Complete_BPM006959_Solicitation_Attachment_05_-_Conformance_Statements_and_Exceptions_Requests__002F.xlsx

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Master Agreement AZ|CTR078845
Contract number
CTR078845
Issued by
Arizona

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This document is a Conformance Statements and Exceptions Requests form for Request for Proposal Solicitation No. BPM006959, issued by the Arizona Department of Administration State Procurement Office for a Statewide Medical, Industrial, & Specialty Gases contract. The primary offeror is Airgas USA LLC, a subsidiary of Air Liquide, submitting a response to the state of Arizona's solicitation.

The contract appears to be for the procurement of medical, industrial, and specialty gases, with Airgas seeking to provide these goods across Arizona. The proposal includes numerous exceptions and qualifications to the original solicitation, particularly around response times, liability limitations, performance guarantees, and contract terms. Airgas has specifically noted concerns about uncapped liability, geographical response time constraints, packing slip requirements, and potential limitations on serving cooperative buyers outside their immediate service area. The company has also raised specific points about indemnification terms, insurance requirements, and tax collection procedures, indicating a detailed and nuanced approach to the potential contract negotiation.

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Sheet1 Request for Proposal Solicitation No. BPM006959 Statewide Medical, Industrial, & Specialty Gases Arizona Department of Administration State Procurement Office 1802 W. Jackson, #100 Phoenix, AZ 85007

Attachment 05 - Conformance Statements and Exceptions Requests

Offeror Name: Airgas USA LLC

If taking exceptions, the relevant subsequent sections must be completed. Add additional rows as needed.

This document must be returned in an Excel (.xls or .xlsx) format.

STATE WILL NOT CONSIDER ANY EXCEPTIONS UNLESS DESIGNATED ON THIS FORM.

READ ALL INSTRUCTIONS TO OFFERORS BEFORE TAKING ANY EXCEPTIONS. OFFERS WITH EXCEPTIONS MAY BE FOUND NOT SUSCEPTIBLE FOR AWARD UNDER A.A.C. R2-7-C311.

IF NEITHER BOX IS MARKED WITH AN "X" UNDER ANY SECTION BELOW, THE OFFEROR’S RESPONSE TO THAT SECTION WILL BE CONSIDERED “YES” AND STATE WILL INTERPRET THE OFFER AS IF THERE WERE NO EXCEPTIONS TAKEN.

CONFORMANCE TO THE INSTRUCTIONS TO OFFERORS
Place an "X" in one of the following boxes to indicate the Offeror's conformance:
XYES – Offeror acknowledges that it has read and understands the Instructions to Offerors (RFP) of the Solicitation Documents and attests that its Offer complies with all aspects.
NO – Offeror acknowledges that it has read and understands the Instructions to Offerors (RFP) in the Solicitation Documents, and attests that its Offer complies with all aspects EXCEPT FOR the exceptions listed below.
Exceptions to Instructions to Offerors (RFP)
Article / Paragraph or Exhibit ReferenceRFP language (Copy and paste from Solicitation)Proposed Changes / Alternate LanguageRationale for Proposed ChangeState Response
Special Instructions to Offerors

Standard Instructions to Offerors (RFP)

CONFORMANCE TO THE SCOPE OF WORK AND SPECIFICATIONS
Place an "X" in one of the following boxes to indicate the Offeror's conformance:
XYES – Offeror acknowledges that it has read and understands the Scope of Work and Specifications, along with any respective Exhibits, Addendums, and Appendices of the Solicitation Requirements and attests that its Offer complies with all aspects.
NO – Offeror acknowledges that it has read and understands the Scope of Work and Specifications, along with any respective Exhibits, Addendums, and Appendices of the Solicitation Requirements and attests that its Offer complies with all aspects EXCEPT FOR the exceptions listed below.
Exceptions to Scope of Work and Specifications
Article / Paragraph or Exhibit ReferenceRFP language (Copy and paste from Solicitation)Proposed Changes / Alternate LanguageRationale for Proposed ChangeState Response
Scope of Work and Specifications
3.1.3.1any damage due to non-compliant gases shall be the responsibility of the ContractorAirgas cannot have uncapped liabilityAZ Revised Statutes 41-621(V)
3.1.3.7 and 3.1.3.8response times in 12 hours and repairs/replacement in 24 hoursOutlying geography's may not be able to meet the 12/24 criterianot possible based on distance from source
3.5performance guarantees required with financial penalties for not meeting themnot clearly defined and will not apply
need better clarification before possible acceptance
3.2.7Packing slip info requires serial#'sAirgas does not provided SN# on packing slips
CONFORMANCE TO THE CONTRACT TERMS AND CONDITIONS
Place an "X" in one of the following boxes to indicate the Offeror's conformance:
XYES – Offeror acknowledges that it has read and understands the Special Terms and Conditions and the Uniform Terms and Conditions, along with any respective Exhibits, Addendums, and Appendices of the Solicitation Requirements and attests that its Offer complies with all aspects.
NO – Offeror acknowledges that it has read and understands the Special Terms and Conditions and the Uniform Terms and Conditions, along with any respective Exhibits, Addendums, and Appendices of the Solicitation Requirements and attests that its Offer complies with all aspects EXCEPT FOR the exceptions listed below.

