HomeMy WebLinkAboutTender - T06-009 - Supply & Deliver Gasoline and Diesel FuelDate: June 27a', 2006
To: Mayor Carl Zehr & Members of Council
Subject: T06-009 -Supply and Deliver Gasoline & Diesel Fuel
RECOMMENDATION
That tender T06-009, Supply and Deliver Gasoline & Diesel Fuel, be awarded to Transit
Petroleum Inc., Kitchener, Ontario at their tendered price of $1,409,826.07 per year, including all
applicable taxes, for a five (5) year term, with an option to extend the agreement for one (1)
additional five (5) year period, subject to mutual agreement.
REPORT
Tenders were requested from four (4) potential bidders, advertised publicly in The Record, on
the City of Kitchener website and the Ontario Public Buyers Electronic Tendering Information
System. By the closing date of Thursday Apri120~', 2006, one (1) tender had been received.
Transit Petroleum Inc. is a local fuel vendor and commits to providing the following value added
services for the term of contract:
1) No cost card lock systems installed at Bramm, Chandler, and Elmsdale including Internet
access for managing pass codes and permissions;
2) Daily equipment reviews and repairs at no cost, including six (6) additional backup sites;
3) 24/7 emergency priority mobilization to the City's Emergency Operations Centres;
4) Sanitary pumping station fuel maintenance and transfer service ensuring fuel integrity is
maintained at each site in the event of a power failure;
5) Vehicle and equipment re-fuelling at fire and other emergency scenes;
6) Fuel relocation service and on request fuel storage to hedge against refinery supply issues;
7) Fire Fighter training, inventory management and electronic invoicing and payment.
Weekly pricing is established based on a mark-up from Bloomburg OBG Rack price on Friday
of each week and is adjusted up or down from the base to establish pricing for the following
week and takes effect on Monday at 12:00 am.
The tenders were reviewed by D. Miller, Director of Fleet, and S. Rudak, Buyer, who concur with the
above recommendation.
FINANCIAL IMPLICATIONS
Funding will be provided from index 920314 - 1519 & 1520 -Mechanic Repairs -Fuel
Index 920314 - 2006 Budget $1,328,224.00
Expenditures to date $ 514,500.06
BALANCE $ 813,723.94
Tender T06-009 $1,409,826.07
Less G.S.T. Rebate ($ 92,280.71)
Balance $1,317,545.36
Portion attributable to 2006 $ 790,527.22
BALANCE $ 23,196.72
~` Balance will be retained in the index to cover increases in usage or pricing.
Larry Gordon
Director of Purchasing