NASA awards $5M contract for liquid nitrogen and oxygen delivery to Linde Inc
Contract Overview
Contract Amount: $5,072,120 ($5.1M)
Contractor: Linde Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-07-01
End Date: 2029-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: KENNEDY SPACE CENTER LIQUID NITROGEN AND LIQUID OXYGEN DELIVERY
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $5.1 million to LINDE INC. for work described as: KENNEDY SPACE CENTER LIQUID NITROGEN AND LIQUID OXYGEN DELIVERY Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract with economic price adjustment offers some cost certainty while accounting for market fluctuations. 3. The contract duration of 5 years indicates a long-term need for these critical industrial gases. 4. The award value of approximately $5 million over five years suggests a moderate annual expenditure. 5. The industrial gas manufacturing sector is essential for various aerospace and research operations. 6. Performance context is crucial to understand if the delivered gases meet stringent quality standards for space missions.
Value Assessment
Rating: good
The contract value of approximately $5 million over five years for industrial gas delivery appears reasonable given the specialized nature of the product and the demanding requirements of NASA. Benchmarking against similar contracts for bulk industrial gases at other federal facilities or large research institutions would provide a more precise value assessment. However, the fixed-price with economic price adjustment structure aims to balance cost control with market volatility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The open competition suggests that NASA sought the best value proposition from the market.
Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to secure the most advantageous pricing and terms for the government, potentially reducing overall expenditure compared to less competitive methods.
Public Impact
The primary beneficiary is NASA's Kennedy Space Center, ensuring a continuous supply of essential cryogenic propellants and industrial gases. Services delivered include the reliable provision of liquid nitrogen and liquid oxygen, critical for spacecraft fueling, research, and facility operations. The geographic impact is concentrated in Florida, supporting NASA's launch and research activities. Workforce implications may include specialized logistics and handling personnel for the delivery and management of these gases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases due to economic price adjustment clause if market conditions fluctuate significantly.
- Dependence on a single supplier for critical industrial gases could pose a risk if supply chain disruptions occur.
- Ensuring consistent quality and purity of gases is paramount for sensitive aerospace applications.
Positive Signals
- Awarded through full and open competition, indicating a robust market and potential for competitive pricing.
- Long-term contract (5 years) provides supply stability for NASA's ongoing operations.
- Fixed-price with economic price adjustment offers a balance between cost control and market responsiveness.
Sector Analysis
The industrial gas manufacturing sector is a mature and critical industry that supplies essential products to a wide range of sectors, including aerospace, healthcare, and manufacturing. NASA's reliance on these gases, particularly cryogenic liquids like liquid oxygen and nitrogen, is fundamental for rocket propulsion and environmental control systems. Spending in this sector for government agencies is often characterized by long-term supply agreements due to the specialized infrastructure and logistical requirements involved.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the specialized nature of industrial gas production and delivery, it is common for such contracts to be awarded to larger, established companies with the necessary infrastructure and capacity. Subcontracting opportunities for small businesses might exist in areas such as transportation or specialized equipment maintenance, but are not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract will likely be managed by NASA's contracting officers and technical representatives at the Kennedy Space Center. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency is facilitated through contract databases like SAM.gov, where award details are publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- NASA Launch Services
- NASA Research and Development
- Federal Industrial Gas Procurement
- Aerospace Support Services
Risk Flags
- Potential supply chain disruption risk
- Price volatility risk due to economic price adjustment
- Dependence on single supplier for critical resource
Tags
nasa, kennedy-space-center, industrial-gas-manufacturing, liquid-nitrogen, liquid-oxygen, full-and-open-competition, fixed-price-with-economic-price-adjustment, delivery-order, florida, long-term-contract, aerospace, cryogenic-gases
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $5.1 million to LINDE INC.. KENNEDY SPACE CENTER LIQUID NITROGEN AND LIQUID OXYGEN DELIVERY
Who is the contractor on this award?
The obligated recipient is LINDE INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $5.1 million.
What is the period of performance?
Start: 2024-07-01. End: 2029-06-30.
What is the historical spending pattern for liquid nitrogen and oxygen at NASA's Kennedy Space Center?
