NASA Awards $13.88M for Liquid Nitrogen to Messer LLC, Extending Contract Through 2029
Contract Overview
Contract Amount: $13,877,712 ($13.9M)
Contractor: Messer LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-07-11
End Date: 2029-06-30
Contract Duration: 1,815 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DELIVERY ORDER FOR LIQUID NITROGEN 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 $13.9 million to MESSER LLC for work described as: DELIVERY ORDER FOR LIQUID NITROGEN FOR STENNIS SPACE CENTER (SSC) AS DESCRIBED ON KENNEDY SPACE CENTER'S (KSC'S) BASE CONTRACT. Key points: 1. Contract awarded via full and open competition, suggesting market availability. 2. Messer LLC is the sole awardee for this delivery order. 3. The contract is for industrial gas manufacturing, specifically liquid nitrogen. 4. Spending is concentrated in Mississippi, supporting the Stennis Space Center.
Value Assessment
Rating: good
The award amount of $13.88M over nearly five years appears reasonable for industrial gas supply. Benchmarking against similar contracts for bulk industrial gases at large federal facilities would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process, ensuring efficient use of federal funds for essential supplies.
Public Impact
Ensures continued operation of critical research and testing facilities at Stennis Space Center. Supports NASA's space exploration and scientific research missions. Provides a vital industrial gas necessary for various scientific and engineering processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases over the 5-year contract term.
- Dependence on a single supplier for a critical resource.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides budget stability.
- Supports critical NASA infrastructure.
Sector Analysis
The contract falls under the Industrial Gas Manufacturing sector, supplying essential cryogenic fluids. Federal spending in this area is typically driven by research, development, and operational needs of agencies like NASA.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the awardee is Messer LLC, a large industrial gas supplier. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA), which has established procurement regulations and oversight mechanisms. The delivery order structure allows for specific tasking and monitoring of performance.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for price increases over the contract term.
- Dependence on a single supplier for a critical resource.
- Lack of small business participation noted.
- Contract duration may outpace technological advancements in gas production/delivery.
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 $13.9 million to MESSER LLC. DELIVERY ORDER FOR LIQUID NITROGEN 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 $13.9 million.
What is the period of performance?
Start: 2024-07-11. End: 2029-06-30.
What is the historical pricing trend for liquid nitrogen for federal agencies, and how does this award compare?
Historical pricing for liquid nitrogen can fluctuate based on market demand, energy costs, and supplier competition. Without specific historical data for NASA or comparable agencies, it's difficult to definitively benchmark this $13.88M award. However, the use of full and open competition suggests an effort to secure competitive rates, implying the price is likely aligned with current market conditions for bulk industrial gases.
What are the risks associated with a long-term contract for a critical supply like liquid nitrogen, particularly regarding price volatility?
A significant risk with long-term contracts for critical supplies is price volatility. While this contract is firm-fixed-price, market fluctuations in raw materials, energy, and transportation could impact the supplier's long-term profitability, potentially leading to less favorable renewal terms or, in extreme cases, supplier performance issues. Monitoring market trends is crucial.
How effectively does this contract support the operational needs of the Stennis Space Center and NASA's broader mission?
This contract is crucial for the operational continuity of the Stennis Space Center, which relies on liquid nitrogen for various testing and research activities essential to NASA's space exploration and propulsion development missions. Ensuring a stable and reliable supply through this award directly supports the agency's ability to conduct critical experiments and maintain its infrastructure.
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 STE 7000, BRIDGEWATER, NJ, 08807
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $36,898,350
Exercised Options: $36,898,350
Current Obligation: $13,877,712
Actual Outlays: $11,127,327
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC024DA012
IDV Type: IDC
Timeline
Start Date: 2024-07-11
Current End Date: 2029-06-30
Potential End Date: 2029-06-30 00:00:00
Last Modified: 2026-03-19
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