Report to: General Committee Date Report Authored: January 15, 2010
SUBJECT: Award of Tender 362-T-09
Supply & Delivery of Gasoline and Biodiesel Fuel York Region Buyers Co-operative CT-09-02
PREPARED BY: Laurie Canning, Ext. 4896
Patti
Malone, Ext. 2239
RECOMMENDATION:
1)
THAT the report entitled “Award
of Tender 362-T-09 Supply & Delivery of Gasoline and Biodiesel Fuel York
Region Buyers Co-operative CT-09-02” be received;
2) AND THAT Tender 362-T-09 (York Region Buyers
Co-operative CT-09-02) be awarded to the lowest priced bidder, Suncor Energy
Inc. in the estimated annual amount of $937,409 exclusive of GST;
3) AND THAT the term of the contract be for a
35 month period, effective February 1, 2010 thru to December 31, 2012 with an
option to renew for two (2) additional one (1) year periods subject to the
satisfactory performance of the Contractor and budget approval;
4) AND THAT
the Director of Operations and the Manager of Purchasing
be authorized to extend the contract for the additional two (2) one (1) year
terms at a unit price to be mutually agreed upon with the vendor and the York
Region Buyers Co-operative;
5)
AND THAT
the 2010 estimated costs be provided for within the following Operations Department Operating Budgets;
Account Name Account Number Budget
Gasoline 700-7524300 $
430,905.00
Diesel 700-7524302 $
506,504.00
Total $
937,409.00
6) AND THAT the Purchase Order be adjusted in the
future years up to the approved operating budget as approved through Council;
And that Staff be
authorized and directed to do all things necessary to give effect to this
resolution.
EXECUTIVE SUMMARY:
Not applicable
The purpose of this report is to award the contract for
Supply and Delivery of Gasoline, and Biodiesel Fuel.
York Region, on behalf of the York Region Public Buyers
Co-operative, issued a tender for the Supply and Delivery of Gasoline, Diesel
Fuel and Furnace Oil, which closed on December 22, 2009.
The other participating agencies were:
Regional Municipality of York
City of Vaughan
Town of Aurora Town
of Newmarket
Town of Richmond Hill York Catholic
District School
Board
York Region Police
The tender was issued in compliance with the Town’s Purchasing By-Law and was advertised publicly.
OPTIONS/ DISCUSSION:
The award of this tender is being recommended to the
lowest priced and acceptable bidder. Staff
reviewed the bid documents and is satisfied that all terms, conditions, bid
prices and specifications comply with the Town’s requirements.
BID INFORMATION
|
Advertised, place
and date
|
ETN
|
|
Bids closed on
|
December 22, 2009
|
|
Number picking up
bid documents
|
16
|
|
Number responding to
bid
|
6*
|
*Two bids were disqualified under
Section 3.8 of the region’s tender and proposal procedures.
One bidder submitted a Financial Proposal
containing qualifications to "Column C” of the Tender document. Since the Bidder deviated from the plans and
specification in the Tender documents, the bid submission was rejected.
The other disqualified bidder qualified the
bid submission throughout with a request for various amendments to the terms
and conditions specified in the tender documents. The tender document released to the market,
noted that any terms and conditions
provided by a proponent which are contrary to, or in addition to, the terms and
conditions specified in the tender will result in bid being rejected.
PRICING
SUMMARY
Unleaded Regular Gasoline, Biodiesel B5 and
B20 Delivered in Bulk to Storage Tanks
|
|
Price Per Litre (Inclusive of all taxes)
|
|
Product
|
Suncor
|
Ultramar
|
Shell
|
Lambert
|
FS
|
Canada Clean
|
|
Unleaded Regular Gasoline
|
$0.8938
|
$0.8986
|
$0.9069
|
$1.0014
|
$0.9331
|
No
Bid
|
|
B5 Biodiesel
|
$0.8270
|
No Bid
|
No
Bid
|
$0.9375
|
$0.8798
|
$0.846
|
|
B20 Biodiesel
|
$0.8044
|
No
Bid
|
No Bid
|
$0.9375
|
$0.8798
|
$0.8445
|
|
|
|
|
|
|
|
|
Pricing
for this tender was based on Petro-Canada’s Terminal Rack Pricing on Gasoline
and Distillates for Resellers and Wholesale Customers, effective November 24, 2009. Bidders were asked to use this index as a
starting point for this agreement along with a fixed mark-up price. The mark-up is fixed for the duration of the
contract however the unit price of the fuel will fluctuate from day to day. Price increases or decreases shall be based
on the daily terminal rack prices for Toronto
from one of the following:
Petro-Canada’s
Terminal Rack Pricing on Gasoline and Distillates for Resellers and Wholesale
Customers or
Shell Canada’s Daily Terminal Unbranded Rack Prices or
Mutually
agreed upon equivalent reference information as determined by the Region, the
participating Agencies of the YPC and the Successful Contractor.
FINANCIAL TEMPLATE:
The price per litre quoted through the tender process is based on current
fuel prices and are used for comparison purposes only, as the fuel prices will
fluctuate throughout the term of the contract. The 2010 budget for Gasoline was
based on an annual volume of 410,386 litres at an average price of $1.05 per
litre and the Diesel budget was based on an annual volume average of 440,438
litres at an average price of $1.15 per litre. Therefore the award is be based
on the 2010 budget dollar amounts and Staff will monitor the Town’s fuel usage
on a monthly basis and report quarterly to Council through the Year to Date
Review of Operations and Year end Projection reports.
ENVIRONMENTAL CONSIDERATIONS:
Included
within this award is the use of Biodiesel for various Town vehicles and for
delivery to all Town fuel sites.
Biodiesel is a renewable resource, and is less polluting than petroleum
diesel. Compared to petroleum diesel, biodiesel produces less soot (particulate
matter), carbon monoxide, unburned hydrocarbons, and sulfur dioxide.
RECOMMENDED
BY:
________________________ ________________________
Paul
Ingham, Peter Loukes
General Manager, Operations Director
Operations
________________________
Brenda
Librecz
Commissioner, Community & Fire Services
ATTACHMENTS: