NASA awards $17.4M for bulk dewar helium, with Messer LLC securing the contract
Contract Overview
Contract Amount: $17,432,883 ($17.4M)
Contractor: Messer LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-01-17
End Date: 2025-09-30
Contract Duration: 987 days
Daily Burn Rate: $17.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BULK DEWAR HELIUM
Place of Performance
Location: BRIDGEWATER, SOMERSET County, NEW JERSEY, 08807
Plain-Language Summary
National Aeronautics and Space Administration obligated $17.4 million to MESSER LLC for work described as: BULK DEWAR HELIUM Key points: 1. The contract value of $17.4 million for industrial gas manufacturing appears to be within a reasonable range for specialized cryogenic materials. 2. Full and open competition was utilized, suggesting a robust market for helium supply and potentially competitive pricing. 3. The contract duration of nearly two years provides stability for NASA's helium needs. 4. The fixed-price contract structure shifts performance risk to the contractor, Messer LLC. 5. Helium is a critical component for various scientific and industrial applications, including superconductivity in research equipment. 6. The geographic location of performance in New Jersey is noted.
Value Assessment
Rating: good
The contract value of $17.4 million for bulk dewar helium is assessed as good. While specific benchmarking data for this exact commodity is scarce, the price appears consistent with the specialized nature of cryogenic gas supply and the quantities typically required for large research institutions like NASA. The firm fixed-price nature of the award suggests that the contractor has factored in potential cost fluctuations, providing a predictable expense for the agency. Compared to other government contracts for industrial gases, this award seems to fall within expected parameters for specialized, high-purity products.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of full and open competition suggests a healthy market for industrial gases, allowing NASA to solicit bids from a wide range of qualified suppliers. This process is designed to foster price discovery and ensure that the government receives competitive pricing. The number of bidders is not specified, but the category implies more than one.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces. It ensures that government funds are used efficiently by obtaining goods and services at the most favorable rates achievable in the marketplace.
Public Impact
NASA researchers and scientists benefit from a reliable supply of high-purity helium for critical experiments and equipment. The contract ensures the availability of a vital industrial gas essential for maintaining advanced research infrastructure. The geographic impact is primarily at NASA facilities utilizing the supplied helium, with performance located in New Jersey. The contract supports jobs within the industrial gas manufacturing and distribution sector, specifically benefiting Messer LLC's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in the global helium market, although mitigated by fixed-price contract.
- Dependence on a single supplier for a critical resource, highlighting the importance of supply chain resilience.
- Ensuring consistent purity and quality of helium to meet stringent NASA research requirements.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Firm fixed-price contract provides cost certainty for the agency.
- Contract duration of nearly two years offers supply stability.
- Messer LLC is an established supplier in the industrial gas market.
Sector Analysis
The industrial gas manufacturing sector is a critical component of the broader manufacturing and scientific research ecosystem. This contract falls within the 'Industrial Gas Manufacturing' (NAICS 325120) category, which includes establishments primarily engaged in manufacturing industrial gases. Helium, in particular, is a unique commodity with limited production sources globally, making its supply chain subject to specific market dynamics. NASA's reliance on helium for cryogenic applications, such as cooling superconducting magnets in research instruments, places it within a niche but essential segment of the industrial gas market. Comparable spending benchmarks for bulk industrial gases can vary significantly based on purity, volume, and delivery method, but this award appears consistent with specialized cryogenic gas procurement.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, as a large prime contract, there is always a potential for larger prime contractors to engage small businesses for support services or components, though this is not explicitly mandated or detailed in the provided data.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA) contracting officer and their representatives. NASA has established procurement regulations and oversight mechanisms to ensure contract compliance, performance quality, and adherence to terms and conditions. Transparency is generally maintained 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
- NASA Research and Development Contracts
- Industrial Gas Supply Contracts
- Cryogenic Material Procurement
- Scientific Equipment Support Services
Risk Flags
- Potential supply chain vulnerability for critical gas
- Price volatility in the global helium market
- Dependence on a single supplier for a key resource
Tags
industrial-gas-manufacturing, nasa, national-aeronautics-and-space-administration, new-jersey, firm-fixed-price, full-and-open-competition, delivery-order, cryogenic-materials, research-and-development, industrial-gases
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $17.4 million to MESSER LLC. BULK DEWAR HELIUM
Who is the contractor on this award?
The obligated recipient is MESSER 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 $17.4 million.
What is the period of performance?
Start: 2023-01-17. End: 2025-09-30.
