| Contract (Mandatory): 1-07-91-09 Rev.: A | |
| JET "A" FUEL SUPPLEMENT 1 | |
| EFFECTIVE DATES: | 5/21/2007 Through 5/20/2010 |
| SUPERSEDES CONTRACT NO. : | 1-03-91-09 |
| AREA: | VARIOUS |
| DISTRIBUTION: | |
| BUYER NAME: | MICHAEL AGUILLIO |
| BUYER PHONE: | 916-376-5482 |
| VENDOR ID: | 279570 |
| NAME: | PATTEN ENERGY ENTERPRISES INC |
| ADDRESS: | 3437 S MAIN ST LOS ANGELES, CA 90007 |
| CONTACT: | EZEKIEL PATTEN JR 323-235-3500 |
| FAX: | 323-235-3400 |
| TERMS OF PAYMENT: | 1% - 20 DAYS |
| FOB: | Destination |
| MINIMUM ORDER: | AS SPECIFIED |
CONTRACT SUPPLEMENT NO. 1
June 11, 2007
Contract #1-07-91-09 FOR JET "A" FUEL is hereby modified to reflect the
following:
A. Pricing Information
Differential cost for all locations is .25
Emergency delivery charge is $100.00
Dention fee is 2.00 per minute, not to exceed $150.00 per delivery
Trip Charge fee is $180.00 per delivery.
B. New delivery location
California Highway Partol
Golden Gate Division
Air Operations Unit
3500 Airport Road
Napa, CA 94558
C. All prices, other terms and conditions remain the same.
Retailer's Seller's Permit No. SR AS97-261717
SCOPE:
This contract covers the estimated triennial (three year) requirements of the State of
California for JET "A" FUEL, in accordance with State of California Bid Specification
7130-05BS-001 dated September 28, 2005. This contract contains an option for two (2) one
(1) year contract extensions. Each period will not exceed twelve (12) months. The terms,
conditions, and prices for the contract extension shall be by mutual agreement between
the contractor and the State. If a mutual agreement cannot be met, the contract may be
terminated at the end of the current contract term and/or contract extension(s).
ORDERING PROCEDURE:
State agencies shall complete and submit a Purchasing Authority Purchase Order Form
(STD 65) directly to the supplier. The Purchasing Authority Purchase Order Form shall
contain the following information:
1. Agency Billing Code
2. Leveraged Procurement Number (Contract Number)
3. Purchasing Authority Number
4. Delivery Site
5. Description
6. Base Market Price
7. Differential Price
8. Composite Price
9. Extension Price
10. Quantity
Local agencies may submit a local agency purchase order to the supplier following the same
guidelines as described above. However, local agencies must obtain a State issued billing
code prior to submitting the order. Supplier shall not accept purchase orders from local
agencies without a State issued billing code. Order can be submitted by United States
(U.S.) mail or facsimile.
SUPPLIER LOCATIONS:
The Purchasing Authority Purchase Order (STD 65) shall be submitted to:
Company Name: Patten Energy Enterprises, Inc.
Address: 3437 S. Main St.
City, State, Zip Code: Los Angeles, CA 90007
Telephone Number: (323) 235-3500
Person to Contact: Ezekiel or Jennifer Patten
E-Mail Address: Zeke.Patten@PattenEnergy.com
FAX: (323) 235-3400
County: Los Angeles
ORDER ACKNOWLEDGEMENT/CONFIRMATION:
Within forty-eight (48) hours, the supplier must confirm receipt of the order either via
e-mail or facsimile, providing the user a receipt acknowledging the order. The
acknowledgement must include agency purchase order number, total cost, and delivery date
information.
TEMPERATURE CONTROL:
Temperature correction of delivered product will not be allowed. Invoices and payment
shall be for gross gallons delivered.
MINIMUM ORDERS:
Minimum delivery quantity shall be: Seventy percent (70%) of tank capacity for below
ground tanks and sixty percent (60%) of tank capacity for above ground tanks. Deliveries
for less than the minimum order quantity shall be delivered at the contract price plus
a "PREMIUM" of not more than ten cents ($0.10) per gallon. Deliveries for less than the
minimum order required for "TANK TESTING" will not be purchased against this contract.
