8724 Addendum 2.pdf

PDF 350 KB Posted

Attached to
Metro Fuel Services
Solicitation number
8724-0-2016-BP
Issued by
Wisconsin

About this file

This is an addendum to a request for bids issued by the City of Madison Purchasing Services (Finance Department) for fuel supply services to Metro Services. The City of Madison Metro is procuring No. 2 Ultra Low Sulfur Diesel (ULSD) fuel under a fixed-price contract for 1,344,000 gallons (32 futures) with a contract term from January 1, 2019 through December 31, 2019. The addendum addresses 22 questions submitted by prospective bidders and clarifies key contract requirements and specifications. Bidders are required to provide four qualified suppliers, and subcontractors are permitted if disclosed in the bid submission. The bulk fuel location contains five total storage tanks: one for generator fuel and four 15,000-gallon tanks designated for bus fuel (all #2 ULSD). Deliveries must be full loads only, and monitoring equipment at the site utilizes Gilbarco systems. The City reserves the right to request fuel samples per delivery in clear bottles for compliance verification.

Pricing for the contract is fixed once the City of Madison identifies a winning vendor and the vendor confirms the locked price, with bidders required to submit a total all-in bid price (including NYMEX settle prices as of the bid submission date) rather than differentials only. The gallons are assumed to be distributed evenly across the 12-month period. Payment is standard by check, though ACH/EFT is available as an option; however, Net 10 or Net 15 payment terms are not available. The City plans to lock in the entire gallon amount at once. Performance and payment bonds are required only from the selected winning vendor at the time of award, not at bid submission. A local preference initiative applies to this procurement. Bidders unable to attend a public opening will be notified of results via email, with the low bidder typically notified within 24 hours and results distributed within 72 hours. Blended biodiesel/diesel products are not acceptable for this solicitation.

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File Type Posted
8724 Addendum 1.pdf PDF
8724-0-2018-BP Metro Fuel.pdf PDF

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Text version

Rev. 07/28/2016-8724 Addendum 2.docx

Finance Department David P. Schmiedicke, Finance Director City-County Building, Room 406 Purchasing Services 210 Martin Luther King, Jr. Boulevard Madison, Wisconsin 53703 Phone: (608) 266-4521 Fax: (608) 266-5948 finance@cityofmadison.com www.cityofmadison.com/finance/purchasing

DATE: July 5, 2018

RE: ADDENDUM #2

8724-0-2018-BP

Fuel for Metro

Notice to All Bidders:

Please note the following responses to the questions received:

1) Are the bid tabulations available from the award of the current contract?

A) Yes, please see the bottom of this addendum.

2) On Form D under the Additives section it asks for a winter additive for protection to ‐20 F and I just want to let the powers that be know and understand that there is no additive on the market that can blend with a #2 ULSD and reach that. The best an additive can do is 0 F and in order to reach the ‐20 #1 ULSD needs to be blended also.

Typically you would have the contracted amount for the #2 price and need to incorporate the additional cost of #1 ULSD at the time of its use.

A) Per the managers at Metro, there is an additive that is used each winter with #2 ULSD to offer this protection. It is simply called a winter blend added at the terminal. The protection does not need to reach -20F.

In regards to the second part, yes, we would expect the price at the time of use or delivery.

3) Could you please tell me if the City of Madison Metro is planning on locking in the entire gallon amount at once or are you planning to lock in month by month?

A) We are planning on locking the entire gallon amount at once.

4) Is the 1,344,000 ULSD gallons split equally over the 12 month period? If not can the gallons be delivered by month for the past 12 months for this contract?

A) You can assume it is split evenly.

5) At what point is the price fixed? Is it done when we submit the bid? Do we provide an adder to the Nynex as our submittal?

A) The price is fixed as soon as the City of Madison is able to determine a winning vendor, and the vendor confirms the locked price. Yes, you need to provide any mark-ups/adders to your bid, on line A of Form D.

6) Are subcontractors allowed?

July 5, 2018

7/5/2018-8724 Addendum 2.docx

A) Yes, however this must be stated on your bid.

7) Are we required to provide 4 suppliers?

A) If you do not, your bid may not be eligible to win this award.

8) Will you provide the following for your bulk location?

a) As stated in the Bid – “At least 3 tanks hold #2 ULSD” – what is the other tank product? Can fuel orders be combined for transport?

A) We have five (5) total tanks. One (1) is generator fuel, the other four (4) tanks are 15,000 tanks. They are all for busses, #2 ULSD.

b) Any special fittings, pump, meter, etc.

A) No.

c) Will deliveries be full loads only?

A) Yes.

9) What monitoring equipment is available at each site?

A) Gilbarco.

10) What is the standard method of payment?

A) The standard method is a check, but ACH is an option.

11) Is ACH/EFT an option?

A) Yes

12) Are payment terms Net 10 or Net 15 an option?

A) No

13) Is there a diversity initiative associated with this bid?

A) No

14) Is the performance/payment bond quote due in the submission of the bid package?

A) If you are the selected vendor, it will be due at that time.

15) Is it correct to interpret section 2.22 such that a performance/payment bond quote would only be required if a contractor is named as a successful bidder?

A) Correct.

16) Will the City of Madison accept bids for blended biodiesel/diesel products?

A) Not for this RFB.

17) In section 2.24 Compliance with Specifications you are requesting a fuel sample per delivery in a clear bottle and I am unsure how this would be accomplished. These are 4” lines unloading several gallons of fuel so it’s not like you can just turn on a water spout to fill a bottle. And transport truck aren’t going to remove a man hole cover either to dip a tank. This seems unreasonable.

A) The City reserves to right to ask for a sample at any time.

18) If a bidder is unable to attend the public opening in person, how will they be notified of the results?

A) There is no public opening. Results will be sent out through email.

19) In reference to Addendum #1 Question #2, since the low bidder may not be notified until up to 3 days later, can we submit just our differential to the NYMEX?

A) No, please submit a total bid, not the differential. The low bidder is typically notified within 24 hours.

Results are sent out typically within 72 hours.

20) Are bidders required to submit the all in price (including 7/9/2018 NYMEX settles)?

A) Yes.

21) Will the low bidder be permitted to use 7/11 or 7/12’s settles if they are notified on 7/12?

A) No.

22) Is there a local preference for this bid?

A) Yes.

Bidders must acknowledge receipt of this addendum accordingly on RFP Form B, Receipt Forms and Submittal Checklist.

At this point, no further questions will be answered besides anything procedural.

Brian Pittelli City of Madison Purchasing Services

PH: (608) 267-4969

bpittelli@cityofmadison.com

8724 Addendum 2

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