Propane Fueling System & Propane Fuel Bids

Hillman Community Schools (HCS) in Hillman, Michigan seeks sealed bids for a comprehensive propane fueling system and propane fuel supply contract. The procurement requires installation of a turnkey fueling station featuring a minimum 1,000-gallon above-ground propane tank, pump, and dispenser to support six propane-powered school buses at the school's facility located at 26042 M-32. Key deliverables include system installation by February 15, 2020, provision of propane fuel through June 15, 2023 with optional yearly renewals, emergency service response within 48 hours, annual employee training and safety inspections, and contingency "Bobtail" service if the station is not operational by the installation deadline. HCS estimates annual propane consumption at 20,500 gallons. Bidders must provide multiple pricing structures, including a fixed price per gallon through June 15, 2021, fixed margin pricing in cents per gallon for extensions beyond that date based on Mont Belvieu, Texas spot prices, and floating rate options. The pump must be capable of fueling a Blue Bird school bus within 8 to 12 minutes at a minimum flow rate of 10 to 15 gallons per minute. Sealed bids are due November 7, 2019 at 1 PM EST, with the School Board selecting the winning bidder at their November 11, 2019 meeting. The contractor must retain ownership of all infrastructure and secure all necessary permits, licenses, inspections, and certifications in compliance with local, state, and federal regulations.

The procurement documents do not explicitly identify set-aside designations, disadvantaged enterprise restrictions, or incumbent vendor preferences. Contract award is conditional upon HCS receiving 40 percent rebates from the VW settlement fund administered by the Michigan Department of Environmental Quality, which effectively ties the project funding to settlement approval rather than restricting bidder eligibility. HCS will provide the gravel pad, three-phase 220-volt underground electrical service, and crash bollards; the contractor is responsible for all other infrastructure requirements and site surveys. The specific contract award value or budget range is not disclosed in the available procurement documents, though the estimated annual propane consumption of 20,500 gallons and the infrastructure installation and service requirements should inform bidders' pricing calculations.