university of illinois - UIHistories Project

26 BOABD OF TRUSTEES [July 25
Clinch Coal Company, 28 East Jackson Boulevard, Chicago, the lowest bidder, for
17,000 tons of screenings coal to be delivered to the Medical Center Steam Plant,
operated by the University, as required during the period August 1, 1956, to June
30, 1957, at a per ton cost of $4.00, plus transportation of $1.30, plus $1.25 for
handling, storage, and delivery, or a total estimated cost of $111,350. This price is
based on the present wage scale and is subject to increase or decrease in the
event that wage contracts now in effect are changed, and any such change will
affect the price to the extent that the production costs are increased or decreased
by the new contracts. The University has the right of approval of any such
increase in price.
The lowest bid is determined by the number of British Thermal Units per
one cent of cost based on guaranteed analysis. A continuous check is provided at
the Steam Plant to insure compliance with the specifications.
The above named officers also recommend the purchase of a minimum of
8,000 gallons of No. 6 fuel oil, with the option of purchasing as much more as
may be required for emergency use but not to exceed 450,000 gallons, from the
Michael Oil Company, 2446 South Western Avenue, Chicago, the lowest bidder,
at a price of $.081 per gallon subject to adjustment in accordance with the posted
price variations published in the Wall Street Journal. On the basis of the quoted
unit price, the total cost of 8,000 gallons would be $648 and of 450,000 gallons,
?36,450.
The Medical Center Steam Company Plant is equipped to burn either coal,
gas, or oil. Winter operation has been with coal and summer operation has been
with gas. The purchase of fuel oil is recommended for standby service. If used
for emergency operations instead of gas or coal, there will be a corresponding
reduction in expenditures for these two fuels.
I concur and recommend that the Comptroller and the Secretary of the Board
be authorized to execute the contracts for these purchases subject to approval by
the Governor as required by the state constitution.
On motion of Mr. Swain, these contracts were awarded, and the
Comptroller and Secretary of the Board were authorized to execute
the same.
CONTRACTS FOR COAL PURCHASES
(19) The Director of Purchases, the Comptroller, and the Director of the
Physical Plant recommend award of the following contracts for 50,300 tons of
coal screenings to be delivered to the Abbott Power Plant between the period
September I, 1956, through June 30, 1957:
United Electric Coal Co., Chicago Fo - h - Mine Freight Total Cost
5,000 tons at #4.10 J 20 500 $ 6 250 $ 26 750
Beli & Zoller Coal Co., Terre Haute, Indiana
10,000 tons at $4.45 44 500 11 800 56 300
Republic Coal & Coke Co., Peoria
35,300 tons at $4-35 153 555 41 654 195 *°9
Sealed bids on uniform specifications were opened on July 13, 1956. Invitations
were sent to twenty-four producers and sales agencies and advertisements were
published in three daily papers.
It is advantageous to have contracts with three sources of supply to be
assured of delivery of coal at all times. The prices quoted are based on present
wage scales and are subject to increase or decrease in event that wage contracts
now in effect are changed. Any such change will affect the price to the extent that
production costs are increased or decreased by the new contracts. The University
may cancel the purchase contract if it believes that any price adjustment is not
justified.
I concur and recommend that the Comptroller and the Secretary of the Board
be authorized to execute contracts as recommended, subject to approval by the
Governor as required by the state constitution.
On motion of Mr. Johnston, these contracts were awarded, and
the Comptroller and Secretary of the Board were authorized to execute
the same.