4-26-0074 Specs.pdf

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City of Sioux Falls Bid Request No. 26-0074

Specifications for Rock Salt and Transportation

General

The City of Sioux Falls Street Division is requesting bids for rock salt and transportation. All salt is to be delivered to the Sioux Falls Street Division at 1000 East Chambers Street, Sioux Falls, SD, in hopper bottom or equivalent trucks to accommodate the facility. Side dumps are acceptable when there is enough room in the salt domes to deliver it directly into the building.

Conditions

Delivery must begin within fourteen (14) days after the receipt of a purchase order. All deliveries shall be accompanied by a weight ticket showing the gross and net weight of the load. The weight ticket must be signed by a Street Division employee in order for payment to be made.

The Street Division accepts deliveries as shown below:

Date Range Hours Days December 1–March 31 24 hours a day Monday–Friday April 1–November 30 7 a.m.–4 p.m. Monday–Friday

Contract

This contract will be awarded to one contractor who will deliver all ordered rock salt to the City of Sioux Falls Street Division. Over the past 5 years, the City has average 9,530 tons of salt each winter season with the capacity to store 18,000 tons. The City may purchase up to 16,000 tons of salt for the period of this contract from the awarded bidder. A letter from the salt mine must accompany your bid to guarantee a supply of 16,000 tons of salt for the City.

The City may order more salt from the contractor based on the City’s usage.

This contract is not exclusive, and the City reserves the right to add additional contractors at any time to ensure the City has a sufficient supply of salt to meet the needs of the City. At time of bid, the City is not planning to obtain a secondary supply as in years past.

The awarded contractor shall have the ability to deliver a minimum of 550 tons per week when the mine is not on allocations and 400 tons per week when the mine is on allocation.

Failure to deliver is cause for the cancellation of the contract.

The awarded contractor shall provide a weekly update of loads delivered and anticipated delivery dates for remaining loads to the following City staff:

Olivia Larson David Dekker Hailey Hanisch Street Logistics Specialist Purchasing Analyst Street Logistics Specialist olivia.larson@siouxfalls.gov david.dekker@siouxfallls.gov hailey.hanisch@siouxfalls.gov mailto:olivia.larson@siouxfalls.gov mailto:david.dekker@siouxfallls.gov mailto:hailey.hanisch@siouxfalls.gov

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High-Demand Purchases

During the months of November through April, each inclusive, the City of Sioux Falls may place orders, clearly designated by the City as “high-demand orders.” Delivery of a high-demand order within one week of placement of the order will carry up to a 20 percent premium above the contract price. The premium is to compensate supplier for the additional expenses supplier may incur and to offer an incentive for supplier to make every effort to make delivery within the shortened time frame. Supplier will notify the City within 24 hours of placement of a high-demand order stating an expected delivery time. If the expected delivery time is not within the required time frame, the City may go to alternate suppliers in an attempt to fill the balance of the order. If the supplier attempts to make the delivery but does not meet the requirements, the City will pay the “as bid” contract price. High-demand purchases are to be filled in addition to all minimum delivery quantities.

Storage

The City has a total of 18,000 tons of storage available for salt.

Material Specifications

Chemical Composition:

• Sodium Chloride (NaCL) content shall be no less than 95.0 percent by weight (dry basis).

• Material shall conform to the latest edition of ASTM D632 Type 1, Grade 1.

• Moisture content shall not exceed 3.0 percent by weight at time of delivery.

• Insoluble matter shall not exceed 2.0 percent by weight at time of delivery.

Gradation:

The rock salt shall comply with the following gradation requirements:

SIEVE SIZE PERCENT PASSING (BY WEIGHT)

1/2" (12.50 mm) 100 3/8" (9.50 mm) 95–100 No. 4 (4.75 mm) 20–90 No. 8 (2.36 mm) 10–60 No. 30 (0.600 mm) 0–15

Material shall be reasonably uniform and free from excessive fines or oversize particles.

Failure to comply with the gradation requirements may result in a penalty of 20 percent per ton and refusal of product. Refusal does not release awarded vendor of delivery requirements.

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Physical Requirements

• Material shall be free-flowing at time of delivery.

• Salt shall not be delivered in a frozen, caked, or lumpy condition that prevents mechanical spreading.

• Material shall be free from debris, organic matter, or other contaminants.

• The use of anti-caking agents is permitted, provided they do not adversely affect performance.

