SPRINGFIELD AIRPORT AUTHORITY REQUEST FOR PROPOSALS AVIATION FUEL SUPPLIER FOR ABRAHAM LINCOLN CAPITAL AIRPORT SPRINGFIELD, ILLINOIS
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1 SPRINGFIELD AIRPORT AUTHORITY REQUEST FOR PROPOSALS AVIATION FUEL SUPPLIER FOR ABRAHAM LINCOLN CAPITAL AIRPORT SPRINGFIELD, ILLINOIS August 3, 2009 SECTION 1: INTRODUCTION 1.1 Purpose and Scope The Springfield Airport Authority, hereinafter referred to as Authority, is soliciting sealed competitive proposals from suppliers of aviation grade fuels, hereinafter referred to as Supplier or Proposer, pursuant to a determination that such a process best serves the interests of the Authority and the general public. In October 1997, the Authority took responsibility for the management and daily operation of the fuel storage facility and has allowed on-field fuel concessionaires (Fixed Base Operators) and other authorized persons to dispense fuel from the Authority s fuel storage facility. The fuel concessionaires (FBOs) may then use the fuel for their own operation or sell the fuel to an end user such as general aviation and airline customers. Therefore, with respect to final sale of the fuel to the end user, the various programs such as refueler leasing, advertising co-ops, and into-plane related programs should be extended to the authorized fuel concessionaires at Abraham Lincoln Capital Airport (SPI). 1.2 Proposal Evaluation Each proposal will be evaluated based on criteria and priorities defined by the Authority. Cost alone will not be the sole factor in the selection determination. Information presented by Suppliers in their proposals will be used to evaluate the qualifications, support services, and price structure of the proposed aviation fuel program. \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc
2 1.3 Submission Requirements and Schedule Related materials and hard copy responses to this RFP must be submitted and delivered to the Authority office located on the second floor of the terminal at Abraham Lincoln Capital Airport no later than 2:00 p.m. on Tuesday, August 25, It is the sole responsibility of the respondents to ensure that their proposals arrive in a timely manner. Suppliers may submit alternate and/or multiple proposals. The Authority will not accept late arrivals. Oral, telephone, or fax proposals shall not be considered. Envelopes containing RFPs shall be marked as follows: Return Address Aviation Fuel Proposal Do Not Open Springfield Airport Authority Aviation Services Manager 1200 Capital Airport Drive Floor 2 Terminal Building Springfield, IL Proposals should be in a form that will allow the Authority to make copies for selection committee members. The Authority will not be liable for any cost incurred by Suppliers in preparing responses to this RFP or negotiations associated with award of a contract. An approximate schedule for selection is as follows: Issue RFP/Publish August 3, 2009 Scheduled Pre-proposal Meeting August 12, 200 at 2:00 p.m. CDT Responses Due August 25, 2009, at 2:00 p.m. CDT Supplier Selection & Contract Negotiation Period August 26 - September 8, 2009 Target Date to Execute Contract September 25, 2009 Commencement Date November 1, 2009 at12:01 a.m. CDT 1.4 Withdrawal of Proposals Proposals may be withdrawn at any time prior to the submission time specified in Section 1.3 of this RFP, provided notification to the Authority is received in writing. Proposals cannot be changed or withdrawn after the time designated for receipt. \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc - 2 -
3 1.5 Pre-Proposal Meeting There will be a pre-proposal meeting conducted Wednesday, August 12, 2009, at 2:00 p.m., in the Springfield Airport Authority Board Room to answer any questions or concerns. Attendance is not mandatory but Proposers are strongly encouraged to attend this meeting. Any questions outside of the aforementioned meeting will require a written inquiry by the Proposer and a written response from the Authority to all Proposers. Following this meeting Proposers will also have an opportunity for an inspection of the aviation fuel storage facilities in order to obtain first-hand exposure to the existing equipment. Proposer may participate in the pre-proposal meeting via teleconference with the understanding that, if participating via teleconference, or if not attending the pre-proposal meeting, Proposer will not have the opportunity to view the facilities and Proposer waives all rights to plead any misunderstanding regarding same. 1.6 Supplier Communication Upon release of this RFP, all Supplier communications concerning the overall RFP should be directed in writing to the Springfield Airport Authority, Aviation Services Manager at the aforementioned address in Section 1.3 or via to bdorsch@flyspi.com with RFP Information Request in the subject line. Any oral communications will be considered unofficial and non-binding on the Authority. 