KDFWR - Bulk Propane Services

The Kentucky Department of Fish and Wildlife Resources (KDFWR) is issuing a Request for Bid (RFB) for bulk propane delivery and off-loading services to its headquarters in Frankfort, Kentucky. The procurement seeks a single vendor to establish a Master Agreement for bi-weekly propane deliveries to six 500-gallon tanks (five owned by KDFWR and one currently leased from the incumbent vendor) from October 1 through May 1 annually, with provisions for emergency deliveries within one hour of contact during off-schedule times. Vendor pricing shall be based on the Mont Belvieu Spot Price for propane (Not-Tet) as of the last business day of the previous month, plus a Fixed Fee Adder (FFA) per gallon that vendors must submit with their bids; the FFA remains fixed for the contract term and includes all delivery and off-loading costs. The initial contract period is one year from the date of award, with optional renewals for four additional one-year periods plus a potential 90-day extension. Evaluation will be conducted on a "best value" basis using measurable criteria: Price (FFA Markup) at 75 points and Delivery time at 25 points, for a total of 100 points. Written questions are due by January 29, 2025, with KDFWR responses due February 3, 2025, and the bid closing date is February 11, 2025, at 12:00 PM Eastern Time; all bids must be submitted electronically through the Commonwealth's eProcurement system. The vendor must maintain Commercial General Liability Insurance of $1,000,000 per occurrence and $2,000,000 aggregate with KDFWR named as additional insured, and all propane must meet commercial specifications per Gas Processors Association standards.

Kentucky resident bidders receive reciprocal preference, and qualified bidders including Kentucky Correctional Industries receive additional preference points ranging from 15 to 20 percent depending on classification. Nonprofit corporations or qualified nonprofit agencies for individuals with severe disabilities may qualify as preferred bidders subject to compliance verification. The incumbent vendor currently leases one of the six tanks to KDFWR, though the RFB does not explicitly restrict non-incumbent bidders from competing. All proposed pricing must remain valid for 60 days after the bid due date, and price increases are not permitted during the first 12 months; thereafter, increases may be requested with industry-wide justification and require 30 days' written notice. The vendor will be responsible for all equipment, labor, tank maintenance, tank transfers, and safety compliance at no cost to the Commonwealth. While the RFB does not specify an explicit budget range or award value, the contract covers bi-weekly deliveries across approximately seven months annually to six 500-gallon tanks, and pricing will fluctuate based on the Mont Belvieu spot price with the vendor's fixed markup providing the primary cost control mechanism.