F.O.B. DESTINATION:
All prices shall be Freight On Board (F.O.B.) destination.
QUANTITIES:
Quantities noted on the bid are estimates for a three (3) year consumption of Jet "A"
Fuel for each site and are for evaluation purposes only. The State will not be obligated
to purchase supplier's excess inventory if actual purchases vary from the anticipated
purchase pattern. Climatic conditions and other factors affecting consumption will
determine the actual amount used.
CONTRACT PRICE STRUCTURE:
The contract price will be based on two factors: Base Market Price and the Differential
Price. The following formula outlines the contract price to be paid by the ordering
agency:
BASE MARKET PRICE + DIFFERENTIAL = COMPOSITE PRICE
(Calculated daily by the (Provided by the Supplier)
Contract Administrator
using Oil Prices Information
Services (OPIS) data)
Base Market Price: The State will use the OPIS to determine Base Market. If the OPIS
publication is modified, The State reserves the right to re-establish the base price
calculation method or cancel all or part of the contract without prejudice against any
party to the contract.
Note: For the base cost of the Jet "A" Fuel, the State will be using the Los Angeles
"Rack Average" price quoted in the OPIS for product description OPIS GROSS SPECIALTY
DISTILLATE (Jet).
PRICE ESCALATION:
The supplier may submit a proposed escalation for cost, in writing, to DGS Procurement
Contract Administrator when:
1. The cost of fuel has increased by twenty-five (25%) from the original OPIS fuel
price at time of bid due date. The OPIS Los Angeles Market Base will be used to
determine the benchmark.
2. There are any additions, deletions, and/or changes in charges, levies, and fees
due to new legislation that would impact the supplier's differential price. The
The supplier shall immediately notify the Procurement Division, Contract
Administrator in writing of any such charges.
Any such requests for changes in cost of fuel and/or differential prices must include
substantiated information to support the proposed escalation. 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 thirty (30) days from written approval from the State; or
2. Negotiate a proposed price escalation. Note: the State will notify, in writing,
the supplier of its desire to negotiate. The State will have ten (10) working days
to complete negotiations; or
3. Deny the escalation as non-competitive with the general market price at the time,
and continue the contract term with current pricing.
Note: If negotiations fail to produce any agreement, the State reserves the right to
exercise Option 1 or 3 with an effective date no later than ten (10) working days
after unsuccessful negotiation.
No price increase shall apply to quantities ordered from the contract prior to the
effective date of the price increase. Accepted escalation price increase shall be a
maximum for a period of ninety (90) calendar days from the effective date of the price
increase.
Differential price changes shall apply to quantities ordered from the contract on or
after the effective date of the differential price changes as announced by Contract
Supplement. The State shall notify the supplier of acceptance or non-acceptance of
differential changes of the contract in writing.
PRICE DECREASE:
The supplier shall immediately notify the Contract Administrator of all manufacturers'
price declines and the State shall receive full benefit of such declines, effective on
the date of the manufacturers' general public announcement.
PUBLICATION POSTING:
The Department of General Services, Procurement Division tracks and monitors fuel
changes. Procurement Division will prepare and e-mail to the supplier a posting daily
of BASE MARKET PRICE. Procurement Division shall additionally post on the internet the
consolidated weekly base prices each Monday or the first working day of the week. The
The weekly posting shall include the daily price changes. The supplier shall forward a
copy of the Procurement Division weekly posting to all delivery locations that have
been invoiced for payment to substantiate the accuracy of the base pricing on the
invoice. The fuel rates can be accessed and viewed on Procurement Division's web site
at www.pd.dgs.ca.gov/contracts/fuelrates
DELIVERY REQUIREMENTS:
Delivery shall be made to the specified locations listed on Attachment 1 - Pricing Page
Worksheet except by written authorization from DGS Procurement Division. All deliveries
made in a tank wagon must be metered. Deliveries to remote locations may, by mutual
agreement with the receiving location and the supplier, be delivered on a regularly
scheduled "keep full" basis, with no additional charges to the State.
