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Home My WebLink About1995-07-24 95-346 ORDER--COUNCILACTION Date: July 24, 1995 Rem Nn 95-346 Item/Subject Annual Fuel contracts Responsible Department: Purchasing Commentary: Again year the bid request included a Tired price option for No. 2 Fuel Oil in which the price would remain Tum for the entre year. Irving OR Corp. responded with a fed price proposal that would guuatnce a fixed prim for the evtre year except for my changes in State or Federel environmental fees. (Currently $0.0097/gal which is included in the fixed price.) The final fixed prim for the year will be based on the MercannJe Exchange prices on July 25, 1995 for November 1995 through March 1996 contracts. The price is established by averaging the cost of eleven November-Much futures contracts that will be purchased by Irving, plus a fed amount of $0. 1070/gal- see Wing's terms and conditions attached. (Using the proposed formula the price would be $0.6067/gal. if we finalized the contract on July l8, 1995). Wing OR Corp. was the competitive bidder for all fuels (with the 1% early payment discount) except No. 6 Fuel Oil for which Sprague Energy submitted the compati6ve'add on' price of $0.0617 off the tank car price of $0.4162 fora net cost of $0.4145/gallon. The bid awards to Irving OR Corp. and Sprague Energy were reviewed by the Fwvme Committee on July 17, 1995 and referred to the City Council with a recommendation for approval. This bid request was consolidated with the City ofIlrewer. D Managers Constants: p BOK �L Cay Manager Associated LBoraation: Finance Conunince Approval, bid bebaletion and fixed price terms and conditions. Budget Approval: X6,10 %zaxAu+R� Finance Director Legal Approval: UWl Ci Solidtor 0 passage ❑ Frst Reading ❑ Referral 95-346 Assigned to Councilor Blanchette July 24, 1995 CITY OF BANGOR (TITLE.) 002rr Auth9rzmg AwmdofA WFuel Contract..._ ....... By the Cite CmeeE of of Cite of Angor: OSDBR®. TEAT awards are hereby authorized to thefollowing companies for the fuels as nosed below. Ag awards are made on the basis of the low bid received for the add-on less the 1% early payment discount for each product unless specifically =ad to the contrary. 1. No, 2 Fuel Oil: Accept fixed price option la. from Irving Oil Corp. at an estimated S0b070/gsl.e 2. No, 2 Fud OJ, General Assistance: Irving Oil corp. at $0.6485 3. No. I Diesel: Irving Oil noun. a $0.5544 4. No, 2 Diesel: Irving Oil corp. at $0.5544 5. Kerosene: Irving Oil corp. at $0.6611 6. Kerosene, General Assistance: Irving Oil corp. at S0.7354 7. Gasoline 87 Octane: Irving Oil corp. at S0.7o37 8. Gasoline 89 Octane: Irving Oil corp. at 50.7417 9. Gasoline 93 Octane: truing Oil corp. at $0.8130 10. No. 5 FWel oil: Irving Oil corp. at $0.4452 (no early payment discount) 11. No. 6 Fuel Oil: Sprague Energy$0.4145(no early payment discount) 'F fixed price will be Wablished by New York Mem=.,.:. Exchange futures prices on July 25, 1995 using November 1995 -March 19% Contracts, In City Council July 24, 1995 Passed City Cl rk C✓� 95-346 ORDER Title, Authorizing Award of Arcual Fuel Contract .................................... nn e. Asdp M to ...fP?( .. ... ......... Coweilman I CIYOf _ /y r 95-346 LlAWARD RECOMM NDATIO INE MA`H I . BID=d(S): Annual Ford Conover DEPARTMENf: Cita Wide BIIJJGET REFERENCE: K Regdar Appr mfttoes Budea Requlslnm Nn. Annual Commor _x Enterpriu Food lbm Budgebed Amount $Ammel contract 96 Tont Ammar of Other - Award Recomnividaeoo $hfidUue Awards Number oft ds Seat 7 Number of Bids Receival: 3 Daft Adw6sed28. 