HomeMy WebLinkAbout09/20/2011 Road Salt Bid AcceptanceMount
Mount Prospect Public Works Department
' INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER MICHAEL E. JANONIS
FROM: SUPERINTENDENT OF STREETS & BUILDINGS PAUL BURES
DATE: SEPTEMBER 14, 2011
SUBJECT: ACCEPT 201112012 STATE BID FOR ROAD SALT ($269,972)
BACKGROUND
For many years, the Village has routinely purchased road salt for our winter snow and ice control
efforts through the State of Illinois Joint Purchasing Program. However, during the winter of
2007/2008 we opted out of the state salt purchase and let an experimental stand -alone bid in an
effort to get better pricing and improved deliveries. Unfortunately, the pricing we received was
actually higher than the state pricing that year and delivery problems persisted. We returned to the
State of Illinois Joint Purchasing Program in 2008/2009 and have participated each year since. Our
recent experience with this program has been favorable; yielding competitive pricing and reliable
deliveries. It is the opinion of staff that there is presently no advantage to bidding road salt
separately. We believe the best interests of the Village will be served by participating in the state
bid for 2011/2012 snow season.
Last year, at the end of the season, we filled our storage bins to the maximum capacity of 1,200
tons in order to take advantage of anticipated lower pricing and to make sure we had an adequate
supply to start the season.
Under the terms of the state contract, we are required to order 80% of our anticipated volume and
may increase the order to 120 %, if needed and supplies are available, without a penalty or increase
in price. For the purposes of this contract, we plan to establish our anticipated volume at 5,400
tons. At this volume, we are obligated to order at least 4,320 tons but may order up to 6,480 tons if
circumstances warrant. Deliveries are guaranteed not to exceed seven calendar days from time of
order.
Typically, we order approximately 4,000 tons of road salt each winter. Establishing an anticipated
order volume at 5,400 tons allows us to easily satisfy the minimum requirements of the state bid
(80% or 4,320 tons) while maximizing the amount of salt we can order under the state contract
provisions (6,480 tons). We have never had a problem satisfying minimum order requirements and
have occasionally had cause to order the maximum volume.
BID RESULTS
This year, the state bid for road salt was awarded to Morton International, Incorporated of Chicago,
Illinois (Morton Salt) at a rate of $60.41 per ton. This rate is a 3.5% increase over the rate paid in
2010/2011 and 2009/2010 ($58.37 per ton).
Page 2 of 2
Accept 2011/2012 State Bid for Road Salt ($269,972)
September 14, 2011
DISCUSSION
Morton Salt supplied us with salt in 2009/2010 and 2010/2011. They have also helped provide salt
in other years when other contracted suppliers couldn't satisfy our orders due to regional salt
storages. Morton Salt's performance, as well as the quality of their road salt, has been acceptable
in all cases.
Additionally, staff has surveyed four (4) area communities with comparable road salt usage and
identified a current price range of $60.33 per ton to $63.95 per ton. Only one (1) community
reported a salt rate lower than $60.41 per ton. Consequently, it is the opinion of staff that the state
bid rate is competitive and responsive.
RECOMMENDATION
It is my recommendation that the Village accept the 2011/2012 State of Illinois Joint Purchasing
Program results for road salt and enter into a contract with Morton International Inc. of Chicago,
Illinois to supply road salt at a unit cost of $60.41 per ton. The anticipated cost of this proposed
contract for the winter of 2011/2012 is $260,972 ($60.41 x 4,320 tons (minimum order) = $269,972).
(
Paul Bures
Superintendent of Streets & Buildings
I concur:
Sean P. rsey
Director of Public Works
c: Director of Public Works Sean P. Dorsey
Deputy Director of Public Works Jason Leib
File
C: \Documents and Settings \SDORSEYWy Documents \STREETS \ROAD SALT\STSALT2011 12.doc