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HomeMy WebLinkAboutTR-72-87 TOWN OF NEWCASTLE C � � ' ,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