What is the historical spending pattern for bulk dewar helium by NASA or similar agencies?
Analyzing historical spending for bulk dewar helium by NASA and comparable agencies requires access to detailed procurement databases over several fiscal years. Generally, agencies with significant research and development activities, particularly those involving advanced physics, astronomy, or materials science, will have recurring needs for helium. Spending patterns can fluctuate based on the lifecycle of research projects, the operational status of scientific instruments (e.g., particle accelerators, telescopes with cryogenic cooling), and the availability and price of helium on the global market. The global helium market has experienced price volatility due to supply constraints and increased demand, which would likely be reflected in historical contract values. Without specific historical data for NASA's helium procurement, it's difficult to provide precise figures, but consistent, multi-million dollar annual expenditures are plausible for agencies with extensive cryogenic requirements.
How does the price per unit of helium in this contract compare to market rates for industrial-grade helium?
Benchmarking the price per unit for helium in this contract against market rates is challenging without knowing the exact quantity (in liters or cubic meters) and purity level specified in the award. The provided data indicates a total award of $17,432,883 for 'BULK DEWAR HELIUM' with a National Industrial Classification code of 325120 (Industrial Gas Manufacturing). Helium prices fluctuate significantly based on purity (e.g., industrial grade vs. research grade), volume purchased, delivery method (dewars, cylinders, bulk tanks), and geographic location. Industrial-grade helium, typically around 99.99% purity, is less expensive than higher purity grades required for sensitive scientific applications. Given the contract's substantial value and its duration, it likely represents a significant volume of high-purity helium. A rough estimate, based on industry reports for bulk helium pricing (which can range from $5 to $15+ per cubic meter depending on market conditions and purity), suggests that this contract could be procuring several million cubic meters of helium over its term. However, a precise comparison requires detailed specifications of the helium product and delivery terms.
What are the key risks associated with the supply of helium, and how are they mitigated in this contract?
The primary risks associated with helium supply stem from its finite nature as a byproduct of natural gas extraction and its geopolitical concentration. Key risks include supply chain disruptions due to geopolitical instability in producing regions, price volatility driven by global demand and limited production capacity, and potential quality control issues affecting purity. This contract mitigates some of these risks through its firm fixed-price structure, which transfers the risk of price increases to the contractor, Messer LLC. The contract duration of nearly two years provides a degree of supply stability for NASA. However, risks related to global supply shortages or unforeseen geopolitical events impacting production remain external factors. NASA's reliance on a single awardee, even if competitively sourced, also presents a concentration risk. Mitigation strategies for such risks often involve maintaining strategic reserves, diversifying suppliers where feasible, and closely monitoring global market conditions.
What is Messer LLC's track record in supplying industrial gases to the federal government?
Messer LLC, a significant player in the industrial gas market, has a history of supplying various gases to government entities. While specific details of their past federal contracts are not provided in this data snippet, their presence as a prime contractor for NASA suggests they possess the necessary qualifications, capacity, and experience to meet federal procurement requirements. Companies of Messer's size typically engage in numerous government contracts across different agencies, often involving complex logistics and stringent quality standards. A thorough assessment of their track record would involve reviewing their performance history on previous federal awards, including any past performance evaluations, contract modifications, or disputes. Their ability to secure this NASA contract, awarded through full and open competition, implies a positive assessment of their capabilities and competitive offering by the agency.
How does this contract align with NASA's broader mission objectives and research priorities?
This contract for bulk dewar helium directly supports NASA's mission objectives, particularly in areas requiring advanced scientific research and technological development. Helium is indispensable for cooling superconducting magnets used in sensitive scientific instruments, such as those found in particle physics experiments, advanced telescopes (like the James Webb Space Telescope's infrared detectors), and materials science research. Maintaining the operational integrity and performance of these instruments is crucial for NASA's scientific discovery goals. By ensuring a reliable supply of this critical cryogenic fluid, the contract enables ongoing research, innovation, and the advancement of space exploration and Earth science knowledge. It underpins the infrastructure necessary for NASA to conduct cutting-edge research and maintain its leadership in scientific and technological endeavors.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Messer Industrie Gmbh
Address: 200 SOMERSET CORPORATE BLVD, BRIDGEWATER, NJ, 08807
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,432,883
Exercised Options: $17,432,883
Current Obligation: $17,432,883
Actual Outlays: $16,838,381
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC022DA125
IDV Type: IDC
Timeline
Start Date: 2023-01-17
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-08-13
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