Rental Equipment
Final Bid: See Subgroups
 
Reverse-Auction ID:   4865
Date Ended: February 23, 2018
Duration:   25 days   7 hr  
Start:   Mon Jan 29, 2018 at 7:00 am CT
End:     Fri Feb 23, 2018 at 2:00 pm CT
Category:   Equipment Rental

Qty: 3   Unit: Years

 

ebid Summary  (read full details below)

Need:

Rental Equipment for 4 locations in the Houston, TX area

First Term:

3-year initial period with additional 1-Year extensions

Quantity: 

41,982 Rental Days across 185 line items

Price:

1-Year lock with Price Fluctuation review at each 12-months

Listen To:

Sorcity Welcome

Contact:

Sorcity at 214-718-6004

 

Change Log
Date    Change Made
2/23End Time changed to later (See Key Dates below or Time Remaining above)
2/14End Time changed to later (See Key Dates below or Time Remaining above)
2/14Key Dates/Times changed (See Key Dates below)
2/14Line Item Worksheet updated. Item 59 & 119 removed due to lack of detail in the description

Arkema Inc. is an international company with 37 U.S. locations and is currently accepting bids on Rental Equipment for 22 of these locations, of which 12 are actively renting a variety of equipment including; general, aerial, and temporary utilities equipment.

The first term of this award covers an initial 3-year period including additional 1-year extensions on this term, as approved by the Buyer, provided performance and pricing is on track. Please read this complete ebid, all email notices, and the Sorcity Member Agreement, in full, so you understand the bid guidelines and are properly prepared to bid if your company qualifies and would like to gain this business.

Approximately 90% of all Arkema Rental Equipment spend is in the gulf coast region, primarily Houston through Alabama (see map below). The remaining locations are primarily in the Northeast and Midwest with one on the West Coast.

 

All active locations that rent equipment are included in this ebid. Additional quantities, or locations added, will be treated as increased volume under this online ebid award, and governed under the same terms as this Event.

 

It is understood that one Supplier may not be able to service all locations or equipment categories, so this has been broken down by area and category so that Suppliers can bid on all areas they service. Arkema prefers to award to the fewest number of Suppliers, so bid aggressively in all groups you service.

 

In addition to the average annual spend included in this bid, this award also includes business from natural disasters and other special projects that occur on an annual basis for which rental equipment will be needed, estimated at $200,000 - $300,000 annually.  Two significant projects have already been identified for 2018: a turnaround at the Beaumont, TX plant, and rebuild effort at the Crosby, TX plant.
 

Although price is an important element of this award, this is not a price-only decision. Other factors to be considered include: availability of equipment, quality, maintenance & repair capabilities, service-levels, responsiveness, acceptance of Buyer's Equipment Rental Contract, and relationship.

 

After the bidding ends, the Buyer may contact several low bidders to further understand their capabilities and additional benefits you might have to offer, before an award is made (see Key Dates below).  This is also an opportunity to begin establishing relationships. The anticipated Start Date for this award is April, 2018. 

 

PLEASE NOTE: 

To ensure the bid process remains fair, any direct contact with the Buying Organization regarding this opportunity, during or after this bid process, until the Buyer contacts you, will cause you to be in violation of the bid process and be eligible for penalties (see Sorcity Member Agreement).

 

BID STRUCTURE:

The Houston Texas area includes 4 locations which are grouped into 3 equipment categories (separate biddable ebid sub-groups) to be bid online. The remaining locations are not to be bid online but are simply to be priced in the same Line Item Worksheet as the Houston area.

A link to each sub-group is included below. You may ONLY bid on the sub-groups for which you are able to supply ALL rental equipment and locations listed in that sub-group, and meet all the terms stated. Preference may be given to suppliers who can bid in multiple sub-groups.


Please perform honorably.  Bids will only be accepted through this ebid.  Bidding in any other manner, or attempting to sell directly to one of the Buyer's locations will disqualify you for this business for the term of the award and will remove you from good standing with the Buyer and Sorcity for future business.  We look forward to your participation and help in maintaining the integrity of this fair and objective bid process.  Here are the sub-groups to bid:

 

Rental Equipment Sub-groups

Sub-group

ebid #

1 - Aerial Equipment Per Key Dates bid here 4866
2 - Temporary Utilities

Per Key Dates bid here 4867

3 - General Equipment Per Key Dates bid here 4868

 

Map of Arkema Equipment Rental Locations: (click to enlarge)

Red = Houston area biddable sub-groups

Yellow = Locations currently active

Blue = Other locations with historical usage

 

List of All Arkema U.S. & Canadian Locations

 

Additional bid guidelines:

  1. Please follow the instructions in the Bid Notice email you were sent and any reminders and updates provided.

  2. Please note that this is not a commitment to rent all specified line items for the number of rental hours listed, but a good faith effort to meet or exceed the dollar amount awarded for goods in these general categories, including other similar items not listed.

