STATE OF WASHINGTON
State of Washington
Current Contract Information
Award Notice
Activation Date: May 4, 2006
|Contract number: |07705 |Commodity code: |9130 |
|Contract title: |Fuel—Keep-Full & Bulk Delivery Services |
|Purpose: |Award Notice |
|Contract Term |April 13, 2006 |through: |April 12, 2007 Bulk Marine |
| | | |April 12, 2008 Bulk Land |
| | | |April 12, 2008 Keep-Full Services |
|Original award date: |April 13, 2006 |Maximum Term: |Not to exceed 5 years of award date |
|Estimated Annual Worth: |$102,248,850 |Estimated Volume (gallons): |45,443,933 |
|For use by: |Washington State Agencies, Higher Education and Cooperative members |
|Contract type: |This contract has been designated “MANDATORY” use for state agencies but “CONVENIENCE” use for: |
| |Higher Education (Colleges & Universities) |
| |Co-op members (counties, city, school districts etc.) |
| |Any small capacity remotely located fuel storage tank. |
| |(As determined by the State Contract Administrator) |
|Scope of contract: |This contract is intended to satisfy the on-going replenishment of state’s network of gasoline, heating oil, and |
| |diesel (including biodiesel) fuel storage tanks as well as marine fuel tanks such as the Washington State Ferries |
| |(WSF). Refueling services for the San Juan Islands fall outside of the scope of this contract as does barge and pier|
| |refueling services. |
|Contractors: |Region |
| |Keep-Full |
| |Bulk-Land |
| | |
| |Peninsula |
| |Associated Petroleum |
| |Wilcox & Flegel |
| | |
| |North Puget Sound |
| |Associated Petroleum |
| |Associated Petroleum |
| | |
| |Central Puget Sound |
| |Associated Petroleum |
| |Associated Petroleum |
| | |
| |Southwest |
| |Wilcox & Flegel |
| |Wilcox & Flegel |
| | |
| |North Central |
| |No Bidders |
| |No Bidders |
| | |
| |South Central |
| |Yakima Cooperative |
| |Wilcox & Flegel |
| | |
| |North East |
| |Mountain Oil Company |
| |Coleman Oil Company |
| | |
| |South East |
| |Mountain Oil Company |
| |Busch Distributors |
| | |
| |Marine |
| |Associated Petroleum |
| | |
|Current participation: |$0.00 MBE |$0.00 WBE |$102,248,850.00 OTHER |$0.00 EXEMPT |
| |MBE 0% |WBE 0% |OTHER 100% |Exempt 0% |
This page contains key contract features. Find detailed information on succeeding pages. For more information on this contract or if you have any questions, please contact your local agency Purchasing Office or you may contact our office at the numbers listed below.
|State Procurement Officer: |Bob Paulson |Office Assistant: |Mi'isha Hamilton |
|Phone Number: |(360) 902-7443 |Phone Number: |(360) 902-7193 |
|Fax Number: |(360) 586-2426 |Fax Number: |(360) 586-2426 |
|Email: |rpaulso@ga. |Email: |mhamilt@ga. |
Visit our Internet site: or search all contracts at:
Notes:
I. Best Buy: The following provision applies to mandatory use contracts only. This contract is subject to RCW 43.19.190(2) & RCW 43.19.1905(7): which authorizes state agencies to purchase materials, supplies, services, and equipment of equal quantity and quality to those on state contract from non-contract suppliers. Provided that an agency subsequently notifies the Office of State Procurement (OSP) State Procurement Officer (SPO) that the pricing is less costly for such goods or services than the price from the state contractor. If the non-contract supplier's pricing is less, the state contractor shall be given the opportunity by the state agency to at least meet the non-contractor's price.
If the state contractor cannot meet the price, then the state agency may purchase the item(s) from the non-contract supplier, document the transactions on the appropriate form developed by OSP and forwarded to the SPO administering the state contract. (Reference General Authorities document)
If a lower price can be identified on a repeated basis, the state reserves the right to renegotiate the pricing structure of this agreement. In the event such negotiations fail, the state reserves the right to delete such item(s) from the contract.
II. State Agencies: Submit Order directly to Contractor for processing. Political Subdivisions: Submit orders directly to Contractor referencing State of Washington contract number. If you are unsure of your status in the State Purchasing Cooperative call (360) 902-7415.
III. Only authorized purchasers included in the State of Washington Purchasing Cooperative (WSPC) and State of Oregon Cooperative Purchasing Program (DASCPP/ORCPP) listings published and updated periodically by OSP and DAS may purchase from this contract. It is the contractor’s responsibility to verify membership of these organizations prior to processing orders received under this contract. A list of Washington members is available at: .
IV. Contract Terms: This Document includes excerpts of terms and conditions published in the original IFB, including Standard Terms and Conditions, and Definitions, included in the Competitive Procurement Standards published by OSP (as Amended).
V. Any existing mandatory use contracts for items that may be encompassed in the scope of this contract offering will be considered the first source of supply for state agency purchasers.
Contractor profiles
|Associated Petroleum |Credit Cards Accepted: |None |
|Federal Tax ID #:91-1186058 | | |
|Phone : |253-627-6179 |Sales Usage Report: |Traci Hamilton |
|Fax : |253-627-3637 | | |
|Toll Free Phone # |800-929-5243 |Phone: |253-627-6179 ext. 4360 |
|Emergency ( 24/7 ) |Dispatch Department |Email Address: |thamilton@ |
| |253-627-6179 | | |
| |
|Street Address: |2320 Milwaukee Way |Billing From: |2320 Milwaukee Way |
|City, State Zip: |Tacoma, WA 98421 |City, State Zip: |Tacoma WA 98421 |
| |
|Payment Address: |PO Box 1397 |Orders sent to: |2320 Milwaukee Way |
|City, State Zip: |Tacoma WA 98401 |City, State Zip |Tacoma WA 98421 |
| |
|Customer Service: |Becky Anderson |Contract Administrator: |Frank Pupo |
|Phone: |253-627-6179 ext. 4363 |Phone: |253-627-6179 |
|Email Address: |banderson@ |Email Address: |fpupo@ |
| |
|Cost Savings Initiatives: Bidders were encouraged to be creative and propose various (optional) ideas that if applied may help our customers realize additional |
|savings. |
|Associated Petroleum proposed a prompt payment discount cost savings initiative which could yield meaningful savings but requires the customer to commit to paying |
|invoices (via electronic fund transfer) within10 days or 20 days. For more information please review the embedded document below or contract the Associated |
|Petroleum Contract administrator. |
|[pic] |
| |
|Additional Clarification: |
|The prompt payment clock would begin on the date of delivery (this is the way our system works, as it has no way of knowing when the invoice receipt date is). |
|However, it is APP’s intention to have all invoices to its customers within 72 hours. APP requires all invoices are posted in system within a 24 hour period. |
|Each invoice will reflect the delivery date and the due date for payment, as well as the terms of payment. |
|The terms will be offered on a delivery site location. It will not be necessary for the entire organization or agency to select the same terms take advantage of |
|this CSI. |
|Wilcox & Flegel |Credit Cards Accepted: |Visa, MC, AX |
|Federal Tax ID #:91-0873302 | | |
|Phone: |360-578-4281 |Sales Usage Report: |Leora Booth |
|Fax: |360-425-6274 | | |
|Toll Free Phone # |800-438-9656 Bulk Land |Phone: |360-578-4286 |
| |800-238-8179 Keep Full | | |
|Emergency ( 24/7 ) |Dispatch Department |Email Address: |Leora@ |
| |800-438-9656 | | |
| |
|Street Address: |PO Box 69 |Billing From: |PO Box 69 |
|City, State Zip: |Longview WA 98632 |City, State Zip: |Longview WA 98632 |
| |
|Payment Address: |PO Box 69 |Orders sent to: |PO Box 69 |
|City, State Zip: |Longview WA 98632 |City, State Zip |Longview WA 98632 |
| |
|Customer Service: |David Walling |Contract Administrator: |Sherry Frankovich |
|Phone: |360-957-2571 |Phone: |360-578-4281 |
|Email Address: |david@ |Email Address: |sherry@ |
| |
|Cost Savings Initiatives: Bidders were encouraged to be creative and propose various (optional) ideas that if applied may help our customers realize additional |
|savings. |
|Wilcox & Flegel proposed a tiered discount structure for their OPIS price multipliers as identified below: |
| |
| Here is how the example table would look with the sliding scale multiplier. |
| |
| OPIS contract average Multiplier |
| $2.25 - $2.4999 1.0385 |
| $2.50 - $2.7499 1.0375 |
| $2.75 - $2.9999 1.0360 |
| $3.00 - $3.2499 1.0350 |
| $3.25 - + 1.0325 |
| |
|Please contract the Wilcox & Flegel Contract administrator to learn more. |
| |
|Yakima Cooperative |Credit Cards Accepted: |None |
|Federal Tax ID #:91-0480655 | | |
|Phone : |509-457-5380 |Sales Usage Report: |Traci Hamilton |
|Fax : |509-728-0745 | | |
|Toll Free Phone # |877-457-5380 |Phone: |253-627-6179 ext. 4360 |
|Emergency ( 24/7 ) |509-965-8215 |Email Address: |thamilton@ |
| |
|Street Address: |2202 South First Street |Billing From: |2202 South First Street |
|City, State Zip: |Yakima WA 98903 |City, State Zip: |Yakima WA 98903 |
| |
|Payment Address: |2202 South First Street |Orders sent to: |2202 South First Street |
|City, State Zip: |Yakima WA 98903 |City, State Zip |Yakima WA 98903 |
| |
|Customer Service: |Heather Marsh |Contract Administrator: |Kevin Skolrud |
|Phone: |509-457-5380 |Phone: |509-457-5380 |
|Email Address: |heather@ |Email Address: |kevin@ |
| |
|Cost Savings Initiatives: Bidders were encouraged to be creative and propose various (optional) ideas that if applied may help our customers realize additional |
|savings. |
|No Cost Savings Initiative are available from this contractor. |
|Mountain Oil |Credit Cards Accepted: |None |
|Federal Tax ID #:32-0034468 | | |
|Phone : |509-527-3400 |Sales Usage Report: |Al Chang |
|Fax : |509-529-9064 | | |
|Toll Free Phone # |800-572-8900 |Phone: |509-527-3400 |
|Emergency ( 24/7 ) |Tim Henderson |Email Address: |Acchang@ |
| |509-527-3400 | | |
| |
|Street Address: |1205 N 11th |Billing From: |PO Box 2216 |
|City, State Zip: |Walla Walla WA 99362 |City, State Zip: |Walla Walla WA 99362 |
| |
|Payment Address: |PO Box 2216 |Orders sent to: |Tim Henderson |
|City, State Zip: |Walla Walla WA 99362 |Phone: |509-527-3400 |
| |
|Customer Service: |Bill Morris |Contract Administrator: |Bill Morris |
|Phone: |509-527-3400 |Phone: |509-527-3400 |
|Email Address: |wjmorris@ |Email Address: |wjmorris@ |
| |
|Cost Savings Initiatives: Bidders were encouraged to be creative and propose various (optional) ideas that if applied may help our customers realize additional |
|savings. |
|Mountain Oil will be providing Keep-Full services for the Northeast and Southeast regions. Mountain Oil proposed the following Cost Savings Initiative: |
| |
|“We will only charge one service fee where two or more tanks are at one physical location”. For additional Keep Full discounts for these regions, please see the |
|email below or contact the Mountain Oil contract administrator. |
| |
|[pic] |
Contractor profiles
|Coleman Oil |Credit Cards Accepted: |None |