Historical spending data for liquid nitrogen and oxygen at NASA's Kennedy Space Center is not directly available in the provided snippet. However, the current award of approximately $5 million over five years suggests an average annual expenditure of around $1 million for these gases. To understand historical patterns, one would need to analyze past contracts for similar services, looking at award values, durations, and the number of competitors over several fiscal years. This would reveal trends in pricing, demand, and supplier stability. For instance, a consistent award to the same vendor over many years might indicate a stable market or a lack of robust competition, while fluctuating awards could suggest evolving needs or increased market participation.
How does the pricing of this contract compare to market rates for industrial gases?
Direct comparison of this contract's pricing to general market rates for industrial gases is challenging without specific unit cost data and detailed contract terms. The provided data indicates a fixed-price contract with economic price adjustment (EPA), which allows for modifications based on specified economic factors (e.g., inflation, raw material costs). This structure aims to reflect market realities while providing some predictability. To benchmark effectively, one would need to compare the per-unit cost of liquid nitrogen and oxygen delivered under this contract against published price lists from major industrial gas suppliers for comparable volumes and delivery terms, as well as against prices paid by other large government or commercial entities in the region. The EPA clause itself suggests an acknowledgment of market volatility.
What are the key performance indicators (KPIs) for this contract, and how are they monitored?
Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, typical KPIs for industrial gas supply contracts include on-time delivery rates, purity levels of the gases, order fulfillment accuracy, and responsiveness to emergency requests. NASA's technical representatives would likely monitor these metrics through regular reporting from Linde Inc. and potentially through direct observation and testing of delivered products. Contractual clauses would specify acceptable ranges for these KPIs, and failure to meet them could result in penalties or corrective actions. The economic price adjustment mechanism might also be tied to certain performance metrics or quality standards.
What is Linde Inc.'s track record with NASA and other federal agencies for similar services?
Linde Inc. is a major global industrial gas supplier, and its track record with NASA and other federal agencies for similar services would likely be extensive. A thorough assessment would involve reviewing Linde's past performance evaluations on federal contracts, including any past performance questionnaires (PPQs) submitted during the bidding process for this award. Information on contract compliance, delivery reliability, quality of products, and customer satisfaction from previous federal engagements would be crucial. Agencies often maintain databases of contractor performance history, which contracting officers consult during source selection. Given Linde's market position, it is probable they have a substantial history of supplying industrial gases to various government entities.
What are the potential risks associated with relying on a single supplier for critical industrial gases?
Relying on a single supplier, even a reputable one like Linde Inc., for critical industrial gases like liquid nitrogen and oxygen presents several potential risks. These include supply chain disruptions due to unforeseen events (e.g., natural disasters, labor strikes, transportation issues), potential for price increases beyond the EPA adjustments if market power is leveraged, and reduced incentive for the supplier to innovate or offer superior service if competition is limited. NASA would mitigate these risks through robust contract management, including clear performance standards, contingency planning, and potentially maintaining relationships with alternative suppliers for emergency needs, although this contract is awarded to Linde.
How does this contract align with NASA's broader mission objectives and operational needs?
This contract directly aligns with NASA's mission objectives by ensuring the availability of essential propellants and life support gases required for space launch operations, astronaut training, and scientific research conducted at the Kennedy Space Center. Liquid oxygen is a primary oxidizer for many rocket propellants, and liquid nitrogen is used for cooling systems, environmental simulation, and inerting purposes. Reliable and timely delivery of these gases is fundamental to the success of launch campaigns and ongoing research activities. The contract's five-year duration provides operational stability, allowing NASA to plan its complex schedules with confidence in its supply chain for these critical consumables.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 10 RIVERVIEW DR, DANBURY, CT, 06810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $14,485,639
Exercised Options: $14,485,639
Current Obligation: $5,072,120
Actual Outlays: $2,478,283
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC024DA011
IDV Type: IDC
Timeline
Start Date: 2024-07-01
Current End Date: 2029-06-30
Potential End Date: 2029-06-30 00:00:00
Last Modified: 2026-03-17
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