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HomeMy WebLinkAboutTR-65-00 , . DN: TR-65-00 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Date: October 2, 2000 File #Ff?'T/;::-- Res. tt611't-1')'3-b{) Meeting: General Purpose and Administration Committee Report #: TR-65-00 FILE#: By-law # Subject: Co-operative Tender 2000-FI-02, Domestic Fuel Oil 2000/2001 RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-65-00 be received; 2. THAT Perry Fuels Inc., Oshawa, Ontario with a net unit price in the amount of $ .4815 per litre (including G.S.T.), meeting all terms, conditions and specifications of the Co-operative Tender 2000-F1-02 be awarded the contract to supply and deliver NO.2 Domestic Fuel Oil to the Municipality of Clarington for the 2000/2001 winter season; and 3. THAT the funds expended be drawn from the 2000/2001 budget allocation for heating of facilities. BACKGROUND AND COMMENT: A Co-operative Tender was issued for the supply and delivery of NO.2 Domestic Fuel Oil. Affiliated Hall Boards, Museums and Park Boards were given the option of being included in this tender. Subsequently, the bids were received and tabulated as per the attached Bid Summary, marked Schedule "A". The required funds will be drawn from the 2000/2001 budget allocation for heating of facilities from which there are adequate funds available. The Treasurer has reviewed the funding requirements and concurs with the recommendation. 821 REPORT NO.: TR-65~O PAGE 2 The price tendered represents a price increase of one hundred (100%) over the 1999/2000 tendered prices. Note, with respect to the issue of firm pricing versus non-firm pricing, the host agency is recommending acceptance of the firm pricing. It is predicted that oil prices will increase significantly over the next while and in fact, have already increased since the closing of this tender. Based on this, it is the recommendation of the co-operative that the low bid for firm pricing be accepted. In comparison to the tendered unit price of $ .4815, the average household price is approximately 70% higher. For the information of Council, the 1999/2000 expenditure for this contract was approximately $45,000.00. After further review and analysis of the bids by Purchasing, it is recommended that Perry Fuels Inc., Oshawa, Ontario, be recommended for the contract award to supply and deliver No.2 Domestic Fuel Oil, as required by the Municipality of Clarington. Although they have not previously provided service for the Municipality of Clarington, they have provided satisfactory service to other members of the Durham Purchasing Co- operative. Respectfully submitted, Reviewed by, / /aJt<-~ f -, ~ ,.:<.. \. M 'e Marano, H.BSc., AMCT., Treasurer MM*LAB*km 2) ~-'-~ Franklin Wu, M.C.I.P.,R.P.P., Chief Administrative Officer 822 . . SCHEDULE "A" BID SUMMARY CO-OPERATIVE TENDER 2000-F1-02 NO.2 DOMESTIC FUEL OIL (BASED ON ESTIMATED MUNICIPALITY OF CLARINGTON REQUIREMENTS OF APPROXIMATELY 100,000 L1TRES) Utramar Ltd. Oshawa, ON Perry Fuels Oshawa, ON Pinder Fuels Sunderland, ON .4218 YES .4815 YES .6410 (Zone 3 only) 823