1.7 Interpretation and Additional Information and Addenda Any interpretation, correction, or change to this RFP will be issued by the Authority by ADDENDUM only. Interpretations, corrections, or changes to the RFP made in any other manner will not be binding, and the Suppliers shall not rely upon such interpretations, corrections, or changes. Addenda will be mailed, ed, faxed or delivered to all those submitting. Addenda will be issued as expeditiously as possible. It is the responsibility of the Supplier to determine whether all addenda have been received. 1.8 Collusion In submitting this proposal, the Supplier declares that the only persons or parties interested in the RFP as principal are those named therein and that the proposal is made without collusion with any other party, firm or corporation. \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc - 3 -
4 1.9 Completion of Responses Responses must be completed in accordance with the requirements of the RFP. Statements made by Suppliers shall be without ambiguity, and with adequate elaboration, where necessary, for clear understanding Additional Information from Proposers After submission of proposals, the Authority may request additional information (written or otherwise) from any or all Proposers Right of Selection/Rejection Waiver of Informalities or Irregularities The Authority reserves the right to accept a proposal(s), to reject any or all proposals, to waive any informality of the proposal form, to modify or amend with the consent of the Supplier any proposal prior to acceptance, to waive irregularities, and to effect any agreement otherwise, all as the Authority in its sole judgment may deem to be in its best interests. Selection of a Supplier shall not be construed as an award of contract, but as commencement of contract negotiation Proposal Contents All proposals must include, as a minimum, the information specified in Section 6: Proposal Response. Failure to include this information will seriously detract from a proposal and may be cause for its rejection. The inclusion of any additional information that will assist in its evaluation is encouraged. The adequacy, depth and clarity of the proposal will influence, to a considerable degree, its evaluation Hold Harmless Upon receipt of this RFP through the award of a contract, the Supplier shall indemnify, keep and hold harmless the Authority and any agents, officials or employees of the Authority against all suits or claims that may be based on all alleged death or injury to persons or damages to property that might occur, or that might have been alleged to have occurred in the course of the performance of this proposal and subsequent award of contract by the Supplier or their employees, and shall at their own expense, defend any and all such actions and shall, at their own expense, pay all charges of attorneys and all costs and other expenses arising therefrom or incurred in connection therewith and if any judgment shall be rendered against the Authority in such action the Supplier shall, at their own expense, satisfy and discharge same. \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc - 4 -
5 1.14 Equal Opportunity and Other Compliance Requirements The Supplier, for itself, its personal representatives, successors in interest, and assigns, as part of the consideration hereof, does hereby covenant and agree: that no person on the grounds of race, color, creed, sex, age, or national origin or handicap shall be excluded from participation, denied the benefits of, or be otherwise subjected to discrimination in the use of its facilities; that, in the construction of any improvements on behalf of Supplier and the furnishing of services, no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination on the grounds of race, creed, color, sex, age, national origin, or handicap; that Supplier shall use the Airport facilities in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination-Effectuation of Title VI of the Civil Rights Act of 1964, as amended; and that in the event of breach of any of these nondiscrimination covenants, the Authority shall have the right to terminate this Agreement. The Supplier assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to ensure that no person shall, on the grounds of race, creed, color, national origin, age, handicap or sex, be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. Supplier assures that no person shall be excluded on these grounds from participating or receiving the services or benefits of any programs or activity covered by the Subpart. Further, Supplier agrees that it will require that its covered sub-organizations provide assurance to the Authority that they similarly will undertake affirmative action programs and that they will require assurances from their sub-organizations, as required by 14 CFR Part 152, Subpart E, as to the same effect Bid Rigging The Supplier agrees that he/she is not barred from bidding on this contract as a result of a violation of the Illinois Compiled Statues, 720 ILCS 5/33E-3 and 5/33E-4, having to do with bribery/bid rigging/bid rotating Fuel Purchase Contract The Authority will provide a fuel purchase contract document including terms and conditions as the parties may agree. The minimum term of the negotiated contract will be not less than 3 years, with the option of one additional renewal \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc - 5 -
