FUEL TERMS AND CONDITIONS 2~1.docx

TERMS AND CONDITIONS

SPECIFICATIONS:

ALL FUELS SHALL MEET OR EXCEED CURRENT ASTM REQUIREMENTS FOR DIESEL FUEL. FUELS SHALL MEET ALL ILLINOIS POLLUTION CONTROL REGULATIONS. ALL BIODIESEL FUEL SHALL BE A BLEND OF SOYBEAN OIL AND DIESEL FUEL. ALL SOYBEAN OIL USED FOR BLENDING BIODIESEL FUEL SHALL MEET OR EXCEED THE ASTM D6751 SPECIFICATION. ALL DIESEL FUEL SHALL HAVE A MINIMUM CETANE RATING OF 43.

DELIVERY:

DELIVERIES SHALL BE MADE IN A METERED TRUCK, EXCEPT WHEN DELIVERY REQUIRES THE USE OF A TRANSPORT TANK TRUCK. DELIVERIES SHALL BE MADE ON AN AS NEEDED BASIS AND AS DIRECTED BY RESPONSIBLE AGENCY PERSONNEL. THE VENDOR SHALL BE RESPONSIBLE FOR CONTACTING THE APPLICABLE AGENCY DIRECTLY FOR DETAILED INSTRUCTIONS. THE FUEL SHALL BE DELIVERED INTO STORAGE TANKS BELONGING TO OR LEASED BY THE STATE. UNLESS OTHER ARRANGEMENTS ARE MADE, OR IN CASE OF EMERGENCY SITUATIONS, DELIVERIES SHALL BE MADE DURING THE REGULAR WORK WEEK BETWEEN THE HOURS OF 8:00 AM AND 3:00 PM.

THE STATE MAY AT SOME POINT DURING THE CONTRACT PERIOD REQUIRE DELIVERIES THAT ARE LESS THAN THE MINIMUM DELIVERIES SPECIFIED IN THIS BID SOLICITATION. THIS MAY OCCUR DURING OUR FISCAL YEAR END AND IN EMERGENCY SITUATIONS. SHORT LOAD CHARGES, IF ANY, MAY NOT EXCEED THE QUOTED BID DIFFERENTIAL PER GALLON FOR THE DIFFERENCE BETWEEN THE MINIMUM ORDER STATED IN THE CONTRACT AND THE GALLONS ACTUALLY DELIVERED.

BIDDER INSTRUCTIONS AND INFORMATION:

THE ESTIMATED AMOUNT OF DIESEL FUEL FOR EACH LOCATION IS REDUNDANTLY

REPRESENTED ON EACH LINE ITEM FOR #2 DIESEL AND BIODIESEL FUEL. IT IS

NOT APPROPRIATE TO CUMMULATIVELY ADD THE TWO ESTIMATES TOGETHER TO

DETERMINE AN ESTIMATED USAGE OF DIESEL FUEL.

IT IS THE INTENT OF THE STATE TO PRIMARILY USE BIODIESEL FUEL. HOWEVER, CIRCUMSTANCES MAY NECESSITATE THE USE OF REGULAR #2 DIESEL FUEL. AS SUCH, IT IS THE INTENT OF THE STATE TO ESTABLISH CONTRACTS FOR BOTH REGULAR DIESEL FUEL AND BIODIESEL FUEL AND ASK VENDORS TO BID ON BOTH.

THE STATE OF ILLINOIS, BUREAU OF STRATEGIC SOURCING WILL SUPPLY THE BASE PRICE OF ULTRA LOW SULFUR DIESEL FUEL AND BIODIESEL FUEL (GRADES #1 & #2) USING THE LOW POSTED RACK PRICES AS SHOWN IN THE DATA TRANSMISSION NETWORK (DTN) DTNERGY PUBLICATION.

