Title
Matheson, Tri-Gas, Inc. Contract Amendment (Ordinance S-45994)
Description
Request to authorize the City Manager, or his designee, to add additional expenditures to Matheson Tri-Gas, Inc. contract 4705000160 in the amount of $430,000 to provide industrial and medical gases to the City. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
Matheson Tri-Gas provides a broad range of industrial and medical gases such as oxygen, acetylene, argon, hydrogen, and carbon dioxide tanks used for medical emergencies and welding purposes to all City departments. The primary departments using the contracts are Aviation, Fire, Police, and Water Services. The Water Services department terminated their laboratory gases contract Nov. 30, 2017 and has used the Citywide industrial and medical gases contract which has impacted funding. Water Services department is responsible for approximately 50 percent of the contract's spend. An additional $430,000 is being requested to get through the remaining 31 months of the contract.
Procurement Information
In accordance with Administrative Regulation 3.10, a linking agreement is required when the City wishes to participate in a cooperative procurement contract with another public procurement agency.
The City of Phoenix adopted the Statewide Medical, Industrial and Specialty Gases Cooperative Contract S12-020682 awarded by the Arizona Department of Health Services. The contract was awarded through a competitive process consistent with the City's procurement processes, as set forth in the Phoenix City Code, chapter 43. The contract was originally awarded on March 28, 2012 and expires on March 31, 2022.
By utilizing the cooperative contract, the City benefits from statewide government pricing and volume discount contract rates.
Contract Term
The contract will expire March 31, 2022.
Financial Impact
With $430,000 in additional funds, the contracts' revised aggregate value through March 31, 2022 is now $800,000, and the revised estimated annual expenditure is $80,000. Aviation, Fire, Police, and Water Services departments are the primary users and funds are available in each department's budget. The contract is available for all City departments to use.
Concurrence/Previous Council Action
This contract is a result of adopting S-12020682, Ordinance S-38856, adopted at the May 30, 2012 Formal Council meeting.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.