| | | | | | | | Spotsylvania County
Board of Supervisors Agenda
Executive Summary |
| | | | | | | | Meeting Date:
| June 15, 2017 |
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| | | | | | | | Title:
| Approval of Contract Renewal to Revere Gas, Inc. for Delivered Propane Gas |
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| | | | | | | | Agenda Title:
| Approval of Contract Renewal to Revere Gas, Inc. for Delivered Propane Gas |
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| | | | | | | | Recommendation:
| Approve of Modification #3 with Revere Gas, Inc. for the purchase of delivered propane gas for heating various County locations. The contract modification has been approved as to form by the County Attorney’s Office. |
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| | | | | | | | Non-Staff Name and Title of Presenters:
| Staff is requesting approval of Contract Modification #3 for renewal with Revere Gas for the delivery of propane to various County locations and facilities. |
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| | | | | | | | Summary:
| An Invitation for Bid (IFB) was issued by the Spotsylvania County Procurement Division on April 9, 2014 to provide for delivery of propane to various County locations. The initial contract to Revere Gas was approved by the Board of Supervisors and awarded on June 25, 2014 for the purchase of delivered propane for County operations. This is the third renewal year of a four year renewable contract at the option of the County.
Revere Gas, Inc. will deliver propane to various locations and facilities. Differential price per gallon will be $0.1989 cents per gallon. This price is inclusive of all services. The differential price per gallon is the factor used to determine the cost on a monthly basis for invoicing. The Base Purchase Price per gallon is based on the BPN Apex N. C. Weekly Newsletter which would be the Terminal price for that period. The formula for our cost: (Base Purchase Price per gallon + Differential price per gallon = Cost to the County for the Period).
The County’s cost for propane from the most recent BPN Apex N.C. Weekly Newsletter dated May 30, 2107 was $0.74269 per gallon. The County’s final cost was the base ($0.74269 per gallon) plus the differential ($0.1989) for a total of $0.94159/gallon.
For comparison purposes, the most recent U.S. Energy Information Association data reports that the average residential price for propane in the U.S. is $2.41 per gallon. |
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| | | | | | | | Financial Impact:
| Funds are available from the various user departments. |
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| | | | | | | | Staff Contacts:
| Jesse Beavon, Director, Facilities Management Division; Brad Quann, Procurement Manager |
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| | | | | | | | Legal Counsel:
| Jessica DesNoyer, Assistant County Attorney |
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| | | | | | | | Additional Background/Other Considerations:
| Contract is signed by Contractor and County Attorney’s Office and is attached. General Services, Fire Rescue and Emergency Management, Parks and Recreation and Utilities are the primary departments that utilize this contract but this contract is available to all County departments. |
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| | | | | | | | Consequence of Denial/Inaction:
| County will not benefit from the reduced cost derived from the competitive bid and the purchase will not be in compliance with the Spotsylvania County Procurement Policy and Virginia Public Procurement Act. |
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| | | | | | | | Talking Points:
| Staff is requesting approval of Contract Modification #3 for renewal with Revere Gas for the delivery of propane to various County locations and facilities. |
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