1995 Bid Opening Dab: IWv3.1995 COMIvl6NT5: - Award all the fuel comracts except No. 6 fu. d oil to Irving 00 Corporation the low bidder with the 1% 10 day payment discountas fonows. Award the commaa for No. 6 fuel o0 to Sprague Energy, the low bidder as noted below No.2 Fuel OR: Accept fixed price option la. from Jrvmg OR Corp. at.607*/gel No. 2 Fuel Oil, General Assistance: $0.6485 No. 1 Dias& $0.5544 No. 2 Diesel:$0.5544 Kemsene:$0.6611 - Keroam % General Amunance: $0.7354 - Gasoline 87 Omme: $0.7037 Gasoline 89 0mme:$0.7417 Cmaolme 93 Octane:$0 8130 No, 5 Fuel OR: $04452(no 10day pa dt No. 6 Fuel 00: $0.4145 (no 10 day payor isc ) Parch APPROVALS C COONCM FWAmCE COW Data: July 17 1995 *1be reed fixed price for the year wgl be baud on m C Exchange pnoe on day of formal aceeprence by City of Banger; pncealso subjeetto Stare m Federal givirmnmml ke mcreeeesldsseasadating the year. CITY OF BANGOR Page 1 of 2 BIO TABULATION Bid Opening: Jury 3,1885 Irving Oil Cory, Beni Maine Gagne Fuel Oil Bel sae, Maine ITT" Energy Bou. Ban r Maine Sprague Energy amport, Maine ITEM DECRIPFI, Unl[ Price Hem Trial WH Item Plod TdM Unit Price Item Total of Hem Rod Trial L No.2 Fud 0il:O sAvev a 05351 NOBia 05351 NO DO PfM On 0.M2B 0.0300 Trial AmwM =Uuii I 0.5651 onto Min a 1% dem 05524 WA Fii Price 01 la. Pe med after dl 0.5070 NO Bid lb, Skop d e menta 0. 10 NO Bid la 2 One Payment No, 2. Fuel ON, Gen. A's.: Gas Am, O6020 0.5351 NO BW No Bid 05351 NO BW P aOn 0. l2uu 01100 Trial Amoum 00551 0,6951 Prim with a 1% di 0.6405 wt Su lier Irvin Mobil 3. Oiesd No, 1:O M Avtrcae 05550 055`5) 0.5550 NO Bad sari On 00050 C.O= 0,0700 Trial Amount Owo0 05590 08250 Price Min a 1%alsc0ud 05544 NIA WA 4. Oiesel No. 2. O's Average 05550 0.5550 05550 NO Bid Add On Britain 00040 nromn TdetAmount 0moo 05580 05900 Pill pith a 1% discount 05544 WA WA Supplier mang Star MaMI Oismud for over 5000 gi. di 5. Nemsene:O mAvera Ob320 NO Bitl0,6Y10 No Bad Aad On 00950 01100 Trial Mount os6']e 0)328 Pricewithal%dhround - 0.6611 NIA e. Nermene Gen. Asald:O rsA 00120 NO Bitl 0.8225 Np BW Add On 01200 0.1700 Tdal Amount OMS 0.7928 Price wWral%aiacoud 0.7359 IY CylY OF BANGOR Page202 BIB TABULATION BN Opening: July 3,1985 ANNUAL FUEL CONTRACTS Irvin OII CON, Gagne FUN Maine EnelHy, Inc. 6gague Eneai :ea Ban r Mahe aide Maine Bel Maine Ba or Malne od Malne U Item Item Rem Rem ITEM OECRIPTIQY Rlce Total PtlTOW Once Price Tolal. re Ptice is TMY T. GaSo1ine87Odene: U SAW a 0]058 0106,13 No Bid NO Bid Aad On 0.0050 total AMWnt 07100 -OID86 Price wlVN a 1% cadmium 0]03] WA No BM 8. C,,,une BH CUane: O aAve 0.]442 0]442 NO Bid 0.0040 pdc On 0.0050 TMel Amount 0)492 0.]4252 pncewHXa t%tliaccum 0.7417 WA NO Bid H. Gasoline 930dane:0 aqua O.B162 O.Bt82 NO Bid OOMO AddO.OWO Toth Amount 0.892 66202 Prim hel%OlsccuM 0.6130 WA N T1atle Name Or Band Tfade IM Coastal 6u IwoRP C.O.M. PP,C. 0.5.176 10, No.5 Fue1011:UPS Aven a 0.54]6 OOBA9 Addon 0.1024 ,05W 0.460] TOial Amount 0.4452 0.I]62 11. No.6 FUN OII:O 'a Av¢ 04]62 0.061] Add On 0 WO] 04195 TMN Amount 04155 eleve Bu 1251 I tu¢ wk3) S' 2rVi[q Fix ed nice Tcrma a%frosts _ 95-346 ANY CHANGES IN STATE ORFBDHRAL ENVIRONMENTAL FEES ARE FOR BUYERS ACCOUNT. FIXED PRICES ARE SUBJECT TO CHANGE WITH CHANGES IN THE MERC CONTRACTS FOR THE MONTHS OF NOVEMBER, DECEMBER, JANUARY, FEBRUARY AND MARCH. BASE PRICE TO BE CALCULATED AS FOLLOWS: THE AVERAGE OF (1) NOVBmEB CONTRACT, (2) DECEMBER CONTRACTS, (3) JANUARY CONTRACTS, (4) FEBRUARY CONTRACTS AND (1) MARCH CONTRACT, PLUS A FUMD ADDER OF $0.1070/GALLON FOR FTEMS A& B WHJLB C WILL HAVE A FUMD ADDER OF $0.1020/GALLON.