RFP 210000002160 - Liquid Propane Gas (Questions and Answers) AD1.pdf
PDF 110 KB Posted
- Attached to
- Delivery of Liquid Propane Gas - Statewide
- Solicitation number
- RFP 171 210000002160 3
- Issued by
- Michigan
About this file
This is a Questions and Answers document for Liquefied Petroleum Gas (LPG) Request for Proposal No. 210000002160 issued by a state government entity. The RFP solicits bids for LPG supply services with a response deadline of June 24, 2021. The contract term is five years, effective September 1, 2021, through September 30, 2026, with remaining option years available after the initial term expires. Bidders are required to identify their delivery terminal location in Column 10 of Exhibit B, though pricing will not be indexed to that location. The document indicates that separate pricing is required for state-owned and vendor-owned propane tanks.
The pricing structure establishes that the Base Price will be updated daily based on the Mt. Belvieu TET (Texas Energy Terminal) Daily Average published price, regardless of the bidder's delivery terminal location. Bidders must provide a Mark-Up Price per gallon in Columns 6A and 6B of Exhibit B, which will be added to the Base Price to determine the total price paid by the state. The Mark-Up Price is required to be firm for the entire initial five-year contract term, with adjustments to the Mark-Up Price only permitted after the initial term concludes for any remaining option years. All ancillary costs, including tank set charges and labor fees for tank exchanges, must be incorporated into the Mark-Up Price per gallon and cannot be billed separately.
View the file
Other files
| File | Type | Posted |
|---|---|---|
| Exhibit A - Propane Delivery Locations and Historical Usage (RFP 210000002160).xlsx | XLSX spreadsheet | |
| AD 1 Instructions - Liquid Propane Gas AD1.pdf | ||
| Exhibit B - Propane Pricing Bid Sheet (RFP 210000002160) AD1.xlsx | XLSX spreadsheet | |
| RFP 210000002160 - Liquid Propane Gas AD1.docx | DOCX document | |
| Exhibit D - MDOC Vendor Handbook (RFP 210000002160).docx | DOCX document | |
| Exhibit E - PREA Standards (RFP 210000002160).docx | DOCX document | |
| RFP 210000002160 - Liquid Propane Gas.docx | DOCX document | |
| Exhibit B - Propane Pricing Bid Sheet (RFP 210000002160).xlsx | XLSX spreadsheet |
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Text version
Liquefied Petroleum Gas (LPG) Request for Proposal No. 210000002160 Questions and Answers – Due 6/24/2021
Q # Document and Section
Page # Bidder Question State Answer
1 Exhibit B / Column 5
(main RFP document)
Can you please clarify what exactly the “average weekly rack price published for the Mount Belvieu – Texas terminal” means? Is this the average of the daily OPIS Mont Belvieu LDH Propane TET propane price, or some other published pricing source?
“average weekly rack price published for the Mount Belvieu – Texas terminal” this been revised to indicate, “Mt. Belvieu TET Daily Average” published for the Mount Belvieu – Texas terminal.
The Base Price will be updated daily and will be the published Mt.
Belvieu TET daily average.
2 Exhibit B / Column 6
(main RFP document)
The “Mark-up Price” described here indicates that it “shall be firm for the initial term of the contract”, which is effective 9/1/2021 – 9/30/2026. However, Section 4.2 (page 31) indicates that adjustments can be presented and negotiated if actual Contractor costs change. Can you please clarify if the ability to adjust pricing with changing costs applies to the “Mark-up Price” in the event that costs change within the initial contract term of 5 years?
The State requires the Mark-up Price to be firm for the initial five-year term of the contract which is expected to be 9/1/2021 – 9/30/2026.
Section 4.2 will only apply after the initial five-year term ends.
After the based term ends, the State will consider changes to the Mark-up Price that would be effective for the remaining option years.
3 Please clarify what terminal we are to use from OPIS. Can we choose our terminal or do we have to use Mont Bel? Also will the price change daily? Are we to use the OPIS Rack Report?
Vendors must identify the location of the Terminal where they will be delivering from in Column 10 of Exhibit B. The Base Price will not be tied to an index from this location, but will be based on the Mt. Belvieu TET Daily Average, regardless of the location specified in Column 10 of Exhibit B.
Any Mark-Up Price per Gallon provided by the bidder (provided in column 6 of Exhibit B) will be added to the (“Base Price” Terminal (Mount Belvieu – Texas)) to arrive at the total price paid by the State. The Base Price will be updated daily, based on the Mt.
Belvieu TET Daily Average.
Liquefied Petroleum Gas (LPG) Request for Proposal No. 210000002160 Questions and Answers – Due 6/24/2021
4 Will the SOM be looking for a price difference in delivered cost for a state owned propane tank vs. a vendor owned tank?
Yes. Please see updated RFP Attachments, that have been modified to request separate pricing for state-owned and vendor-owned tanks:
Exhibit B - Propane Pricing Bid Sheet (RFP 210000002160) AD1 RFP 210000002160 - Liquid Propane Gas AD1
5 Are their provisions in the RFP for tank set charges, labor fees when swapping out a propane tank or is that cost to be included in the price per gallon?
No. All costs shall be included in the Mark-Up Price per Gallon (Columns 6A and 6B of Exhibit B).
File details come from the government source that posted it. Updated .