NIH awards $3M for refrigerated liquid gases and related services, with Airgas USA, LLC as the sole awardee

Contract Overview

Contract Amount: $300,930 ($300.9K)

Contractor: Airgas USA, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-27

End Date: 2026-04-26

Contract Duration: 364 days

Daily Burn Rate: $827/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NIMH REFRIGERATED LIQUID GASES AND RELATED LEASING, MAINTENANCE, AND TELEMETRY SERVICES FOR AIRGAS BULK GAS TANKS

Place of Performance

Location: INDEPENDENCE, CUYAHOGA County, OHIO, 44131

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $300,930 to AIRGAS USA, LLC for work described as: NIMH REFRIGERATED LIQUID GASES AND RELATED LEASING, MAINTENANCE, AND TELEMETRY SERVICES FOR AIRGAS BULK GAS TANKS Key points: 1. The contract value of $3,009,300 for a one-year period suggests a significant need for specialized gas supply and maintenance. 2. Competition dynamics are limited, as the contract was competed under SAP (Simplified Acquisition Procedures), potentially impacting price discovery. 3. Risk indicators include the reliance on a single vendor for critical laboratory supplies, which could lead to supply chain vulnerabilities. 4. Performance context is tied to supporting the National Institutes of Health's research activities, requiring reliable and high-quality gas provision. 5. Sector positioning places this contract within the industrial gas manufacturing and supply chain, crucial for scientific research and development.

Value Assessment

Rating: fair

The contract value of $3,009,300 for a 364-day period equates to approximately $8,245 per day. Benchmarking this against similar contracts for industrial gases and related services is challenging without more specific details on the types and volumes of gases required. However, the fixed-price nature of the contract provides some cost certainty. Further analysis would require comparing the unit prices of specific gases and services to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP is generally used for acquisitions below certain dollar thresholds, suggesting a potentially smaller pool of interested parties. This limited competition may not have driven the lowest possible prices.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean potentially higher costs compared to a fully competed contract, as the government may not have benefited from the full range of market offers.

Public Impact

Researchers at the National Institutes of Health (NIH) will benefit from a reliable supply of essential gases for their experiments. The services delivered include the provision of refrigerated liquid gases, leasing, maintenance, and telemetry services for bulk gas tanks. The geographic impact is concentrated in Ohio, where the services are being delivered. Workforce implications are minimal, primarily affecting the specialized technicians required for gas delivery and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals due to limited competition.
Reliance on a single vendor could create supply chain risks if Airgas USA, LLC experiences operational issues.
Lack of transparency in the SAP bidding process may obscure potential cost savings.

Positive Signals

The contract ensures a consistent supply of critical gases for ongoing research at NIH.
Fixed-price contract provides cost predictability for the current performance period.
The vendor, Airgas USA, LLC, is an established provider in the industrial gas market.

Sector Analysis

This contract falls within the Industrial Gas Manufacturing sector, which is essential for a wide range of industries, including healthcare, research, and manufacturing. The market for industrial gases is characterized by significant infrastructure investment and specialized logistics. Spending in this sector often involves long-term supply agreements due to the nature of production and distribution. Comparable spending benchmarks would depend on the specific gases and volumes, but contracts of this size are common for supporting large research institutions.

Small Business Impact

The contract details indicate that small business participation was not a primary consideration, as the awardee is Airgas USA, LLC, a large corporation, and the contract was not set aside for small businesses. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the National Institutes of Health. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through contract award databases, though the specifics of the SAP competition process may have limited public visibility into the bidding details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Support Contracts
Federal Supply Schedule for Industrial Gases
Department of Health and Human Services Laboratory Supplies

Risk Flags

Limited Competition
Potential Supply Chain Risk
Reliance on Single Vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $300,930 to AIRGAS USA, LLC. NIMH REFRIGERATED LIQUID GASES AND RELATED LEASING, MAINTENANCE, AND TELEMETRY SERVICES FOR AIRGAS BULK GAS TANKS

Who is the contractor on this award?

The obligated recipient is AIRGAS USA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $300,930.

What is the period of performance?

Start: 2025-04-27. End: 2026-04-26.

What is the historical spending pattern for refrigerated liquid gases and related services at NIH?

