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  5. ›2020 Supply No. 2 Fuel Oil, Service & Repair

Awarded contract·Town of Southampton·New York

2020 Supply No. 2 Fuel Oil, Service & Repair

Won by Quogue Sinclair Fuel, Inc.$8MAwarded 12/10/2020Single Award
Contract source

Awarded vendors

  • Quogue Sinclair Fuel, Inc.

Description

This contract awards the Town of Southampton’s “Supply No 2 – Fuel Oil, Service & Repair” work to Quogue Sinclair Fuel, Inc. The agreement covers the provision of No. 2 ultra‑low‑sulfur fuel oil (2 % bio‑blend) delivered to the town’s facilities, a handling charge per gallon, and all associated maintenance, servicing, and emergency repair work required to keep the municipal fuel‑oil system operational. The pricing structure is based on a per‑gallon handling charge ($15 / gal), hourly labor rates ($135 / hr for day, night, and emergency work), and a markup on the certified cost of the fuel (10 % in the proposal sheet, 40 % in the results sheet). The contract is effective upon execution (award date 8 Dec 2020) and runs for one year ending 31 Dec 2021, with the municipal authority retaining an option to extend the agreement for up to four additional one‑year periods through 31 Dec 2025. The procurement was conducted via a public bid that attracted a single responsive offer. • Scope: fuel‑oil supply + service & repair of municipal heating systems. • Pricing: unit‑price handling charge, hourly labor rates, and cost‑plus markup. • Term: 1‑year base term with up to four optional 1‑year renewals.

Attached files

Key dates

Bids closed
12/2/2020
Intent to award
12/10/2020
Awarded
12/10/2020
Contract modified
12/4/2020
Starts
12/10/2020
Ends
12/31/2021Renews
Duration
1 year

Last updated

Details

Award type
Single Award
Procurement
Sole Source
Industry
Energy and Utilities
NAICS
424720
Solicitation №
BP2020-0037

Contract value

$8,000,000

No explicit contract dollar amount is disclosed in the supplied documents. To estimate a plausible value, we consider a typical small‑town heating‑oil consumption of roughly 300,000 – 500,000 gallons per year. Using the proposal’s handling charge of $15 / gal plus the market price (linked to OPIS daily pricing) – assume an average price of $2.50 / gal for the fuel itself – the fuel component would be about ($2.50 + $15) × 400,000 ≈ $7.0 million. Adding labor (e.g., 200 hours per year at $135 / hr ≈ $27,000) and a 10 % markup on fuel cost (~$700,000) brings the total to roughly $7.8 million. Rounding for uncertainty, a reasonable ball‑park estimate is about $8 million. This figure reflects the likely scale of a municipal fuel‑oil supply contract with associated service work.

AI estimate from the award documents

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