Propane

The Commonwealth of Kentucky Finance and Administration Cabinet is soliciting bids for a Master Agreement to establish propane supply and delivery services to all state agencies and eligible political subdivisions across fifteen geographic regions throughout Kentucky. The procurement seeks vendors to furnish and deliver propane in three product categories: tank wagon, 33.5 LB forklift tanks, and 20 LB tanks to approximately 150 state locations, including the Department of Highways, Department of Transportation, state parks, fish hatcheries, correctional facilities, youth development centers, wildlife management areas, and various maintenance facilities. Based on usage data from March 2024 through February 2025, consumption ranges significantly across facilities, with major consumers such as K.F.E.C. requiring 18,422.80 base units and smaller installations requiring minimal usage. Vendors must submit pricing as a price differential above the Mont Belvieu Spot Price, with monthly adjustments based on the closing price of the last business day of the previous month, and must also provide emergency delivery rate pricing and specify regular delivery timeframes. The contract will be awarded by line item and region on a best-value basis, with evaluation criteria allocating 50 points to price differential and 50 points to emergency delivery rate, with the lowest bidder receiving maximum points. The initial contract period runs from the award date through July 31, 2026, with four optional two-year renewal periods available at the Commonwealth's discretion. The bid deadline is April 2, 2025, at 1:30 PM ET, with vendor questions due by March 18, 2025, and Commonwealth responses issued by March 20, 2025.

Kentucky resident bidders receive reciprocal preference equal to the preference given by the nonresident bidder's state of residence, and qualified bidders including Kentucky Correctional Industries receive additional preference points equal to a percentage of maximum points. Vendors must demonstrate proof of Commercial General Liability Insurance of $1,000,000 per occurrence and $2,000,000 aggregate, with the Commonwealth listed as an additional insured, and Automobile Liability Insurance of $1,000,000 per occurrence for delivery vehicles. All vendors must obtain Kentucky Tax Registration and submit required affidavits prior to contract award. Contractors are responsible for providing all equipment, labor, and maintenance for propane delivery and tank management, including remote monitoring tank gauges at no additional cost, and must maintain minimum tank levels at 25 percent capacity. Contractors shall pay a quarterly administrative fee of 1.0% of net sales within the contract period and must comply with all applicable Kentucky statutes regarding taxes, wages, workers' compensation, and employment practices. While no specific incumbent vendor is identified in the solicitation documents, the usage report data provides comprehensive baseline consumption information across all state facilities to support vendor planning and pricing strategies.