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Home My WebLink About1996-07-22 96-331 ORDER_11NCW ACTION Date: July 22, 1996 Iter No. 96-331 Item/Subject: Annual Fuel Contracts ResponsibleDepartment: Purchasing Cornmernany: Again this year the City requested a fixed price option for No.2 Fuel OR in which the price would remain firm for the entire year. Irving Oil Cusp. responded with a fixed price proposal that would guaramcm a fined price for the entire year except for any changes in State offederal eavina mental fees. (Currently $0.001/gal which is included in the fief price). The fired fixed price for the year will be based on the Mercantile exchange prices on July 23, 1996 her November 1996 through April 1997 contracts. The price is established by averaging the cost ofthirem (13) November-April futures centracts that will be purchased by living, plus a fixed mount of 50.0869/gal-sce Irving's terms and conditions anached. (Using the proposed formula the price was $0.6653 on July 10, 1996). Irving Oil Corp. was the compefifive bidder for all fuels except No. 6 Fuel O0 for which Sprague Energy submitted the competitive "add on' price ($0.0631) off the tank car price of $0.5357 for a net one of $0.4n6/gallon- The bid awards to Irving 00 Corp. and Sprague Energy were reviewed by the Finance committee on July 15, 1996 and referred to the City Council with a recommendation fm approval. This bid request was wnsobdated with the City of Brewer. Depart H Manager's Constants: City Manager Associated Information: Finance Corundum Approval, bid tabulation Budget Approval: Various Foods and Accounts FinanceDirector Legal Approval: City So0atar Introduced For Passage ❑ Fust Reading ❑ Recinal Pagel of t 96-331 Asdgned to Coulor Soucy July 22, 1996 CITY OF BANGOR (TITLE) MrDBT, Autnartr ag AwuA ofAvpuel Fuel Contrec[,..,,.,,., .. _. By the Oity Ceu l of Ne CUy of Banner. ORDERED, TAT Awards are bunny authorized to the following companies for the fuels 9 noted below. Ail awards are made on the basis ofthe low responsive bid received far the add-on for each product. 1. No.2 Fuel OR: Accept fixed price option Is from Irving Oil Corp.9.6653*/gel. 2. No.2 Fud Oil, Central Angelenos: Irving OR Corp. at$0.6618 No. 1 Diesel: Irving Oil Corp. at $0.5864 No. 2 Diesel: Irving OR Corp. at 30.5864 ICtroeone: Irving OR Corp. 9 $0.8081 Kerosene, General Asaismace: Irving OR Corp. at $0,9681 GasoWe 87 Octane: Irving OR Corp. at $0.6181 Gasoline 89 Octane: Irving OR Corp. at $0.7081 Gasoline 93 Octane: Irving Oil Corp. at $0.7713 No. 5 Fuel Oil: Irving OR Corp. 9 $0.5348 No. 6 fuel Oil: Sprague Energy 9$0.4726 *Fumfuod price will be established by New York Mercantile Exchange futures Prices on July 23. 1996 using Novemb91996-April 1997 Connam IN CITY COONCIL July 22, 1996 Passed Y CLERR 96-331 ORDER Title, AutlMrizing Award of Annual Fuel Contract ...................................... ................ 4.... 4................ Aa aG. rte/ .>wpunito ............... Councilman 96-331 gj 11Yry ::I: 0ofv IN IN 8IDMM(S): DEPART NT: Requisition No.: Anmal Contract Account Number: Multiple Accounts Budgeted Amount: Amoral Contract 97 Available Balance: $ Total Amount of Award Recommended: $Multiple Awards Vendor Becommeaded: Irvine Oil & Suraaue Enerpy Number of Bids Sent: 7 Number of Bids Received: 4 Date Advertised: June 26 1996 Bid Opening Date: July 10 1996 Pest Experience with Vendor: X Excellent_ Good_ Fair Poor No prior expce erien If no experience, references checked or other method of vendor relisbifity established OTHER COMMENTS: Award all the fuel contracts except No. 6 fuel oil to Irving OR Corpomtion�the low responsive bidder. Award the contract for No. 6 fuel oil to Sprague P oily, the low bidder as acted below: (the bids Bom Cregne Oil ofBelgmde w mn responsive as they were qualified io exclude any delivery under 5,000 Felons). Prices from one year ago are noted in paieatheses. No 2 Fuel OR: Accept axed price option la from Irving Oil Corp. at,M53*/gal_ ($0.6075) No. 2 Fuel OR, General Assistance $0.6618 ($0.6485) No. 1 Diesel: $0.5864 ($0.5544) No. 2 Diesel: $0.5864 ($0.5544) Kerosene: $0.8081 (M6611) Kerosene, General Assistmce: $0.8681($0.7354) Gasoline 87 Octane: $0.6781 ($0,7037) Gasoline 89 Orient: $0.7081 ($0.7417) Gasoline 93 Octane: $0.T/13 ($0,8130) No, 5 Fuel OR: $0.5348 ($0.4452) No. 6 Fuel OR: $0.4738 (Sprague Energy) ($0.4145) I APPROVALS CITY COUNCB, FxNANCE CAAObA911PE: KberAr�� Date: July 15. 