BIDDERS ARE INSTRUCTED TO QUOTE A PLUS (+) OR MINUS (-) FACTOR (BID DIFFERENTIAL) IN THE UNIT PRICE COLUMN PROVIDED. THE FIGURE QUOTED AS THE BID DIFFERENTIAL SHALL TAKE INTO ACCOUNT ALL COSTS TO DELIVER THE FUEL. UNIT PRICES ARE TO BE CARRIED NO FURTHER THAN FOUR DIGITS

TO THE RIGHT OF THE DECIMAL POINT.

DO NOT ENTER YOUR TOTAL PRICE PER GALLON IN THE UNIT PRICE COLUMN.

ONLY ENTER YOUR CHARGES PER GALLON FOR DELIVERY (BID DIFFERENTIAL).

PRICE ADJUSTMENT:

THE PRICES WILL AUTOMATICALLY BE ADJUSTED ON A WEEKLY BASIS BY THE BUREAU OF STRATEGIC SOURCING AND SHALL REMAIN FIRM FOR THAT ENTIRE WEEK. IF THE DTNERGY FAST RACK PRICE IS NOT PUBLISHED ON MONDAY, TUESDAY'S EDITION WILL BE USED TO DETERMINE THE PRICES. THE BID DIFFERENTIAL QUOTED PLUS THE APPLICABLE TAXES WILL BE APPLIED TO THESE PRICES AND WILL BECOME THE PER GALLON PRICE FOR THAT WEEK, EFFECTIVE MONDAY THRU SUNDAY.

CURRENT PRICES FOR THE WEEK SHALL BE E-MAILED TO ALL SUCCESSFUL VENDORS AND STATE AGENCY USERS EACH MONDAY WITH THE EXCEPTION OF STATE HOLIDAYS, IN WHICH CASE THE PRICES WILL BE E-MAILED THE FOLLOWING DAY.

PRICE INFORMATION:

PRICE INFORMATION WILL BE TAKEN FROM THE DATA TRANSMISSION NETWORK, TNERGY FAST RACK PRICE SERVICE. RACK PRICES WILL BE FROM CHICAGO AREA TERMINALS (UNLESS MARKET PRICES ARE NOT AVAILABLE, IN WHICH CASE OTHER ADJACENT MARKET PRICES WILL BE QUOTED). PRICES PRESENTED WILL BE THE RACK LOW PRICE OF PRICES POSTED BY REFINERS/OPERATORS IN THE MARKET AREA BEFORE PROMPT PAYMENT. CURRENTLY THE STATE IS USING RACK PRICING FROM THE FOLLOWING MARKET AREAS:

IF NO POSTINGS ARE AVAILABLE FOR ULTRA LOW SULFUR BIODIESEL FUEL (CLEAR OR DYED) THE STATE WILL USE THE CHICAGO LOW POSTED PRICE FOR ULTRA LOW SULFUR DIESEL FUEL AND THE HARTFORD WOODRIVER LOW POSTED PRICE FOR SB99.9 AND COMPUTE THE PRICE BASED ON THE % BLEND OF DIESEL FUEL AND SOYBEAN OIL.

IN THE EVENT THAT A MARKET AREA DISCONTINUES PUBLISHING PRICE INFORMATION FOR A TYPE OF FUEL, THE STATE RESERVES THE RIGHT TO CHOOSE AT ITS DISCRETION, AN ALTERNATE MARKET AREA TO OBTAIN PRICING.

IN THE EVENT THAT DTNERGY DISCONTINUES PUBLISHING PRICE INFORMATION DURING THE CONTRACT PERIOD, THE STATE RESERVES THE RIGHT TO CHOOSE AT ITS DISCRETION AN ALTERNATE INDUSTRY PUBLICATION FROM WHICH POSTED MARKET PRICES WILL BE OBTAINED.

METHOD OF AWARD:

LINE ITEMS FOR DIESEL/BIODIESEL FUEL AND THE WINTER ADDITIVE WILL BE AWARDED BY GROUP FOR THE DELIVERY LOCATION TO THE LOW GROUP TOTAL MEETING THE ABOVE REFERENCED REQUIREMENTS.