.JECT: TENDER NO. T86-30, PETROLEUM PRODUCTS
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1 . That this report be received; and
2. That Esso Petroleum Canada, Don Mills, Ontario, with a unit price per
litre of .3430 (Section A) Leaded Gasoline, .3650 (Section B) Regular
Unleaded Gasoline, and .3610 (Section C) Diesel Fuel Oil , No. 1 , being
the lowest responsible bidder meeting all terms, conditions and
specifications of Tender No. T86-30, be awarded the supply contract as
required by the Town of Newcastle; and
3. That the funds be drawn from the 1987 Current Operating Fleet budgets.
BACKGROUND AND COMMENT:
A tender was publicly advertised in all area papers and called for the supply and
delivery of bulk unleaded gasoline, leaded gasoline and diesel fuel , as required by
the Department of Public Works for storage tank facilities at the Town of Newcastle
Public Works Depots, ie. Orono, Hampton and Bowmanville.
The tenders were opened and tabulated as per Schedule "A" attached.
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TR-97-86
TENDER NO. T86-30, PETROLEUM PRODUCTS
For the information of Council , Esso Petroleum Canada was awarded the 1986 contract
to supply Petroleum Products, as required by the Town of Newcastle. However, due
to the steady decline in oil prices and the deregulation of the oil industry, Tender
T85-21 was cancelled and recalled. Tender T86-11 was called in May, 1986 and awarded
for a contract term of six (6) months, to McKee Fuels, Brooklin, Ontario.
The unit prices tendered for T86-30 represent approximately an 8% decrease over
those tendered in May, 1986. This is partially due to the increased quantity
required in tendering for a one ( 1 ) year contract versus a six (6) month contract.
A review of the bids submitted revealed that the low bidder for Section C (Diesel
Fuel Oil , No. 1 ), Petro Canada Products Inc. , had tendered a discount which would
not remain firm. The general conditions of the tender stipulate that the discount
offered must remain firm for the tenure of the contract. Staff therefore,
recommends that the bid from Petro Canada Products Inc. , not be accepted.
_,ter further review of the bids by Purchasing and Public Works staff, it was
mutually agreed that the low bidder, Esso Petroleum Canada, Don Mills, Ontario, be
recommended for the supply contract as tendered.
Respectfully submitted, Recommended for presentation
to the Committee,
(/J.R. Blanchard, L .ence E } otseff,
Treasurer. Chief Admin'strative Officer.
G.J. Ough, P.Eng. ,
Director of Public Works.
/hjm
Attachments
A
SCHEDULE "A"
SECTION A (NO. 2 LEADED GASOLINE)
BIDDER UNIT PRICE/LITRE EXTENDED AMOUNT
(143,000 Litres)
Esso Petroleum .3430 $ 49,049.00
Don Mills, Ontario
Perry Fuels Inc. .3547 $ 50,722. 10
Oshawa, Ontario
Petro Canada Products Inc. .3570 $ 51 ,051 .00
Toronto, Ontario
Sipco Oil Limited .3650 $ 52,195.00
Oshawa, Ontario
Texaco Canada Inc. .3720 $ 53,196.00
Willowdale, Ontario
DX Oil .3790 $ 54,197.00
Oshawa, Ontario
Shell Canada Limited .4158 $ 59,459.40
Don Mills, Ontario
SECTION 8 (REGULAR UNLEADED GASOLINE)
( 47,000 Litres)
Esso Petroleum .3650 $ 17, 155.00
Don Mills, Ontario
Petro Canada Products Inc. .3780 $ 17,766.00
Toronto, Ontario
Perry Fuels Inc. .3832 $ 18,010.40
Oshawa, Ontario
Sipco Oil Ltd. .3875 $ 18,212.50
Oshawa, Ontario
Texaco Canada Inc. .3890 $ 18,283.00
Willowdale, Ontario
DX Oil .4090 $ 19,223.00
Oshawa, Ontario
Shell Canada Limited .4376 $ 2.0,567.20
Don Mills, Ontario
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SCHEDULE "A"
SECTION C (DIESEL FUEL OIL NO. 1 )
BIDDER UNIT PRICE/LITRE EXTENDED AMOUNT
(300,000 Litres)
Petro Canada Products Inc. .3530 $105,900.00
Toronto, Ontario
Esso Petroleum .3610 $108,300.00
Don Mills, Ontario
Perry Fuels Inc. .3648 $109,440.00
Oshawa, Ontario
Shell Canada Limited .3808 $114,240.00
Don Mills, Ontario
Texaco Canada Inc. .3820 $114,600.00
Willowdale, Ontario
Sipco Oil Ltd. .3850 $115,500.00
Oshawa, Ontario
DX Oil .3880 $116,400..00
Oshawa, Ontario
* Discount not firm