Title
2017-2018 Central Management Services Bulk Road Salt Participation - Joint Purchase Requisition
History
For a number of years, the Village of Orland Park has participated in the State Joint Purchasing Program administered the Illinois Department of Central Management Services (CMS) in an effort to secure the best price for road salt. At this time of the year, the State of Illinois requires us to renew our option to participate in this program for next winter’s road salt (2017-2018) allocation. In doing so, we must complete and submit the Illinois Joint Purchasing Requisition indicating both the tonnage and amount anticipated to be budgeted for our 2017-2018 road salt requirements. Last year,m the Village purchased salt under our contract renewal option which did not require the submission of any salt ton amounts. Staff recommends that the Village participate in the CMS competitive bid process scheduled for May or June of 2017.
The salt allocation requests for the previous two seasons 2015-2016 and 2016-2017 were both 4,500 tons at $59.71 per ton for each of the program years. This salt purchase price expires on June 30th of 2017, with the new bid price becoming effective after the State bid process is complete. According to our current CMS salt contract, the Village will need to take receipt of the final 2016-2017 salt allocation of 3,100 tons (minimum) by June 20, 2017. Unless several snow events occur before the end of this snow season this salt will fill our salt barn to capacity and ensures that the Village is well stocked to handle the beginning of the 2017-2018 snow season. With this scenario, it is staff’s recommendation to reduce this year’s allocation request to 4,000 tons. Per the CMS agreement, the Village is required to purchase a minimum of 80% of this request (3,200 tons). The Village also has the ability to purchase up to 120% of this request (4,800 tons). Upon receipt of the updated pricing, staff will return to Committee and Board for approval of the vendor and funding required for our 2017-2018 salt purchase.
Yearly, the Illinois Department of Central Management Services sends their Joint Purchasing Requisition close to the required deadline submission date necessitating last minute actions in order to meet this deadline. The re-procurement solicitation/agreement is required to be executed and returned to the State of Illinois by April 1, 2017.
To ensure that the Village is able to participate in the CMS process, the agreement is being forwarded directly to Board and placed on the March 20, 2017 Board agenda for review and approval.
This item is going directly to the Board of Trustees.
Financial Impact
The FY17 Budget has sufficient funds in line item 010-5002-462600 for this request.
Recommended Action/Motion
I move to approve authorizing the Village Manager to execute the Illinois Joint Purchasing Requisition with the Illinois Department of Central Management Services for bulk road salt for the 2017-2018 winter season.