|Federal Tax ID #:82-0321932 | | |
|Phone : |208-799-2000 |Sales Usage Report: |Sheril Hudson |
|Fax : |208-799-2008 | | |
|Toll Free Phone # |888-799-2000 |Phone: |208-799-2000 |
|Emergency ( 24/7 ) |Pete Buukarl |Email Address: |sheril@ |
| |208-799-2000 | | |
| |
|Street Address: |335 Mill Road |Billing From: |Sheril Hudson |
| | | |335 Mill Road |
|City, State Zip: |Lewiston, ID 83501 |City, State Zip: |Lewiston, ID 83501 |
| |
|Payment Address: |335 Mill Road |Orders sent to: |Pete Buurkarl |
| | | |335 Mill Road |
|City, State Zip: |Lewiston, ID 83501 |City, State Zip |Lewiston, ID 83501 |
| |
|Customer Service: |Larry Vincent |Contract Administrator: |Katie Hollingshead |
|Phone: |208-799-2000 |Phone: |208-799-2000 |
|Email Address: |larry@ |Email Address: |Katie@ |
| |
|Cost Savings Initiatives: Bidders were encouraged to be creative and propose various (optional) ideas that if applied may help our customers realize additional |
|savings. |
|No Cost Savings Initiative are available from this contractor. |
|Busch Distributors Inc |Credit Cards Accepted: |Visa, MC, and AX |
|Federal Tax ID #:91-1127927 | | |
|Phone : |800-752-2295 |Sales Usage Report: |Jess Scourey |
|Fax : |208-882-0907 | | |
|Toll Free Phone # |800-752-2295 |Phone: |509-336-1209 |
|Emergency ( 24/7 ) |Steve Gill |Email Address: |jess.scourey@ |
| |800-752-2295 | | |
| |
|Street Address: |7603 SR 270 |Billing From: |PO Box 8188 |
|City, State Zip: |Pullman, WA 99163 |City, State Zip: |Moscow ID 83843 |
| |
|Payment Address: |PO Box 8188 |Orders sent to: |PO Box 8188 |
|City, State Zip: |Moscow ID 83843 |City, State Zip |Moscow ID 83843 |
| |
|Customer Service: |Jim Shook |Contract Administrator: |Eric Busch |
|Phone: |509-330-1527 |Phone: |800-752-2295 |
|Email Address: |jim.shook@ |Email Address: |eric.busch@ |
| |
|Cost Savings Initiatives: Bidders were encouraged to be creative and propose various (optional) ideas that if applied may help our customers realize additional |
|savings. |
|In providing Bulk delivery services in the Southeast region, Busch Distributors indicated that they can pull fuel from any one of three racks (Pasco, Wilma or |
|Spokane) and has agreed to pull fuel from the cheapest rack and pass the savings on to the customer. Below is an email that clarifies the proposed cost savings |
|initiative and interested customers are encourage to contract Busch Contract administrator to take advantage of this CSI. |
| |
|[pic] |
OVERVIEW
The Office of State Procurement (OSP) develops purchasing contracts for use by state agencies, higher education and approximately 700 co-op members which include city, county, school districts and some non-profit organizations throughout Washington. Many of our customers manage an assortment of fuel storage tanks serving police cars, fire engines, school buses, public transportation services and many other essential public services.
The SmartBuying Fuel contract 07705 began in the spring of 2005 and aggregates five fuel contracts (03400, 14003, 07804, 01500, and 11499) into one. So as to most effectively leverage the state’s collective buying power, co-op members were invited to participate. This action boosted the projected volume of fuel to be leveraged by approximately seventy-eight percent for a total projected annual volume of 45.5 million gallons of fuel. A total of 981 fuel storage tanks were profiled and included in the bid document. The SmartBuying fuel team consisted of large volume purchasers representing Washington State Ferries, Washington Department of Transportation, Department of Corrections, King County Metro Transit and The City of Seattle.
Our strategy was to most effectively position the state in partnering with the fuel haulers. By improving the viability of the resulting contract, the state hoped to increase competition and thereby achieve more aggressive pricing but without sacrificing quality. The state hosted a biodiesel round table discussion and two vendor forums with the objective of developing “best of class” terms and conditions. As a result, the SmartBuying fuel team completely overhauled the way the state acquires fuel.
Vendor forums revealed that there is no one hauler positioned to service the entire state but rather many small businesses compete with one another on a regional basis. Thus, vendor forum attendees worked together to assist the state in redrawing the Washington State map to best reflect existing market coverage and 8-regions were formed as reflected in the map below. The breakdown of this Fuel contract awards are:
[pic]
1 SCOPE
The purpose SmartBuying Fuel effort was to establish fuel contracts for the on-going replenishment of state’s network of gasoline, heating oil, and diesel (including biodiesel) fuel storage tanks as well as marine based fuel tanks such as the Washington State Ferries (WSF). Refueling services for the San Juan Islands fall outside of the scope of this contract as does barge and pier refueling services. Besides satisfying our customer’s tank refueling requirements, the state expects our contractors to play a leadership role in maximizing efficiencies and savings. To that end, the state endeavors to partner with the most conscientious fuel suppliers who are committed and capable of optimizing the replenishment of the state’s network fuel storage tanks. The refueling services to be offered include KEEP-FULL and BULK DELIVERY SERVICES (a discussion of each of these services is included:
• 8-Regional awards for Keep-Full delivery services
• 8-Regional awards for Bulk (Land) delivery Services
• 1-Regional award for Bulk (Marine) deliveries
2 CONTRACT DESIGNATION
This contract has been designated “MANDATORY” use for state agencies but “CONVENIENCE” use for:
• Higher Education (Colleges & Universities)
• Co-op members (counties, city, school districts etc.)
• Any small capacity remotely located fuel storage tank.
(As determined by the State Contract Administrator)
Note: It is the intention of the state that the winning bidder for each region be awarded those customers contained in that region. However, a customer located in close proximity to the regional boundary (as determined by the state contract administrator) may be awarded to the neighboring contractor if it is agreeable to all involved parties.
3 TERM OF CONTRACT
The initial contract term for Keep-Full and Bulk Land delivery services will be for two (2) years. The initial contract term for Bulk Marine delivery services will be for one (1) year. However, be advised that the new Department of Ecology mobile transfer rule (slated for completion in October 2006) may impact the viability of Bulk Marine delivery services and the decision to extend some or all portions of the Bulk Marine delivery services. Therefore, the state reserves the right to “terminate for convenience” the Bulk Marine portion of the contract if the state determines that this would be in the best interest of the state. The state reserves the right to extend any of the resulting contracts for a total life of not more than 5-years from the date of award. It is the intention of the state that the contract reaches the maximum 5-year life. However, the decision to extend this contract with any or all contractors will be at the discretion of the state and upon mutual agreement with contractors.
4 ESTIMATED USAGE
Although the state does not guarantee volume commitments, the total projected gallons and annual term worth for each of the delivery services are as follow:
|Keep-Full Service |$26,794,865 |Gallons: |11,908,829 |
|Bulk (Land) Deliveries | $50,209,210 |Gallons: |22,315,204 |
|Bulk (Marine) Deliveries |$25,244,775 |Gallons: |11,219,900 |
|Projected Total |$102,248,850 |Gallons: |45,443,933 |
5 PURCHASERS
Purchasers will be state agencies, higher education, and political subdivisions who are members of the State of Washington Purchasing Cooperative (WSPC). Contractor(s) shall not process contract orders from unauthorized purchasers. A list of WSPC members can be found via the web at: . Be advised that contract usage could be considerably more than current estimates should more co-op members choose to utilize this contract. The state accepts no responsibility for payment by WSPC members.
6 PURCHASES BY NONPROFIT CORPORATIONS
Legislation allows nonprofit corporations to participate in state contracts for purchases administered by OSP. By mutual agreement with OSP, the contractor may sell goods or services at contract pricing awarded under this contract to self certified nonprofit corporations. Those organizations purchasing under this contract shall do so only to the extent they retain eligibility and comply with other contract and statutory provisions. The contractor may make reasonable inquiry of credit worthiness prior to accepting orders or delivering goods or services on contract. The state accepts no responsibility for payments by nonprofit corporations. Contractor may not change contracted payment terms for nonprofit orders.
7 COST MITIGATION STRATEGIES
In accordance with sec. 608 of ESSB 6091, the State reserves the right to employ various cost mitigation strategies (i.e. hedging) in acquiring fuel via our contractors. These strategies may include but are not limited to futures contracts, swap transactions, option contracts, costless collars, and long-term storage at no additional costs to our contractor(s). The cost mitigation strategies are intended to reduce overall fuel costs and offer our customers an improved level of budgetary certainty when procuring fuel. The Office of State Procurement in consultation with The State Treasurer and the State Investment Board are to explore and implement these cost mitigation strategies as feasible. These financial instruments are to be offered to our customers on an “elect to use” basis and be in compliance with our customers’ bylaws and/or regulations. Customers must receive written approval from the State Contract Administrator before utilizing these financial instruments via this contract and the state accepts no responsibility for payment for the financial services provided to contract users. Customers who elect to utilize these cost mitigation strategies may be charged a fee or other funding mechanisms may be applied to cover the cost of deployment of these cost mitigation strategies.
8 Contractor QUALIFICATIONS
Successful bidders:
▪ Must be an authorized supplier of the fuel to be delivered with facilities, personnel, equipment, certifications and or approvals as required to successfully perform and comply with all contractual requirements.
▪ Are required to comply with the rules, regulations and laws relative to the fuel to be supplied and the services to be performed.
▪ Shall have the capability of fulfilling contract deliveries and terms within 15 business days of contract award date (April 13, 2006).
▪ May be required to provide copies of their fuel supply contracts or letter from their suppliers (on supplier’s letterhead) showing they have sufficient sources and volumes of fuel available to satisfactorily perform in accordance to contract terms and conditions.
