Advanced Commodities Questions re DOC bid 3039 11082018.docx
DOCX document 20 KB Posted
- Attached to
- REBID-FLOUR- WHITE AND WHEAT - ICI
- Solicitation number
- 19-426DOC-CENTR-B-3039
- Issued by
- Fulton County, Illinois
About this file
This document is a set of questions and responses regarding an Illinois Department of Central Management Services (CMS) bid solicitation (Bid #3039) for the procurement of wheat and white flour. The bid opening is scheduled for November 16, 2018 at 11:00 AM. The awarded vendor will be required to provide pricing based on the closing market price of wheat on the Minneapolis Grain Exchange and the Kansas City Board of Trade on the trading day prior to the order. No additional costs such as basis or shipping are to be added to the invoice. The state awards the flour contract based on a multiplier that represents the vendor's anticipated costs, including overhead, shipping, and profit.
The responses indicate that the Department of Central Management Services (CMS) and the awarded vendor will mutually agree on a market report to be used for determining the closing price of wheat. The Minneapolis Grain Exchange closing market price will be used for wheat flour pricing, and the Kansas City Board of Trade market price will be used for white flour pricing. The vendor's questions regarding the specific reporting source and price point to be used against the multiplier were not fully addressed in the provided responses.
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Other files
| File | Type | Posted |
|---|---|---|
| Attachment A - Paper Bids Only~1.PDF | ||
| B3039 IFB Flour Rebid 110918~2.doc | DOC document | |
| Notice of Award - Signed B3039~1.pdf |
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Text version
Questions and Responses for Flour B-3039:
19-426DOC-CENTR-B-3039
1. Questions for B-3039 flour rebid due on 11/16/2018.
Response: Bid opening will be November 16, 2018 at 11:00 AM.
2. Can you please clarify specifically whose report or what report (maybe a specific website) the State of IL is using to determine the “posted nearby futures price at the time of sale” for ICI flour purchases and pricing?
Response: DOC/ICI and the awarded vendor shall mutually agree on a market report which reports the closing price of wheat on the trading day prior to order.
3. Then, in addition to whose/what report is used, can you further identify what nearby price are you specifically using?
Response: The Minneapolis Grain Exchange closing market price on the last trading day prior to the day of the order will be used for wheat flour pricing. The Kansas City Board of Trade market price on the last trading day prior to the day of the order will be used for white flour pricing.
4. The previous contract from IL Bid #227529, the “under protest” cancelled award of B-1115, and now the B-3039 rebid solicitation all read as follows, Current Market Trading Price is defined as: “The posted nearby futures price at the time of each sale”.
For White Flour, the price will be calculated for each sale by using a price that is at or below the current market trading price for wheat on the Kansas City board of trade.
For Wheat Flour, the price will be calculated for each sale by using a price that is at or below the current market trading price for wheat on the Minneapolis grain exchange.
Again, the KCBOT (reported by CME Group) and MGE both publish daily up to the minute current nearby futures board prices (changes every 10 minutes), daily open, daily high, daily low, and daily settlement nearby futures prices. In addition, the USDA Market News also does a “matching’ daily grain review that summarizes the day’s grain trading, including nearby futures pricing settlement for KCBOT and MGE as well.
In the past, and now as we look the new bid, Advanced Commodities has always thought the bid multiplier would be used against the nearby settlement price, reported by CME Group and reported by MGE, on the date of sale.
Response: DOC/ICI and the awarded vendor shall mutually agree on a market report which reports the closing price of wheat on the trading day prior to order. The Minneapolis Grain Exchange closing market price on the last trading day prior to the day of the order will be used for wheat flour pricing. The Kansas City Board of Trade market price on the last trading day prior to the day of the order will be used for white flour pricing.
5. On 10/04/18, Advanced Commodities requested, and then subsequently received, under the Freedom of Information Act, several flour order memorandums from ICI showing price calculations for flour purchases.
It is not clear what source (reporting agency) produced the applicable board price used for contract pricing? The reports used are simply spread sheets titled, “Futures Close Report”. There is a spread sheet for KCBOT and one for MGE. The dated nearby market numbers used do not match the historical nearby settlement numbers reported by the agencies.
Response: The information relayed in this statement is not relevant to published bid B-3039.
6. Advanced Commodities needs an accurate description and explanation what number is being used against the “multiplier” because our FOIA request do not match what we see as the current value of wheat at the time of these sale.
Remember it is stated that…
-NO ADDITIONAL COSTS, SUCH AS BASIS OR SHIPPING ARE TO BE ADDED TO THE INVOICE
-The State awards its flour contract based on a multiplier, and it makes it very clear that the multiplier represents the awarded vendor’s anticipated cost, to include but not limited to overhead, shipping costs and profits for milling wheat to flour and selling it and delivering it to the State of Illinois.
What is not specifically clear, and the reason for these questions, is who’s or what reporting is used, and what post is being used against this multiplier.
Response: DOC/ICI and the awarded vendor shall mutually agree on a market report which reports the closing price of wheat on the trading day prior to order. The Minneapolis Grain Exchange closing market price on the last trading day prior to the day of the order be used for wheat flour pricing. The Kansas City Board of Trade market price on the last trading day prior to the day of the order will be used for white flour pricing.
File details come from the government source that posted it. Updated .