6 that may be equivalent to the length of the initial term, but not less than 3 years. SECTION 2: AVIATION FUEL SPECIFICATIONS By submitting a proposal, the supplier will ensure that the aviation fuel delivered meets or exceeds the following minimum specifications: Jet Fuel: Aviation Kerosene type Jet A fuel received shall conform to ASTM D-1655 specifications, latest revision. Suppliers that provide Jet A pre-blended with anti-icing additives shall also conform to MIL-DTL B specifications. Avgas: Fuel received shall conform to ASTM D-910 specifications, latest revision, and shall be of the Aviation Gasoline type, 100 Octane, Low Lead (Avgas 100LL) or future replacement. Supplier will provide a certificate of analysis on all aviation fuel shipments. Supplier will also provide traceability on all shipments back to refinery. SECTION 3: FUEL FACILITIES Abraham Lincoln Capital Airport has the following two fuel sites: Site A Underground Storage Tanks utilized by the Authority for general distribution: Two 15,000 gallon Jet A tanks One 12,000 gallon AvGas tank Site B Above Ground Storage Tanks utilized exclusively by the Illinois Department of Transportation One 12,000 gallon Jet A tank One 12,000 gallon AvGas tank The historical usage for aviation fuels at Abraham Lincoln Capital Airport during the period from July 1, 2006 through June 30, 2009 are as follows: \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc - 6 -
7 Site A FY Jet A Gallons Avgas 100LL Total Gallons ,869, ,159 1,991, ,767, ,601 1,870, ,258,939 88,956 1,347,895 Site B FY Jet A Gallons Avgas 100LL Total Gallons ,002 21, , ,241 18, , ,282 16, ,217 Average Annual Total Gallons from FY (Sites A & B) 1,960, Maintenance The Authority provides all maintenance and repairs for Site A. The State of Illinois, Illinois Department of Transportation and its Division of Aeronautics provides all maintenance and repairs for Site B. Both Site A and Site B are maintained in accordance with applicable federal, state and local rules and regulations. 3.2 Quality Control The Authority performs quality control including inspections for Site A according to the Air Transport Association Specification 103 latest revision. Authority personnel receive fuel shipments and complete all documentation related to acceptance of the product. 3.3 Inventory Control and Reconciliation The Authority provides and maintains the records necessary to track the movement of fuel from the fuel storage facility, FBO and end user. \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc - 7 -
8 SECTION 4: FIXED BASE OPERATORS Currently two FBOs operate as authorized fuel concessionaires at Abraham Lincoln Capital Airport. 4.1 Landmark Aviation Landmark Aviation operates from a facility located on the east ramp area. In addition to aviation fuel services, Landmark provides aircraft maintenance, hangar storage, and ground support services. Landmark also provides intoplane fueling for the commercial airlines currently serving the airport and supports an into-plane contract with Defense Energy Support Center for transient military aircraft. Fuel sales for fiscal year 2009 were approximately 1.2 million gallons. 4.2 McClelland Aviation McClelland Aviation operates from a facility located on the southeast ramp (Charlie Ramp) area. In addition to aviation fuel services, McClelland provides aircraft charter, flight training and instruction, hangar storage, and ground support services. Fuel sales for fiscal year 2009 were approximately 120,000 gallons. SECTION 5: BILLING AND INVOICES 5.1 Site A Currently the Supplier bills the FBO (concessionaire) directly for the fuel sold including all applicable taxes and fees based on a weekly sales report. The Supplier bills each FBO for the Airport Rates and Charges and remits the appropriate charges to the Authority. The Supplier also bills into-plane customers including the fees charged by the FBO and the Authority and remits the appropriate charges back to the FBO and the Authority. The Authority desires to maintain this consignment method for fuel delivered into the storage facility but remains open to possible modifications that would benefit all of the parties involved. The Authority is also considering a change to the current arrangement that would move the task of billing Airport Rates and Charges from the Supplier to the Authority. 5.2 Site B The Authority directly purchases the fuel from the Supplier, and in turn, invoices the Illinois Division of Aeronautics through an Intergovernmental \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc - 8 -