9 ORDER QUANTITIES
The minimum order quantity for Bulk Land deliveries is 8,000 gallons but there will be no minimum order quantities for the Keep-Full service as the bidders’ service fee is to cover costs (other than fuel costs) irregardless of the amount of fuel delivered. Keep-Full contractors will be expected to optimize the states network of small volume tanks and therefore initiate orders as tanks near the minimum allowable volume. Bulk deliveries are intended to be full transport loads but customers may order split loads as well. Note: Due to weight restrictions and unless otherwise noted DOC McNeil island deliveries are not to exceed 7,500 gallons.
General Information
1 FUEL TYPES
Streamlining fuel types to be purchased, advancing the use of biodiesel and making a successful transition to ultra low sulfur diesel (ULSD) were important objectives of this contracting effort. The state recognizes that to meet these objectives and to achieve savings goals requires coordination with our business partners and the exchange of strategic information. The price worksheets identify the types of fuel to be purchased for each tank as well as forecasting data. Whenever possible, it is the state’s intention to provide contractors with at least 30-days advance notice of a major shift in fuel selection or standards. A discussion of the state’s overall strategy for each type of fuel the state intends to purchase follows.
a) Unleaded Regular Gasoline
For gasoline tanks, the state intends to standardize on unleaded regular gasoline. The purchase of other gasoline grades via this contract will require justification and written pre-approved by the State Contract Administrator and would likely occur in response to an emergency such as a marketplace shortage of unleaded regular gasoline.
b) Low Sulfur #2 dyed diesel (LS) / Ultra Low Sulfur # 2 dyed diesel (ULSD)
For now, state agencies intend to standardize on Low Sulfur #2 dyed diesel. Many large volume co-op members have already transitioned to Ultra Low Sulfur Diesel ahead of the federal mandate but the state does not intend on transitioning to ULSD until summer of 2006 and WSF won’t do so until market conditions favor such action.
c) LS #1 dyed / ULS # 1 dyed
The #1 grade of either low sulfur or ultra low sulfur will mainly be used as a winter additive for colder climates. Unless otherwise stipulated, the winter blend is to consist of equal parts of #1 and #2 grade diesel.
d) Heating Oil #2 (High sulfur #2 diesel dyed)
The state intends to standardize on heating oil #2 which is also referred to as high sulfur #2 diesel. The high sulfur (HS) #2 dyed diesel OPIS prices will be used to establish heating oil prices.
e) Biodiesel (B100)
Biodiesel goals have been established for our customers yet the state recognizes that biodiesel is an emerging market posing significant challenges. A number of high volume co-op members have already introduced biodiesel and many other customers have expressed a desire to do so once the market matures and availability allows. The Washington State Ferries and some co-op members have very stringent biodiesel specification and mixing requirements that must be met to function properly and/or to fulfill environmental mandates. Still other customers’ biodiesel specification requirements are much less stringent. Therefore, in an effort to advance the development and maturity of the biodiesel market, the state intends to offer customers two grades of biodiesel on a limited basis and broaden its use as market conditions dictate. As the biodiesel market matures, the state expects that biodiesel production will increase and become readily available. Until then, Contractors are expected to make a good faith effort to meet the state’s demand for biodiesel. The state will define “B#1” and “B#2” biodiesel grades in the specification section of this IFB (See BioDiesel Specifications section 7.2). Written pre-approval from the State Contract Administrator will be required before contract customers will be allowed to purchase biodiesel via this contract. Granting permission to utilize biodiesel will be based largely on market availability and the customer’s readiness to transition to a biodiesel blend.
f) Future fuel types
Because the OPIS price index will serve as the basis for establishing contract pricing and bid multipliers are to be applied to all gasoline and diesel family of fuels, then the introduction of any new gasoline or diesel type tracked by OPIS may (at the discretion of the state) be added to the contract.
g) Additives/Conditioners/Treatments
At the purchaser's request, contractors may be required to supply and blend a fuel additive, conditioner or treatment products to the fuel purchased. The price charged for additives, conditioners or treatments shall not exceed the lowest price charged to other purchasers and the prices are to be comparable to current market rates of other suppliers. At the customer’s request, the contractor is to provide supporting documentation to validate price compliance.
h) Dyed Diesel
Contract purchasers operating highway maintenance vehicles, publicly owned fire fighting equipment, and public transportation systems are authorized to purchase red dyed diesel fuel which is exempt from federal and state highway taxes. Other customers may also purchase red dyed diesel by completing the Department of Licensing “Special Use Fuel User Permit” and conforming to requirements. Nonetheless, there are a few large volume customers (as identified in the price worksheets) who are required to purchase clear fuel. Even so, the state intends to standardize on dyed diesel and the purchase of clear fuel via this contact must be pre-approved by the State Contract Administrator.
i) Customer Fuel Demand Profiles
The price worksheets included demand profiles for each individual tank (or vessel) requiring refueling and are intended to assist bidders in formulating bid prices. Be advised that although demand profiles reflect the best available information and projections, the state would not guarantee its accuracy or volume commitments and therefore bidders were instructed to formulate their prices accordingly.
Fuel Delivery Services
1 KEEP-FULL
The most notable change in this contract is the manner in which small storage tanks will be scheduled for service. In the past, each individual customer initiated refueling orders and therefore the economies of coordinating delivery schedules from an enterprise-wide perspective were never realized. Furthermore, because contractors were forced to react to customer initiated orders, fuel suppliers could not effectively forecast and employ bulk purchasing strategies when market conditions favor such action. Joining together in this contracting effort has opened the door for an enterprise-wide vendor managed “Keep-Full” tank replenishment service which naturally promotes coordination of delivery schedules while empowering fuel contractors to forecast and employ any variety bulk purchasing strategies.
The Keep-Full service is intended to refuel those tanks that cannot accommodate a full truck & trailer load in accordance with industry standard best practices. With the Keep-Full service, the contractor is to guarantee that that storage tanks always retain sufficient inventory to satisfy the customer’s needs and never go dry. In general, the state expects that tank levels never go below 20% of capacity before refueling occurs but customers will be allowed adjust this percentage up or down depending upon their own unique business requirements.
Keep-Full customers will be responsible for ensuring that the contractor is sufficiently informed of tank level volumes and whenever possible notify the contractor of any anticipated unusual increases in fuel demand. So as to promote enterprise-wide delivery schedule coordination, customers will be encouraged to identify the broadest possible refueling time windows allowable and immediately notify the contractor of any schedule changes. Be advised that many customer delivery parameters do not allow unrestricted access to fuel storage tanks. In such cases the contractor is to accommodate the customer’s delivery profiles and timelines when ensuring that tanks always have an adequate amount of fuel to meet the customer’s requirements. Besides conforming to the standard contract terms as defined herein, the following will be applicable to Keep-Full deliveries:
a) Initiating Keep-Full contract coverage
Prior to initiating Keep-Full contract coverage, customers will be required to provide their assigned contractor a completed delivery profile questionnaire (See Keep-Full Service Activation Worksheet) which identifies such information as:
• Fuel tank profile information (i.e. site location, site contact, tank size, fuel type, etc.)
• Available delivery time frames and or the days and times when deliveries can or cannot occur.
• Minimum allowable tank level percentage before refueling is to occur.
• Delivery access procedures and protocols and or special instructions if any.
• Requested activation date (not to exceed 5-calander days of request)
Note: A Keep-Full Service Activation Form was emailed to those organizations whose fuel demand profiles were included in the original solicitation which incorporated the customer fuel demand profile information. Once the contractor is in receipt of the completed delivery profile questionnaire, the contractor is to identify on the questionnaire how often the tank level readings are to be provided by the customer so as to ensure that the tanks covered never go dry (see below). Afterwards, the contractor is to return (fax, mail, email) the completed delivery profile questionnaire to the customer and Keep-Full coverage is then to become active.
b) Inventory Management
To most effectively manage tank inventories, contractors will need to monitor tank inventory levels. Therefore, Keep-Full customers will be responsible for providing tank level data to the contractor. The contractor is to identify via the delivery profile questionnaire how often tank level data is to be communicated relevant to the customer’s fuel demand profile and the preferred communication method (e.g. email, fax, voice mail etc). Alternatively, if Keep-Full tanks are equipped with an electronic tank level monitoring system, the customer may (at their own discretion) choose to grant the contractor remote access to the data on a read only basis. Additionally, if both parties agree, the contractor (at their own expense) may equip tanks with electronic tank level monitoring equipment. The contractor will be responsible for the cost of maintaining the equipment. At the end of the contract, the Contractor may retrieve their tank level monitoring equipment provided that it is removed within 3-months of the contract termination date and this action is to be coordinated with the customer.
c) Keep-Full Contract Additions
During the life of the contract, customers may activate additional tanks or new customers may initiate Keep-Full coverage for fuel storage tanks not identified in the price worksheet. Therefore, for each county associated to the eight regions identified, bidders are to propose a “not to exceed” service fee for:
• A “NEW TANK” (for an existing Keep-Full customer site)
• A “NEW LOCATION” (for a new Keep-Full customer or location)
The contractor’s already established fuel price coupled with the contract addition service fee (New Tank or New Location) is to cover all costs associated to fueling a new tank and fulfillment of contract terms. Points have been allotted to each county relative to the population of that region. The Bidder’s NEW TANK and NEW LOCATION proposed service fees for each county will be added together when evaluating the bidder’s Keep Full contract addition score.
d) Keep-Full deactivation
There may be occasions when a fuel storage tank is to be deactivated and in such cases the customer is to immediately notify the contractor of this decision. Should a co-op member or higher education customer choose to terminate Keep-Full coverage a minimum of 30-days advance written notification must be given to the contractor as well as the State Contract Administrator.
e) Tank Testing
There may be occasions when customer tanks need to be “topped off” for testing purposes. In such cases, the customer will be allowed to initiate a “top off” order and the already established contract pricing is to be applied. If the customer requires the delivery to occur on a specific date, the customer is to provide the contractor with at least 7-days advance notice.
f) Remote Small Capacity Tanks
Although bidders will be required to provide pricing and coverage for all tanks identified in the price worksheet (relevant to the regions bid), the state recognizes that it may be more economical to have a more localized hauler service some small capacity remotely located tanks. In such cases the state reserves the right to solicit competitive bids outside of this contract, for the service of these tanks. The State Contract Administrator will determine which refueling sites apply and these tanks will be designated as “Convenience” use.
