Title
Gasoline and Diesel Fuel - Bid Award
History
The contract for gasoline and diesel fuel with our current vendor shall expire by the end of FY2016. The estimated gasoline and diesel fuel usage for Fiscal Year 2017 is approximately 158,000 gallons of gasoline and 56,000 gallons of diesel fuel. In order to ensure the Village continues to receive competitive fuel pricing, staff issued an opportunity to bid and advertised in the Southtown Star Newspaper on Wednesday, August 31, 2016.
Bids were received from seven bidders and opened at Village Hall on September 15, 2016. Bids were received from Al Warren Oil Company Inc. of Summit, Illinois; Avalon Petroleum Company of Kankakee, Illinois; Blu Petroleum of Mundelein, Illinois; G. Cooper Oil Co. of Frankfort, Illinois; Gas Depot of Morton Grove, Illinois; Heritage FS of Wilmington, Illinois and Petroleum Traders Corporation of Fort Wayne, Indiana.
Petroleum Traders was the lowest bid with a markup price of $-.033 per gallon of gasoline and $.0025 per gallon of diesel fuel. This price includes tank bottom sampling, water removal, lab analysis of the fuels, 24/7 service staff and supply Mid-Grade Gasoline Meeting Top Tier Standards. The $-.033 markup is added to the cost per gallon of gas on the date of delivery. This cost is based upon the Chicago area index published in the OPIS. Petroleum Traders bid contained an exception which was subsequently mitigated with their acceptance of the standard Village indemnification clause.
Also included with the bid is the delivery of fuel to remote facilities including Utility Division lift station and pumping station generators and other Village facility generators.
Staff is recommending the 2017 fuel bid be awarded to Petroleum Traders Corporation of Fort Wayne, Indiana, with an option for an additional five (5) years to be renewed at the sole discretion of the Village of Orland Park.
On October 3, 2016, this item was reviewed and approved by the Public Works Commit...
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