DOJ's $138K Medical Gas Contract with Airgas USA LLC for Federal Prisons

Contract Overview

Contract Amount: $138,440 ($138.4K)

Contractor: Airgas USA LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $380/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AIRGAS: MEDICAL GAS SERVICES & RENTAL DOS: OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED.

Place of Performance

Location: KENNESAW, COBB County, GEORGIA, 30144

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $138,440.3 to AIRGAS USA LLC for work described as: AIRGAS: MEDICAL GAS SERVICES & RENTAL DOS: OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED. Key points: 1. Contract awarded to Airgas USA LLC for essential medical gas services. 2. Competition method was 'Competed Under SAP', indicating a potentially limited but documented process. 3. Risk of service disruption exists if funding is not secured post-CR. 4. Sector is Industrial Gas Manufacturing, supporting critical healthcare operations within federal prisons.

Value Assessment

Rating: fair

The contract value of $138,440.3 for a one-year period appears reasonable for specialized medical gas services. Benchmarking against similar federal contracts for medical gas supply in correctional facilities would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a process designed for smaller value procurements. While competition occurred, the specific details of the bidding process and the number of bidders are not provided, impacting the certainty of optimal price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential medical supplies in federal prisons. The value appears reasonable, but the limited competition details warrant scrutiny to ensure cost-effectiveness.

Public Impact

Ensures continuity of critical medical gas services for inmates in federal correctional facilities. Supports the operational needs of the Federal Prison System, a key component of the Department of Justice. Potential impact on inmate health and safety if services are interrupted due to funding uncertainties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Funding uncertainty post-CR
Limited competition details

Positive Signals

Essential service provision
Established vendor

Sector Analysis

The Industrial Gas Manufacturing sector provides essential gases for various applications, including healthcare. This contract falls within this sector, supporting the Bureau of Prisons' healthcare infrastructure. Spending benchmarks for similar services in federal facilities are not readily available but are crucial for assessing value.

Small Business Impact

This contract was awarded to Airgas USA LLC, a large corporation. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or significant subcontractors.

Oversight & Accountability

The Department of Justice, through the Bureau of Prisons, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place, but the specific oversight activities related to this contract are not detailed.

Related Government Programs

Industrial Gas Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Funding dependency on CR/budget passage
Limited competition details under SAP
Potential for service disruption if funding is delayed
Lack of specific performance metrics or KPIs provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $138,440.3 to AIRGAS USA LLC. AIRGAS: MEDICAL GAS SERVICES & RENTAL DOS: OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED.

Who is the contractor on this award?

The obligated recipient is AIRGAS USA LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $138,440.3.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the specific breakdown of medical gas types and quantities included in this contract, and how does this align with the projected needs of the Federal Prison System?

The provided data does not detail the specific types or quantities of medical gases covered under this contract. A thorough analysis would require access to the contract's statement of work or detailed specifications. Understanding these specifics is crucial for validating the contract's value and ensuring it adequately meets the operational and healthcare requirements of the Federal Prison System.

What were the key factors considered during the 'Competed Under SAP' process, and how did they ensure fair pricing and adequate competition?

Simplified Acquisition Procedures (SAP) are typically used for purchases below certain thresholds, aiming for efficiency. Key factors often include soliciting quotes from multiple sources, evaluating based on price and other factors, and documenting the selection. However, the limited nature of SAP can sometimes result in less robust price competition compared to full and open competition, potentially impacting the best value achieved for taxpayers.

What contingency plans are in place to ensure uninterrupted medical gas supply if the CR is not resolved or the budget is delayed beyond the contract start date?

The contract notes that funds will be obligated through a modification upon the official announcement of the CR date and/or when the budget is passed, indicating a reliance on future appropriations. Specific contingency plans for service continuity during potential funding gaps are not detailed. This poses a risk to inmate healthcare, necessitating proactive communication and planning between the vendor and the Bureau of Prisons.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2015 VAUGHN RD NW STE 400, KENNESAW, GA, 30144

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $138,440

Exercised Options: $138,440

Current Obligation: $138,440

Actual Outlays: $48,257

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline