Important Update: Airgas Contract Renewal & Changes to Cylinder Rental Billing
VCU Procurement Services is pleased to announce that we have executed a new Agreement with Airgas to address pricing and cylinder rental fees, effective October 20, 2025.
This renewed agreement introduces significant changes to how cylinder rentals are billed, designed to streamline account management for our research and laboratory community.
The Big Change: No More Separate “Demurrage” Fees
Historically, departments were charged “demurrage”—essentially a rental fee or late charge for keeping a reusable cylinder past a specific allowed timeframe. This often required rigorous tracking of cylinder days to avoid accumulating monthly fees.
Under the new agreement terms, rental fees are now included in the cost of the gas for products listed on the VCU Cylinder Gases Rider.
- Old Model: Purchased and invoiced for the price of the gas, but received separate monthly rental fee invoices for l for the cylinder .
- New Model: The rental cost is built into the upfront purchase price of the cylinder. The line item for “Cylinder rent” on listed products will now appear as $ exempt.
What This Means for Your Budget
Because the rental component is now wrapped into the product cost, you will see an increase in the per-cylinder price for medical, specialty, and industrial gases.
However, this change brings several administrative advantages:
- Simplified Invoicing: Fewer line items and separate bills for “overdue” cylinders.
- Predictable Spend: You know the total cost of the cylinder at the moment of purchase, regardless of how long the cylinder is needed for experiments.
- Additional Savings: The current rider also lists Hazmat Charges and Delivery Charges at $0.00 per delivery, further consolidating invoices and costs.
Important Exceptions
Please note that while the standard list of gases (such as Acetylene, Argon, Helium, Nitrogen, and Oxygen) includes rental in the price, any products not listed on the specific VCU Rider will be priced at market level, and daily rental fees may still apply to those special orders.
Airgas/ VCU Pricing as of October 20th, 2025
Next Steps
We encourage all lab managers and fiscal administrators to review the new pricing structure. This agreement is set for an initial term of seven years, ensuring long-term stability for your lab’s supply chain.
If you have specific questions regarding the new pricing list or how this affects your specific grant budget, please contact Abigail Zaremba, [email protected].
The last monthly cylinder rental fees should appear on your October invoice. If you receive further rental charges for the standard list of gases please contact Abigail Zaremba, [email protected] right away so we can review and dispute any erroneous charges.
⚠️ **Return Protocol: Ensure all cylinders have their *valves closed* and *safety caps screwed on* before pickup. Do not return unused cylinders without prior written authorization from Airgas, or your department will be hit with a *15% restocking fee*.
Categories Procurement Services