  3. Buyer is requesting the Bidder's best price in the bid to include: rebates, allowances, and other incentive programs. The Buyer does not want these other incentive programs in addition to the price, but rather included as part a best-price bid. This eliminates tracking and auditing of these ancillary programs and provides straightforward pricing.

  4. Rental Equipment Contract: We have provided an advanced look at the Arkema equipment contract that is to be signed by the awarded Supplier.  Review this in advance so that you are aware of the general terms & conditions, and requirements of Arkema before bidding.

Line Item Worksheet: (Schedule of Listed Equipment)

  1. Sorcity is providing you this Line Item Worksheet as one of the bid documents, to list your per unit pricing, which will automatically calculate the “Total” bid price. Only the “Total” from the Worksheet may be entered as your bid in the online Event. Do not attempt to enter line item prices online or your bid will be inaccurate. 

  2. The estimated rental days listed in the Line Item Worksheet are three (3) year totals, not annual quantities, and are expected to be the minimum rental requirements during the next 3-years, based on forecasted market demand.

  3. Be sure to save the Line Item Worksheet to your desktop first, and then use it to work up your Bid.  This will allow you to promptly return your completed copy of the worksheet once the bidding ends.

  4. Follow the instructions, which include filling in all items highlighted in green such as your Dun & Bradstreet number and Unit Prices where noted, as it is part of your reply to this bid package.

  5. In order to avoid mistakes and ensure that the ebid Opening Bid value accommodates your pricing, you must email your initial pricing in the Line Item Worksheet to Sorcity at least 2-days prior to opening bid day online (see Key Dates below).

  6. YOUR COMPLETED FINAL LINE ITEM WORKSHEET IS A REQUIREMENT AND MUST BE RETURNED TO SORCITY WITHIN (1) HOUR AFTER THE BID ENDS, regardless of your bid position. Failure to do so may render your bid unacceptable and invoke penalties.

  7. Per unit prices must not be higher than the price a bidder has represented either in their catalog or their online site. This requirement does not apply to special promotions.

  8. The Category Discount Percentage is an important part of the decision criteria, and applies to all other Rental Equipment items that may be rented but not listed in this bid, and must match the percent discount provided on all like items listed in this bid, so you must factor this into your pricing structure.

  9. In addition to listing your equipment rates, also enter (in miles) the distances between your facility(s) and the Arkema locations, along with the Delivery Fee (each way), if any.  Keep in mind that Arkema currently receives free delivery for any location that is less than 20 miles, except for over-sized items that require special transportation or for delivery of re-rent items.

  10. For Additional Equipment that you do not normally stock and must be sourced from a third party, provide your cost plus percentage for those items where noted.

  11. Enter in all details and pricing for any additional Arkema locations and equipment categories you can service, where noted below the biddable sub-groups.

  12. If you are bidding on more than 1 sub-group, work up your pricing as if you be awarded all of the sub-groups in which you bid. This does not guarantee that you will be awarded all sub-groups bid, but will provide the Buyer with the most competitive pricing should they award you all sub-groups you bid. In the event that the Buyer is unable or elects not to award you all sub-groups you bid, you may enter a Percent Markup where noted, if needed. A Percent Markup value can be entered for each of these award scenarios: if the total awarded dollar value (whether it consists of 1 or more sub-groups) is less than 75%, or 50%, or 25% of the total value of all sub-groups you bid. Prices bid may not change if the award is 75-100% of the dollar value bid, so bid accordingly.
     

REQUIREMENTS specific to this award:

  1. Equipment for all locations will be rented as needed.

  2. Delivery fees, where applicable, are to be billed separately from the equipment and are not to be included in your equipment rental rates.

  3. Fuel surcharges related to transportation of equipment are to be waived.

  4. Written installation instructions are to be provided upon delivery for any equipment requiring installation.

  5. Provide all preventative and corrective maintenance and repairs for equipment in Buyer’s possession. This does not include standard wear items or damage arising out of misuse, abuse, or neglect by Buyer.

  6. No rent shall be charged for days in which the equipment is out of operation for preventative and corrective maintenance and repairs, unless repairs are due to misuse or neglect by buyer.

  7. Rental Rates are to be based on a 28-day month, however Buyer’s current contract includes a 30-day month. Therefore, Buyer has a preference for a 30-day month, but is open to discussion.

  8. The lesser of Rental Rates should apply.  For example, if 4 days is more than one week, then the lesser, Weekly Rate would apply.

KEY DATES: Anticipated for Award (U.S. Central Time)

You may view this in your time zone from your Supplier Steps page.

