NASA Awards $14.3M for Gaseous Helium to Messer LLC, Supporting Stennis and Kennedy Space Centers
Contract Overview
Contract Amount: $14,331,734 ($14.3M)
Contractor: Messer LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2022-10-01
End Date: 2025-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $13.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: DELIVERY ORDER FOR GASEOUS HELIUM REQUIRED FOR STENNIS SPACE CENTER (SSC) AS DESCRIBED ON KENNEDY SPACE CENTER'S (KSC'S) BASE CONTRACT.
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $14.3 million to MESSER LLC for work described as: DELIVERY ORDER FOR GASEOUS HELIUM REQUIRED FOR STENNIS SPACE CENTER (SSC) AS DESCRIBED ON KENNEDY SPACE CENTER'S (KSC'S) BASE CONTRACT. Key points: 1. Contract supports critical operations at two major NASA facilities. 2. Messer LLC is a significant player in the industrial gas market. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract introduces potential cost volatility. 4. Industrial Gas Manufacturing sector is essential for various scientific and industrial applications.
Value Assessment
Rating: good
The contract value of $14.3M over three years appears reasonable for specialized industrial gases. Benchmarking against similar contracts for gaseous helium at government facilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential helium supply.
Public Impact
Ensures continued operation of critical research and testing facilities at Stennis and Kennedy Space Centers. Supports NASA's ongoing space exploration and scientific endeavors. Reliable supply of gaseous helium is vital for numerous experiments and propulsion testing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause may lead to cost increases.
- Dependence on a single supplier for a critical resource.
Positive Signals
- Awarded under full and open competition.
- Supports critical national space program infrastructure.
Sector Analysis
The industrial gas sector, particularly for specialized gases like helium, is crucial for government research and development. Spending benchmarks for industrial gases can vary significantly based on volume, purity, and delivery requirements.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both `ss` and `sb` fields are false. Further analysis would be needed to determine if small business participation was sought or if the prime contractor utilizes small business subcontractors.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA), which has established oversight mechanisms for its procurement processes. Monitoring the economic price adjustment and delivery performance will be key accountability measures.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost increases due to Economic Price Adjustment.
- Reliance on a single supplier for a critical resource.
- Lack of small business participation noted in prime award.
- Helium market volatility and supply chain risks.
Tags
industrial-gas-manufacturing, national-aeronautics-and-space-administr, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $14.3 million to MESSER LLC. DELIVERY ORDER FOR GASEOUS HELIUM REQUIRED FOR STENNIS SPACE CENTER (SSC) AS DESCRIBED ON KENNEDY SPACE CENTER'S (KSC'S) BASE CONTRACT.
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 $14.3 million.
What is the period of performance?
Start: 2022-10-01. End: 2025-09-30.
What is the typical market price range for gaseous helium of this purity and volume to assess the value proposition?
Determining the precise market price range for gaseous helium requires detailed specifications on purity, volume, delivery method (cylinders, dewars, bulk), and geographic location. However, industrial gas markets can be volatile due to supply chain issues and demand fluctuations. Benchmarking against similar government contracts or consulting industry price indices would be necessary for a robust assessment of the $14.3M award's value.
How will the economic price adjustment clause be monitored to mitigate potential cost overruns?
The economic price adjustment (EPA) clause allows for price changes based on specified economic indicators, often related to labor or material costs. NASA's contracting officers will need to closely monitor the triggers for these adjustments, ensure they align with the contract's terms, and verify the calculations. Regular reporting from Messer LLC on the basis for any price changes will be crucial for accountability and preventing unjustified cost increases.
What are the contingency plans if Messer LLC faces supply disruptions for gaseous helium?
Given the critical nature of gaseous helium for NASA's Stennis and Kennedy Space Centers, contingency planning is essential. NASA should have established protocols for identifying alternative suppliers or securing emergency supplies if Messer LLC experiences disruptions. This might involve pre-qualifying secondary vendors or maintaining strategic reserves, though the latter can be costly for specialized gases like helium.
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: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $49,432,236
Exercised Options: $49,432,236
Current Obligation: $14,331,734
Actual Outlays: $14,331,734
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC022DA125
IDV Type: IDC
Timeline
Start Date: 2022-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-01-20
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