Basis of Acceptance

Rock salt furnished under this contract will be accepted on the basis of the producer certifying in writing. The salt will be in compliance with the specifications for the duration of the contract period.

• The letter of certification must be furnished upon notification of award within seven (7) days.

• The certification must be on the producer’s letterhead, signed by the producer’s representative.

• Visual inspection at time of delivery; the City may refuse individual loads that are not in compliance.

Basis of Payment

Random sampling of material will be done, and if material is found to be low salt content or out of gradation range, a charge of 20 percent of the per-ton price will be deducted from the current invoices.

• Sampling and testing will be done in accordance with the latest edition of ASTM D632.

• The final decision will be with the City of Sioux Falls Street Division.

Fuel Cost Adjustments—Compensation adjustments for the costs of motor fuels will be determined by the City in accordance with the following provisions:

For Salt Deliveries:

If method of delivery is by truck only, the City will base the price change on a monthly average to the nearest hundredth of a dollar ($0.01) using DOT Maintenance Materials rounding procedures of the “Monthly Retail On-Highway Diesel Prices” for “Ultra Low Sulfur” using Midwest prices as reported in the Energy Information Administration (EIA) of the U.S.

Department of Energy weekly publication or website:

https://www.eia.gov/petroleum/gasdiesel/.

https://www.eia.gov/petroleum/gasdiesel/

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If method of delivery is by rail, the City will base the price change on the BNSF fuel surcharge. This rate is derived from the “Monthly Retail On-Highway Diesel Prices” for “Ultra Low Sulfur” using U.S. prices as reported in the Energy Information Administration (EIA) of the U.S. Department of Energy weekly publication or website:

https://www.eia.gov/petroleum/gasdiesel/. The fuel surcharge is then calculated from the BNSF Rules Book 6100, Item 3375, Section B—Carload Fuel Surcharge.

The amended contract price will be reviewed monthly during the last week of the month by the City of Sioux Falls Purchasing Division; therefore, initiating a new contract price effective for deliveries made the following month. To further clarify, the monthly rate to be charged is based on the date the City physically receives the salt from the contractor. The contract price will automatically be amended each month as follows:

Percentage Adjustment Calculation

The current monthly average fuel price will be compared to the base price of $4.50/gallon.

The attached spreadsheet will be used to calculate price changes each month.

Example:

For truckload shipments: The monthly average fuel price, rounded to the nearest hundredth of a dollar, is $4.59/gallon and the published price is $4.50/gallon. The change in fuel cost is an increase of $0.09 ($4.59 minus $4.50 equals $0.09).

The gallons of fuel consumed per load will factor into the equation of how to change the cost per ton. To calculate the total gallons of fuel consumed per load, the approximate miles from origination to Sioux Falls, SD, is divided by the average mile per gallon of

6.5 (500 miles/6.5 = 76.9 gallons).

The average tonnage hauled per truckload is set at 27 tons per load.

The Contract Base Price per load is $346.50 ($4.50x77) and the updated price per load is $353.43 ($4.59x77) creating an increase of $6.93 per load.

The change in cost per ton is an increase of $0.26 ($6.93/27).

The same calculations would hold true if the monthly average fuel price would decrease.

For rail shipments: The fuel surcharge is based off the BNSF Rules Book 6100, Item 3375, Section B—Carload Fuel Surcharge. This surcharge is billed per railcar per rail mile. For estimating purposes, the haul distance is set at 656 miles and railcar capacity of 100 tons per car.

Using a representative fuel surcharge of $0.50 per rail mile, the calculation is as follows:

656 miles x $0.50 = $328 per railcar

$328/100 tons = $3.28 per ton

This adjustment will occur automatically based off the BNSF Fuel Surcharge.

https://www.eia.gov/petroleum/gasdiesel/

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Single Bid Response

If only one bid is received in response to the invitation for bids, a detailed cost proposal may be requested of the single offeror. A cost/price analysis and evaluation and/or audit may be performed of the cost proposal in order to determine if the price is fair and reasonable.

For any questions regarding this solicitation, please contact:

David Dekker Business Analyst City of Sioux Falls 605-367-8833 David.Dekker@SiouxFalls.Gov

Dustin Hansen Street Operations Manager City of Sioux Falls 605-367-8257 Dustin.Hansen@SiouxFalls.Gov mailto:David.Dekker@SiouxFalls.Gov mailto:Dustin.Hansen@SiouxFalls.Gov