Tender for Gasoline and Diesel Fuel
The Corporate Services Committee recommends the adoption of the following joint report (November 19, 1998)
from the Chief Financial Officer and Treasurer and the Commissioner of Corporate Services, subject to:
(1)amending the Recommendation embodied therein by inserting the following words "noting that the Petro
Canada bid included both the lowest sulphur content as well as the lowest price", after the words "recommended
that", so that the Recommendation now reads as follows:
"It is recommended that, noting that the Petro Canada bid included both the lowest sulphur content as well as the
lowest price, the tender submitted by Petro Canada for the supply and delivery of approximately 4,890,000 litres of
Gasoline and 11,628,515 litres of Diesel Fuel (approximately 7,937,015 litres of Low Sulphur Diesel Fuel used in
various fleet vehicles and approximately 3,691,500 litres of Coloured Diesel Fuel used in heavy equipment and
emergency power generators), be accepted at the tendered price of $0.1952 per litre for Gasoline, $0.1894 per litre
for Low Sulphur Diesel Fuel and $0.1768per litre for Coloured Diesel Fuel, exclusive of all taxes, subject to
escalation or de-escalation as of January 1, 1999, for a total expenditure of $6,339,252.60 including all taxes and
charges, being the lowest tender received; and
(2)the necessary funds being available in the 1999 Operating Budget:
Purpose:
The purpose of this report is to advise of the results of the tender issued for the supply and delivery of Gasoline and Diesel
Fuel, used in various fleet vehicles, heavy equipment and emergency power generators, by various Departments for the
period January 1, 1999, to December 31, 1999, and to request authority to award a contract to the recommended bidder.
Source of Funds:
Funds will be provided in the appropriate departmental Operating Budgets for 1999 subject to availability of funds in
specific accounts.
Recommendation:
It is recommend that the tender submitted by Petro Canada for the supply and delivery of approximately 4,890,000 litres of
Gasoline and 11,628,515 litres of Diesel Fuel (approximately 7,937,015 litres of Low Sulphur Diesel Fuel used in various
fleet vehicles and approximately 3,691,500 litres of Coloured Diesel Fuel used in heavy equipment and emergency power
generators), be accepted at the tendered price of $0.1952 per litre for Gasoline, $0.1894 per litre for Low Sulphur Diesel
Fuel and $0.1768 per litre for Coloured Diesel Fuel, exclusive of all taxes, subject to escalation or de-escalation as of
January 1, 1999, for a total expenditure of $6,339,252.60 including all taxes and charges, being the lowest tender received;
Council Reference/Background/History:
The Bid Committee at its meeting held on October 7, 1998, opened the following tenders for Tender No. 127-1998 for the
supply and delivery of Gasoline and Diesel Fuel used in various fleet vehicles, heavy equipment and emergency power
generators by various Departments for the period January 1, 1999, to December 31, 1999, as summarized below.
Comments and/or Discussion and/or Justification:
The following is a summary of prices for the supply and delivery of Gasoline and Diesel Fuel for the period January 1,
1999 to December 31, 1999.
FederalGoods &
BaseExciseProvincialServicesTotal
PriceTaxRoad TaxTax Price
TendererPer LitrePer LitrePer LitrePer LitrePer Litre
Gasoline (87.0 Octane)
Petro Canada*$0.1952$0.1000$0.1470$0.030954$0.473154
Shell Canada Products Ltd.**$0.1985$0.1000$0.1470$0.031185$0.476685
Sunoco Inc.***$0.2170$0.1000$0.1470$0.032480$0.496480
Big K Fuels Inc.****No Bid
FederalGoods &
BaseExciseProvincialServicesTotal
PriceTaxRoad TaxTax Price
TendererPer LitrePer LitrePer LitrePer LitrePer Litre
Low Sulphur Diesel
Petro Canada*$0.1894$0.0400$0.1430$0.026068$0.398468
Shell Canada Products Ltd.**$0.1918$0.0400$0.1430$0.026236$0.401036
Sunoco Inc.***$0.1980$0.0400$0.1430$0.026670$0.407670
Big K Fuels Inc.****$0.2300$0.0400$0.1430$0.289100$0.441910
Coloured Diesel
Petro Canada*$0.1768$0.0400not applic.$0.015176$0.231976
Shell Canada Products Ltd.**$0.1859$0.0400not applic.$0.015813$0.241713
Sunoco Inc.***$0.2080$0.0400not applic.$0.017360$0.265360
Big K Fuels Inc.****$0.2200$0.0400not applic.$0.018200$0.278200
* Base price firm until January 5, 1999, after which price may be adjusted monthly during 1999 based on the previous
month average Canadian unbranded rack price for Gasoline, 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 the petroleum
industry as a benchmark to follow market conditions.
** Base price firm until January 5, 1999, after which price may be adjusted monthly during 1999 based the previous three
month average Shell Canada's unbranded rack price for gasoline low sulphur diesel fuel and coloured diesel fuel in
Toronto as published in Bloombergs Oil Buyers' Guide.
*** Base price firm until January 1, 1999, after which prices are subject to change upon 30 days written notice based on
market conditions and/or raw material costs.
****Price based on Sunoco's Toronto rack price plus $0.035 per litre.
In the report dated October 9, 1998, to the Board of Health and Corporate Services Committee from the Commissioner of
Corporate Services, Medical Officer of Health and Director of Fleet Management Services entitled Sulphur in Fuels -
Toronto's Fuel Purchase Program, it was recommended that when making bulk purchases of gasoline, on-road diesel fuel
and off-road diesel fuel, the City should consider sulphur content, as well as cost, as a selection criteria. Accordingly, the
specifications for the purchase of gasoline and diesel fuel contained in this tender included the requirement for bidders to
provide information regarding the sulphur content in the fuels they were offering to the City.
The low bid was from Petro Canada for the supply and delivery of 87 Octane unleaded gasoline, low sulphur diesel fuel oil
and coloured diesel fuel oil. The sulphur content for the fuels offered by Petro Canada was within the specification
requirements. The Department of Health, Environment Protection Office was consulted regarding the sulphur content and
was in concurrence with the acceptance of Petro Canada's bid.
The tender documentation submitted by the recommended bidder has been reviewed by the Commissioner of Corporate
Services and was found to be in conformance with the Tender requirements.
The Manager, Fair Wage and Labour Trades Office, has reported favourably on the firm recommended.
Conclusion:
This report requests authority to award the contract for the supply and delivery of Gasoline and Diesel Fuel used in various
fleet vehicles, heavy equipment and emergency power generators, by various Departments, for the period January 1, 1999,
to December 31, 1999, to Petro Canada, being the lowest tender received.
Contact Name:Contact Name:
L. A. PaganoS. Burrows
DirectorDirector
Purchasing and Materials ManagementFleet Management Services
Telephone: 392-7312Telephone: 392-7791
