N.O.I.T.A._Re.S-10700-00012203_Supply_of_Bulk_Propane_dojappvd.pdf

This is a Notice of Intent to Award from the Oregon Department of Administrative Services, State Procurement Services, for Invitation to Bid (ITB) No. S-10700-00012203 regarding the Supply of Bulk Propane Fuel, Tanks, Related Goods and Services. The procurement covers propane supply across 14 districts spanning 36 Oregon counties, with an estimated total usage of approximately 769,000 gallons over the contract period. The solicitation utilized a reverse auction procurement process with a pre-bid conference held on July 22, 2025, an extended bid closing date of August 11, 2025, and a reverse auction event on August 20, 2025. The contract includes an initial term of four years with options for three additional two-year renewals, not to exceed a total of ten years. Seven vendors have been selected for price agreements: CoEnergy Propane LLC, Ed Staub & Sons Petroleum, Ferrellgas LP, Morrow County Grain Growers, Premier Propane Inc., Propane Northwest, and Suburban Propane.

The procurement includes a Vendor Collected Administrative Fee (VCAF) of two cents per gallon, submitted quarterly, with pricing adjustments permitted no more than once annually and not before October 1, 2026, subject to approval based on Producer Price Index and Consumer Price Index documentation. The solicitation targeted disadvantaged business participation through requirements for Certified Disadvantaged Business Outreach Plans, with a 10% price reduction applied for goods fabricated or services performed entirely in Oregon. For price agreements exceeding $500,000 with 50 or more full-time workers, bidders were required to provide Pay Equity Compliance Certificates. Historical spending suggests a significant program with approximately $7 million expended over the previous four years. The Notice of Intent to Award was issued on September 12, 2025, with interested parties directed to contact State Procurement Analyst John Starrs for additional information.