Notice of Intent of Award for RFP #210000002160 - LPG

The Michigan Department of Technology, Management, & Budget issued Request for Proposal #210000002160 for the provision of Liquefied Petroleum Gas (LPG) to state facilities. The RFP was posted on SIGMA VSS on June 16, 2021, with a submission deadline of July 16, 2021. The procurement seeks qualified vendors capable of delivering LPG to multiple state regions over a five-year contract term with up to three one-year renewal options. Mandatory minimum requirements include demonstration of federal, state, and local business and transport compliance with proper licensing and permits; maintenance of adequate LPG inventory with documented terminal locations, storage capacity, and delivery fleet information; and adherence to National Fire Protection Association standards #54 and #58. Technical evaluation was conducted across five weighted criteria: General Requirements (30 points), Service Requirements (20 points), Other Requirements (10 points), Delivery Capabilities (25 points), and Background and Experience (15 points), with an 80-point minimum threshold required for price evaluation consideration. Three proposals were received and evaluated: Crystal Flash, Inc. (Grand Rapids, MI) scored 84 points with a five-year delivery cost estimate of $1,395,507.33; Ferrellgas, LP (Overland Park, KS) scored 90 points with a five-year delivery cost estimate of $1,761,524.60; and AmeriGas Propane, L.P. (King of Prussia, PA) scored 94 points with a five-year delivery cost estimate of $1,883,901.95.

The procurement was evaluated on a best value determination combining technical merit scores and pricing rather than lowest price alone. Following negotiations, Ferrellgas, LP reduced their bid by approximately 5.29% and received the award recommendation pending State Administrative Board approval for a total contract value of $5,000,000.00. The notice of intent to award was posted on August 18, 2021, with an August 25, 2021 deadline, allowing unsuccessful bidders an opportunity to protest the award decision. No specific set-aside designations for disadvantaged enterprises or minority-owned businesses were identified in the available documentation. The award was not based on incumbent vendor status, as this procurement appears to represent a competitive rebid process. The selected vendor, Ferrellgas, LP, must demonstrate capability to service all state regions with adequate inventory management and compliance with all applicable fire protection and safety standards.