Loading...
HomeMy WebLinkAboutCOD-067-05 ~n REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: December 5th, 2005 Report #: COD-067 -05 By-law # t{>/1- Cj 7l/-C S CO-OPERATIVE TENDER T-257A-2005, DOMESTIC FUEL Oil File#_ Subject: Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-067-05 be received; 2. THAT Shell Canada Products with a net unit price in the amount of $0.7109 per litre (excluding GST), meeting all terms, conditions and specifications of the Co-operative Tender T-257 A-2005 be awarded the contract to supply and deliver NO.2 Domestic Fuel Oil to the Municipality of Clarington for a three year term; 3. THAT pending satisfactory service and pricing, the contract be extended for an additional two years; and 4. THAT the funds expended be drawn from the respective years operating budget allocation for heating of facilities. Submitted by: tZ~. Marie Marano, H.B.Sc., C.M.O. Director of Corporate Services ReviewedbQ~~~ Franklin Wu, Chief Administrative Officer MM\LAB\km REPORT NO.: COD-067-05 PAGE 2 OF 3 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 firm mark up prices bid for this contract are firm for the 3 year term commencing January 5th, 2006, however the actual oil price is subject to a monthly adjustment based on the Ontario Oil Buyers Guide. Note, the prices bid represent the price on the Oil Buyers Guide for the month of September. Since that time, the price on the Oil Buyers Guide has decreased, therefore the actual price charged will be based on the most recent monthly average (January) plus the applicable mark up. Based on the recent notice from Shell, the price effective December 5th, 2005 will be .5754/litre. The required funds will be drawn from the respective years operating budget allocation for heating of facilities from which there are adequate funds available. The price tendered represents a price increase of approximately eighty eight (88%) over the 2002/2003 tendered prices. For the informa~ion of Council, the 2004/2005 expenditure for this contract was approximately $49,000.00. After further review and analysis of the bids by the Purchasing, it is recommended that Shell Canada Products be recommended for the contract award to supply and deliver No.2 Domestic Fuel Oil for a 3 year term, as required by the Municipality of Clarington. It is further recommended that pending satisfactory service and pricing the contract be extended for an additional 2 years. The subject firm have previously provided satisfactory service for the Municipality of Clarington. CORPORATION OF THE MUNICIPALITY OF ClARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-4169 H Cl~-!lJgtDn Municipality of Clarington SCHEDULE "A" BID SUMMARY CO-OPERATIVE TENDER T-257A-2005 NO.2 DOMESTIC FUEL Oil BIDDER TOTAL BID AMOUNT Shell Canada Products 0.7109/litre Frew Petroleum 0.7587 /Iitre