2 BULK (LAND) DELIVERY SERVICES
The Bulk (Land) Deliveries are intended to service those fuel storage tanks that are capable accommodating a full truck and trailer load (minimum order volume of 8,000 gallons) in accordance with industry standard best practices. Each customer will initiate a bulk delivery order but it’s not uncommon for bulk deliveries to be ordered on a regular basis (see customer demand profiles in the price worksheet). Customers are to provide contractors with as much advance notice of an order as practical. However, some high volume purchasers on occasion will only be able to provide the contractor with one days advance notice of an order. The service fee coupled with the fuel OPIS bid multiplier is to cover all cost associated to a typical bulk (land) delivery. Besides conforming to the standard contract terms as defined herein, the following will be applicable to Bulk Land deliveries:
a) Routine Deliveries
Unless otherwise indicated, Bulk (Land) Deliveries are to be scheduled during normal working hours and the contractor is to guarantee order fulfillment of not more than
2-calendar days after receipt of an order. The Central Puget Sound contractor shall guarantee order fulfillment of not more than 1-calendar day after receipt of an order.
b) Bulk (Land) Delivery Additions
The state reserves the right to add bulk land delivery sites not identified in the price worksheet. The service fee for a new delivery site is to be comparable to an already established delivery site in close proximity and distance between the source of fuel and delivery location will serve as the criteria used to establish the “comparable” service fee. So as to establish a service fee for a delivery site that has no comparable counterpart, bidders are to propose a “not to exceed” service fee for each county in the region bid. The bidder’s already established OPIS multiplier will be used to calculate the fuel price. Points have been allotted for each county relative to the population of that region.
c) Emergency (Land) Deliveries
In the event of an emergency, the contractor will guarantee fulfillment of an emergency bulk delivery within a maximum of 6-hours of a verbal, electronic (i.e. phone, pager, email, etc.) written or faxed order. Emergency orders are to be top priority and the contractor must be equipped and prepared to successfully fulfill an emergency delivery 7-days a week, 24-hours a day. The contractor shall furnish emergency order contact information and always be poised to receive and respond to an emergency order. Bidders will be asked to propose a fixed emergency delivery fee that is to be added to the invoice (as a separate line item) in addition to normal contract delivery fees and margins. Points have been allotted to the Emergency Delivery Fee relative the estimated occurrence.
Split Loads
Because split loads represent additional labor (i.e. pick up and delivery) for the contractor, bulk deliver contractors will be allowed to charge the customer an additional fee of $35 for split deliveries.
3 BULK DELIVERY (MARINE) SERVICES
Bulk (marine) deliveries are intended to service the unique requirements of Washington State Ferries. Many of WSF vessels utilize either a truck & trailer combination or a tank wagon for refueling. The delivery vehicle will board the vessel where the fuel is then unloaded. The price worksheet included detailed delivery profiles for the vessels that are to be fueled. Bidders were instructed to propose a fixed service fee for all delivery sites as well as an OPIS diesel price multiplier. The service fee coupled with the fuel OPIS price multiplier is to cover all cost associated to a typical marine delivery. Besides conforming to the standard contract terms as defined herein, the following will be applicable to bulk marine deliveries:
a) U. S. Coast Guard Regulations & Environmental Regulations
Bulk marine must be certified by the U.S. Coast Guard and may be asked to proof of this certification. Throughout the contract life, contractors and approved subcontractors are responsible for maintaining their Coast Guard certification. Failure to do so may result in termination of the applicable portion of the contract. The contractor shall comply with all (current and any future) applicable U.S. Coast Guard and Department of Ecology regulations affecting the delivery of marine fuel. Additionally, the Contractor must furnish relevant refueling hardware which includes but is not limited to proper sized U.S. Coast Guard approved hose and fittings.
b) Bulk (Marine) Delivery Additions Deletions
The state reserves the right to add or remove vessels or delivery locations. Whenever possible, customers are to provide at least 30-days advance notice of deletions of regularly scheduled bulk marine deliveries. Although contract fuel pricing is to remain firm, the fixed service fee is to be negotiated and comparable to the contractors already established service fees with regard to contract additions.
c) Standby Fee
WSF will make every reasonable effort to ensure that vessels arrive at the terminal on time to receive fuel deliveries. However, unexpected or unavoidable delays occasionally occur. The bidders proposed service fee (coupled with the fuel pricing) is to cover all normal costs associated to a marine delivery and is to include ⅔ hour of free standby time for each marine delivery. Unless otherwise indicated in the demand profile price worksheets, additional delivery time (as a result of delays beyond ⅔ hours) may be charged for at a rate of $75.00/hour, broken into ⅓ hour increments. To receive compensation for standby, the charges are to be identified on the invoice as a separate line item and the customer representative must identify on the bill of lading the length of delay beyond the free ¾ hour standby time. In the unlikely event that WSF turns the contractor away from a scheduled delivery (for reasons unrelated to the contractor’s control) the contractor may bill the customer the amount of the already established service fee. In such cases, the customer representative is to make note on the bill of lading that the refueling was refused.
d) Emergency Delivery Fee
In the event of an emergency, the contractor will be required to fulfill an emergency bulk delivery within 6-hours of a verbal, electronic (i.e. phone, pager, email, etc) written or faxed order. Emergency orders are to be top priority and the contractor must be equipped and prepared to successfully fulfill an emergency delivery 7-days a week, 24-hours a day. Therefore, the contractor shall furnish emergency order contact information and always be poised to receive and respond to an emergency order. Bidders will be asked to propose a fixed emergency delivery fee that is to be added to the invoice as a separate line item following the success fulfillment of an emergency order.
Pricing
Although there are slight variations to Keep-Full and Bulk-Delivery (marine & land) contract pricing both services will include a combination of a SERVICE FEE and FUEL PRICING methodology. So as to insulate the Contractor(s) from the impact of any modifications to fuel related taxes and fees (i.e. first possessor fees or hazmat fees), all fuel related taxes and fees are to be added to invoices on a pass through basis and identified as a separate line item. Below is an overview of how fuel prices will be calculated and how the service fees will be applied.
1 FUEL PRICING
Because fuel pricing fluctuates from one day to another, the Oil Price Information Service (OPIS) subscription service has become the defacto standard for the basis of establishing fuel contract prices. OPIS regularly collects and reports the fuel prices at the refueling terminals (also referred to as the “Rack”) across thee nation. Fuel contract prices will be allowed to increase or decrease during the life of the contract and OPIS DAILY “CONTRACT” AVERAGE rack prices (correlated to the actual delivery date) will serve as the basis for establishing contract fuel prices. With the possible exception of biodiesel, no other price change publication shall be considered. Bidders were instructed to propose a Not-to-Exceed OPIS price multiplier for gasoline, diesel family of fuels as well as a Biodiesel price multiplier. Below is an example calculation that illustrates how fuel prices are to be calculated:
OPIS Daily Contract Average (delivered on April 1) x Contractor’s Diesel OPIS Price Multiplier x gallons = Fuel Price
$2.00 x 1.0050 x 10,000 = $20,100
(OPIS Daily Contract Average for ULSD April 1) (Contractors Diesel price multiplier)
The page that follows identifies the OPIS price multiplies and reference city for each of the 8 regions and the marine OPIS reference city will be used to establish fuel prices for all deliveries located in that region irregardless of where the contractor sources the fuel to be delivered.
2 BIODIESEL PRICING
All bidders were instructed to propose a Not-to-Exceed biodiesel OPIS multiplier for the B#2 grade of biodiesel as defined herein (Product Specifications section 7.2) and Bulk Marine and Central Puget Sound Bidders are to propose a biodiesel price multiplier for the “B#1” grade as well. The OPIS BioDiesel daily report (the Tacoma B100 rack price) will serve as the basis for establishing biodiesel contract pricing. The state reserves the right to add biodiesel reference cities or adopt other biodiesel price change publications should the marketplace warrant such action. The decision to do so will be at the discretion the State Contract Administrator and the contractors bid profit margins are not to increase as a result of such action. Note: The state will always retain the right to negotiate lower prices but the state is not to arbitrarily introduce a biodiesel price change mechanism that adversely impacts the contractor’s biodiesel bid margins.
Biodiesel purchasers are to receive the appropriate proportion of B100 necessary to achieve the requested biodiesel blend. For example if the customer desires 1000 gallons of a ULSD-B20 blend, the contractor would acquire and blend (in accordance with biodiesel specifications) 800 gallons of ULSD with 200 gallons of B100. Additionally, the customer is to receive all applicable “Blender” tax credits which are to be identified on the invoice as a separate line item (or as a comment line on the invoice) as a credit.
OPIS Daily Contract Average (delivered on April 1) x Contractor’s BioDiesel OPIS Price Multiplier x gallons = Fuel Price
$3.00 x 1.0100 x 1,000 = $3,030
(OPIS Daily Contract Average for ULSD April 1) (Contractors Diesel price multiplier)
3 OPIS PRICE MULTIPLIERS AND RACK REFERENCE CITIES
|Keep-Full OPIS Price Multipliers |
|Region |Gasoline |Diesel |BioDiesel |BioDiesel |OPIS Rack Reference |Contractor |
| | | |B#1 (B100) |B#2 (B100) |City | |
|Peninsula |1.0245 |1.0345 |N/A |1.0350 |Anacortes |Associated Petroleum |
|North Puget Sound |1.0195 |1.0265 |N/A |1.0250 |Tacoma |Associated Petroleum |
|Central Puget Sound |1.0135 |1.0230 |1.0350 |1.0250 |Tacoma |Associated Petroleum |
|Southwest |1.0249 |1.0399 |N/A |1.0249 |Portland |Wilcox & Flegel |
|North Central |- |- |- |- |Spokane |No Bidders |
|South Central |1.0015 |1.0015 |N/A |1.0015 |Pasco |Yakima Cooperative |
|North East |1.0200 |1.0200 |N/A |1.5000 |Spokane |Mountain Oil |
|South East |1.0200 |1.0200 |N/A |1.5000 |Pasco |Mountain Oil |
|Bulk Land OPIS Price Multipliers |
|Peninsula |0.9975 |0.9975 |N/A |1.0000 |Anacortes |Wilcox & Flegel |
|North Puget Sound |1.0125 |1.0115 |N/A |1.0250 |Tacoma |Associated Petroleum |
|Central Puget Sound |1.0065 |1.0080 |1.0350 |1.0250 |Tacoma |Associated Petroleum |
|Southwest |0.9900 |0.9900 |N/A |0.9900 |Portland |Wilcox & Flegel |
|North Central |- |- |- |- |Spokane |No Bidders |
|South Central |1.0100 |1.0100 |N/A |1.0100 |Pasco |Wilcox & Flegel |
|North East |1.0050 |1.0050 |N/A |1.0100 |Spokane |Coleman Oil |
|South East |1.0050 |1.0050 |N/A |1.2000 |Pasco |Busch Distributors |
|Bulk Marine Deliveries |
|Clinton/Mukilteo |N/A |1.0135 |1.0290 |1.0395 |Anacortes |Associated Petroleum |
|Anacortes |N/A |1.0135 |1.0290 |1.0395 |Anacortes |Associated Petroleum |
|Fauntleroy |N/A |1.0135 |1.0290 |1.0395 |Tacoma |Associated Petroleum |
|Port Townsend |N/A |1.0135 |1.0290 |1.0395 |Tacoma |Associated Petroleum |
|Bremerton |N/A |1.0135 |1.0290 |1.0395 |Tacoma |Associated Petroleum |
|Point Defiance |N/A |1.0135 |1.0290 |1.0395 |Tacoma |Associated Petroleum |
4 OPIS DAILY POSTING
The state will make available to our customers the OPIS daily averages for the purpose of validating contract prices have been correctly calculated. If it appears that an error has occurred with regard to an OPIS posting, the state shall contact the publisher for clarification and the correct average price shall be applicable. Contractor shall be required to maintain their own subscription to OPIS in order to correctly calculate contract fuel prices. Please visit ga.pca/fuel/07705.htm to view OPIS Daily Contract Average pricing
5 SERVICE FEE
In general, a fuel hauler’s cost for servicing a storage tank for each location remains constant irregardless of the amount of fuel that is supplied. Therefore, bidders were instructed to propose a fixed Not-to-Exceed service fee for each delivery site identified in the price worksheets. The fuel price coupled with the service fee is to cover all costs that are normally associated to fueling a tank and fulfillment of contract terms. However, customers may be charged additional miscellaneous fees (i.e. an emergency delivery fee a standby fee or a split load fee) when applicable. Below is a sample contract delivery calculation:
$100 (Service Fee) + $20,100 (ULSD Fuel Price) + $3,030 = $23,230 ( Contract delivery price)
Note: all other applicable fees (i.e. emergency delivery fee, etc) and taxes would also be added to the Contract Delivery price
Keep-Full Service Activation forms which includes the contractors bid prices (i.e. service fees, OPIS price multipliers) have already been emailed to those organizations whose fuel demand profiles were incorporated in the original solicitation. Bulk Land customers were also emailed contract prices for their locations. Below is a summary of successful bidder’s prices.
