.pdf RFP-1603-Recommendation

Description

Date: May 17, 2016 From: Justin Attaway, Business Manager/CSBO Re: Natural Gas Request for Proposal #1603 Description A Request for Proposal was published in the Pioneer Press Skokie Review on April 21, 2016, posted on the District website, and mailed to five vendors. A total of four responses were received by the due date of May 6, 2016. Analysis Skokie School District 69 has historically been a member of and purchased natural gas through the Intergovernmental Utilities Purchasing Cooperative (IUPC). At the Board meeting on December 15, 2015, the Board of Education authorized the withdrawal from the cooperative to seek more competitive options. A Request for Proposal was issued seeking a two-year contract with a natural gas supplier that will remain in effect from April 2017 through March 2019. Suppliers were asked to quote four different scenarios: a NYMEX index if the supplier managed gas storage; a NYMEX index if the District managed gas storage; a fixed price if the supplier managed gas storage; and a fixed price if the District managed gas storage. Four suppliers submitted quotes to the District: Constellation, Warrenville, Illinois; Vanguard Energy Services, Naperville, Illinois; Mansfield Power and Gas, Gainesville, Georgia; and CenterPoint Energy, Downers Grove, Illinois. The two-year cost estimates (based on average annual use of 106,005 therms) are as follows: Constellation, Warrenville, Illinois Supplier Owns Storage Gas NYMEX per Therm Quoted Basis Total per Therm Estimated Cost Over 2 Years 0.2040 0.00217 0.20617 $43,710.10 District Owns Storage Gas NYMEX per Therm Quoted Basis Total per Therm Estimated Cost Over 2 Years 0.2040 0.01416 0.21816 $46,252.10 Fixed Price Additional Fees Estimated Cost Over 2 Years 0.32156 $0.00 $68,173.94 Fixed Price Additional Fees Estimated Cost Over 2 Years 0.32138 $0.00 $68,135.77 0.3010 0.006 0.307 $65,087.07 Vanguard Energy Services, Naperville, Illinois Supplier Owns Storage Gas NYMEX per Therm Quoted Basis Total per Therm Estimated Cost Over 2 Years 0.3140 -0.009 0.305 $64,663.05 District Owns Storage Gas NYMEX per Therm Quoted Basis Total per Therm Estimated Cost Over 2 Years Fixed Price Additional Fees Estimated Cost Over 2 Years 0.305 $0.00 $64,663.05 Fixed Price Additional Fees Estimated Cost Over 2 Years 0.307 $720.00 $65,807.07 Mansfield Power and Oil, Gainesville, Georgia Supplier Owns Storage Gas NYMEX per Therm Quoted Basis Total per Therm Estimated Cost Over 2 Years 0.2040