Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 169]

EXTRACTED TEXT FROM PAGE:

158

BOARD OF TRUSTEES

[January 15

Governing Procurement and Bidding at State Systems Universities in Illinois," a copy of which is filed with the Secretary for the record, as regulations of the University of Illinois required by the Illinois Purchasing Act, and further recommends that the Board authorize the filing of these regulations with the Secretary of State as required by law. Upon such filing with the Secretary of State, all prior regulations of the University issued pursuant to the Illinois Purchasing Act shall be deemed to be superseded. O n m o t i o n of M r . L i v i n g s t o n , these r e c o m m e n d a t i o n s w e r e a p p r o v e d .

Contract for Aviation Gasolines and Jet Fuel Purchases

(20) On June 19, 1974, the Board of Trustees approved the purchase of a variety of petroleum products including aviation gasolines and jet fuel. Purchases were projected on the basis of estimated needs from vendors of record during base periods and Federal Energy Administration (FEA)-controlled price structures, as set forth in the Federal Mandatory Petroleum Allocation Program. The suppliers of record, Union Oil Company of California, Palatine, Illinois, and Texaco, Inc., Peoria, Illinois, have been unable to supply aviation gasolines and jet fuel because of a refinery fire at Union Oil Company and the lack of product in this area (Texaco, Inc.) during the period December 1974-June 30, 1975. According to the rules of the Mandatory Allocation Program for Petroleum Products, a wholesale purchaser (a category which includes the University of Illinois) is allowed to purchase from a supplier other than the supplier of record in the given base period if such a supplier has sufficient fuel inventory and desires to enter into such an agreement. The Federal Energy Administration is informed of all such cases. Any new arrangements made in accordance with these changes remain subject to the provisions of the Federal Mandatory Allocation Program. Aviation Gasoline: T h e American Oil Company of Decatur, Illinois, the baseperiod supplier for aviation gasolines for the period July through December 1974, has agreed to continue to supply aviation gasolines to the University for the period January 1 through June 30, 1975. Texaco, Inc., the base-period supplier of record for aviation gasolines for this period, has advised that they prefer not to handle this business unless required to under the Mandatory Allocation Program. Current FEA-controlled prices per gallon (exclusive of taxes) for aviation gasolines from the two possible suppliers are as follows: 80 Octane 100 Octane American Oil Company $.315 $.337 Texaco, Inc 352 .382 Jet Fuel: The Union Oil Company was unable to supply jet fuel because of the refinery fire referred to above. T h e supplier of record during the base period, January through June 30, was Texaco, Inc. T h e University anticipated, in accordance with the regulations, that Texaco would be the supplier during the first six months of 1975. However, they have indicated their preference not to supply jet fuel because of an inadequate product inventory within their organization for this particular distribution area. American Oil Company, Decatur, Illinois, has interest in and capacity for supplying jet fuel for the period January 1 through June 30, 1975. T h e current FEA-controlled prices for jet fuel from American Oil Company and Texaco, Inc., are as follows: American Oil Company $.2880 per gallon Texaco, Inc 4025 per gallon Obviously, it is monetarily advantageous to switch suppliers from Texaco,