|[pic] |[pic] |[pic] |
a) New Contract Users
If your organization’s fuel storage tanks were not included in the original solicitation then all that is needed to establish contract coverage is a service fee for your location as OPIS price multipliers have already been established. To streamline contract coverage for new customers, bidders were instructed to propose a Not-to-Exceed service fee for a new fuel storage tank location for each of Washington State counties. The table that follows identifies the results. Additionally, bidders also proposed a “New Tank” fee for those Keep Full customers who add a new tank to a location that is already being serviced by this contract. If for example, a new Keep Full customer in Thurston County would pay a service fee would pay $40 per delivery. If the same customer later added another fuel storage tank at this location then the customer would only be charged $10 to service the new tank. The OPIS price multipliers identified in the table in section 4.3 are to be used to establish the price of the fuel delivered.
|Peninsula |Associated Petroleum |Wilcox & Flegel |
| |Keep-Full |Bulk Land |
| | |(Emergency Delivery Fee = $0) |
|County |New Location |New Tank |New Service Location |
| |(see section 3.1c) |(see section 3.1c) |(see section 3.2b) |
|Clallam |$100 |$0 |$0 |
|Jefferson |$100 |$0 |$0 |
|Grays Harbor |$100 |$0 |$0 |
|Mason |$60 |$0 |$0 |
|Kitsap |$60 |$0 |$0 |
|North Puget Sound |Associated Petroleum |Associated Petroleum |
| |Keep-Full |Bulk Land |
| | |(Emergency Delivery Fee = $20) |
|County |New Location |New Tank |New Service Location |
| |(see section 3.1c) |(see section 3.1c) |(see section 3.2b) |
|Whatcom |$60 |$0 |$40 |
|Skagit |$60 |$0 |$40 |
|Island |$60 |$0 |$40 |
|Snohomish |$60 |$0 |$20 |
|Central Puget Sound |Associated Petroleum |Associated Petroleum |
| |Keep-Full |Bulk Land |
| | |(Emergency Delivery Fee = $20 |
|County |New Location |New Tank |New Service Location |
| |(see section 3.1c) |(see section 3.1c) |(see section 3.2b) |
|Thurston |$40 |$10 |$40 |
|King |$40 |$10 |$40 |
|Pierce |$40 |$10 |$40 |
|Southwest |Wilcox & Flegel |Wilcox & Flegel |
| |Keep-Full |Bulk Land |
| | |(Emergency Delivery Fee = $0) |
|County |New Location |New Tank |New Service Location |
| |(see section 3.1c) |(see section 3.1c) |(see section 3.2b) |
|Pacific |$0 |$0 |$0 |
|Wahkiakum |$0 |$0 |$0 |
|Grays Cowlitz |$0 |$0 |$0 |
|Clark |$0 |$0 |$0 |
|Skamania |$0 |$0 |$0 |
|Lewis |$0 |$0 |$0 |
|North Central |No Bidders |No-Bidders |
|Okanogan |- |- |- |
|Chelan |- |- |- |
|Douglas |- |- |- |
|South Central |Yakima Cooperative |Wilcox & Flegel |
| |Keep-Full |Bulk Land |
| | |(Emergency Delivery Fee = $0) |
|County |New Location |New Tank |New Service Location |
| |(see section 3.1c) |(see section 3.1c) |(see section 3.2b) |
|Kittitas |$350 |$350 |$0 |
|Yakima |$300 |$300 |$0 |
|Klickitat |$400 |$400 |$0 |
|Benton |$350 |$350 |$0 |
|Grant |$400 |$400 |$0 |
|Northeast |Mountain Oil |Coleman Oil |
| |Keep-Full |Bulk Land |
| | |(Emergency Delivery Fee = $750) |
|County |New Location |New Tank |New Service Location |
| |(see section 3.1c) |(see section 3.1c) |(see section 3.2b) |
|Ferry County |700 |$700 |$700 |
|Lincoln County |700 |$700 |$650 |
|Spokane County |700 |$700 |$400 |
|Stevens County |700 |$700 |$600 |
|Pend Oreille County |700 |$700 |$600 |
|Southeast |Mountain Oil |Busch Distributors |
| |Keep-Full |Bulk Land |
| | |(Emergency Delivery Fee = $200) |
|County |New Location |New Tank |New Service Location |
| |(see section 3.1c) |(see section 3.1c) |(see section 3.2b) |
|Franklin County |$350 |$350 |$750 |
|Walla Walla County |$250 |$250 |$700 |
|Columbia County |$350 |$350 |$700 |
|Asotin County |$450 |$450 |$600 |
|Garfield County |$450 |$450 |$600 |
|Adams County |$350 |$350 |$650 |
|Whitman County |$550 |$550 |$500 |
Invoicing Requirements
1 INVOICES
Customers are to pay (accurately prepared) invoices within 30 days upon receipt of the invoice. The state recognizes payment delays can be costly but contractors should also recognize that the inability to readily validate contract pricing has been correctly calculated is the primary the cause of payment delays. Therefore, so as to streamline invoice audits and to empower contractors to get paid more quickly, all invoices are to be accompanied with the supporting documentation needed to readily verify that contract prices have been correctly calculated and delivery terms have been met. This may include but may not be limited to:
• A copy of the applicable OPIS posting used to reconcile contract pricing
• A copy of the meter ticket or bill of lading as applicable
• Record of before & after delivery stick level readings (used to validate volume of fuel delivered)
• Delivery receipt signed by the appropriate customer representative
Note: If no customer representative is available to sign the delivery receipt, the before and after delivery stick level readings coupled with the meter ticket or bill of lading will serve as acceptable proof of delivery.
Invoices (as well as supporting documentation) are to be sent to the customer within 3-business days of the delivery and electronic invoices are to be followed up with hard copies. To ensure that invoices are processed in a timely manner contractors are to be diligent in preparing invoices as incorrect invoices may be returned unpaid for correction, reissue, and will likely result in delayed payments. Sample Invoices can be found in appendix. The contractor shall submit a separate invoice for each delivery and at a minimum identify the following:
• Contract number
• Customer name
• Customer account number
• Invoice number
• Delivery location
• Date of invoice
• Date of deliver (identification of the time of the delivery is desirable but not required)
• Amount of fuel delivered (in gallons)
• Description of fuel delivered (separate line item for each fuel type delivered)
• Upon customer request identification of the contractor’s OPIS price multiplier (may be identified in a comment line)
• OPIS Daily contract average reference price (may be identified in a comment line)
• BioDiesel tax credit (may be identified in a comment line)
• Fuel additives or conditioners (if applicable)
• Contractors service fee (relevant to that delivery site)
• Emergency delivery fee (if applicable)
• Standby fee (if applicable)
• Fuel tax credits (if applicable)
• Applicable fuel related taxes
• Applicable fuel related fees (i.e. Hazmat, First Possessor)
• Ferry passage reimbursement (if applicable)
Delivery Requirements
1 QUALITY STANDARDS
The Keep-Full Contractor(s) are to optimize and coordinate delivery schedules of all Keep-Full Customers so as to improve efficiencies resulting in savings. Bulk deliveries will be initiated on an as needed basis which may include on-going regularly scheduled deliveries. The following shall apply to all deliveries:
a) Deliveries are to be made in a professional manner and in accordance with industry standard best practices. The Contractor shall comply with all applicable laws, ordinances, permits, and not unreasonably encumber the premises with equipment, materials and personnel. Delivery sites are to be kept free of the accumulation of waste, spillage or other debris caused by the delivery and the unloading of the fuel.
b) Tanks are to be filled in accordance with industry standard best practices and are not to be overfilled such that tank monitoring equipment malfunctions. The customer will be allowed to deduct any costs associated to resetting a tank’s monitoring equipment from the invoice should an overfill cause the equipment to malfunction.
c) The Contractor has the responsibility to verify delivery hours of each location placing orders. If the contractor arrives outside the scheduled delivery hours and is unable to or denied access to making the delivery, the customer shall incur no expense and the Contractor assumes all liabilities and responsibility for that attempted delivery.
d) If the customer and the contractor arrange a mutually agreeable delivery date and time and the contractor is unable to fulfill the delivery because no customer representative was available (within ½ hour of the agreed upon time) the contractor may bill the customer the service fee and then reschedule the delivery.
2 SAFETY STANDARDS
The handling of the fuel shall comply with all applicable safety laws and standards of the State of Washington and standards established by the United States Department of Transportation, the United States Department of Labor's Occupational Safety and Health Act (OSHA), accepted industry practices, and City/County requirements.
3 SECURITY
Some delivery sites have security restrictions requiring delivery personnel pass a criminal background check before access is granted. In such cases, any drivers used to service these accounts must complete the necessary paperwork in order to perform the criminal background check. The customer is to coordinate this activity and provide the contractor sufficient advance notification of this requirement.
