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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 Cont ' d Page 2. . . . . . , '�� Page 2 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 .