* Regular Delivery: Delivery is to be completed in full within three (3) working days
after receipt of order (ARO) by the supplier during regular working hours,
8:00 a.m. to 5:00 p.m., Monday through Friday, except State observed holidays.
Supplier is required 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.
* Urgent Delivery: Supplier shall make urgent deliveries during regular working hours
for minimum delivery requirements within one (1) working day ARO at NO ADDITIONAL
COST to State or local agencies. Urgent deliveries are not anticipated to occur
often and should be kept to a minimum by the Ordering Agency.
* Emergency Delivery: Deliveries requested outside the regular working hours of
8:00 a.m. to 5:00 p.m. and State observed holidays shall be considered an emergency.
Orders may be placed by telephone, followed by a Purchasing Authority Purchase Order
(Std. 65) sent to the supplier by facsimile or US mail. Emergency delivery invoice
must accompany the fuel invoice for payment of the emergency delivery fee.
The emergency delivery charge shall be $100.00.
Note: 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. A
lack of familiarity with a delivery location will in no way relieve the Supplier from
his responsibility to fulfill the terms and conditions of this contract.
DELIVERY EQUIPMENT:
Supplier will be required to make deliveries at the time specified in vehicles suitable
for each individual locaiton. 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.
DETENTION CHARGE:
During normal delivery hours of 8:00 a.m. to 5:00 p.m., the Supplier's truck upon arrival
shall be admitted to the delivery site without delay. If the Supplier attempts to deliver
fuel to a delivery site and the Supplier's truck is detained at the delivery site for
reasons such as locked gates, unavailable receiving personnel, etc. caused by the
ordering agency, the Supplier shall be entitled to a detention fee. 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 the
detention fee.
The detention fee shall be $2.00 per minute, not to exceed $150.00 per delivery.
TRIP CHARGE:
During normal delivery hours of 8:00 a.m. to 5:00 p.m., the Supplier's truck upon arrival
shall be admitted to the delivery site without delay. If the Supplier attempts to deliver
fuel to a delivery site and is not admitted to the delivery site for reasons beyond the
Supplier's control, caused by the ordering agency, the Supplier shall be paid a trip
charge fee. Trip charge time shall be invoiced separately and supported by appropriate
documentation (delivery logs, contact names, etc.) A trip charge fee invoice must
accompany the fuel invoice for payment of trip charge fee.
The trip charge fee shall be $180.00 per delivery.
LATE DELIVERY CHARGES:
The parties to this agreement acknowledge that the ordering agency shall incur actual
damages should the supplier fail to deliver Jet "A" Fuel 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 twenty-five (25) cents per gallon per order for late delivery of
Jet "A" Fuel and the Ordering Agency will make an adjustment to be reflected on the
invoice. Normal delivery working hours are 8:00 a.m. to 5:00 p.m., Monday through Friday,
except State observed holidays.
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 fuel billing. Start time shall begin when the carrier is ready to
hook-up to the fuel tank. End time shall conclude when carrier disconnects or is
finished loading fuel into the tank.
INVOICING REQUIREMENTS:
Supplier shall render invoices as instructed on each Purchasing Authority Purchase Order
(STD. 65). Each invoice shall show the location, description, quantity (net metered
gallons delivered), Purchasing Authority Purchase Order number, and contract number.
Invoice pricing shall be itemized, showing the BASE MARKET PRICE, the DIFFERENTIAL,
COMPOSITE COST (region base market cost + differential) per gallon, EXTENSION PRICE, and
appropriate TAXES. The State is Federal Excise Tax exempt and shall not pay Federal
Excise Tax. Each State department shall be responsible to furnish all applicable
exemption certificates upon request from the supplier. Invoices and payments shall be for
net metered gallons delivered. Supplier must charge the agency for net metered gallons
delivered only. Supplier shall provide with the invoice a copy of a receipt of gallons
delivered. Additionally, a copy of the "Bill of Lading" from the fuel terminal shall
accompany all invoices for "Truck and Trailer deliveries. The supplier must obtain
approval from Procurement Division before adding and/or modifying any new charges to the
agency invoice.
