Title
Gasoline and Diesel Fuel - Bid Award
History
The contract for gasoline and diesel fuel with the current vendor expires at the end of FY2021. The estimated gasoline and diesel fuel usage for Fiscal Year 2022 is approximately 165,000 gallons of gasoline, 56,000 gallons of diesel fuel, and 1,500 gallons of generator fuel. In order to ensure the Village continues to receive competitive fuel pricing, staff issued Request for Proposal (RFP) 21-023 via BidNet Direct on September 20, 2021.
Firms were asked to provide prices for delivery of gasoline and diesel fuel to the fuel island at the Public Works Facility, as well as delivery of fuel to remote facilities including Utility Division lift station and pumping station generators and other Village facility generators. Firms also were to be evaluated for past performance with the Village or other communities.
Ten (10) vendors either download all or partial bid packages. Bids were received and opened from three (3) bidders at Village Hall on October 7, 2021. The three (3) bid packages, the bid tab, and the evaluation of bid submittals are attached for reference. Bids were received from Al Warren Oil Company Inc. of Summit, Illinois; Avalon Petroleum Company of Kankakee, Illinois; and Petroleum Traders Corporation of Fort Wayne, Indiana.
Due to variability of price for fuel, the vendors priced the fuel based on Chicago area average index published in the Oil Price Information Service (OPIS). Each vendor’s markup includes federal tax, overhead costs, delivery costs, tank bottom sampling, water removal lab analysis of the fuel, and 24/7 service staff. This markup is added to the cost of fuel in the delivery. Petroleum Traders was the lowest bid for gasoline. Avalon Petroleum was lowest for diesel and mix grade diesel, and Al Warren Oil Company Inc. was lowest for generator fuel (see attached Bid Evaluation spreadsheet). Along with proposed price, the Village evaluated past performance of similar deliveries and qu...
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