Title
Liquefied Petroleum Gas (LPG) - Requirements Contract - IFB 17-133 (Ordinance S-43358)
Description
This item requests to authorize the City Manager, or his designee, to enter into contracts with Amerigas Propane LP, dba Acorn Propane and Ferrellgas LP, for the purchase of Liquefied Petroleum Gas (LPG). Further request authorization for the City Controller to disburse all funds related to this item.
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Summary
This service will allow for the bulk delivery, propane cylinder delivery, and will-call fill of LPG on a citywide basis. The LPG is essential to fuel several varieties of machinery and equipment used by City departments for daily operations. The departments that rely on this contract include Public Works, Street Transportation, Water Services, Parks and Recreation, Phoenix Convention Center, Fire and Aviation.
Procurement Information
IFB 17-133 was conducted in accordance with Administrative Regulation 3.10. There were two offers received by the Procurement Division on Dec. 23, 2016. This contract is a multiple award to ensure departments get the most advantageous pricing for propane depending on their location and delivery method. Following is a bid tabulation of the offers received.
Margin Price Per Gallon
Vendor
Bulk Cylinder Will Call
Amerigas Propane LP, dba Acorn Propane $0.59 $1.00 $1.00
Ferrellgas LP $0.75 $0.85 $0.75
It is recommended by the Deputy Finance Director that Amerigas Propane LP, dba Acorn Propane and Ferrellgas LP, be accepted as the lowest responsible, responsive bidder. They have been determined to be fair and reasonable based on the competitive solicitation, market analysis, and comparisons with previous and other similar contracts.
Contract Term
The contract shall be for a five-year term beginning on or about April 15, 2017.
Financial Impact
The aggregate amount for the five-year term will be $375,000.00. This is based on historical spending, projected average propane prices and estimated quantities needed. Funds are available in the various departments' budgets.
Location
This contract will be used on a citywide basis.
Department
Responsible Department
This item is recommended by City Manager Ed Zuercher and the Finance Department.