The following charges shall be listed separately on the agency invoice: State Sales Tax,
Local Sales Tax, and California Motor Vehicle Fuel Tax.
ALLOCATIONS:
In the event the supplier's supply of awarded items is reduced for reasons beyond the
supplier's control to a level which prevents the supply of the State's requirements in
full, the supplier agrees to supply the State no less than a proportionate share
delivered to similar accounts, unless Federal Regulations require otherwise.
SUPPLIER RESPONSIBILITY:
The supplier shall perform all deliveries to facilities in a safe and professional
manner. Supplier's equipment shall be good working order and all personnel shall be
trained in safety measures to preclude accidents endangering personnel or property.
Supplier must commit to delivery as requested, at time stated on accepted orders, through
the term of the contract. Supplier shall provide office and personnel resources for
responding to requests, including telephone coverage Monday to Friday, during the hours
of 8:00 a.m. through 5:00 p.m. Equipment shall be compatible with the facilities' tanks.
CONTRACT USAGE REPORTING REQUIREMENTS:
Supplier shall provide the Department of General Services, Procurement Division (DGS/PD)
a monthly usage report via hard copy, e-mail, and/or on a 3-1/2" computer disk (CD)
formatted in Microsoft Excel. This report shall reflect the fuel orders placed against
the contract for the respective months. Procurement Division must receive the report by
the 5th of the following month. Reporting on specific State department contract activity
may be requested. The State may revise the format of the reports as necessary to meet
State requirements. The Contract Usage Report shall include the following information:
1. Leveraged Procurement Number (Contract Number)
2. Purchasing Authority Number
3. Reporting Month
4. Ordering Agency
5. Purchase Order #
6. Agency Bill Code
7. Commodity Code
8. Invoice Order Number
9. Date of Invoice Order
10. Delivery Date
11. Description of Fuel
12. Gallons Ordered
13. EIA Price
14. Differential Price
15. Additional Fees, if applicable
16. Applicable Taxes
17. Total Invoice Amount
Supplier shall submit the Contract Usage Report to the following address:
Department of General Services
Procurement Division
Attn: Michael Aguillio
707 3rd Street, 2nd Floor
West Sacramento, CA 95605
Note: The DGS/PD reserves the right to add additional contract usage report data
requirements for the entire duration of this contract. Usage report template will
be available after contract award.
REPORTING COMPLIANCE:
Supplier shall comply with the reporting requirements as specified. If Supplier fails to
meet delivery times as specified for any one of the required reports, a one percent (1%)
discount will be applied to the contract pricing on all future orders for 30 days or
until the delinquent report(s) are delivered, whichever is greater. At the end of the
thirty (30) days or at the time of delivery, the discount will revert to the original
contract price.
Contract pricing discounts for reporting non-compliance will commence three (3) months
after contract award. Failure to submit COMPLETED reports within the time period required
may be considered a breach of contract and subject the supplier to General Provisions 26,
"Rights and Remedies of State for Default".
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 (1) year). Exercise of this option may occur in the event that a replacement
contract cannot be established due to protest of an "Intent to Award", loss of key
procurement staff, or any other 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, or any other
substantiating information as requested by the State). In no event will price increases
be accepted with retroactive effective dates.
MODIFICATION OF CONTRACT:
Delivery sites may be added, changed, or deleted as deemed necessary by the Department
of General Services, Procurement Division (DGS/PD). Additional unlisted locations 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 DGS/PD and the
supplier prior to delivery and shall be consistent with prices for nearby locations.
This contract 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.
ITEM COMMODITY NO. VENDOR UNIT DESCRIPTION UNIT PRICE
NO. VENDOR PART NO. NO.
1 9130-913-3302-2 279570 GL FUEL AVIATION JET VARIABLE
2 9135-909-0001-6 279570 VA FLOW-DGS/PROCUREMENT USE ONLY VARIABLE
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