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 ...
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