Propane Specifications 6-04-2020.pdf

REQUEST FOR QUOTATION

ARFQ DEN2500000001

Propane Fuel for Denmar

SPECIFICATIONS

1. PURPOSE AND SCOPE: The West Virginia Division of Administrative Services is soliciting bids on the behalf of the WV Division of Corrections and Rehabilitation to establish an open-end contract for the purchase and delivery of Liquid Propane Gas

(LPG) for consumption at the Denmar Correctonal Center and Jail located at 4319

Denmar Road, Hillsboro, WV 24954

2. DEFINITIONS: The terms listed below shall have the meanings assigned to them below. Additional definitions can be found in section 2 of the General Terms and

Conditions.

2.1 “Contract Item” or “Contract Items” means the list of items identified in

Section 3.1 below and on the Pricing Pages.

2.2 “Pricing Pages” means the schedule of prices, estimated order quantity, and totals contained in wvOASIS or attached hereto as Exhibit A, and used to evaluate the Solicitation responses.

2.3 “Solicitation” means the official notice of an opportunity to supply the State with goods or services that is published by the WV Division of Administrative

Services.

2.4 “LPG” means liquid propane gas.

2.5 “Highest Quality Propane” is considered propane regardless of the grade. There are three grades of propane processed or refined in the United States. Each of the three grades, HD-5, HD-10, and Commerical Propane differ in propane consistency.

2.6 HD-5 grade Propane is the highest grade propane available to consumers. It is propane suitable and recommended for engine fuel use. HD-5 specifications consist of:

Minimum of 90% propane

Maximum of 5% propylene

Other gases constitute the remainder (iso-butane, butane, methane, etc.)

3. GENERAL REQUIREMENTS:

3.1 Contract Items and Mandatory Requirements: Vendor shall provide Agency with the Contract Items listed below on an open-end ad continuing basis. Contract

Items must meet, or exceed, the mandatory requirements as shown below.

3.1.1 Vendor must be a licensed Refiner, Distributor or Dealer.

3.1.2 Vendor shall submit references on working with vaporizers, and bulk storage tanks.

3.1.3 Vendor shall supply only HD-5 grade propane.

3.1.3.1 Vendor shall provide proof of the quality of product prior to contract award and upon request by the Agency at any time during the life of the Contract. Such proof shall be propane grade as specified by the Refinery and in these specifications as

HD-5.

3.1.4 Vendor must place the facility on an “automatic fill” program. The object of the automatic fill program is to eliminate the need for

Agency personnel to monitor fuel levels and place orders, while at the same time not running the risk of being without fuel.

3.1.5 If propane is needed outside of automatic fill, orders placed by the

Agency personnel, must be delivered within 48 hours of the time of order.

3.1.6 Agency orders shall be placed by telephone or facsimile. It is the intent of the Agency that “manual” orders of this type be the exception, and shall only be used in other than normal circumstances.

3.1.7 Vendor shall replenish the facility’s fuel tank(s) automatically without an order being placed by the Agency personnel. Automatic refill schedule will be established once the agency and vendor have determined accurate delivery timeframes.

3.1.8 In the event any adulterated or substandard fuel is delivered, all costs associated with emptying and cleaning the Agency tank(s) shall be the responsibility of the Vendor.

Adulterated, or substandard, fuel means fuel containing less than 90% propane or more than the maximum of 5% propylene.

3.1.9 The Facility Owns Five tanks and leases an additional two. There is a total of seven tanks at the facility: six tanks have a capacity of 1,000 gallons and one tank has a capacity of 500 gallons. The

Facility will only accept deliveries on weekends and evenings in emergency situations.

4. CONTRACT AWARD:

4.1 Contract Award: The Contract is intended to provide the Agency with a purchase price on all Contract Items. The Contract shall be awarded to the Vendor that provides the Contract Items meeting the required specifications for the lowest overall total cost as shown on the Pricing Pages.

