SUBJECT/RECOMMENDATION:
Title
Authorize the award of Invitation to Bid 10-21, Liquid Propane Gas Tanks to Quality Steel Corporation of Cleveland, MS and Michel, LLC dba R.E. Michel Company LLC of Glen Burnie, MD in the cumulative annual not-to-exceed amount of $250,000 for the initial term of February 1, 2021 through January 31, 2022 with two one-year renewal options, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Procurement issued Invitation to Bid (ITB) No. 10-21, Liquid Propane Gas Tanks, for the supply of liquified propane gas tanks to serve Clearwater Gas System (CGS) residential and commercial customers. On December 29, 2020, three responsive bids were received. Upon review, both Procurement and CGS recommend awarding the bid as follows:
• Quality Steel Corporation for ASME Certified 120-gallon, 250-gallon, 500-gallon and 1000-gallon LP propane tanks
• Michel LLC dba R.E. Michel Company LLC for DOT Certified 200-pound and 420-pound LP propane tanks
To ensure a continuity of supply, flexibility to order product from either vendor as a secondary source is included in this recommendation. In addition, CGS has added a 20% contingency to the total bid price due to price fluctuations in wholesale propane tank costs. Any increase above the per-item bid pricing must be submitted to the City Procurement Division for review and approval, as outlined in the Bid Specifications Milestones in ITB No. 10-21.
All materials will be used in CGS’s distribution network for new propane accounts and when existing tanks are replaced as they reach the end of their useful life.
APPROPRIATION CODE AND AMOUNT:
Funds are budgeted and available in 423-141120
USE OF RESERVE FUNDS: N/A