NASA awards $864K contract for industrial gases, ensuring critical supply for Langley Research Center operations
Contract Overview
Contract Amount: $864,060 ($864.1K)
Contractor: Airgas USA LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-07-03
End Date: 2029-06-30
Contract Duration: 1,823 days
Daily Burn Rate: $474/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: PROVIDES LANGLEY RESEARCH CENTER WITH THE NEEDED LIQUID NITROGEN GRADE C TYPE II AND ALSO GRADE A TYPE II LIQUID OXYGEN.
Place of Performance
Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23681
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $864,060.26 to AIRGAS USA LLC for work described as: PROVIDES LANGLEY RESEARCH CENTER WITH THE NEEDED LIQUID NITROGEN GRADE C TYPE II AND ALSO GRADE A TYPE II LIQUID OXYGEN. Key points: 1. Contract ensures a consistent supply of essential industrial gases (liquid nitrogen and oxygen) for NASA's Langley Research Center. 2. The fixed-price contract with economic price adjustment aims to mitigate market volatility for critical supplies. 3. Competition was robust, with 5 bidders vying for this requirement, suggesting a healthy market for industrial gases. 4. The contract duration of approximately 5 years provides long-term supply stability. 5. The award to Airgas USA LLC signifies a key supplier for specialized NASA research needs. 6. The North American Industry Classification System (NAICS) code 325120 indicates a focus on industrial gas manufacturing.
Value Assessment
Rating: good
The contract value of $864,060.26 over nearly five years appears reasonable for the provision of specialized industrial gases. While direct comparisons are difficult without more granular data on specific gas grades and delivery volumes, the fixed-price with economic price adjustment structure is common for such commodities to manage fluctuating market costs. The competitive nature of the award suggests that pricing was likely scrutinized by multiple vendors.
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 presence of 5 bidders suggests a competitive marketplace for industrial gases, which generally leads to better price discovery and potentially more favorable terms for the government. The agency actively sought proposals from a range of qualified suppliers.
Taxpayer Impact: The robust competition ensures that taxpayer dollars are being used efficiently, as multiple companies vied to provide the required gases at the best possible price.
Public Impact
The primary beneficiary is NASA's Langley Research Center, which relies on these gases for its research and development activities. The contract delivers essential liquid nitrogen (Grade C, Type II) and liquid oxygen (Grade A, Type II). The geographic impact is localized to NASA's Langley Research Center in Virginia. The contract supports the specialized workforce at Langley by ensuring they have the necessary materials to conduct their work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases due to economic price adjustment clause if market prices for raw materials or energy rise significantly.
- Reliance on a single supplier for critical gases could pose a risk if unforeseen supply chain disruptions occur.
- Ensuring consistent quality control for specialized gas grades is paramount for research integrity.
Positive Signals
- Awarded under full and open competition, indicating a competitive market and potentially good value.
- Contract duration of nearly five years provides supply chain stability for a critical research facility.
- Fixed-price with economic price adjustment helps manage cost fluctuations in a volatile commodity market.
Sector Analysis
The industrial gas manufacturing sector (NAICS 325120) is a mature industry that supplies essential gases for a wide range of applications, including research, healthcare, and manufacturing. NASA's requirement for high-purity industrial gases falls within this sector. Spending on industrial gases by government agencies is consistent, driven by the operational needs of research facilities, laboratories, and other technical operations. This contract represents a small but vital component of NASA's overall procurement for research support services.
Small Business Impact
This contract does not appear to have a specific small business set-aside. Given the nature of industrial gas supply and the specialized requirements, it is likely that larger, established suppliers dominate this market. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, though general supply chain activities might involve them.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA), which has established procurement regulations and oversight processes. The use of a fixed-price contract with economic price adjustment requires monitoring of market indices to ensure fair application of the adjustment clause. NASA's Office of Inspector General would have jurisdiction over any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- NASA Research and Development Contracts
- Industrial Gas Supply Contracts
- Aerospace Research Support Services
- National Aeronautics and Space Administration Procurement
Risk Flags
- Potential for price escalation due to EPA clause.
- Supply chain disruption risk.
- Ensuring consistent quality of specialized gases.
