DOJ awards $347K contract for liquid oxygen supply to Federal Prison System

Contract Overview

Contract Amount: $34,752 ($34.8K)

Contractor: RAS Enterprises LLC

Awarding Agency: Department of Justice

Start Date: 2025-12-01

End Date: 2026-09-30

Contract Duration: 303 days

Daily Burn Rate: $115/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RAS: LIQUID OXYGEN SUPPLY FOR INMATE PORTABLE OXYGEN UNITS. DOS: DECEMBER 1, 2025- SEPTEMBER 30, 2026 FUNDING THROUGH JANUARY 31, 2026

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Justice obligated $34,752 to RAS ENTERPRISES LLC for work described as: RAS: LIQUID OXYGEN SUPPLY FOR INMATE PORTABLE OXYGEN UNITS. DOS: DECEMBER 1, 2025- SEPTEMBER 30, 2026 FUNDING THROUGH JANUARY 31, 2026 Key points: 1. Contract awarded to RAS Enterprises LLC for essential inmate oxygen supply. 2. Duration of the contract is 10 months, covering a critical period. 3. The contract is a firm-fixed-price purchase order, providing cost certainty. 4. Funding is allocated through January 31, 2026, with a full period of performance to September 30, 2026. 5. The North American Industry Classification System (NAICS) code 325120 indicates industrial gas manufacturing. 6. The contract was competed under simplified acquisition procedures, suggesting a focus on efficiency for smaller procurements.

Value Assessment

Rating: good

The contract value of $347,520 for a 10-month supply of liquid oxygen appears reasonable given the specialized nature of the product and its critical application within correctional facilities. Benchmarking against similar contracts for industrial gases in federal facilities is challenging without more specific data on volume and purity requirements. However, the firm-fixed-price structure suggests that the contractor assumed the risk for cost fluctuations, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which are designed for procurements valued between the micro-purchase threshold and the SAP threshold (currently $250,000). While the award amount is above this threshold, it indicates that the agency utilized procedures that encourage broad competition among qualified vendors. The specific number of bidders is not provided, but SAP generally aims to maximize competition within the constraints of efficient procurement.

Taxpayer Impact: Utilizing competitive procedures, even under SAP, helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. This approach allows for a wider pool of potential suppliers to bid, increasing the likelihood of obtaining the best value.

Public Impact

Inmates requiring portable oxygen units will receive a consistent and reliable supply of liquid oxygen. This contract directly supports the healthcare and safety of individuals within the Federal Prison System. The services are delivered to facilities within Mississippi, impacting the local operational environment. The contract ensures the availability of a critical medical supply, maintaining operational readiness for healthcare services within the Bureau of Prisons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases if market conditions for industrial gases change significantly during the contract period, though mitigated by firm-fixed-price.
Dependence on a single supplier (RAS Enterprises LLC) for a critical medical gas could pose a risk if supply chain disruptions occur.

Positive Signals

Firm-fixed-price contract provides budget certainty for the Federal Prison System.
Awarded under competitive procedures, suggesting a focus on achieving best value.
Contract duration is aligned with the period of performance, ensuring continuous supply.

Sector Analysis

The industrial gas manufacturing sector (NAICS 325120) is a critical component of the broader chemical manufacturing industry, supplying essential gases for a wide range of applications, including healthcare, manufacturing, and research. Federal agencies are significant consumers of industrial gases, particularly for healthcare and operational support in facilities like prisons and hospitals. Spending in this sector is influenced by raw material costs, energy prices, and regulatory compliance. Comparable spending benchmarks are difficult to establish without detailed specifications, but the federal government procures significant volumes of gases like oxygen, nitrogen, and medical air.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). As a purchase order awarded under Simplified Acquisition Procedures, there may have been opportunities for small businesses to participate, but it was not a mandatory set-aside. The impact on the small business ecosystem is likely minimal unless RAS Enterprises LLC itself is a small business and utilizes small business subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and program management officials. Standard procurement regulations and contract administration processes would be applied. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Prison System Medical Supply Contracts
Bureau of Prisons Operational Equipment Procurement
Department of Justice Healthcare Services
Liquid Oxygen Supply Contracts

Risk Flags

Potential supply chain disruption risk
Dependence on a single awardee for critical supply

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $34,752 to RAS ENTERPRISES LLC. RAS: LIQUID OXYGEN SUPPLY FOR INMATE PORTABLE OXYGEN UNITS. DOS: DECEMBER 1, 2025- SEPTEMBER 30, 2026 FUNDING THROUGH JANUARY 31, 2026

Who is the contractor on this award?

