HomeMy WebLinkAbout11/07/2012 2012/2013 State Bid for Road SaltMount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
BACKGROUND
VILLAGE MANAGER MICHAEL E. JANONIS
SUPERINTENDENT OF STREETS & BUILDINGS
OCTOBER 31, 2012
ACCEPT 2012/2013 STATE BID FOR ROAD SALT ($126,576)
The Village of Mount Prospect has purchased road salt through the State of Illinois Joint Purchasing
Program for a majority of the past twenty years. The table below denotes the prices paid per ton in
this program for the last four (4) years. Please note that last year's price was $60.41 per ton.
YEAR
VENDOR
COST PER TON
2008/2009
Inc.
$64.42
_ Cargill
2009/2010
Morton Salt
$58.37
2010/2011
Morton Salt
$58.37
2011/2012
Morton Salt
$60.41
Our experience has been that vendors supplying salt for the joint purchasing program have
consistently maintained adequate stockpiles and offered acceptable delivery terms at competitive
prices.
BID RESULTS
The State of Illinois awarded a contract for road salt to Morton Salt of Chicago, Illinois for the
2012/2013 (November 1, 2012 — June 30, 2013) winter season. The contract award is for $52.74
per ton; which is significantly less than last year's price of $60.41 per ton. The bid prices are based
on an estimated quantity of 3,000 tons of salt.
DISCUSSION
As noted in the table above, Morton Salt has been the successful bidder each of the last three
winter seasons. In addition, they have also helped provide salt in other years when other
contracted suppliers couldn't satisfy our orders due to regional salt shortages. Morton Salt's
performance, as well as the quality of their road salt, has been acceptable in all cases.
Participation in the State of Illinois joint purchasing contract requires the Village to submit an
estimated quantity to be purchased. This year, staff reduced our estimate to 3,000 tons; which is
substantially less than the 5,400 tons normally requested. This reduction was made due to an
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Accept 2012/2013 State Bid for Road Salt ($126,576)
October 31, 2012
unusually large quantity of salt already on hand in inventory. Due to the below average amount of
snow received last winter, we currently have 3,000 tons of salt on hand.
Participation in the state's joint purchasing program obligates the Village to purchase, at a
minimum, 80% of the requested amount (3,000 tons) or 2,400 tons. In turn, the vendor is required,
if needed, to provide 120% of the requested amount or 3,600 tons at the contract cost.
Over the past four winter seasons the Village has used an average of 4,700 tons of salt. Assuming
salt utilization will return towards the historical average, this order level will allow us to deplete our
existing excess inventory and re -stock for next winter at what appear to be abnormally low prices.
The state's joint purchasing agreement bid documents also provide the state with discretion to
extend this year's award for one (1) year at the same rate and conditions. Typically, the decision to
extend the award is made in late winter. It is staff's opinion that this year's prices are low and a
contract extension should be considered if tendered.
Director of Public Works
RECOMMENDATION
I recommend acceptance of the bid for road salt as submitted by Morton Salt of Chicago, Illinois
through the State of Illinois joint purchasing agreement at a cost of $52.74 per ton for the
2012/2013 winter season.
Staff does not foresee needing to purchase any salt for the remainder of 2012. 2013 purchases will
be limited to amounts authorized by the Village Board.
I also recommend that the Village Board authorize staff to extend the contract for one (1) year at the
same rate ($52.74 per ton) and conditions; if offered by the State of Illinois Joint Purchasing
Program. Expenditures will be limited to amounts authorized by the Village Board in the 2013 and
2014 budgets.
Paul Bures
I concur:
Sean P. sey
pb
c: Director of Public Works Sean P. Dorsey
Deputy Director of Public Works Jason Leib
File