Title
Gasoline and Diesel Fuel - Bid Award
History
The Village of Orland Park advertised for bids for the purchase of gasoline and diesel fuel in the SouthtownStar Newspaper on Monday, October 4, 2010. Bids were received from three bidders and opened on October 19, 2010. Bids were received from Al Warren Oil Company Inc. of Summit, Illinois, and Avalon Petroleum Company of Kankakee, Illinois. The third bid was received from Petroleum Traders Corporation of Fort Wayne, Indiana, which was determined to be non-responsive due to the absence of required bid documents.
The estimated gasoline and diesel fuel usage for Fiscal Year 2011 is approximately 167,000 gallons of gasoline and 78,000 gallons of diesel fuel.
Avalon has a markup price of $.01 per gallon of gasoline and diesel fuel. This price includes tank bottom sampling, water removal, lab analysis of the fuels, minor equipment repairs and 24/7 service staff. The $.01 markup is added to the cost per gallon of fuel ordered on the date of delivery. This cost is based upon the Chicago area index published in the OPIS.
Avalon Petroleum Company has supplied fuel to the Village for the past fifteen (15) years. They have maintained an excellent record for promptness in delivery, quality of fuel, billing and have met all our service needs.
Therefore, based upon Avalon Petroleum Company’s lower overall mean price and excellent service record, staff is recommending the 2011 fuel bid be awarded to Avalon Petroleum Company of Kankakee, Illinois, with an option for an additional five (5) years to be renewed at the sole discretion of the Village of Orland Park.
On December 6, 2010, this item was reviewed and approved by the Public Works and Engineering Committee and referred to the Board for approval.
INFORMATION PREVIOUSLY PROVIDED AS PART OF THE DECEMBER 6, 2010, PUBLIC WORKS AND ENGINEERING COMMITTEE PACKET.
Financial Impact
The 2011 Fiscal Year Budget includes $674,010 in Account 010-5006-431.62-10 to c...
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