The obligated recipient is RAS ENTERPRISES 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 $34,752.

What is the period of performance?

Start: 2025-12-01. End: 2026-09-30.

What is the historical spending pattern for liquid oxygen supply by the Federal Prison System?

Analyzing historical spending patterns for liquid oxygen by the Federal Prison System requires access to detailed procurement data over multiple fiscal years. Without specific historical data, it's difficult to provide precise figures. However, agencies like the Bureau of Prisons typically procure such essential medical gases on a recurring basis to support inmate healthcare needs. Spending levels can fluctuate based on the number of inmates requiring oxygen therapy, the condition of existing equipment, and the pricing dynamics of the industrial gas market. Contracts are often awarded through competitive bidding processes, with prices varying based on contract duration, volume, delivery terms, and supplier competition. A trend analysis would reveal if spending has increased, decreased, or remained stable, potentially indicating changes in inmate health needs or procurement strategies.

How does the awarded price compare to market rates for industrial gas manufacturing services?

Determining if the awarded price of $347,520 for liquid oxygen is competitive requires a detailed comparison with market rates, which are influenced by numerous factors including volume, purity, delivery frequency, geographic location, and contract duration. The North American Industry Classification System (NAICS) code 325120, Industrial Gas Manufacturing, encompasses a broad range of products. For liquid oxygen, prices can vary significantly. Benchmarking against publicly available contract data for similar quantities and service levels within the federal government or commercial sectors would be necessary. Given that this was competed under Simplified Acquisition Procedures, the agency likely aimed for a price that represented good value within that framework. Without specific volume requirements and delivery terms, a precise market rate comparison is not feasible, but the firm-fixed-price nature suggests the contractor has factored in market risks.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

Key performance indicators (KPIs) for a liquid oxygen supply contract typically focus on reliability, timeliness of delivery, product quality, and adherence to safety standards. Specific KPIs might include on-time delivery rates (e.g., meeting scheduled replenishment), maintaining specified oxygen purity levels (e.g., meeting medical-grade standards), ensuring the integrity of the supply chain and storage, and compliance with all relevant safety and handling regulations. Performance monitoring is usually conducted by the contracting officer's representative (COR) or a designated technical point of contact within the Federal Prison System. This involves regular communication with the contractor, reviewing delivery logs, conducting periodic inspections of supply systems, and addressing any reported issues or deficiencies promptly. Contractual remedies exist for non-performance.

What is the track record of RAS Enterprises LLC in fulfilling federal contracts, particularly for medical gases?

To assess the track record of RAS Enterprises LLC, a review of their past performance on federal contracts is essential. This would involve examining contract databases (like FPDS) for previous awards, their value, duration, and performance history. Specifically, looking for prior contracts related to the supply of medical gases or industrial gases would provide the most relevant insight. Key aspects to evaluate include on-time delivery, quality of goods/services provided, adherence to contract terms, and any history of disputes, terminations, or corrective actions. A positive performance history on similar contracts would indicate a lower risk for this current award, while a history of issues might raise concerns about reliability and capability.

What are the potential risks associated with sole-source or limited competition procurements for essential supplies like liquid oxygen?

While this contract was competed under SAP, the question addresses risks of limited competition. Sole-source or limited competition procurements for essential supplies like liquid oxygen can introduce several risks. Primarily, reduced competition often leads to higher prices for the government, as the incentive for vendors to offer their best pricing is diminished. It can also limit innovation and service improvements, as there is less pressure from competitors. Furthermore, reliance on a single or limited number of suppliers can create vulnerabilities in the supply chain; disruptions due to unforeseen events (e.g., natural disasters, production issues, transportation problems) affecting the sole provider could lead to critical shortages. This necessitates robust contingency planning and potentially higher inventory levels.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2512 25TH AVE, GULFPORT, MS, 39501

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $34,752

Exercised Options: $34,752

Current Obligation: $34,752

Actual Outlays: $6,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline