Contract 1-06-68-19, Terms and Conditions

CONTRACT #1-06-68-19, Liquefied Petroleum Gas (LPG)
Terms and Conditions

SCOPE:

This contract covers the Mandatory estimated three (3) year requirement with two optional one-year extensions for the State of California and participating local agencies for LIQUEFIED PETROLEUM GAS (LPG).

A local agency is any city, county, city and county, district, or other local governmental body or corporation empowered to expend public funds. (Public Contract Code 10298).

EXTRAORDINARY EXTENSION OPTION:

In the event of an extraordinary circumstance the State may extend the contract for up to an additional year beyond the stated term and any noted extensions. Extensions during this period may occur in increments until the establishment of a new contract (not to exceed one-year). Exercise of this may occur in the event that a replacement contract cannot be established due to the protest of intent to award, or loss of key procurement staff, or extraordinary circumstance that would otherwise cause an unanticipated disruption in the contracting process.

If necessary, prices may be increased during an extraordinary extension option period, to the extent that the price is determined to be "fair and reasonable." Requests for price increase(s) shall include substantiated information to support the proposed increase (e.g., manufacturer's price list, significant changes in published market indicators for the industry, certified raw material cost data, and any other substantiating information as requested by State). In no event will price increases be accepted with retroactive effective dates.

QUANTITIES:

Quantities shown on the Pricing Page Sheets are estimates for a (1) year consumption of LPG for each known location and are for evaluation purposes only. The State will not be obligated to purchase contractor's excess inventory if actual purchases vary from the anticipated purchase pattern.

Climatic conditions and other factors affecting consumption of LPG will determine the actual amount used.

FILLER HOSE ADAPTER RENTAL CHARGE:

Filler Hose Adapters - (Safety Checks) shall be used on all deliveries. Please see the "Special Charges Sheet" for rental charges.

Emergency Deliveries Outside of the Regular Working Hours:

Deliveries requested outside the regular working hours and days shall be considered an emergency. Please see the "Special Charges Sheet" for emergency delivery charges.

Emergency orders may be placed by telephone, followed by a written order (Std. 65) sent to the contractor by facsimile.

DETENTION CHARGE:

During normal delivery hours of 8:00 a.m. to 5:00 p.m. the Contractor's truck upon arrival shall be admitted to the delivery site without delay.

If the Contractor attempts to deliver fuel to a delivery site and the Contractor's truck is detained at delivery site for reasons such as locked gates, unavailable receiving personnel, etc. caused by the ordering agency the Contractor shall be entitled to a detention fee.

Please see the "Special Charges Sheet" for the detention charges

Detention time shall be invoiced separately and supported by appropriate documentation (delivery logs, contact names, etc.). A Detention time invoice must accompany the fuel invoice for payment of detention time.

TRIP CHARGE:

During normal delivery hours of 8:00 a.m. to 5:00 p.m. the Contractor's truck upon arrival shall be admitted to the delivery site without delay.

If the Contractor attempts to deliver fuel to a delivery site and is not admitted to the delivery site Reasons beyond the Contractor's control and caused by the ordering agency the Contractor shall be paid a trip charge.

Please see the "Special Charges Sheet" for the trip charges.

Trip charge time shall be invoiced separately and supported by appropriate documentation (delivery logs, contact names, etc.). A Detention time invoice must accompany the fuel invoice for payment of detention time.

PRICE:

Differential Pricing for each delivery location by county is attached.

PRICE INCREASE:

Fuel Delivery Costs:

1. The contractor may submit a proposed escalation for delivery cost, in writing, to Procurement Division when the cost of fuel has increased no less than ten percent from the original fuel cost. Such notice shall include substantiated information to support the proposed escalation from the published OPIS (Oil Price Information Service) the market indicator for the fuel industry. The Department of General Services, Procurement division tracks and monitors such fuel changes. Procurement Division publishes the weekly fuel rate changes. The fuel rates can be accessed and viewed on Procurement Division's web site at url.
2. Upon receipt of such notice the State reserves the right to either:
   1. Accept the escalation as competitive with the general market price at the time, effective 30 days from receipt of an acceptable written notice from Procurement Division; or
   2. Negotiate a proposed price escalation; or
   3. Cancel any un-purchased balance of the contract without prejudice, effective on receipt of such notice.
3. No price increase shall apply to quantities ordered from the contract prior to the effective date of the price increase

TERMINATION FOR CONVENIENCE:

The State may terminate this agreement for convenience upon thirty (30) days written notice. Upon termination or other expiration of this contract, each party will assist the other party in an orderly termination of the contract, as may facilitate the orderly, non-disrupted business continuation of each party.