4.2 Pricing Pages: Vendor should complete the Pricing Pages by providing the

Terminal Location, the OPIS Cost of Propane (May 24, 2024 Greensburg, PA

Wholesale), the Fixed Mark Up price, and the Extended Price based upon the estimated usage. Vendor should complete the Pricing Pages in their entirety as failure to do so may result in Vendor’s bids being disqualified.

The Pricing Pages contain a list of the Contract Items and estimated purchase volume. The estimated purchase volume for each item represents the approximate volume of anticipated purchases only. No future use of the Contract or any individual item is guaranteed or implied.

Vendor should electronically enter the information into the Pricing Pages through wvOASIS, if available, or as an electronic document. In most cases, the Vendor can request an electronic copy of the Pricing Pages for bid purposes by sending an email request to the following address: Wassef.maazaoui@wv.gov

4.3 Consumer Price Index (CPI):

Contract shall be for a base period of one (1) year, with four (4) one (1) year renewal options. Automatic renewals are prohibited. Vendor and Agency must mutually agree in writing to the renewal of said contract. There shall be no contract price increases within the first twelve (12) months from the date of the award of the contract. After the expiration of the initial twelve (12) contract month period. The Vendor may, no less than thirty (30) days prior to the contract anniversary date, request a price adjustment in writing. Said price adjustment will be evaluated based on the prior year Consumer Price

Index (CPI) compared to the current year CPI, or 3%, whichever is less. All price adjustments must be approved by the Agency prior to implementation, at Agency’s sole mailto:Wassef.maazaoui@wv.gov discretion. Approval of price adjustments is not guaranteed. Agency will issue a Change

Order to said contract for any approved price adjustment(s).

5. ORDERING AND PAYMENT:

5.1 Ordering: Vendor shall accept orders through wvOASIS, regular mail, facsimile, e-mail, or any other written form of communication. Vendor may, but is not required to, accept on-line orders through a secure internet ordering portal/website. If Vendor has the ability to accept on-line orders, it should include in its response a brief description of how Agencies may utilize the on-line ordering system. Vendor shall ensure that its on-line ordering system is properly secured prior to processing Agency orders on-line.

5.2 Payment: Vendor shall accept payment in accordance with the payment procedures of the State of West Virginia.

5.2.1 Payment shall be made on the terminal that the fuel is pulled from. If the Vendor bid multiple terminal sources, the Vendor’s invoice will be based on the lowest price. Vendors shall not pull fuel from terminals other than those quoted on the Vendor’s submitted Exhibit A

Pricing Page, without the express approval of the Director of the WV

Division of Administrative Services or his/her designee.

5.2.2 Payment will be based on the Weekly OPIS on the Day of the

Order. The OPIS Weekly Average is posted every Friday morning.

5.3 Taxes: Agency shall be exempt from the Federal Excise Tax, and the State

Consumer Sales Tax. Agency will not be exempt from State Excise Tax.

Agency currently pays a variable rate component of the motor fuel excise tax on motor fuel sold or used of $0.1170 per gallon. Agency will also currently pay $0.2050 per gallon for the flat rate component of the West Virginia Excise

Tax. In Addition, Agency will be responsible for the Federal L.U.S.T. Fee which is assessed at $0.001 cents per gallon. No other fuel taxes or fees shall be charged to the Agency.

5.4 Invoicing: Vendors are encouraged to utilize a paperless invoice process, submitting the following information via email to the ordering location:

REQUEST FOR QUOTATION

ARFQ 0608 DEN2500000001

Propane Fuel – Anthony Correctional Center

5.4.1 Delivery Ticket Number(s) for the fuel delivery, date and time of delivery and order location.

5.4.2 Fuel type, total quantities, unit price, applicable taxes, total price and the terminal source of supply for all deliveries.

5.4.3 Vendors shall process invoices within four (4) calendar days of the delivery date.

6. DELIVERY AND RETURN:

6.1 Delivery Time: Vendor shall deliver standard orders in accordance with the automatic fill program. Vendor shall deliver emergency orders within 48 hours after orders are received. Vendor shall ship all orders in accordance with the above schedule and shall not hold orders until a minimum delivery quantity is met.

