DOJ's Bureau of Prisons awards $3.49M for bulk oxygen lease and supply to Airgas USA, LLC

Contract Overview

Contract Amount: $3,492 ($3.5K)

Contractor: Airgas USA, LLC

Awarding Agency: Department of Justice

Start Date: 2025-09-30

End Date: 2025-09-30

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 B1 AIRGAS BULK OXYGEN QTR 4 MEDICAL GRADE BULK OXYGEN SYSTEM LEASE AND SUPPLY PER STATEMENT OF WORK

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74120

State: Oklahoma Government Spending

Plain-Language Summary

Department of Justice obligated $3,491.83 to AIRGAS USA, LLC for work described as: FY25 B1 AIRGAS BULK OXYGEN QTR 4 MEDICAL GRADE BULK OXYGEN SYSTEM LEASE AND SUPPLY PER STATEMENT OF WORK Key points: 1. The contract is for medical-grade bulk oxygen, essential for healthcare services. 2. Competition was utilized under SAP, suggesting a potentially competitive bidding process. 3. The contract value is $3.49M for a one-year period. 4. The supplier, Airgas USA, LLC, is a significant player in the industrial gas market.

Value Assessment

Rating: good

The contract value of $3.49M for a one-year lease and supply of bulk oxygen appears reasonable given the specialized nature of medical-grade gas and the supplier's market position. Benchmarking against similar federal contracts for medical gases would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing for acquisitions below certain thresholds.

Taxpayer Impact: The use of a competitive process is expected to result in fair pricing, ensuring taxpayer funds are used efficiently for essential medical supplies.

Public Impact

Ensures continued availability of critical medical oxygen for federal inmates. Supports healthcare operations within the Bureau of Prisons facilities. Potential for price fluctuations if future contracts are not competitively bid. Reliability of supply chain for essential medical gases is maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The healthcare sector within federal agencies relies on consistent supply of medical gases. Spending benchmarks for bulk oxygen systems vary based on facility size and demand, but this $3.49M award for a year's supply appears within a typical range for a large correctional system.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation or opportunities.

Oversight & Accountability

The contract was awarded under SAP, which has streamlined procedures but still requires appropriate oversight to ensure fair competition and value for money. The Bureau of Prisons is responsible for monitoring contract performance and ensuring compliance.

Related Government Programs

Risk Flags

Tags

industrial-gas-manufacturing, department-of-justice, ok, delivery-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3,491.83 to AIRGAS USA, LLC. FY25 B1 AIRGAS BULK OXYGEN QTR 4 MEDICAL GRADE BULK OXYGEN SYSTEM LEASE AND SUPPLY PER STATEMENT OF WORK

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 $3,491.83.

What is the period of performance?

Start: 2025-09-30. End: 2025-09-30.

What is the historical pricing trend for bulk oxygen supplies to the Bureau of Prisons or similar federal facilities?

Analyzing historical pricing data for bulk oxygen to the Bureau of Prisons or comparable federal facilities is crucial for assessing long-term value. Without this context, it's difficult to definitively state if the current $3.49M award represents a favorable price point compared to previous periods or market trends. Understanding past expenditures and any escalation clauses would provide a more robust evaluation of cost-effectiveness over time.

What are the specific risks associated with relying on a single supplier for medical-grade bulk oxygen in a correctional setting?

Reliance on a single supplier for critical medical-grade bulk oxygen presents several risks. These include potential supply chain disruptions due to the supplier's operational issues, natural disasters, or geopolitical events. Furthermore, a lack of competition in future contract renewals could lead to price gouging or reduced service quality. Emergency contingency plans and alternative supplier identification are vital mitigation strategies.

How effectively does this contract support the Bureau of Prisons' mission to provide adequate healthcare to inmates?

This contract directly supports the Bureau of Prisons' healthcare mission by ensuring a consistent and reliable supply of medical-grade bulk oxygen, a fundamental requirement for patient care. The firm fixed-price structure provides budget certainty. However, the effectiveness is contingent on the supplier's performance, timely delivery, and the quality of the oxygen meeting all medical specifications.

Industry Classification

NAICS: ManufacturingBasic Chemical ManufacturingIndustrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15B41424Q00000006

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L'air Liquide Societe Anonyme Pour L'etude ET L'exploitation DES Procedes Georges Claude

Address: 31 N PEORIA AVE, TULSA, OK, 74120

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: $3,492

Exercised Options: $3,492

Current Obligation: $3,492

Actual Outlays: $3,492

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B41424D00000059

IDV Type: IDC

Timeline

Start Date: 2025-09-30

Current End Date: 2025-09-30

Potential End Date: 2025-09-30 00:00:00

Last Modified: 2026-04-10

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