NIST Awards $4.2M for Liquid Nitrogen, Competed Under SAP
Contract Overview
Contract Amount: $4,236,766 ($4.2M)
Contractor: RCG of North Carolina, LLC
Awarding Agency: Department of Commerce
Start Date: 2023-10-01
End Date: 2026-06-30
Contract Duration: 1,003 days
Daily Burn Rate: $4.2K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LIQUID NITROGEN SUPPLIES AND SERVICES FOR NIST SITES: GAITHERSBURG, MD, CHARLESTON, SC, AND BOULDER, CO.
Place of Performance
Location: CAROLINA BEACH, NEW HANOVER County, NORTH CAROLINA, 28428
Plain-Language Summary
Department of Commerce obligated $4.2 million to RCG OF NORTH CAROLINA, LLC for work described as: LIQUID NITROGEN SUPPLIES AND SERVICES FOR NIST SITES: GAITHERSBURG, MD, CHARLESTON, SC, AND BOULDER, CO. Key points: 1. Contract awarded to RCG of North Carolina, LLC for essential liquid nitrogen supplies. 2. The award value is $4,236,765.56 over a period of approximately 3 years. 3. Competition was conducted under the Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 4. The National Institute of Standards and Technology (NIST) is the primary agency utilizing these services across multiple sites.
Value Assessment
Rating: good
The contract value of $4.2M appears reasonable for a multi-year supply of industrial gas to multiple federal sites. Benchmarking against similar NIST or other agency contracts for liquid nitrogen would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, which typically involves simplified procedures and may limit the number of potential offerors compared to full and open competition. This method can expedite the acquisition process but may not always yield the lowest possible price.
Taxpayer Impact: The use of SAP suggests an effort to streamline procurement for a moderate value, aiming for efficiency while still seeking competitive pricing.
Public Impact
Ensures critical research and development at NIST facilities in Gaithersburg, Charleston, and Boulder are uninterrupted. Supports scientific advancement and technological innovation by providing essential materials for experiments and processes. The contract's duration ensures a stable supply chain for a vital industrial gas. Procurement under SAP aims for efficiency in acquiring necessary goods and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP may not have explored all potential cost savings.
- Reliance on a single vendor for a critical supply could pose a risk if issues arise.
- Geographic distribution of services across three sites requires robust logistics.
Positive Signals
- Awarded to a small business (RCG of North Carolina, LLC).
- Utilizes a firm fixed-price contract, providing cost certainty.
- Competed under SAP, indicating an effort towards efficient procurement.
Sector Analysis
The procurement falls under the Industrial Gas Manufacturing sector (NAICS 325120). Spending on industrial gases is common across various federal agencies for research, development, and operational needs. Benchmarks for similar contracts would depend on volume, purity, and delivery requirements.
Small Business Impact
The contract was awarded to RCG of North Carolina, LLC, which is a small business. This award aligns with federal goals to support small business participation in government contracting.
Oversight & Accountability
The use of SAP suggests a streamlined oversight process. The firm fixed-price contract provides clear financial accountability. Further oversight would involve monitoring delivery, quality, and adherence to contract terms.
Related Government Programs
- Industrial Gas Manufacturing
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Limited competition
- Potential supply chain disruption
- Vendor dependency
- Logistical complexity across multiple sites
Tags
industrial-gas-manufacturing, department-of-commerce, nc, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $4.2 million to RCG OF NORTH CAROLINA, LLC. LIQUID NITROGEN SUPPLIES AND SERVICES FOR NIST SITES: GAITHERSBURG, MD, CHARLESTON, SC, AND BOULDER, CO.
Who is the contractor on this award?
The obligated recipient is RCG OF NORTH CAROLINA, LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Institute of Standards and Technology).
What is the total obligated amount?
The obligated amount is $4.2 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-06-30.
What is the estimated annual spend for liquid nitrogen across the three NIST sites?
The total contract value is $4,236,765.56 over approximately 1003 days (roughly 2.75 years). Dividing the total by the duration suggests an average annual spend of approximately $1.54 million. This figure assumes consistent demand and pricing throughout the contract period.
What are the specific risks associated with relying on a single vendor for liquid nitrogen supply?
Risks include potential supply chain disruptions due to the vendor's operational issues, natural disasters, or unforeseen demand surges. A single vendor may also have less incentive to offer competitive pricing over time. Contingency planning and strong vendor relationship management are crucial.
How does the firm fixed-price structure impact NIST's ability to manage costs for this service?
The firm fixed-price (FFP) structure provides NIST with significant cost certainty, as the price is set for the duration of the contract, barring any contract modifications. This shifts the risk of cost overruns to the contractor, RCG of North Carolina, LLC.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing
Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 1333ND23QNB680322
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 205 N CAROLINA AVE, CAROLINA BEACH, NC, 28428
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $10,031,185
Exercised Options: $4,236,766
Current Obligation: $4,236,766
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-10-01
Current End Date: 2026-06-30
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-03-25
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