9 Agreement with the Illinois Department of Transportation. The terms of the agreement coincide with the Authority s fuel purchase contract with regard to the determining factor of price. The aforementioned agreement has been renewed through June 30, 2010 which coincides with the State of Illinois fiscal year end. This agreement between the Authority and the State of Illinois has been in effect since 1997 and has been renewed annually. SECTION 6: PROPOSAL RESPONSE Proposals are to include, but need not be limited to, the following: 6.1 Name of fuel brand Proposers are encouraged to provide a nationally recognized Supplier s brand name. 6.2 Aviation Fuel Pricing The Authority desires to receive the best possible pricing and in order to facilitate the comparison of proposals, it is necessary that all proposals completely explain their method of pricing and how it is tied to an available benchmark index or market price. In addition, proposals shall include the timing of price changes and the method of conveying changes to the Authority. Prices shall be based on full transport quantities from the Supplier s primary supply terminal. Proposals shall indicate any price surcharge applied as a result of Supplier s use of alternate or secondary supply points. Suppliers must indicate transportation costs that are not included in the placement/market differential. Suppliers shall also indicate any transportation surcharge costs for alternate or secondary supply points. Proposals shall indicate how transportation cost increases/decreases are determined and the method of conveyance to the Authority. Suppliers who propose a benchmark index must provide a detailed spreadsheet indicating the price per gallon (excluding taxes) in effect 12:01 a.m. Tuesday, July 7 through 12:01 a.m. CDT Tuesday, August 4, 2009, including a breakdown of any additional shipping costs and surcharges. Suppliers must indicate each price change during the effective period and the date the change was made. The exact description of the benchmark index must be stated. Suppliers who propose a market price must provide a detailed spreadsheet indicating the price per gallon (excluding taxes) in effect 12:01 a.m. Tuesday, July 7 through 12:01 a.m. CDT Tuesday, August 4, 2009, including a breakdown of any additional shipping costs and surcharges. Suppliers must \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc - 9 -
10 indicate each price change during the effective period and the date the change was made. Proposals may include prices for Jet A and/or Jet A with anti-icing additive pre-blended at the loading rack prior to delivery. 6.3 Payment Terms Proposals must state the payment terms required by the Supplier and provide details on modifications that may be made during the contract period. The Supplier shall also state the terms and methods for which the Supplier will remit any Rates and Charges collected on behalf of the Authority or any intoplane fees due to FBOs. 6.4 Notice Requirement for Fuel Delivery Proposals must state the notice requirement for normal fuel deliveries and under emergency conditions requiring a shorter time frame. 6.5 Insurance Information Indicate the limits of liability and related specifics that the Supplier will provide in addition to primary coverage carried by the Authority and FBOs. Supplier shall indicate the insurance relationship including, but not limited to, types of insurance and dollar limit of liability between the Authority, Supplier, Fuel Transporter and any other third party operator involved with Supplier delivering to the Authority (SPI). In the event of any subsequent award of contract, the Authority will require a certificate of insurance naming the Authority as an additional insured and a certificate holder. 6.6 Quality Control and Training Indicate and describe the Supplier s quality control and FBO employee training programs that are provided for aviation fuel handling. 6.7 Commercial Airlines Indicate and describe the Supplier s ability or programs designed to manage or facilitate FBO into-plane fuel services to all segments of scheduled and unscheduled commercial passenger-carrying airlines. \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc
11 6.8 Contract Fuel Indicate and describe any programs designed to manage or facilitate FBO intoplane contract fuel services. 6.9 Other FBO Programs and Services Indicate and describe the services and programs offered to FBOs including, but not limited to, advertising, credit card, refueler leasing/purchase, automation/eft, and other co-op programs. The Authority is interested in Supplier providing a marketing plan and listing types of amenities and rates Supplier intends to offer to FBOs. Also, list any future investment, such as AvGas self serve, etc., or any other investment the Supplier might consider. \\Spiw2k3\shared files\fuel\bid Specs\Aviation Fuel RFP 2009.doc
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