Copyright© Operational Services Division All Rights Reserved VEH95 Sodium Chloride (Road Salt)...

Copyright© Operational Services Division All Rights Reserved

VEH95 Sodium Chloride (Road Salt)

Buyers Event

August 18, 2015

Stephen LyonsDeputy Strategic Sourcing LeadOperational Services Division


Agenda1. Welcome

2. VEH95 Contract Summary

3. Challenges of 2014-2015

4. VEH95 Buyer Feedback

5. VEH95 Vendor Feedback

6. OSD Response

7. Amendments for 2015-2016

8. MassDOT Areas 2A and 2C

9. 2015-2016 VEH95 Pricing

10. Early Order Incentive

11. Emergency Pick Up

12. VEH95 on COMMBUYS

13. Questions?

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VEH95 Contract Summary

This contract is for the supply and delivery of Sodium Chloride (Road Salt) to Commonwealth Departments, Cities, Towns, Co-Ops, and other Eligible Entities. The intended use of the Sodium Chloride is as a deicer/anti-icer.

An entity that wishes to use VEH95 must complete a Memorandum of Understanding and Estimated Usage Form annually.

The Commonwealth intends to maintain the ability to order Sodium Chloride (Road Salt) during the contract period, regardless of the season, under the contract in effect. Awarded vendors are required to complete all deliveries in a timely manner to allow all contract users the ability to maintain adequate stockpile levels of salt inventory for regular use, public safety and related emergencies.

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• Prior to February 2015 minimal complaints from Eligible Entities.

• Sporadic complaints for clumping from all vendors.

• Delivery completion time for orders during/after February 2015 was overwhelmingly longer than 10 days.

VEH95 2014-2015 ChallengesBuyer Feedback

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• 2013-2014 Winter was severe and caused all vendors to start the 2014-2015 season behind schedule.

• During prolonged severe weather it is more difficult to service customers over a large area, resulting in delivery delays.

• 2014-2015 snowfall was record setting and caused multiple successive days of having no truck fleet to move salt due to snow removal.

• Truck drivers make more money with snow removal than salt delivery which creates a bidding war for drivers.

• Overcrowding at stockpiles by pick up orders further complicates the situation and causes some drivers who are paid by the order to leave.

VEH95 2014-2015 ChallengesVendor Feedback

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OSD activity during snowstorms:• As contract manager I fielded several requests for assistance from buyers

on VEH95. To the best of my ability I communicated between buyers and vendors to help get salt deliveries to those who were in need.

• OSD held conference calls with vendors and MassDOT to address poor vendor performance and plans on how to respond to the snowstorms.

• OSD requested additional reporting from vendors to track open orders.

MassDOT activity during snowstorms:• Required vendors to stay open longer hours and on weekends.• Provided emergency salt to VEH95 buyers from MassDOT stockpiles

(despite DOT receiving half of their daily tonnage requirements).• Assisted vendors with obtaining permits to load trucks over weight limit.• Postponed deliveries to allow vendors to catch up with eligible entities.

VEH95 2014-2015 ChallengesOSD and MassDOT Activity

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OSD Offseason Activity

• Held individual meetings with each vendor.

• Sent out a Vendor Performance Survey to 139 Eligible Entity contacts.

• 67 responded (48.2%)

• Met with MassDOT to get feedback and discuss contract improvements.

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Meetings and Survey Takeaways• Service was primarily disrupted by series of snowstorms and

trucks lost to snow removal.– Record setting snowfall was ultimate factor for poor performance.– Trucks lost to snow removal consistently impaired vendor ability to

make timely deliveries and catch up on open orders.

• Other issues:– Impaired ability of vendors to stockpile from previous winter.– Buyers not filling stockpiles before winter.– Buyers limited by small salt sheds.– Communication breakdown between buyers and vendors.– Lack of clear pick up policy.– Lack of delivery timeframe for eligible entities.– Ships not being able to make it to stockpiles.– Quality issues (clumping, sand content, and moisture content)

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VEH95 RFR AmendmentsLanguage Added to Section 3.7.3.3 Bid Price:

Extreme Emergencies: It is the intent of the Commonwealth to utilize pick up prices only in EXTREME EMERGENCIES as referenced below. Pick up pricing will be reduced by 10% of the delivered price or the cost of vendor freight, whichever is greater.

Non-Extreme Emergencies: In the event that weather or other conditions outside of the eligible entity’s control prevent delivery completion within 10 business days of original order date, eligible users of VEH95 will have the option, when available, to pick up salt orders at the contractor’s stockpile and receive an invoice reduction of 10% of the delivered price or the cost of the vendor’s expected freight, whichever is greater, for the quantity that is picked up.

