April 9, 1998
To:Corporate Services Committee
From:Chief Financial Officer and Treasurer
Subject:Tender for Diesel Fuel for the period June 1, 1998 to December 31, 1998
Purpose:
The purpose of this report is to advise of the results of the tender issued for the supply and delivery of Diesel Fuel, used in
various fleet vehicles, heavy equipment and emergency power generators, by various former City of Toronto, Municipality
of Metropolitan Toronto Departments and Borough of East York, for the period June 1, 1998 to December 31, 1998 and to
request authority to award a contract to the recommended bidder.
Funding Sources:
Funds estimated at $1,415,240.61 including all current taxes and charges are provided in the 1998 current accounts of the
Departments concerned.
Recommendations:
It is recommended that the tender submitted by Shell Canada Products Limited for the supply and delivery of
approximately 4,440,875 litres of Diesel Fuel, (approximately 1,905,943 litres of Low Sulphur Diesel Fuel used in various
fleet vehicles and approximately 2,534,932 litres of Coloured Diesel Fuel used in heavy equipment and emergency power
generators), be accepted at the tendered price of $0.1998 per litre for Low Sulphur Diesel Fuel and $0.1948 per litre for
Coloured Diesel Fuel, exclusive of all taxes, subject to escalation or de-escalation as of June 5, 1998, being the lowest
tender received.
Council Reference/Background/History
Thirteen (13) firms were invited to submit tenders and an advertisement was placed in the daily press for this requirement.
Four (4) tenders were received for the supply and delivery of diesel fuel used in various fleet vehicles, heavy equipment and
emergency power generators by various former City, Metro Departments and Borough of East York as summarized below.
It should be noted that this requirement is only for a seven month period to allow for amalgamation of requirements of
other former municipalities once all their existing contracts expire within the next seven months. The next tender call for
this item will be for a one year period and will include requirements for all former municipalities.
The Manager, Fair Wage and Labour Trades Office, has reported favourably on the firm recommended.
Comments and/or Discussions/or Justification:
Summary of Prices:
Supply and delivery of diesel fuel for the period June 1, 1998 to December 31, 1998
TenderersBaseFederalProvincialGoods & Total
PriceExciseRoad TaxServicesPrice
Per LitreTax Per LitreTax Per Litre
Per LitrePer Litre
Low Sulphur Diesel
Shell Canada
Products Limited*$0.1998$0.04$0.1430$0.0268$0.4096
Petro Canada**$0.2078$0.04$0.1430$0.0274$0.4182
Sunoco Inc.***$0.2177$0.04$0.1430$0.0280$0.4287
Big K Fuels Inc.***$0.2510$0.04$0.1430$0.0304$0.4644
Coloured Diesel
Shell Canada
Products Limited*$0.1948$0.04not applicable$0.0164$0.2512
Petro Canada**$0.2015$0.04not applicable$0.0169$0.2584
Sunoco Inc.***$0.2129$0.04not applicable$0.0177$0.2706
Big K Fuels Inc.***$0.2440$0.04not applicable$0.0199$0.3039
* Base price firm until June 5, 1998 after which price may be adjusted monthly during 1998 based on Shell Canada=s
Canadian unbranded rack price for Low Sulphur Diesel Fuel and Coloured Diesel Fuel in Toronto as published in
Bloombergs Oil Buyers= Guide, a price index published weekly and used by all bidders who submitted a tender for this
requirement. This ensures that the City will receive the lowest pricing available for the term of the contract.
** Base price firm until June 4, 1998.
*** Base price firm until June 1, 1998.
Conclusions:
This report requests authority to award the contract for the supply and delivery of Diesel Fuel used in various fleet
vehicles, heavy equipment and emergency power generators, by various former City of Toronto, Municipality of
Metropolitan Toronto Departments and Borough of East York, for the period June 1, 1998 to December 31, 1998 to Shell
Canada Products Limited, being the lowest tender received.
Contact Name and Telephone Number:
Mr. Lou Pagano
Director
Telephone: 392-7312
W. A. Liczyk
Chief Financial Officer and Treasurer