DateByAction
 1/31 10:00 a.m. Confirm your intent to bid
 2/2 10:00 a.m. Provide Approval Contacts
 2/2 10:00 a.m. Register with Sorcity (no cost to join)
 2/5 10:00 a.m. Enter questions or request exceptions online
 2/12 10:00 a.m. Send Sorcity Initial Line Item Worksheet Pricing
 2/14 2/22 2:00 p.m. Wait for Access to Bid
 2/15 2/23 12:00 p.m. Final bid due for Event #4866 - 1 - Aerial Equipment
 2/15 2/23 1:00 p.m. Final bid due for Event #4867 - 2 - Temporary Utilities
 2/15 2/23 2:00 p.m. Final bid due for Event #4868 - 3 - General Equipment
 2/15 2/23 3:00 p.m. Return final Line Item Worksheet
 2/16 2/26 3:00 p.m. Buyer will contact low bidders
 3/22 3/29 10:00 a.m. Buyer will award to best qualified Supplier

 

SPECIAL NOTES:

Sorcity is committed to following the Institute for Supply Management’s Ethics Guidelines for procurement and has therefore implemented the following bid guidelines to ensure all suppliers are treated fairly. Please comply with the following or you may be disqualified from bidding on this opportunity. 

  • All questions or exceptions should be entered above through the [View & Ask Questions] button. Answers will be posted for all Suppliers to view. 

  • If you need to speak directly to a representative, please call Sorcity at the number listed in the ebid Summary above.

  • By placing a bid in this ebid, you represent that your firm agrees to all terms, stated in the Sorcity Member Agreement, and all content, terms, and conditions contained in this document, except for any exception Sorcity, or the Buyer, may grant in writing, or on the Question & Answer page linked above.

  • The Supplier understands that no assumptions are to be made, and that content, or clauses, not contained in this ebid do not apply, unless approved in writing by the Buyer and Sorcity. 

  • This bid must be honored for the duration of your discussions with the purchasing organization, per the terms stated in the ebid. If you are unable to honor this bid at any time, you MUST notify Sorcity immediately. Please read the Sorcity Member Agreement regarding not honoring your bid and related penalties. 



Online Bid Procedures:

Other criteria:

  1. You must quote on all items listed in any sub-group you bid. 

  2. Do Not include delivery costs in your rental rates.

  3. Due to market demand and possible supply constrictions, if the supplier is unable to fulfill an order within the normal timeframe, then the Buyer may secure that portion of the order from an alternate supplier, and in which case that unfulfilled order still counts towards the total award fulfillment to the awarded supplier.  Supplier must track all unfulfilled orders and be able to report upon request. 

  4. Buyer prefers payment terms of Net 60 Days, although if you cannot provide this, or it raises your prices (hedging), then 45-day payment terms will be considered and may be bid in this ebid.

  5. All invoices are to be sent to one corporate office.  Invoices must include only one Arkema site per invoice.  Do not list multiple sites on one invoice.  A Purchase Order number is required on all invoices. Preference is to receive invoices electronically and payment made via ACH.

  6. Given Arkema's continued growth and need to track purchases and program conformance, the Supplier will need to provide Arkema and Sorcity, quarterly sales reports, within 30-days following the end of each quarter, upon request, in an electronic Excel format, a summary total and by location, including, but not limited to; location of sale, items purchased, transaction date, total by product type, per unit and total dollar amount, and discount. Online reporting is preferred, if available.

  7. For product/service changes that are needed, the Buyer has the right to conduct a market comparison to confirm price changes and discounts are consistent.  If a change is found to be inconsistent, or is not in line with the market comparison, it can be grounds for award termination based on supplier performance.

  8. Buyer may terminate this contract for Supplier’s breach of contract or failure to perform any material provision of the contract.

  9. Rent rates must be fixed for the initial 12-month period, and then may be adjusted only once at each subsequent 12-month period. Price increases will only be valid for increases on factors outside of a Supplier's control (such as a federal tax increase) and must be accompanied with verifiable documentation justifying an increase per the terms agreed-to. If a price adjustment is needed, notice should be given at least 60-days prior to the end of the current price period. Rental rates may be decreased at any time.

  10. Failure to provide price decreases on time will result in such decreases being retroactive to the beginning of the perspective term where those reductions should have taken effect. Sorcity performance penalties may apply if this delay is unreasonable.

  11. Awarded Seller must honor their bid prices, per the terms stated including price-fluctuation clause, until May 2021.

 

We appreciate your participation in this ebid opportunity!  Remember to read any associated emails and updates related to this ebid.

PLACE YOUR BID BELOW:
Bid Box appears here on Opening Bid Day for members once you log into your account, unless:

• Following opening bids, the Event has been paused until Bid-End day
• The Event is momentarily suspended due to a bid error or technical issue
• Your account has been locked due to an unresolved issue (contact Sorcity)

If this is a Master Bid that is not being bid, you will need to scroll up to the table above to access sub-groups for bidding.

 


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