Item Coversheet

Spotsylvania County
Board of Supervisors Agenda
Executive Summary




Meeting Date:
May 14, 2019
Title:
Approval of Award of Contracts to Three (3) Vendors for Delivered Fuels

Type:
Action
Agenda Title:
Approval of Award of Contracts to Three (3) Vendors for Delivered Fuels
Recommendation:
Approve the award of contracts to Ferrellgas, L.P. for propane gas; James River Solutions, LLC for unleaded 87 octane gasoline, diesel highway low sulfur, diesel off road; and Quarles Petroleum, Inc. for #2 heating oil.
Summary:

A joint venture Invitation for Bid (IFB) for both County and Schools was issued by the Spotsylvania County Procurement Division to solicit bids from qualified vendors for the purchase of propane gas, unleaded 87 octane gasoline, diesel highway lot sulfur, diesel off road and #2 heating oil.  The bids were opened on February 27, 2019.  Five (5) bids were received for this procurement as follows:

 

Vendor

Unleaded Gas 87 Octane

Diesel, Highway, Low Sulfur

Diesel Off Road

#2 Heating Oil

Propane Gas

Ferrellgas

 

No Bid

 

No Bid

 

No Bid

 

No Bid

 

$0.2840

James River

 

$0.2100

 

$.0950

 

$0.0950

 

$0.0800

 

No Bid

Quarles Petroleum

 

$.65

 

$.2950

 

$.2950

 

$.0775

 

$.3700

Anderson Oil

 

No Bid

 

No Bid

 

No Bid

 

$0.099

 

No Bid

AmeriGas Propane

 

No Bid

 

No Bid

 

No Bid

 

No Bid

 

$.339

 

Ferrellgas, L.P. will deliver propane gas to various locations and facilities.  Differential price per gallon will be $0.2840 cents per gallon.  This price is inclusive of all services.

 

James River Solutions, LLC will deliver unleaded gas 87 octane, diesel highway, low sulfur and diesel off road to various locations and facilities.  Differential price per gallon will be $0.2100 cents per gallon for unleaded gas 87 octane and $0.0950 cents per gallon for diesel highway, low sulfur and diesel off road.  The prices are inclusive of all services.

 

Quarles Petroleum, Inc. will deliver #2 heating oil to various locations and facilities. Differential price per gallon will be $0.0775 cents per gallon.  This price is inclusive of all services.

 

The differential price per gallon for the propane is the multiplier 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 Report which would be the Terminal price for that period.   The formula for our cost:     (Base Purchase Price per gallon  x  Differential price per gallon  =  Cost to the County for that Period).  

 

The differential price per gallon for the unleaded gas, diesel fuels and #2 heating oil is the multiplier used to determine the cost on a monthly basis for invoicing.   The Base Purchase Price per gallon is based on the OPIS PAD 1 Report which would be the Terminal price for that period.   The formula for our cost:     (Base Purchase Price per gallon  x  Differential price per gallon  =  Cost to the County for that Period).  

 

In researching the methods of pricing used in soliciting these goods and services, we found that other localities and state agencies awarded with the differential price per gallon as the determination of the awarded factor. 

Financial Impact:
Adequate funding is budgeted in the various user departments.
Staff Contacts:
Ben Loveday, Director Utilities/Public Works/Capital Projects; Brad Quann, Procurement Manager
Legal Counsel:
Jessica DesNoyer, Assistant County Attorney
Additional Background/Other Considerations:

The Contracts have been reviewed and approved by the County Attorney’s Office.

 

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 and Schools.

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.
ATTACHMENTS:
File NameDescriptionType
Ferrellgas_LP_Contract.pdfFerrellgas LP contractContract
James_River_Solutions_Contract.pdfJames River Solutions ContractContract
Quarles_Petroleum_Contract.pdfQuarles Petroleum contractContract