Propane (Liquefied Petroleum Gas)

This is a mandatory statewide contract for the supply of propane (liquefied petroleum gas) to all Virginia state agencies, public universities, and other designated public bodies. Pricing is based on a variable “Apex” market price plus a location‑specific differential markup per gallon; the contract also includes a demurrage fee and a quarterly surcharge adjustment. The award is to Ferrellgas LP (with the possibility of other vendors under the same IFB) and runs for four years with one optional one‑year renewal. The agreement sets delivery response times, quarterly sales reporting, and standard payment terms (Net 30/Prompt Payment Act). • Contract period: 07/01/2023 – 06/30/2027 (extendable to 06/30/2028). • Pricing: $ per gallon = Apex price + differential markup (varies by county); demurrage $25 per 15‑min wait; $0.03/gal surcharge adjustment. • Scope: Delivery of propane tanks ≥ 100 gal to state agencies; excludes tanks under 100 gal. • Administration: Commonwealth of Virginia Division of Purchases & Supply; vendor contact Erin Slattery ([email protected]).