HomeMy WebLinkAboutTR-71-82 -M `E
.I CORPORATION OF THE TOWN OF NEWCASTLE
' 40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C3A6 TELEPHONE 623-3379
SPECIAL HANDOUT REPORT FOR COUNCIL MEETING HELD NOVEMBER 1 , 1982
TR - 71 - 82
SUBJECT: TENDER T82-7 NO. 2 DOMESTIC HEATING FUEL OIL
RECOMMENDATION:
It is respectfully recommended:
1. That this report be received; and
2 . That Petro-Canada Ventures, Toronto (agent : Francis
Tennant Fuels , Orono) with a bid in the amount of
$98,000. 00 being the lowest responsible bidder with
a non firm price meeting all terms , conditions and
specifications of tender T82-7 be awarded the contract
to supply and deliver No. 2 Domestic Heating Fuel for
the 1982/83 winter season and that the funds be
provided from within the approved 1982 and 1983 current
operating budgets for the facilities.
BACKGROUND AND COMMENT:
Tenders were called for the supply and delivery of Domestic Heating
Fuel for all Town facilities as required by Department of Community
Services and the bids were received and tabulated as per attached
Appendix "A" .
After review and analysis of the bids by the Treasurer and Purchasing
it was agreed that the low bidder (Petro Canada Ventures) with the
non firm price would be the most economical selection at this time
in view of the current market trends. It is known that a price
increase through the National Energy Program is scheduled to effect
the market on March 1 , 1983. Although the exact amount of the
increase is unknown we are assuming that the glut of oil in the
world markets and current stable prices generally indicate conditions
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TR - 71 - 82
under which the federal government may be compelled to hold prices
or minimize the proposed increases. If this hypothesis proves
untrue, the Town' s requirements for heating fuel will have been
almost completed for the season by March 1, 1983 , therefore a
price increase at that time should not have a major adverse effect
in the total cost of heating fuel for this winter season.
Respectfully submitted,
/ p Dennis M. Homeniuk, P.P.
Purchasing and Supply Agent
Attached: Appendix "A"
APPENDIX "A" _1D E� UATION - Tender T82- . J
82 November 1 , 1982
No. 2 Domestic Fuel
BIDDER Posted Tank Wagon Less Firm Net Price Total Firm Net Remarks
Price Discount Price
1 . Petro-Canada (Tennant Fuels) . 313 . 068 . 245 $ 98 , 000. 00 No
Orono , Ontario
2 . B P Canada
Pickering, Ontario . 318 . 070 . 248 $ 99,200. 00 - (Not Rejecomplete)
3 . Gulf Canada (Virtue Fuels) . 3165 . 0550 . 2615 $104 ,600. 00 No
Oshawa, Ontario
4. Sipco Oil Ltd. . 313 . 043 . 270 $108 , 000. 00 No
Oshawa, Ontario
5 . Baxter Fuels Ltd. , . 305 . 03 . 275 $110, 000. 00 No Rejected
Whitby, Ontario (Not signed)
6 . Imperial Oil Ltd. (A.H. 31 . 9 7. 3 24 . 6 $9 ,840, 000 . 00 No Rejected
Sturrock & Sons Ltd. ) (Contains
Bowmanville, Ontario restrictive
statements)
7. DX Oil . 260 $104 , 000 . 00 Yes
Oshawa, Ontario
8 . Perry Fuels Inc. . 318 . 0496 . 2684 $107, 360. 00 Yes
Oshawa, Ontario
NOTE ; All unit prices above are per litre .