19826_specs.pdf
PDF 106 KB Posted
- Attached to
- Tankwagon/Transport Propane
- Solicitation number
- 26IFB19826
- Issued by
- South Dakota
About this file
This specifications document outlines pricing instructions for an LP gas-propane contract with the State of South Dakota. The contract covers propane fuel delivery to multiple state locations, with fuel sourced from three primary terminals: Rapid City (RC), Wolsey (WS), and Yankton (YK). Bidders must indicate which terminal will serve as the source for each location bid. The contract specifies that all orders must be shipped F.O.B. Destination within two business days from the order date, with transportation and handling charges covered by the vendor. Vehicles must be equipped with ticket printers to document all sales, with copies provided to customers at delivery. Vendors are required to submit invoices to state agencies at least monthly.
The pricing structure employs a two-component model consisting of a daily-adjusted base price and a fixed vendor margin bid. The base price is established using Data Transmission Network Corporation (DTN) "unbranded" average propane prices published in the FastRacks report for each South Dakota terminal, with adjustments made daily upon receipt of DTN data. Bidders submit only their margin above the base price, expressed as decimals (for example, 0.0575 for 5.75 cents per gallon), with negative margins presented in parentheses. Orders placed before 1:00 PM CST are billed at that day's pricing, while those placed after 1:00 PM CST that are not delivered the same day are billed at the next day's pricing. The contract includes a market protection clause allowing state agencies to purchase from non-contract vendors if open market prices are $0.025 or more per gallon below the vendor's price, after first offering the vendor an opportunity to match the lower price. All propane must conform to Gas Processors Association Standard 2140.
View the file
Other files
| File | Type | Posted |
|---|---|---|
| SDVendorManual_20240822.pdf | ||
| 19826_submittal.xlsx | XLSX spreadsheet |
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Text version
INSTRUCTIONS FOR LP GAS-PROPANE
PRICE INFORMATION:
Prices for propane fuel are to be computed using the “price adjustments” method set forth herein:
The total price of the product delivered to destination shall consist of two components. These components are:
A) Base Price (DTN Published Prices "Unbranded Averages" for Propane) B) Bid Price (Vendor Margin which includes all costs other than those in Base Price above).
The margin price MUST include all costs, e.g., perc. fees, freight, transportation, etc.
associated with providing and the delivery of LP Gas.
BASE PRICE:
The base price shall be the "unbranded" average price for propane as reported by an industry daily publication entitled “Data Transmission Network Corporation" (DTN). The "unbranded" average price, for each terminal in South Dakota, as published in the FastRacks report for each fuel, will be the base price.
The State of South Dakota reserves the right to use Contract Averages for any sites where unbranded data is insufficient or out of fuel situations occur.
Bidders should use the abbreviations shown below to indicate, in the designated column on the bid pages, which terminal will be used as the source of fuel for each location for which a bid is provided. This will be the determining factor from which the DTN price will be based. DTN is published each day by www.dtnergy.net.
RC: Rapid City WS: Wolsey YK: Yankton
Listing for Rapid City will be a statewide average of the daily propane listings from the other sites.
BID PRICE
The bid price shall be the margin the bidder quotes above the base price.
Bidders shall indicate only the margin bid price on the pricing schedules provided at the end of this packet. Do not indicate the total price per gallon.
All bid prices are to be expressed as a decimal. For example:
If the bid price is five and three quarters cents per gallon, express as 0.0575. If the bid price is three quarters of a cent per gallon, express as 0.0075. Negative Margins must be bid as a minus number in parentheses. Example (-.0001)
PRICE ADJUSTMENT
Base Price – Base price shall be adjusted daily. The adjustments for the day will be made immediately upon receipt of “DTN” and available on the Internet for the State agencies using the contract resulting from this solicitation.
In the event that “DTN” is not published for a period of time or State of South Dakota offices are closed, the "unbranded" average price indicated in the last published edition shall apply until the next published issue is received. The using agencies shall access the Internet for the daily price changes.
Should “DTN” cease publication, change method of publishing prices, or change product designations as currently listed, an agreement may be made by the parties on a new price determination method during the contract period or the contract shall be terminated.
The price will be adjusted in dollars, up or down in an amount equal to the "unbranded" average price change for the product as published by the Data Transmission Network Corporation for each day.
Vendors will be authorized to invoice State accounts the adjusted price for orders received. Orders made before 1:00PM CST are to be billed at that day’s pricing. Orders made after 1:00PM CST, that are not delivered that same day, are to be billed at the next day’s pricing.
If a product ordered is not available, the agency is authorized to buy from a non-contract vendor or wait to be notified by the contractor when the fuel is available to be re-ordered.
If the open market price in the local area covered by a specific contract is $.025 or more cents per gallon under the vendor’s price, a state agency may purchase the less expensive product after first giving the vendor an opportunity to meet the lower price.
Unbranded LP Gas is acceptable but must conform to the current revision of the Gas Processors Association (GPA) Standard 2140.
All orders shall be shipped F.O.B. Destination with all transportation and handling charges paid by the vendor and shall be made within 2 business days from the date of order.
Vehicle-mounted metering systems shall be equipped with a ticket printer. The ticket printer shall be used for all sales; a copy of the ticket issued by the device shall be left with the customer at the time of delivery or as otherwise specified by the customer.
VENDORS WILL SUBMIT INVOICES TO THE STATE AGENCIES AT LEAST ONCE A MONTH.
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