HomeMy WebLinkAboutTR-72-87 TOWN OF NEWCASTLE C �
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,ft. Ct REPORT File #
Res. #
By-Law #
DING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE: October 5, 1987
REPORT #: TR-72-87 FILE #:
SU3,1ECT: TENDER NO. T87-27, NO. 2 DOMESTIC FUEL OIL
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 DX Oil Company, Oshawa, Ontario, with a total bid in the amount
of $60,225.00, being the lowest responsible bidder meeting all terms,
conditions and specifications of Tender T87-27, be awarded the
contract to supply and deliver No. 2 Domestic Fuel Oil to the Town of
Newcastle for the 1987/88 Winter Season; and
3. That the funds expended by drawn from the 1987/88 budget allocation
for heating of facilities.
BACKGROUND AND COMMENT:
Tenders were publicly advertised and called for the supply and delivery of No. 2
Domestic Fuel Oil, as required by the Town of Newcastle facilities. Affiliated
Hall Boards, Museums and Park Boards were given the option of being included in
this tender.
The tenders were received and tabulated as per the attached Bid Summary, marked
Schedule "A".
Page - 2 -
TR-72-87
TENDER NO. T87-27, NO. 2 DOMESTIC FUEL OIL
Staff have reviewed the unit prices bid compared with the unit prices obtained
from the same supplier, by the Regional Municipality of Durham and have found
that the Region's prices are approximately 7% less. However, this percentage
will likely decrease over the next month, due to an anticipated price increase
to the Region, which will not be applicable to the Town of Newcastle. In an
effort to try and obtain better pricing on future contracts, staff have advised
the Regional Municipality of Durham, to include the Town of Newcastle's require-
ments in the next Co-Operative Tender for No. 2 Domestic Fuel Oil, which will be
called in June 1988. This date coincides with the expiry of Tender T87-27,
which is June 30, 1988.
After further review of the bids by Purchasing, it is recommended that the low
bidder, DX Oil Company, Oshawa, Ontario, be recommended for the contract award
to supply and deliver fuel oil as required by the Town of Newcastle. The
subject firm has performed satisfactorily for the Town of Newcastle in recent
years.
The required funds will be drawn from the 1987/88 budget allocation for heating
of facilities from which there are adequate funds available.
The price tendered represents a price increase of 4% over the 1986/87 prices.
Respectfully submitted, Recommended for presentation
to the Committee,
.R. Blanchard, rence �' �Kotseff,
Treasurer. ` ief n)strative Officer.
LAB/hjm
Attachment
SCHEDULE "A"
BID SUMMARY
TENDER NO. T87-27, NO. 2 DOMESTIC FUEL OIL
BIDDER TOTAL BID
(based on 275,000 litres)
DX Oil Company $ 60,225.00
Oshawa, Ontario
Perry Fuels Inc. $ 61,572.50
Oshawa, Ontario
Petro Canada Inc. $ 61,875.00
North York, Ontario
Esso Petroleum $ 62,150.00
Don Mills, Ontario
McKee Fuels $ 62,975.00
Brooklin, Ontario
Sipco Oil Limited $ 67,375.00
Oshawa, Ontario
Dixon Fuels $ 67,925.00
Oshawa, Ontario
** corrected tender