4 NEGLIGENCE
The contractor assumes all liability and responsibilities for the handling and transportation of the fuel until it has been placed in the storage tank(s). The contractor shall be responsible for any and all damage to buildings and/or properties caused by delivery trucks, operating personnel and damages or services necessitated by the failure to deliver fuel or the delivery of faulty product and equipment. Any repair or clean up services shall be made at the contractor's expense and to the satisfaction of the customer. If the contractor fails to comply with these requirements within a reasonable time, the customer may deem it expedient to repair damages and perform the necessary services at the expense of the contractor. Should the fuel be negligently unloaded into the wrong tank (i.e. diesel fuel into a gasoline storage tank), the contractor is responsible for the immediate removal, cleaning and replacement of both products, for any resulting damage, and the loss of revenue.
5 SPILL RESPONSIBILITIES
The contractor is solely responsible for any and all spills, leaks or releases, which occur as a result of, or are contributed to by, the actions of its agents, employees, or subcontractors. Therefore, the contractor shall take all measures as required by law to prevent fuel spills (which includes but is not limited to, any spilling, leaking, pumping, pouring, emitting, emptying, or dumping into or onto any land or water). In the event of a fuel spill, leak, or release, the contractor shall be responsible for the required notifications, containment, clean up, and disposal of the oil spilled and agrees to take the following actions:
a) If warranted, evacuate and warn those persons that may be affected by the spill.
b) Immediately contact the appropriate Emergency Response Agencies as required.
c) Notify the appropriate customer representative of the spill.
d) Clean up the spill in a manner that complies with federal, state and local laws, regulations, rules and standards.
e) For spills, that occur other than on a customer’s owned or leased property; provide all notifications and reports as specified by federal, state and local laws, regulations, rules, standards and permits.
f) Possibly attend additional spill prevention training (at the contractor’s expense).
g) Possibly acquire (at the contractor’s expense) additional spill prevention equipment.
Should the contractor fail or refuse to take the appropriate and timely containment, clean up, disposal actions, the customer may do so and the contractor shall reimburse the customer for all expenses incurred including fines levied by appropriate agencies of federal or local governments. If there are no monies due, the remediation costs shall be the responsibility of the contractor or submitted as a claim to the bonding company.
6 VOLUME VERIFICATION REQUIREMENTS
To ensure that delivery volumes are accurately calculated the following shall apply:
a) Dispensing meters are to be certified by the Washington State Department of Weights and Measures and delivery volumes shall not be temperature corrected.
b) Deliverer is to perform and record before and after delivery stick level readings for each delivery.
c) All invoices are to be accompanied with the appropriate volume delivery verification documentation including but not limited to a metered delivery ticket, bill of lading as well as a record of before and after delivery stick level readings.
d) Following approval by the state contract administrator and at the prompting of the customer, transport containers are to be sealed until the fuel is unloaded. For sealed container deliveries, if there is a significant difference (as determined by the customer) between the metered quantity and the reading obtained by sticking the tank, the customer will pay the metered quantity, provided that the customer representative verifies that the container was completely emptied.
e) Should a customer representative be unavailable to sign the delivery receipt, stick level readings will serve as proof of delivery. In such cases, the driver is to note on the receipt that “no one available to sign” and sign the receipt themselves. Invoices and payments shall be for gross gallons delivered.
7 ENVIRONMENTAL CONSIDERATIONS
Contractors shall comply with all environmental regulations relevant to the contracted refueling service provided. Be advised that the Department of Ecology is currently drafting new Mobile Transfer rule which is slated to be complete in October 2006 and may impact this contract. Under consideration is to require:
• Haulers to equip delivery vehicles with spill response kits.
• Marine delivery drivers to receive and maintain 24-hour “Hazwoper” training certification.
• Require pre-booming of marine vessels prior to refueling tanks via mobile transfers.
• Training requirement to Ecology's Facility Personnel Oil Handling and Certification levels. This would be developed by the company and approved by Ecology as adequate.
• Require delivering company to develop a comprehensive spill contingency plan.
• Require a wireless or remote shut-off device capable of stopping flow of oil from both the mobile facility and the vessel.
• Require all personnel with oil transfer duties have radios and a secondary means of communication.
Because the new fuel transfer regulations may apply to all deliveries (and not just this contract) no price adjustments will be allowed and therefore bidders were instructed to adjust there prices accordingly.
Fuel Specifications
1 PETROLEUM FUEL
All fuel supplied must meet or exceed the most current ASTM specifications relevant to the fuel type ordered. The state reserves the right to test fuel samples to verify specification compliance and failure to supply fuel that meets the minimum specifications may result in contract termination. Additionally, the ultra low sulfur #2 diesel shall not only meet or exceed ASTM D975-03 S-15 specification but also the specifications as shown in the table below. Any change in ultra low sulfur number 2 diesel fuel specifications shall immediately be submitted to the state for evaluation and/or approval.
|Ultra Low Sulfur Diesel Fuel #2 |
|Specification |Unit |Limit |Test Procedure |
|Appearance | | | |
|Water & Sediment |Vol % |0.05 Max |D 2709 |
|Color |Number |3.0 Max |D 1500 |
|Haze Rating |Rating |2 Max |D 4176 |
|Composition | | | |
|Carbon Residue (Ramsbottom ) |Wt % |0.35 Max |D 524, D 189 |
|Volatility | | | |
|90% |deg; F |540 Min. |D 86 |
| |deg; F |640 Max. |D 86 |
|Flash Point |deg; F |125 Min (1) |D 93 |
|Gravity |API |30 Min |D 287, D 4052 |
|Fluidity | | | |
|Pour Point |Deg; F |See Season Table |D 97 |
|Cloud Point |Deg: F |See Season Table |D 2500 |
|Viscosity @ 104F |CSt |1.9 Min |D 445 |
| |CSt |4.1 Max |D 445 |
| | | | |
|Lubricity, SLBOCLE |Grams |3100 Min |D6078 |
|Lubricity, HFRR |mm |.45 |D 6079 |
|Combustion | | | |
|Cetane Index or Cetane Number (3,4) |Number |40.0 Min. |D 976, D 613 |
|Corrosion | | | |
|Copper Strip, 3 hr @ 50 deg C |Number |3 Max (2) |D 130 |
|Aromatics (4) |Vol % |35 Max |D 1319 |
|Contaminants | | | |
|Total Sulfur |PPM |30 Max |D 2622, D 4294 |
|Water & Sediment |Vol % |0.05 Max |D 1796 |
|Ash |Wt % |0.01 Max |D 482 |
|Additives | | | |
|Cetane Improver |Lb/MBbl |675 Max | |
|Dye | |Undyed/dyed | |
|Notes: |
|Minimum release specification is 125 deg.F. The refinery should target 135 deg F. |
|Test result reported as a number and letter (e.g. 1a). Any letter is allowable as long as the number meets the spec shown. |
|Either specification must be met. |
|Either cetane index minimum or aromatics maximum must be met. |
|Season Table |
|Month |Product Code |Pour Point |Cloud Point |
|Jan, Feb, Mar, Oct, Nov, Dec |WI |0 max (5) |14 max (5) |
|Apr, May, Jun, Jul, Aug, Sep |SU |15 max |24 max |
|Upon mutual agreement with the state, winter cloud and pour specifications may be related to the summer specifications. |
3 BIODIESEL SPECIFICATIONS
Many of our customers have had success introducing biodiesel and are poised to increase their volume commitment as availability allows. Other high-volume customers such as City of Seattle (B20), King County Metro Transit (B5), and WSF (B20-goal) have more demanding emission or performance requirements dictating a more exacting and consistent specification of the highest purity so as to achieve reliable results. Should a problem arise, these customer types must have the ability to track down the source of the problem so as to rule out biodiesel as the root cause. As the biodiesel market matures, the state anticipates that biodiesel quality and reliability issues will be resolved. Until then, the state seeks to offer our customers two different biodiesel specifications (B#1 & B#2) as defined herein. The main difference is that the B#1 specification gives customers improved quality control measures whereas the B#2 specification is intended to offer customers what is readily available. It is the states expectation that the next, soon-to-be released ASTM biodiesel revision will satisfy the quality and reliability needs of most customers. At a minimum, all B#1 biodiesel must conform to the following:
4 5 B#1 QUALITY
Besides adhering to government and industry quality standards, the B#1 must at a minimum:
a) Be produced by a BQ 9000 certified facility
Upon request of the purchaser, a certificate of analysis shall be provided for the B#1 ordered. The vendor shall retain this certificate for a period of 3 years. Testing will be required if any failures point to a fuel related issue, at the biodiesel providers expense. Note: The National Biodiesel Board BQ-9000 Accreditation Program has developed a system for monitoring the production, handling and distribution of biodiesel that maintains the fuel properties at the ASTM D6751 specification with rigorous requirements for sampling, testing, storage, retention of samples, blending and shipping.
b) Be consistent in manufacture (one manufacture utilizing one feedstock)
The distributor shall take a sample of the B-100 B#1 product from each batch and seal label and store the samples for a period of 7-months. Upon request of the purchaser, the contractor shall supply the sample for testing purposes.
c) Be free of contamination resulting in bacteria or condensation.
If bacteria are present, the appropriate treatment shall be applied to the biodiesel at their expense.
d) Be filter-cleaned to 5 microns or less.
The B 100-B#1 must be filtered to 5 microns on transfer from storage tanks to the hauler's truck.
e) Be virgin from a single feedstock and homogeneous
Note: The inclusion of recycled products (i.e. “yellow grease”) in the manufacturing process will not be permitted for the B#1 specification.
f) Meet or exceed ASTM-D-6751-03a Grade S15 specification
6 B#1 MINIMUM SPECIFICATIONS
Minimum specifications as shown will be met or exceeded.
|Property |Test Method |Current Limits |Units |
|Flash point (closed cup) |D 93 |130.0 min |°C |
|Water and Sediment |D 2709 |0.050 max |% volume |
|Kinematic Viscosity, 40°C |D 445 |1.9–6.0 |mm2/s |
|Sulfated Ash |D 874 |0.020 max |% mass |
|Sulfur |D 5453 |0.05 max |% mass |
|Copper Strip Corrosion |D 130 |No. 3 max | |
|Cetane Number |D 613 |47 min | |
|Cloud Point |D 2500 |-1° |°C |
|Carbon Residue |D 4530 |0.050 max |% mass |
|Acid Number |D 664 |0.80 max |mg KOH/g |
|Free Glycerin |D 6584 |0.020 |% mass |
|Total Glycerin |D 6584 |0.240 |% mass |
|Phosphorus Content |D 4951 |0.001 max |% mass |
|Distillation Temperature, AET, 90% |D 1160 |360 max |°C |
|Additionally, after July 1, 2006 the B100#1 is to meet or exceed the following: |
|Calcium plus Magnesium | |5.0 max |ppm |
|Sodium plus Potassium | |5.0 max |ppm |
|Oxidation Stability |ASTM D 2274 |10/100 max |mg/ml |
| |Or | | |
| |Rancimat EN 14112 |1.75 min |hour |
|Linolenic acid concentration | |12 max |% mass |
|Water content |Karl Fischer Moisture |500 max |ppm |
|Particulate contamination | |24 max |mg/kg |
|Acid Number |ASTM D 664 |0.50 max |mg KOH/g |
|Kinematic Viscosity, 40 oC |ASTM D 445 |1.9-5.0 |mm2/s |
|Calcium plus Magnesium | |5.0 max |ppm |
7 B#1 BLENDING & HANDLING
Unless otherwise specified, the blending and handling of biodiesel must to conform to the most current BioDiesel Handling and Use Guidelines as defined by the U.S. Department of Energy (currently 2004 ).
