BOARD MEETING DATE: June 4, 2010
AGENDA NO. 8

PROPOSAL:

Issue Purchase Orders for Purchase of Compressed Gases and Cryogenic Liquids

SYNOPSIS:

In March 2010, the Board approved the release of an RFQ to purchase compressed gases and cryogenic liquids. Six qualifying bids for compressed gases and five qualifying bids for cryogenic liquids were received and evaluated. This action is to issue purchase orders for the purchase of compressed gases and cryogenic liquids for FY 2010-11.

COMMITTEE:

Administrative, May 14, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize issuance of purchase orders with the most qualified vendors among those identified in Attachments 1 and 2 for the purchase of compressed gases and cryogenic liquids, to be identified based upon best overall cost package per gas, at fixed rates which shall be effective for FY 2010-11 for a cumulative amount not to exceed $115,000.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In March 2010, the Board released RFQ #Q2010-09 to competitively solicit bids for the purchase of compressed gases and cryogenic liquids. The AQMD Laboratory uses compressed gases as carrier gases and purging agents, and cryogenic liquids are used to concentrate samples for gas chromatographic analysis for programs such as PAMS, NATTS, compliance, special studies and other network samples.

Proposal

Staff requests that the Board approve issuance of purchase orders with a cumulative amount not to exceed $115,000 for the purchase of compressed gases and cryogenic liquids. Orders will be placed with the qualified vendor having the best cost package quotation per product, while meeting the delivery requirements specified in the RFQ. Purchase order amounts will be decided based upon the overall cost and the historical consumption of the various gases and cryogenic liquids. No individual purchase order will exceed $50,000 annually. 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin. 

Additionally, potential bidders may have been notified utilizing AQMDs own electronic listing of certified minority vendors. Notice of the RFP/RFQ was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMDs website (http://www.aqmd.gov). Information was also available on AQMDs bidders 24-hour telephone message line (909) 396-2724. 

Bid Evaluation

The evaluation panel consisted of three AQMD staff: two Senior Air Quality Chemists, and the Quality Assurance Manager. An additional outside evaluator, the Bay Area Air Quality Management District (BAAQMD) Laboratory Services Manager, also participated in the evaluation process. The panel breakdown was as follows: one Asian male, one Pacific-Islander male, one Caucasian male, and one Hispanic male. The evaluation process was conducted to qualify vendors according to the criteria described in the RFQ. The panel determined that six gas bidders and five cryogenic fluid bidders met specifications for one or more gas or cryogenic fluid products and satisfied delivery requirements. The overall best cost package for compressed gases is offered by Westair Gases. The overall best cost package for cryogenic liquids is offered by Gilmore Liquid Air. Gilmore Liquid Air is a qualifying small business. Future acquisition of specific gases and cryogenic liquids will be based on the cost package submitted by the qualified vendors. The cost package includes cost of gases or cryogenic liquids (product), demurrage/rental, delivery and pick up costs, fuel fees, and haz-mat fees.

Attachment 1 reflects the price quotations of vendors from whom compressed gases will be purchased. Attachment 2 lists the price quotations of vendors from whom cryogenic liquids will be purchased. In the event a vendor cannot supply gas or cryogenic products satisfying delivery requirements or where a vendor has repeated quality failures, products will be purchased from the vendor with the next best cost package.

Resource Impacts

The term of the purchase orders is for the FY 2010-11. Staff estimates that $115,000 will be needed for the purchase of compressed gases and cryogenic liquids in FY 2010-11. Sufficient funds are available in the Science and Technology Advancement’s FY 2010-11 Budget. 

Attachments (EXE 95kb)

1 - Comparison of Compressed Gas Vendor Bids for FY 2010-11,
RFQ #Q2010-09

2 - Comparison of Cryogenic Liquids Vendors for FY 2010-11,
RFQ #Q2010-09

3 - Compiled Proposal Evaluation Score Sheet,
RFQ #Q2010-09