Analyzing historical spending patterns for refrigerated liquid gases and related services at the National Institutes of Health (NIH) requires access to detailed procurement data over multiple fiscal years. Without specific historical data for this contract or similar services, it's difficult to establish a precise trend. However, generally, research institutions like NIH have consistent and often increasing needs for such supplies due to ongoing scientific advancements and expanding research programs. Factors influencing spending include the number of active research projects, the types of experiments being conducted, and the overall budget allocated to scientific support services. Fluctuations might occur due to specific large-scale projects or changes in research priorities. A comprehensive review of NIH's past contracts for industrial gases and associated services would be necessary to identify any significant trends in spending volume, cost per unit, or vendor concentration.

How does the pricing of this contract compare to similar federal awards for industrial gases?

Directly comparing the pricing of this $3,009,300 contract for refrigerated liquid gases and related services to similar federal awards is challenging without granular data on the specific types, volumes, and purity levels of gases procured, as well as the included maintenance and telemetry services. The contract's value for a 364-day period suggests a substantial requirement. However, the fact that it was competed under Simplified Acquisition Procedures (SAP) might indicate that the pricing was not subjected to the same level of competitive pressure as a full and open competition. To perform a robust comparison, one would need to benchmark the unit prices of key gases (e.g., nitrogen, oxygen, argon) and the daily rates for maintenance and telemetry against other federal contracts awarded through competitive bidding processes, ideally for similar research or laboratory support applications. Without such detailed comparisons, assessing whether this contract represents excellent, good, or fair value is speculative.

What are the potential risks associated with relying on Airgas USA, LLC for these critical supplies?

Relying on a single vendor, Airgas USA, LLC, for critical refrigerated liquid gases and related services presents several potential risks. Firstly, there's a supply chain risk: any disruption to Airgas's production, logistics, or distribution network—whether due to natural disasters, labor disputes, or internal operational issues—could directly impact NIH's research activities, potentially leading to costly delays or interruptions. Secondly, there's a pricing risk; with limited competition, NIH may be vulnerable to price increases in future contract renewals or modifications, as the vendor may have less incentive to offer competitive rates. Thirdly, there's a performance risk; while Airgas is an established company, any degradation in service quality, maintenance responsiveness, or product purity could negatively affect sensitive research experiments. Finally, a lack of robust oversight or performance monitoring could exacerbate these risks.

What is the track record of Airgas USA, LLC in fulfilling federal contracts for similar services?

Airgas USA, LLC has a significant track record in fulfilling federal contracts for industrial gases, welding supplies, and related services. As a major national supplier, they frequently appear in federal procurement databases, often winning contracts across various agencies, including the Department of Defense, Department of Veterans Affairs, and other research-intensive organizations like the National Institutes of Health. Their experience typically involves providing a wide range of gases (e.g., atmospheric gases, specialty gases) and associated equipment and maintenance. While specific performance metrics for past contracts are not detailed here, their continued success in securing federal awards suggests a generally satisfactory performance history. However, a deeper dive into contract performance reports, past performance evaluations, and any documented disputes or issues would be necessary for a comprehensive assessment of their track record specifically for refrigerated liquid gas supply and maintenance.

How does the contract's duration and value align with the typical needs for NIH research support?

The contract's duration of 364 days and a value of $3,009,300 are substantial, suggesting a continuous and significant need for refrigerated liquid gases and related services at the NIH. Research activities, particularly in fields supported by NIH, often require a steady supply of high-purity gases for experiments, cell cultures, and analytical equipment. A one-year contract term is common for many federal procurements, allowing for flexibility and periodic re-evaluation of needs and market conditions. The value indicates that the scale of operations supported by these gases is considerable, potentially serving multiple laboratories or large-scale research initiatives. This duration and value appear aligned with the ongoing, resource-intensive nature of biomedical research, where reliable access to essential supplies is critical for maintaining research momentum and achieving scientific objectives.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6055 ROCKSIDE RD, INDEPENDENCE, OH, 44131

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: $300,930

Exercised Options: $300,930

Current Obligation: $300,930

Actual Outlays: $81,576

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N95024D00018

IDV Type: IDC

Timeline