a) The hauler shall blend the B100#1 with petroleum diesel as specified by the customer.
b) The hauler is to load the biodiesel prior to loading the petroleum diesel.
c) The B100#1 is to be transferred using clean, dedicated hoses that are properly labeled for that purpose only.
d) All B100#1 transfer shall be metered into the haulers truck compartments.
e) Each compartment in the haulers vehicle shall be loaded with the correct percentage of biodiesel corresponding to the blend ordered. If for example a B-20#1 blend was ordered, each compartment shall contain 20% by volume of biodiesel. Likewise, if a B-5#1 blend was ordered, each compartment shall contain 5% by volume of biodiesel.
f) After the biodiesel is loaded into the haulers truck, the tanks are then to be filled with petroleum diesel so as to achieve the requested biodiesel blend ratio and to achieve proper mixing.
g) Unless the customer specifies otherwise(in writing) BioDiesel is to be metered (and not measured by weight)
8 B#1 SAMPLING & TESTING
So as to rule out biodiesel as the cause of the trouble, the hauling shall obtain two samples of the delivered product upon request of the purchaser. These samples shall be retained for 7 months from the delivery date and provided to the end user upon request. The two samples shall be the following:
a) A one-quart sample (unless customer specifies a smaller sample) of B-100#1 at the time the biodiesel is loaded into the hauler’s tank truck.
b) A one-quart sample (unless customer specifies a smaller sample) of the blended, finished product (e.g. B-20, B-5) at the time of delivery. This sample shall be taken from the middle of one of the hauler’s tank truck compartments using an appropriate sample gathering device.
9 B#1 PRODUCT AGE
Biodiesel in its pure form (B-100) is known to degrade due to age. The state seeks to obtain as fresh a product as practical but in no case shall the product be older than four months from the date of manufacture.
10 BIODIESEL B#2 QUALITY
Besides adhering to government and industry quality standards, the B#2 must at a minimum:
a) Be consistent in manufacture (one manufacture utilizing one feedstock)
b) Be free of contamination resulting in bacteria or condensation.
If bacteria are present, the biodiesel the appropriate treatment shall be applied at the contractor’s expense.
c) Be virgin from a single feed stock.
d) Meet or exceed ASTM-D-6751-03a Grade S15 specification
11 BIODIESEL B#2 BLENDING & HANDLING
Unless otherwise specified, the blending and handling of biodiesel must conform to the most current BioDiesel Handling and Use Guidelines as defined by the U.S. Department of Energy (currently 2004 ).
a) The hauler shall blend the B100#2 with petroleum diesel as specified by the customer.
b) The hauler is to load the biodiesel in accordance with industry standards.
c) All B100#2 transfers shall be metered into the haulers truck compartments.
d) Each compartment in the haulers vehicle shall be loaded with the correct percentage of biodiesel corresponding to the blend ordered. If for example a B-20#2 blend was ordered, each compartment shall contain 20% by volume of biodiesel. Likewise, if a B-5#2 blend was ordered, each compartment shall contain 5% by volume of biodiesel.
e) After the biodiesel is loaded into the haulers truck, the tanks are then to be filled with petroleum diesel so as to achieve the requested biodiesel blend ratio and to achieve proper mixing.
f) Unless the customer specifies otherwise(in writing) BioDiesel is to be metered (and not measured by weight)
12 BIODIESEL B#2 PRODUCT AGE
Biodiesel in its pure form (B-100) is known to degrade due to age. The state seeks to obtain as fresh a product as practical but in no case shall the product be older than four months from the date of manufacture.
Special Terms & Conditions
1 CONTRACTOR PERFORMANCE
a) General Requirements: The state, in conjunction with contract users, monitors and maintains records of Contractor performance. Said performance shall be a factor in evaluation and award of this and all future contracts. Purchasers will be provided with product/service performance report forms to forward reports of superior or poor performance to the State Procurement Officer.
b) Liquidated Damages: The state has an immediate requirement for the materials, equipment or services specified herein. Bidders are urged to give careful consideration to the state’s requirements and to the manufacturer’s production capabilities when establishing a delivery date(s). Liquidated damages will be assessed in the amount of actual damages incurred by the state as a result of Contractor’s failure to perform herein.
c) Cost of Remedying Defects: All defects, indirect and consequential costs of correcting, removing or replacing any or all of the defective product, materials or equipment will be charged against the Contractor. Contractor(s) will not however be liable for defects resulting from improper installation by purchaser.
2 MATERIALS AND WORKMANSHIP
The Contractor shall be required to furnish all new materials, equipment and/or services necessary to perform contractual requirements. Materials and workmanship in the construction of equipment for this contract shall conform to all codes, regulations and requirements for such equipment, specifications contained herein, and the normal uses for which intended. Materials shall be manufactured in accordance with the best commercial practices and standards for this type of equipment. Refurbished products are not allowed without prior approval by purchaser.
3 DELIVERY DEFAULT
In the event that the contractor fails to fulfill delivery terms the customer may purchase fuel from another supplier and the Contractor will be responsible for paying any additional acquisition costs. Habitual late or otherwise non-compliance to delivery terms shall be grounds for contract termination and recovery of damages. Note: If the customer requires fuel that is not available at the rack and another hauler has access to this fuel, the customer may purchase the fuel from the non-contracted supplier and the contractor will not be liable for the difference in price.
4 PRICING AND ADJUSTMENTS
The state recognizes that fuel market fluctuations can impact the haulers B&O taxes as well as the cost of fuel needed to perform deliveries. Even so, the Not-to-Exceed service fee in combination with the OPIS fuel price multiplier allows bidders to protect profit margins irregardless of market fluctuations. Furthermore, because all fuel related taxes are to be charged to customers on a pass-through basis, any fuel related tax code adjustments will not impact the bidder’s profit margin. The only tax adjustment that could potentially impact the contractor(s) profit margins is B&O (currently sale price x 0.0047). Therefore, in the event the B&O tax increases (or decreases) the contractors OPIS fuel price multiplier is to be adjusted relative to the adjustment to the B&O tax rate. No other price increases will be considered.
5 OTHER AGREEMENTS
During contract life, should the contractor enter into an agreement (of similar in scope and value) with another customer which incorporates improved benefits or pricing, the contractor shall immediately notify the State Contract Administrator and amend the state contract to provide similar benefits or pricing.
6 PURCHASING CARD ACCEPTANCE
In an effort to streamline the purchasing and payment process, the State is encouraging agencies to use the state contracted purchasing card to facilitate small dollar purchases. While at the present time, it is not mandatory that contractors accept credit card purchases, we encourage all state contractors to consider this alternate payment process. The current card available for state agency use is a VISA product.
7 REPORTING REQUIREMENTS
Providing timely and ongoing quarterly customer sale usage reports will not only be a contract requirement but will also an important factor impacting in the decision to extend contract(s). Below is a description of the reports that are to be provided.
a) Sales & Subcontractor Report
A quarterly Sales and Subcontractor Report shall be submitted in the format provided by the Office of State Procurement. Bidders may retrieve the report electronically at . Total purchases for each State Agency and higher education institutions are to be shown separately. Total purchases for all political subdivisions and non-profit organizations may be summarized as one customer. Reports are due thirty (30) days after the end of the calendar quarter, i.e., April 30th, July 31st, October 31st and January 31st.
b) State Contract Administrator Required Report
This report will be designed by the State Contract Administrator. At a minimum, the contractor must have the information available to report (in an electronic spreadsheet format) on a Monthly basis the following:
• Customer name
• Delivery site
• Fuel type delivered
• Gallons delivered (per fuel type) per quarter
c) Retention of Records
The contractor shall maintain, for at least three years after completion of this contract, all relevant records pertaining to this contract. This shall include, but not be limited to, all records pertaining to actual contract performance from the date of contract award. It shall also include information necessary to document the level of utilization of MWBE’s and other businesses as subcontractors and suppliers in this contract as well as any efforts the contractor makes to increase the participation of MWBE’s. The contractor shall also maintain, for at least three years after completion of this contract, a record of all quotes, bids, estimates, or proposals submitted to the Contractor by all businesses seeking to participate as subcontractors or suppliers in this contract. The State shall have the right to inspect and copy such records. If this contract involves federal funds, Contractor shall comply with all record keeping requirements set forth in any federal rules, regulations, or statutes included or referenced in the contract documents.
8 INSURANCE REQUIREMENTS
General Requirements: Contractor shall, at their own expense, obtain and keep in force insurance as follows until completion of the contract. Contractor shall furnish evidence in the form of a Certificate of Insurance satisfactory to the state that insurance in the following kinds and minimum amounts has been secured within fifteen (15) calendar days of receipt of notice of award. Failure to provide proof of insurance, as required, shall result in contract cancellation.
Contractor agrees to assume full liability for all claims arising from this contract including claims resulting from negligent acts of all subcontractor(s). Contractor is responsible to ensure subcontractor(s) have insurance as needed. Failure of subcontractor(s) to comply with insurance requirements does not limit Contractor’s liability or responsibility.
All insurance provided in compliance with this contract shall be primary as to any other insurance or self-insurance programs afforded to or maintained by State.
a) Specific Requirements:
Employers Liability (Stop Gap): The Contractor shall at all times comply with all applicable workers’ compensation, occupational disease, and occupational health and safety laws, statutes, and regulations to the full extent applicable and shall maintain Employers Liability insurance with a limit of no less than $1,000,000.00. The state shall not be held responsible in any way for claims filed by the Contractor or their employees for services performed under the terms of this contract.
Commercial General Liability Insurance: The Contractor shall at all times during the term of this contract, carry and maintain commercial general liability insurance and if necessary, commercial umbrella insurance for bodily injury and property damage arising out of services provided under this contract. This insurance shall cover such claims as may be caused by any act, omission, or negligence of the Contractor or its officers, agents, representatives, assigns, or servants.
The insurance shall also cover bodily injury, including disease, illness, and death and property damage arising out of the Contractor’s premises/operations, independent Contractors, products/completed operations, personal injury and advertising injury, and contractual liability (including the tort liability of another assumed in a business contract), and contain separation of insured's (cross liability) conditions.
Contractor waives all rights against the State for the recovery of damages to the extent they are covered by general liability or umbrella insurance.
The limits of liability insurance for shall not be less than:
1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage, and for those policies with aggregate limits, a $2,000,000 aggregate limit.
