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CONSENT INDIAN RIVER COUNTY OFFICE OF MANAGEMENT AND BUDGET PURCHASING DIVISION DATE: March 21, 2023 TO: BOARD OF COUNTY COMMISSIONERS THROUGH: Michael C. Zito, Interim County Administrator Kristin Daniels, Director, Office of Management and Budget FROM: Jennifer Hyde, Purchasing Manager SUBJECT: Termination of Bid 2023024 — Annual Bid for Bulk Carbon Dioxide for Water Treatment Plants BACKGROUND: On March 7, 2023, the Board awarded bid 2023024 to Airgas USA ("Airgas"), who was the sole responsive bidder, and who volunteered when contacted to negotiate price, to match the bid price of $0.23 per pound, submitted by the non-responsive bidder, Matheson Tri -Gas, Inc. ("Matheson"). Bulk Carbon Dioxide is used at both the North and South County RO Plants as part of the water treatment process. After notice of award was made, Airgas requested modification to terms and conditions of sale. Staff worked diligently to arrive at mutually -acceptable terms, ensuring the interests of both parties were preserved. During their final review of the negotiated terms and conditions, Airgas indicated they will also require additional delivery fees, and hazardous materials fees (at a minimum of $200 per delivery, per plant) above the $0.23 per pound price. Airgas also wants access to deliver at our plants 24 hours a day and/or to place telemetry monitors on the County's tanks to measure product levels at will, or the County will face an additional $65 per delivery "restricted access" fee. Airgas did present an alternate to the restricted access fee, which would require plant staff to report tank levels to Airgas weekly by email. DISCUSSION: Based on the number of deliveries of carbon dioxide received last year, the requested increase in total cost of the award, above what the Board approved, is three percent. During the negotiation process, Staff came to understand that Airgas interprets our use of purchase orders to facilitate ordering and payment, to override the scope and terms of the bid and its award, and therefore we expect they will continue to request modifications to terms and costs throughout the initial term of the award. This negates the value of having awarded a bid with the anticipation of firm fixed prices, scope of work, and terms. Staff believes it to be in the County's best interest to terminate the award of the bid to Airgas. 01