Exceptions to Contract Terms & Conditions

Article / Paragraph or Exhibit ReferenceRFP language (Copy and paste from Solicitation)Proposed Changes / Alternate LanguageRationale for Proposed ChangeState Response
Special Terms & Conditions
Airgas’ bid is expressly subject to the following condition: This is a bid of commercial terms only. Airgas does not agree to the __Solicitation No. BPM006959____, ("Buyer") proposed contract terms and conditions. If Airgas is the successful bidder, Airgas will attempt, within 30 days thereafter, to negotiate mutually acceptable contract terms and conditions with Buyer. If those negotiations are successful, then Airgas and Buyer will sign a contract containing the agreed-to terms and conditions. If the negotiations are not successful, Airgas and Buyer will not be obligated to deal with each other with respect to the subject matter of this bid request.
3.1Co-Op BuyersAll co-op buyers will need to be vetted based on geography and approved by local Airgas LeadershipAirgas cannot commit to serving an unknown customer in another state until a site survey has been completed and approval form local leadership has occurred
6Risk and LiabilityPursuant to AZ Statute 41-621(V), we will require better indemnification termsThe only way our indemnification is limited is if a claim is 100% the State's fault--there is no proportional responsibility, as soon as something is 1% our fault, we are fully on the hook for indemnification. We have no right to subrogation. So, this is as broad as indemnity gets with no limits.
Addendum A to Special Terms & Conditions
1.1Indemnification Clause:Pursuant to AZ Statute 41-621(V), we will require better indemnification termsThe only way our indemnification is limited is if a claim is 100% the State's fault--there is no proportional responsibility, as soon as something is 1% our fault, we are fully on the hook for indemnification. We have no right to subrogation. So, this is as broad as indemnity gets with no limits.
1.2Insurance RequirementsWill need to discuss if bid is awardedInsurance Requirements do not comply with Risk Management guidelines. The policy limits are "minimum", which Airgas does not do, and there are other minor revisions to be made
Addendum B to Special Terms & Conditions
1-3Addendum B to the
Special Terms and ConditionsUpon requestAirgas will not be interacting with any State IT systems, risk qassesmtents or similar requests will need to evaluated and accepted or denied at the time of the request,
`
Uniform Terms & Conditions
3.13Offshore Performance of Work involving Data is Prohibited. Any Services that are

described in the specifications or scope of work that directly serve the State of Arizona or its clients and involve access to Data shall be performed within the defined territories of

the United States.All customer supply functions occur in the USAirgas is part of the international Air Liquide family and thus we cannot guarantee that data never travels outside of U.S.-based servers. We perform all of our work in the U.S., but electronic data may not be limited solely to onshore.
3.16If Contractor is a Company as defined in A.R.S. § 35-393, Contractor

certifies that it is not currently engaged in a boycott of Israel as described in A.R.S. §§ 35-393 et seq. and will refrain from any such boycott for the duration

of this Contract.specific Trade Compliance statements on Israel and the Uyghurs that I will provide if we win this bidWe will accept seminar language that aligns with our policy
6Rick and liabilityPursuant to AZ Statute 41-621(V), we will require better indemnification terms including limitation of Liability thresholdsindemnification is one-sided and we not accept this, and there is also zero limitation on liability anywhere in this contract, which we also do not accept.
11ArbitrationmediationAirgas does not agree to binding arbitration; we will agree to mediation.
4.10.1TPT TAX included in product proceThe product price will be separately stated from the TPT Tax on the invoiceThe TPT Tax will be included on the invoice. We are registered to collect and remit the tax to the state. We cannot include tax in a product price

Solicitation Attachment – Conformance Statements and Exceptions Requests | Revision No. 2 | Revised 03-24 image1.jpg

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