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. MSC90 endorsement and CA 9948 endorsement including upset and overturn.
3. Workers' Compensation: Statutory requirements of the State of residency.
4. Employers Liability Stop Gap: $1,000,000.
5. Umbrella $4,000,000 over General Liability and Automobile to equal $5,000,000 per occurrence limit.
6. Pollution Liability: $5,000,000. Coverage to include loading and unloading of all petroleum products.
Business Auto Policy (BAP): In the event that services delivered pursuant to this contract involve the use of vehicles, or the transportation of clients, automobile liability insurance shall be required. The coverage provided shall protect against claims for bodily injury, including illness, disease and death; and property damage caused by an occurrence arising out of or in consequence of the performance of this service by the Contractor, subcontractor, or anyone employed by either.
The business auto liability shall include Hired and Non-Owned coverage.
Contractor waives all rights against the State for the recovery of damages to the extent they are covered by business auto liability or commercial umbrella liability insurance.
b) Additional Provisions: Above insurance policies shall include the following provisions:
Additional Insured: The State of Washington and all authorized contract users shall be named as an additional insured on all general liability, umbrella, excess, pollution and property insurance policies. All policies shall be primary over any other valid and collectable insurance.
Notice of policy(ies) cancellation/non-renewal: For insurers subject to RCW 48.18 (Admitted and regulated by the Washington State Insurance Commissioner) a written notice shall be given to the State forty-five (45) calendar days prior to cancellation or any material change to the policy(ies) as it relates to this contract.
For insurers subject to RCW 48.15 (Surplus Lines) a written notice shall be given to the State twenty (20) calendar days prior to cancellation or any material change to the policy(ies) as it relates to this contract.
If cancellation on any policy is due to non-payment of premium, the State shall be given a written notice ten (10) calendar days prior to cancellation.
Identification: Policy (ies) and Certificates of Insurance shall reference the state’s bid/contract number.
Insurance Carrier Rating: The insurance required above shall be issued by an insurance company authorized to do business within the State of Washington. Insurance is to be placed with a carrier that has a rating of A- Class VII or better in the most recently published edition of Best’s Reports. Any exception shall be reviewed and approved by the Risk Manager for the State of Washington, by submitting a copy of the contract and evidence of insurance before contract commencement. If an insurer is not admitted, all insurance policies and procedures for issuing the insurance policies shall comply with RCW 48.15 and WAC 284-15.
Excess Coverage: The limits of all insurance required to be provided by the Contractor shall be no less than the minimum amounts specified. However, coverage in the amounts of these minimum limits shall not be construed to relieve the Contractor from liability in excess of such limits.
Pollution Coverage: Contractor shall obtain pollution legal liability coverage for the duration of the contract, including investigation and legal defense costs, for bodily injury and property damage, including loss of use of damaged property or of property that has not been physically damaged or destroyed. Such coverage shall provide coverage for both on-site and off-site clean-up costs and cover gradual and sudden pollution.
Maritime Laws and Coverage: Contractor is responsible for providing insurance to comply with Longshoremen‘s and Harbor Workers’ Act and Jones Act if applicable to the work or services provided under this contract.
SAMPLE INVOICE--BULK DELIVERY [MARINE]
|Bulk [Marine] Delivery–Sample Invoice |
|Customer Name: |Washington Sate Ferries |Date of Delivery : |01/01/06 |
|Delivery Location: |Anacortes |Customer Account #: |ABC-123 |
|Fuel Type |OPIS Daily Average |x |OPIS Multiplier |x |Gallons Delivered |Fuel Price |
|LS #2 Dyed |$2.34 |x |0.9876 |x |8000 |$18,487.87 |
|B100 (BioDiesel) |$3.45 |x |1.2345 |x |2000 |$8,518.05 |
|BioDiesel “Blender” Tax Credit |($1.00 per gallon) |x |2000 |($2,000.00) |
|Additives / Conditioners |$0.00 |
|Service Fee ( for Anacortes deliveries) |$100.00 |
|Standby Fee ($15 per ¼ hour) |.5 hour |$30.00 |
|Emergency Delivery Fee |N/A |$0.00 |
|Prompt Payment Discount (If applicable) |N/A |($0.00) |
|Washington State and Local Sales Tax (As Applicable) |$0.082 |$206.11 |
|Washington State Fuel Tax |$0.31/gal |10,000 |$3,100 |
|Washington State Oil Spill Tax |$0.0010/gal |10,000 |$12.00 |
|Washington State Hazardous Substance Tax |$0.007/gal |10,000 |$70.00 |
|Federal Lust Tax |$0.001/gal |10,000 |$10.00 |
|Federal Excise Tax |N/A |
|Federal Superfund Tax |N/A |
|Washington State Underground Storage Tank Tax |N/A |
|Total |$28,534.03 |
SAMPLE INVOICE—KEEP-FULL & BULK DELIVERY [LAND]
|Keep-Full or Bulk [Land] Delivery–Sample Invoice |
|Customer Name: |Department of Transportation |Date of Delivery : |01/02/06 |
|Delivery Location: |123 Smith Street NE, Olympia, WA |Customer Account #: |DOT-123 |
|Fuel Type |OPIS Daily Average |x |OPIS Multiplier |x |Gallons Delivered |Fuel Price |
|ULS Dyed #2 |$2.34 |x |0.9876 |x |3800 |$8781.74 |
|ULS Dyed #1 |$2.56 |x |0.9876 |x |3800 |$9,607.37 |
|B100 (BioDiesel) |$3.45 |x |1.2345 |x |400 |$1,703.61 |
|BioDiesel “Blender” Tax Credit |($1.00 per gallon) |x |400 |($400.00) |
|Additives / Conditioners |$0.00 |
|Service Fee (for 123 Smith Street NE, Olympia, WA) |$100.00 |
|Emergency Delivery Fee |(Keep-Full not applicable) |N/A |$0.00 |
|Prompt Payment Discount (If applicable) |N/A |($0.00) |
|Taxes |Gasoline |Diesel |Heating | |
|Washington State and Local Sales Tax |(As Applicable) |(As Applicable) |N/A |$640.00 |
|Washington State Hazardous Substance Tax |$0.007/gal |$0.007/gal |$0.007/gal |$56.00 |
|Washington State Fuel Tax |$0.31 /gal |$0.31 /gal |N/A |$248.00 |
|Washington State Oil Spill Tax (per gallon) |$0.010/gal |$0.010/gal |$0.010/gal |$80.00 |
|Federal Excise Tax |$0.184/gal |$0.244/gal |N/A |$1,792.00 |
|Heating Oil Insurance Fee |N/A |N/A |$0.006/gal |$0.00 |
|Federal Lust Tax |.001/gal |.001/gal |.001/gal |$8.00 |
|Total |$22,616.72 |
KEEP-FULL SERVICE ACTIVATION WORKSHEET
Contract 07705
Customer Delivery Profile
|Customer Name: | |Proposed Activation Date: | |
|Delivery Site Location: |Send Invoices to: |
|Address: | |Address: | |
|City: | |City: | |
|Zip: | |Zip: | |
|Customer Representative #1 |Customer Representative #1 |
|Name: | |Name: | |
|Phone: | |Phone: | |
|Mobile: | |Mobile: | |
|Email: | |Email: | |
Customer is to complete tank delivery profile information to the contractor at least 15-days prior to the requested activation date. So as to promote enterprise wide coordination of delivery schedules, customers are to identify the broadest possible refueling delivery windows allowable and immediately notify the contractor of any changes. Lastly, please be sure to indicate the days and times when a delivery can occur or cannot occur (i.e. and any special instructions if any.
|Tank # | |Tank Size (gallons): | |Fuel Type | |
|Consumption: |Annual |Jan-Mar |Apr-Jun |Jul-Sep |Oct-Dec |
|(gallons) | | | | | |
| | | | | | |
|Tank is above ground: Tank is below ground: |
|A Keep-Full delivery must occur before the tank level reaches ______% of available capacity (default is 20%) |
|Contractor to be granted remote access to electronic tank level monitoring system? Yes No N/A |
|Contractor to identify how often tank level readings are to be reported by customer and by what method: |
| |
|Weekly Monthly Other __________ Fax # ________________ Email ________________________ |
|Deliveries |Monday |Tuesday |Wednesday |Thursday |Friday |Saturday |Sunday |
|Can occur: | | | | | | | |
|Cannot occur: | | | | | | | |
|Special Instructions: |
| |
Customer Signature: _______________________ Date: _______________ Contractor Signature: _____________________________ Date__________________
OFFICE OF STATE PROCUREMENT
PERFORMANCE REPORT
To OSP Customers:
Please take a moment to let us know how our services have measured up to your expectations on this contract. Please copy this form locally as needed and forward to the Office of State Procurement Purchasing Manager. For any comments marked unacceptable, please explain in remarks block.
|Procurement services provided: |Excellent |Good |Acceptable |Unacceptable |
|Timeliness of contract actions | | | | |
|Professionalism and courtesy of staff | | | | |
|Services provided met customer needs | | | | |
|Knowledge of procurement rules and regulations | | | | |
|Responsiveness/problem resolution | | | | |
|Timely and effective communications | | | | |
Comments:
Agency: Prepared by:
Title:
Contract No.: 07705 Date:
Contract Title: Fuel—Keep-Full & Bulk Delivery Services
Phone:
Send to:
Robert Paulson
Contract Specialist
Office of State Procurement
PO Box 41017
Olympia, Washington 98504-1017
PRODUCT/SERVICE PERFORMANCE REPORT
Complete this form to report problems with suppliers or to report unsatisfactory product or services. You are also encouraged to report superior performance. Agency personnel should contact suppliers in an effort to resolve problems themselves prior to completion and submission of this report.
Contract number and title: 07705 – Fuel—Keep-Full & Bulk Delivery Services
Supplier’s name: Supplier’s representative:
|PRODUCT/SERVICE: |
| |Contract item quality higher than required | |Damaged goods delivered |
| |Contract item quality lower than required. | |Item delivered does not meet P.O./contract specifications |
| |Other: | | |
|SUPPLIER/CONTRACTOR PERFORMANCE: |
| |Late delivery | |Slow response to problems and problem resolution |
| |Incorrect invoice pricing. | |Superior performance |
| |Other: | | |
|CONTRACT PROVISIONS: |
| |Terms and conditions inadequate | |Additional items or services are required. |
| |Specifications need to be revised | |Minimum order too high. |
| |Other: | | |
Briefly describe situation:
|Agency Name: |Delivery Location: |
|Prepared By: |Phone Number: |Date: |Supervisor: |
| | | | |
Send To:
ROBERT PAULSON
CONTRACT SPECIALIST
OFFICE OF STATE PROCUREMENT
PO BOX 41017
OLYMPIA WA 98504-1017
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