HomeMy WebLinkAboutCOD-067-05
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REPORT
CORPORATE SERVICES DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
December 5th, 2005
Report #: COD-067 -05
By-law #
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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:
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Marie Marano, H.B.Sc., C.M.O.
Director of Corporate Services
ReviewedbQ~~~
Franklin Wu,
Chief Administrative Officer
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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
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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