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VEH95 RFR AmendmentsLanguage Added to Section 3.7.3.3 Bid Price:

Pick Up Procedure: All vendors must provide to the Commonwealth Contract Manager a formal document outlining their pick up policy and procedure for entities that need to pick up orders at the stockpile. An updated version of this document must be submitted to the Contract Manager annually by August 15th of each year.

Early Order Incentive: All vendors are required to submit a Vendor Early Order Incentive Form when requested by the Contract Manager. Vendors are to provide a percentage discount off the price awarded to all MassDOT Areas they service. An early order incentive will take effect on any VEH95 road salt orders placed prior to November 15. Vendors may extend the price discount beyond this timeframe. Vendors are not required to offer a discount, but must complete and submit the Vendor Early Order Incentive Form to [email protected] or others as updated.

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VEH95 RFR AmendmentsLanguage Added to Section 3.7.3.4 Routine Orders and Delivery:

c. Delivery Time Frames and Late Deliveries

It is expected that a normal delivery for an eligible entity would be fulfilled within 5 business days outside of any extreme weather circumstances. Deliveries to eligible entities taking longer than 10 business days to fulfill are considered late. If an entity has a late delivery they may choose to cancel the order and/or purchase replacement tonnage from another vendor on contract. If no vendor on contract is available the entity may choose to purchase replacement tonnage from a vendor off-contract. Any price paid above the contracted price for the entity’s area due to late delivery can be sought for reimbursement from the awarded vendor in that area.

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VEH95 Re-Bid of MassDOT Areas 2A & 2C

• Morton Salt formally requested to relinquish MassDOT Areas 2A and 2C.

• OSD re-bid 2A and 2C between the original vendors who responded to VEH95.

• Eastern Salt has been awarded MassDOT Area 2A for 2015-2016 starting 9/1/2015 at $80.38/ton.

• Same price from 2014-2015.

• Cargill Deicing has been awarded MassDOT Area 2C for 2015-2016 starting 9/1/2015 at $78.61/ton.

• Same price from 2014-2015.

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VEH95 2015-2016 Pricing(September 1, 2015 – August 31, 2016)

MassDOT Areas 1A & 1B Morton Salt $74.12 MassDOT Area 4B Eastern Salt $64.55

MassDOT Areas 1C & 1D Morton Salt $73.91 MassDOT Area 4C Granite State $65.00

MassDOT Area 2A Eastern Salt $80.38 MassDOT Area 5A Morton Salt $70.68

MassDOT Area 2B Cargill $78.75 MassDOT Area 5B Morton Salt $69.87

MassDOT Area 2C Cargill $78.61 MassDOT Area 5C Morton Salt $70.40

MassDOT Areas 3A & 3B Eastern Salt $67.85 MassDOT Area 5D Morton Salt $77.74

MassDOT Area 3C Granite State $68.00 MassDOT Area 5E Morton Salt $225.00

MassDOT Area 4A Eastern Salt $63.65 MassDOT Areas 6A, 6B, 6C, & 6D

Eastern Salt $68.36

Tonnage DRC only Eastern Salt $68.12

New vendor

New price

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VEH95 Early Order Incentive• An early order incentive is an additional discount the vendor

is offering to road salt purchased in designated months outside of the main winter season.

• Vendors are not required to offer an early order incentive and buyers should check their vendor’s MBPO page on COMMBUYS to see if there is a discount offered by that vendor.

• 2015-2016 Early Order Incentives:– Morton Salt: 3% discount on orders placed in July through November– Eastern Salt: $1.00/ton discount on orders placed in April and October

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VEH95 Emergency Pick Up Policies• Vendors have been instructed to publish their emergency pick

up policy/procedure for buyers.

• Buyers must refer to their vendor’s pick up policy for instructions on what to do during emergency pick up needs.

• Picking up road salt is permitted during extreme emergencies where the Governor has declared a state of emergency.– In reference to the storms in 2015, a “non-extreme emergency” can

also create the need for pick up when successive storms have created an aftermath of snow removal that prolongs road salt delivery by over 10 business days.

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VEH95 on COMMBUYS• VEH95 is viewable on www.commbuys.com

• Each vendor has a Master Blanket Purchase Order (MBPO) page which contains a line item for each MassDOT Area they service along with the price per ton in that area.

• The VEH95 RFR is available on each vendor MBPO, as is a guide for locating the MassDOT Area of an entity, the Contract User Guide, Early Order Discounts, and pricing information.

• Additional information may be posted to COMMBUYS in the future.

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http://www.commbuys.com/


Questions?

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Contact Information

Stephen LyonsDeputy Strategic Sourcing Lead

VEH95 Contract Manager

617-720-3373 (phone)617-727-4527 (fax)

[email protected]

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mailto:[email protected]


Please take a moment to complete a short survey on this

meeting.

Thank you

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Copyright© Operational Services Division All Rights Reserved VEH95 Sodium Chloride (Road Salt)...

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