6.2 Late Delivery: The Agency placing the order under this Contract must be notified in writing if orders will be delayed for any reason. Any delay in delivery that could cause harm to an Agency will be grounds for cancellation of the delayed order, and/or obtaining the items ordered from a third party.

Any Agency seeking to obtain items from a third party under this provision must first obtain approval of the Division of Administrative Services.

6.3 Delivery Payment/Risk of Loss: Standard order delivery shall be F.O.B.

destination to the Agency’s location. Vendor shall include the cost of standard order delivery charges in its bid pricing/discount and is not permitted to charge the Agency separately for such delivery. The Agency will pay delivery charges on all emergency orders provided that Vendor invoices those delivery costs as a separate charge with the original freight bill attached to the invoice.

6.4 Return of Unacceptable Items: If the Agency deems the Contract Items to be unacceptable, the Contract Items shall be returned to Vendor at Vendor’s expense and with no restocking charge. Vendor shall either make arrangements for the return within five (5) days of being notified that items are unacceptable, or permit the Agency to arrange for the return and reimburse Agency for delivery expenses.

If the original packaging cannot be utilized for the return, Vendor will supply the

Agency with appropriate return packaging upon request. All returns of unacceptable items shall be F.O.B. the Agency’s location. The returned product shall either be replaced, or the Agency shall receive a full credit or refund for the purchase price, at the

Agency’s discretion.

6.5 Return Due to Agency Error: Items ordered in error by the Agency will be returned for credit within 30 days of receipt, F.O.B. Vendor’s location. Vendor shall not charge a restocking fee if returned products are in a resalable condition.

Items shall be deemed to be in a resalable condition if they are unused and in the original packaging. Any restocking fee for items not in a resalable condition shall be the lower of the Vendor’s customary restocking fee or 5% of the total invoiced value of the returned items.

7. VENDOR DEFAULT:

7.1 The following shall be considered a vendor default under this Contract.

7.1.1 Failure to provide Contract Items in accordance with the requirements contained herein.

7.1.2 Failure to comply with other specifications and requirements contained herein.

7.1.3 Failure to comply with any laws, rules, and ordinances applicable to the Contract Services provided under this Contract.

7.1.4 Failure to remedy deficient performance upon request.

7.2 The following remedies shall be available to Agency upon default.

7.2.1 Immediate cancellation of the Contract.

7.2.2 Immediate cancellation of one or more release orders issued under this

Contract.

ARFQ DCR24*124

7.2.3 Any other remedies available in law or equity.

8. MISCELLANEOUS:

8.1 No Substitutions: Vendor shall supply only Contract Items submitted in response to tl1e Solicitation unless a contract modification is approved in accordance witll tlle provisions contained in this Contract.

8.2 Vendor Supply: Vendor must cany sufficient inventory of the Contract Items being offered to fulfill its obligations under tllis Contract. By signing its bid, Vendor certifies tllat it can supply tlle Contract Items contained in its bid response.

8.3 Reports: Vendor shall provide qua1terly repmts and annual summaries to tlle Agency showing the Agency's items purchased, quantities of items purchased, and total dollar value of the items purchased. Vendor shall also provide reports, upon request, showing the items purchased during the term of tl1is Contract, the

I quantity ptu·chased for each of those items, and tlle total value of purchases for each of those items. Failure to supply such reports may be grounds for cancellation of tl1is Contract.

8.4 Contract Manager: During its performance of this Contract, Vendor must designate and maintain a primary contract manager responsible for overseeing Vendor's responsibilities under tllis Contract. The Contract manager must be available during n01mal business hours to address any customer service or oilier issues related to tllis Contract. Vendor should list its Contract manager and his or her contact info1mation below.

Contract Manager:

Telephone Number:

Fax Number:

Email Address: