Title/Name/Summary
2019-2020 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 by 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 (2019-2020) 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 2019-2020 road salt requirements. Staff recommends that the village participate in the CMS competitive bid process scheduled for May or June of 2019.
The salt allocation requests for the previous two seasons were; 4,000 tons in 2017-2018, and 4,200 tons in 2018-2019 with $43.41 per ton bid for each of the program years. This salt purchase price expires on June 30th, 2019 with the new bid price becoming effective after the State bid process is complete. This winter season has demanded above average salt use. The current CMS salt contract provides the village the ability to purchase up to 5,040 tons (120%). Unless several snow events occur before the end of this snow season, a final shipment expected prior to the June deadline will sufficiently stock our salt barn and ensure that the village is adequately supplied to handle the beginning of the 2019-2020 snow season. With this scenario, it is staff’s recommendation to increase this year’s allocation request to 4,800 tons. Per the CMS agreement, the village is required to purchase a minimum of 80% of this request (3,840 tons) but additionally has the ability to purchase up to 120% of this request (5,760 tons). Upon receipt of the updated pricing, staff will return to Committee and Board for approval of the vendor and funding required for our 2019-2020 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, 2019. As such, this agenda item is being considered by the Public Works Committee and the Village Board of Trustees on the same night.
Financial Impact
The FY19 Budget has only a small portion of the funds in line item 010-5002-462600 for this request. Additional funding will be included as part of the FY2020 budget process.
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 2019-2020 winter season.