Tags
nasa, industrial-gas-manufacturing, liquid-nitrogen, liquid-oxygen, langley-research-center, virginia, full-and-open-competition, fixed-price-with-economic-price-adjustment, research-and-development, aerospace, supply-chain
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $864,060.26 to AIRGAS USA LLC. PROVIDES LANGLEY RESEARCH CENTER WITH THE NEEDED LIQUID NITROGEN GRADE C TYPE II AND ALSO GRADE A TYPE II LIQUID OXYGEN.
Who is the contractor on this award?
The obligated recipient is AIRGAS USA LLC.
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 $864,060.26.
What is the period of performance?
Start: 2024-07-03. End: 2029-06-30.
What is the historical spending by NASA on industrial gases, and how does this contract compare?
Analyzing NASA's historical spending on industrial gases requires access to detailed procurement databases. However, contracts for essential research materials like liquid nitrogen and oxygen are recurring necessities for facilities like the Langley Research Center. This $864,060.26 award over approximately five years suggests an average annual expenditure of roughly $172,812 for these specific gases. This figure should be benchmarked against previous awards for similar quantities and grades of gases to Langley, as well as against spending by other NASA centers with comparable research needs. Fluctuations in annual spending would likely correlate with research project intensity and the operational status of cryogenic equipment.
What are the specific quality requirements for Grade C Type II liquid nitrogen and Grade A Type II liquid oxygen, and how are they verified?
Grade C Type II liquid nitrogen and Grade A Type II liquid oxygen refer to specific purity and impurity levels mandated by industry standards, likely ASTM or similar specifications. For instance, 'Type II' often denotes a higher purity level than 'Type I'. The 'Grade C' designation for nitrogen might relate to specific trace element limits crucial for sensitive research applications. Verification typically involves the supplier providing Certificates of Analysis (CoA) with each delivery, detailing the measured purity and impurity levels. NASA quality assurance personnel at Langley may also conduct periodic sampling and testing to independently verify that the delivered gases meet the stringent specifications required for their experiments, ensuring the integrity and reproducibility of research outcomes.
What is the potential impact of the economic price adjustment (EPA) clause on the total contract cost?
The Economic Price Adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, such as labor costs, material costs (e.g., energy, raw materials for gas production), or transportation. For this contract, the EPA is designed to protect both the contractor from unforeseen cost increases and the government from excessively high initial bids that might account for potential future volatility. The actual impact on the total cost will depend on market trends over the contract period. If energy prices or the costs of producing industrial gases rise significantly, the contract price could increase. Conversely, if prices stabilize or fall, the EPA might result in minimal or no price adjustments. NASA will need to monitor the relevant economic indices closely to ensure fair application of the EPA.
How does the competition level (5 bidders) influence the value and risk for this industrial gas contract?
Having five bidders for this industrial gas contract is a positive indicator. A higher number of bidders generally signifies a competitive market, which tends to drive down prices and improve the overall value proposition for the government. It reduces the risk of vendor lock-in and provides NASA with greater confidence that they are receiving a fair market price. From a risk perspective, robust competition also suggests that there are multiple capable suppliers in the market, mitigating the risk of supply disruption should one vendor face operational issues. This level of competition supports effective price discovery and encourages suppliers to offer their best terms.
What are the risks associated with relying on Airgas USA LLC for these critical research gases over a five-year period?
While the contract was competitively awarded, a primary risk of relying on a single supplier, even for a defined period, is potential supply chain disruption. Events such as natural disasters, labor strikes, transportation issues, or unforeseen operational problems at Airgas's facilities could impact delivery. Another risk relates to the long-term price stability; although the EPA clause exists, significant market shifts could still lead to higher costs than initially anticipated. Furthermore, ensuring consistent adherence to the stringent purity requirements over the contract's duration requires ongoing vigilance from NASA's quality assurance teams to prevent any degradation in research quality due to substandard gas.
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
Solicitation ID: 80KSC023R0022
Offers Received: 5
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $4,673,625
Exercised Options: $864,060
Current Obligation: $864,060
Actual Outlays: $689,872
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC024DA014
IDV Type: IDC
Timeline
Start Date: 2024-07-03
Current End Date: 2029-06-30
Potential End Date: 2029-06-30 00:00:00
Last Modified: 2026-04-08
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