PRICE STRUCTURE:

The price structure on this Contract is based on three (3) areas. Each area coincides with a market in the Butane Propane Newsletter (BPN) Publication.

DYNEGY - SAN FRANCISCO

DYNEGY - MC KITTRICK

DYNEGY - LOS ANGELES

Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura

PUBLICATION OF WEEKLY POSTING:

Procurement Division will publish and e-mail to the contractors a weekly posting for the three areas on the first working day following the BPN publication date. Procurement Division shall additionally post on the Internet the weekly posting. The weekly posting will be based on the appropriate BPN weekly publication. A copy of the Procurement Division weekly posting must accompany all invoices submitted for payment to substantiate the accuracy of the base pricing on each invoice.

TANK SIZES:

Tank sizes, number of tanks, ownership, and estimated quantities for one year (1 year) are provided on the attached Pricing Sheets.

Tank ownership is indicated on the Pricing Sheets. Tanks that are State owned are marked with a (S) next to tank size. Tanks that are to be furnished by the Contractor are marked with a © next to the tank size.

MINIMUM ORDER QUANTITY:

Minimum delivery quantity shall be 60 percent of tank capacity. Requests for delivery shall state which tank (s) are to be filled at each location.

Deliveries for less than the minimum order quantity shall be considered non-contract requirements- or, by mutual agreement between the contractor and the ordering location - may be delivered at the contract price plus a "PREMIUM" of not more than ten (10) cents per gallon.

Deliveries for less than the minimum order quantity required for TANK TESTING will be considered non-contract and WILL NOT be purchased against this contract.

REGULAR DELIVERY REQUIREMENTS:

Delivery is to be completed in full within 3 working days of the receipt of order by the contractor during regular working hours, 8:00 a.m. to 5:00 p.m., Monday through Friday, except State observed holidays. Note: The first working day begins on the next business day.

The contractor must confirm estimated delivery date and time 24 hours prior to scheduled delivery to ensure availability of State personnel at the delivery location(s).

EMERGENCY DELIVERY REQUIREMENTS:

Emergency deliveries of minimum quantity shall be made within one (1) calendar day ARO by the contractor and are outside of regular working days and hours.

STANDING TIME:

The State shall be entitled to standing time for the purposes of unloading of not more than one hour at no charge. A charge of $1.00 per minute shall be assessed for standing time in which the carrier's equipment is detained, through no fault of the carrier, in excess of the one no charge hour. Charged time shall be supported with the appropriate documents. For payment to be processed, the standing time billing must accompany, on a separate invoice, the LPG billing.

Start time shall begin when the carrier is ready to hook-up to the Propane Tank. End time shall conclude when carrier disconnects or is finished loading Propane into the tank.

ALLOCATIONS:

In the event the contractor's supply of awarded items is reduced for reasons beyond the contractor's control to a level which prevents the supply of the State's requirements in full, the contractor agrees to supply the State no less than a proportionate share delivered to similar accounts, unless Federal Regulations require otherwise. If such reduction occurs, the State reserves the right to cancel all or part of the contract without prejudice to either party, by giving the thirty (30) days written notification.

MODIFICATION OF CONTRACT:

Delivery sites may be added, changed or deleted as deemed necessary by Procurement Division.

Additional unlisted location and or tank changes may be required after original contract award. Differentials for those unlisted locations and/or tank changes shall be mutually agreed upon by Procurement Division and the Contractor prior to delivery and shall be consistent with prices for nearby locations.

Any contract resulting from this bid may be modified in whole or in part upon mutual agreement of both parties. Such modifications shall be in writing, signed and dated by an authorized representative of each party.

State Agency Ordering Procedures:

Issue state agency orders to the contract supplier. State agencies will be sending a Contract/Delegation Purchase Order (STD. 65). The DGS's fee for state agency use is available in the Price Book, located on the Department of General Services, website at www.ofs.dgs.ca.gov/Price+Book/P/Purchasing.htm.

The contractor at his sole option may accept verbal orders. Such orders must be confirmed in writing upon delivery or sooner.

Local Agency Ordering Procedures:

Issue local agency orders directly to the contract supplier. (Blanket orders are no longer issued by the Procurement Division for local agency use.) The DGS's fee for local agency use is the available in the Price Book, located on the Department of General Services, website at www.ofs.dgs.ca.gov/Price+Book/P/Purchasing.htm.