1996 *The pace for the year will be based oa h C Exchange price on day of found acceptance by City of Bangor; pace also subject 0 Sate. or Federal mvhmmen dfee iacreazesldecrwses during the year. CITY OF BANGOR Page 1 of 2 BID TABULATION Bid Opening: July 10, 1995 ANNUAL FUEL CONTRACTS Irving Oil Corp. Bangor, Maine Sprague Energy Seers ortMaine Webber Energy Ben or, Maine Gagne Fuel Oil" Bel rade Maine ITEM DECRIPTION Unit Price Item Total Unit Price Item Total Unit Price Item Total Unit Price Item Total 1. No. 2, Fuel Oil 0,54181 No Bid 0.5418 0.5418 Add On 0.02971 1 0.0627 0.0200 Total Amount 0.5715 0.6045 0.5618 Fixed Primo tion la. Payment after deliver 0.6653 No Bid NO Bid No Bid 1b. Six budget payments 0.6653 No Bid No Bid No Bid ic. One payment 0.6528 No Bid No Bid 0. 40 2. No. 2, Fuel Oil General Assistance 0.5418 No Bid 0.5418 No Bid Add On 0.1200 0.0902 Total Amount 0.6618 No Bid 0.6320 Supplier Irvin Webber Ener 3. Diesel No. 1 0.5814 No Bid 0.58141 0.5814 Add On 0.0050 0.071611 0.0050 Total Amount 0.5864 1 1 0.55301 0.5864 4. Diesel No. 2 0.5814 No Bid 0.58141 1 0.5814 Add On 0.0050 0.07161 0.0050 Total Amount 0.5864 0.5864 supplier Irvin ing Discount for over 5000 I. deliverynone ne0.0050 5. Kerosene 0.7481 0.7No Bid Add On 0.0600 FBid 0.1 !a.iE Total Amount 0.8081 6. Kerosene, General Assistance 0.7481 No Bid Add On 0.1200 0.1 Total Amount 0.8681 CITY OF BANGOR Page 2 of 2 BID TABULATION Bid Opening: July 10, 1995 ANNIIAI. FIIFI_ CONTRACTS "Gagne qualified their ti y bidding on the deliveries of 5,000 gallons or more of No. 2 fuel oil and they will not deliver gasoline or diesel fuel to Brewer locations. Irving Oil Corp. Bangor, Maine Sprague Energy Searsport, Maine Webber Energy Bangor, Maine Gagne Fuel Oil' Bel rade, Maine ITEM DECRIPTION Una Price Item Total Unit Item Price Total Unit Price Item Total Unit Price Item Total 7. Gasoline 87 Octane 0.6731 No Bid 0.6731 0.6731 Add On 0.0050 0.0400I 0.0070 Total Amount 0.6781 0.71311 0.6801 8. Gasoline 69 Octane 0.7031 No Bid 0.7031 1 0.7031 Add On 0.0050 0.0400 0.0070 Total Amount 0.7081 0.7431 0.7101 9. Gasoline 93 Octane 0.7663 No Bid 0.7663 0.7663 Add On 0.0050 0.0400 0.0070 Total Amount - 0.7713 0.8063 0.7733 Trade Name or Brand Irving Citno Coastal supplier Irving Oil 0 saris P.P.C.O.M. Inc. Early Payment Discount 1 % 1 None 10. No. 5 Fuel Oil U.63961 No Bid No Bid Add On 0.1046 JSE2ne Total Amount 0.5348 11. No.6 Fuel Oil 0.5357 No Bid No Bid Add On 0.0619 Total Amount 0.4738 Supplier Irvin Oil "Gagne qualified their ti y bidding on the deliveries of 5,000 gallons or more of No. 2 fuel oil and they will not deliver gasoline or diesel fuel to Brewer locations. 96-331 TEumwe(no 942 rMl 543oWI W (Do 942.5x" IRVING IRVING OIL CORPORATION wuE 700 o. eool aANr'CR'""NE 04403-0401 RECEIVED JUL , _ 1698 July 15, 1996 RECE)vED JUL 161"s56 David Pelligreno Purchasing Agent City of Bangor Harlow Street Burger, Maine 04401 RE: 42 Fuel Fixed Pricing Dear Mr. Pelligreno: Pmsuantto our conversation, Irving Oil's fixed price for #2 fact will be the average of 13 #2 fuel contracts plus $0.0868 per gallon. The contracts are an follows: November 2 December 2 January, 3 February, 2 March 2 April 2 If you should have any questions or requGe Gusher information, please do not hesitate to contact me. BGvhu Sincerely, IRVING OIL CORPORATION "CuxPPov, Bill Chapman Commercial -Industrial Sales