The City of Winnipeg Public Works department has issued its changes to the fuel-rate adjustment clause, revising the terms in place for many years.
For the upcoming bid-hourly tender, the Rate Adjustment clause will read:
- The Contract Administrator, at his discretion, may adjust upwards or downwards, the rates quoted for equipment and dump trailer included in this Contract, considering an increase or decrease in fuel prices exceeding three (3) percent, based on Natural Resources Canada Weekly Average Retail Prices for Fuel at the start of each month for the term of the Contract. Any rate adjustment shall only reflect that portion of fuel price increases or decreases in excess of the three (3) percent outlined above. Any adjustment shall be effective on the first of each month during the term of the contract and will not be retroactive.
- The hourly rate adjustments shall be based on the average hourly fuel consumption, based upon manufacturers’ published specifications, averaged per equipment or dump trailer class, as calculated by the Contract Administrator, whose decision shall be final and binding.
To view the fuel-adjustment template the city will use to calculate the unit price adjustment, click here.
The main features of the revision are:
- Fuel price increase or decrease will be adjusted on the 1st of the month during the term of the contract.
- Fuel pricing published by Natural Resources Canada (NRC) will be used to determine a fluctuation of +/-3%.
- Hourly Fuel Consumption Rates are taken from Caterpillar Performance Handbook. Each equipment class in the bid-hourly tender is matched to a fuel consumption rate listed in the handbook.
- The base fuel rate will be NRC Weekly Average Fuel Retail Price averaged in the month in which the tender closes.
- Adjustments on the 1st of the month will be based on the previous month’s Weekly Average Fuel Retail Price averaged.
The MHCA is asking members to submit comments or concerns about the changes, which will be part of a summary forwarded to the department.
Comments can be sent to catherine@mhca.mb.ca by August 10, 2 p.m.