The contractor at his sole option may accept verbal orders. Such orders must be confirmed in writing upon delivery or sooner.

DELIVERY LOCATIONS:

Typically, many of the delivery locations are semi-remote, and access may only be possible over narrow winding unpaved roads. These roads may often limit delivery to trucks without trailers and in some instances smaller than normal trucks may be required. During the winter or periods of inclement weather, making deliveries may be especially difficult. Although some specific delivery limitations for some locations are shown on the Price Sheet, a lack of familiarity with a delivery location will in no way relieve a contractor from his responsibility to fulfill the terms and conditions of this Contract.

DELIVERY EQUIPMENT:

Contractor will be required to make deliveries at the time specified in vehicles suitable for each individual location. These vehicles shall be equipped as required by applicable laws, rules or regulations with all components; such as connectors and hoses of the proper size, length, etc., necessary to successfully complete delivery. All delivery vehicles and/or trailers must have accurate metering equipment to enable State Personnel to verify quantities delivered.

INVOICING REQUIREMENTS:

Contractor shall render invoices as instructed on each contract/delegation purchase order (Std. 65). Each invoice shall show the county, stock item number, commodity description, quantity (gross gallons delivered), contract/delegation purchase order number and contract number. Invoice pricing shall be itemized, showing the BASE PRICE, the DIFFERENTIAL, COMPOSITE PRICE per gallon, and the EXTENSION and appropriate TAXES.

Invoices and payments shall be for gallons delivered (metered). Contractor must charge the agencyfor gallons delivered only. Contractor shall provide with the invoice a copy a receipt of gallons delivered.

Only charges listed in the contract for component of differential prices shall be listed on the agency invoice. The contractor must obtain prior approval from Procurement Division before adding and/or modifying any new charges to the agency invoice.

TEMPERATURE CORRECTION DISALLOWED:

Temperature correction of delivered products WILL NOT be allowed.

CONTRACTOR LOCATIONS:

Attach a list of the location(s) to which contract/delegation purchase orders should be submitted for each location. Identify the county in which each distributor is located.

CONTRACTOR RESPONSIBILITIES:

CONTRACTOR IS REQUESTED TO MAKE DELIVERIES IN LOS ANGELES COUNTY, ORANGE COUNTY, SAN BERNARDINO METROPOLITAN AREA, AND SAN DIEGO METROPOLITAN AREA DURING OFF-PEAK HOURS. OFF-PEAK HOURS ARE 10:00 A.M. TO 4:00 P.M.

1. The contractor shall perform all deliveries to facilities in a safe and professional manner. Contractor's equipment shall be in good working order and all personnel shall be trained in safety measures to preclude accidents endangering personnel or property.
   
   
2. Contractor must commit to delivery as requested, at time stated on accepted orders, through the term of the contract.
   
   
3. Contractor shall provide office and personnel resources for responding to requests, including telephone coverage weekdays during the hours of 8:00 a.m. through 5:00 p.m..
   
   
4. Equipment shall be compatible with the facilities' tanks.
   
   
5. Report total purchases per quarter for each county awarded.

LATE DELIVERY CHARGE:

The parties to this agreement acknowledge that the Ordering agency shall incur actual damages should the supplier fail to deliver the Propane as specified in the contract delivery requirements.Late Delivery charges must be supported by appropriate documentation (delivery logs, contact names, etc)

It is agreed that the supplier will pay the Ordering Agency ten (10) cents per gallon for late delivery of Propane and the Ordering Agency will make an adjustment to reflect the invoice.Normal delivery working hours are 8:00 a.m. to 5:00 p.m, Monday through Friday, except State observed holidays. Note: The first working day begins on the next business day.Emergency delivery days are one (1) calendar day after receipt of order (ARO) and are outside of regular working days and hours.

REPORTING REQUIREMENTS:

Contractor shall provide quarterly reports in the format specified under Exhibit A-Detailed Usage Reports attached. All reports are due by the ninth day of the following month of the period being reporting. Reporting on specific State Department Contract activity may be requested. State may revise the format of the reports as necessary to meet State requirements. Failure to submit completed usage reports in a timely manner may be considered a breach of contract and subject the Contractor to General Provision 26, Rights and Remedies of the State for Default.

Send the Contract Usage Report to the following address:

Department of General Services Procurement Division Attn: Sherry Jacobs
P.O. Box 989054
707 3rd Street
West Sacramento, CA 95798-9054