Explanation
BACKGROUND: For the option to purchase Ultra Low Sulfur Diesel and Biodiesel Fuel for the Department of Finance and Management, the largest user, and for other City agencies as needed. Ultra Low Sulfur Diesel and Biodiesel Fuel is providing an environmentally preferable option to diesel fuel for City vehicles.
The term of the proposed option contract would be two and one half (2 1/2) years. Contract is through February 28, 2012 with the ability to extend for two additional one year periods. The Purchasing Office opened formal bids on August 20, 2009.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation SA003339) sixteen (MBE:0, FBE:0) bids were solicited; A total of eight (8) bid proposals (MBE:0, FBE:0) were received.
The Purchasing Office is recommending award of contracts to the lowest, responsive, responsible and best bidder as follows:
Central Ohio Farmers Co-op CC#311717226 (Expires 03/19/2011)
Total Estimated Annual Expenditure: $ 2,000,000.00
This company is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings For Recovery Database.
This ordinance also establishes authority to cancel an existing purchase order with the current vendor (Circleville Oil) and to issue a new purchase order with Central Ohio Farmers Co-op via the appropriation authority lapsed through said cancellation.
This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle and the efficient delivery of valuable public services will be slowed.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the Mail, Print Services and UTC Fund. Funding for the purchase order for Fleet Management is available through the cancellation of the purchase order with the current biodisel provider, Circleville Oil.
Title
To authorize and direct the Finance & Management Director to enter into one (1) UTC contract for the option to purchase Ultra Low Sulfur Diesel and Biodiesel Fuel UTC with Central Ohio Farmers Co-op, to authorize the expenditure of one (1) dollar to establish the contract from the Mail, Print Services and UTC Fund; to authorize the Finance and Management Director to cancel the remaining balance on an existing purchase order, to authorize the expenditure of up to $514,632.00; and to declare an emergency. ($514,633.00)
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids on August 20, 2009 and selected the lowest, responsive, responsible and best bid. Eight (8) bids were received; and
WHEREAS, this ordinance addresses Purchasing objective of 1) maximizing the use of City resources by obtaining optimal products/services at low prices and 2) encouraging economic development by improving access to City bid opportunities and 3) providing effective option contracts for City agencies to efficiently maintain their supply chain and service to the public; and
WHEREAS, Ultra Low Sulfur Diesel and Biodiesel Fuel UTC will be used to provide an environmentally preferable option to diesel fuel for City vehicles, this is being submitted for consideration as an emergency measure; and
WHEREAS, it is necessary to cancel the balance of the purchase order for biodiesel with Circleville Oil and reestablish the cancelled amount with Central Ohio Farmers Co-op, and
WHEREAS, an emergency exists in the usual daily operation of the Purchasing Office in that it is immediately necessary to enter into one (1) contract for an option to purchase Ultra Low Sulfur Diesel and Biodiesel Fuel Services to ensure uninterrupted supply of materials and services, thereby preserving the public health, peace, property, safety, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance & Management Director be and is hereby authorized and directed to enter into the following contract for an option to purchase Ultra Low Sulfur Diesel and Biodiesel Fuel Services with Solicitation SA003339; contract is through February 28, 2012.
Central Ohio Farmers Co-op, Awarded all items; Amount $1.00.
SECTION 2. That the expenditure of $1.00 is hereby authorized from the Mail, Print Services and UTC Fund, Organization Level 1: 45-01, Fund: 05-517, Object Level 3: 2270, OCA: 451130, to pay the cost thereof.
SECTION 3. That the Finance and Management Director is authorized to cancel the the remaining balance on the existing purchase order UL006059 for Circleville Oil and establish a new purchase order with Central Ohio Farmers Co-op.
SECTION 4. That the expenditure of the remaining amount of funds on purchase order UL006059 for fiscal year 2009, in an amount not to exceed $514,632.00, or so much thereof as may be necessary, be and is hereby authorized, to pay the cost thereof, as follows:
Dept-Div. 45-05
Fund: 513
OCA: 451347
OL1: 02
OL3: 2286
Amount: $514,632.00
SECTION 5. That for the reason stated in the preamble here to, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.