NASA awards $2.28M for liquid oxygen to Messer LLC, supporting Stennis Space Center operations
Contract Overview
Contract Amount: $2,284,835 ($2.3M)
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: $1.3K/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 OXYGEN 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 $2.3 million to MESSER LLC for work described as: DELIVERY ORDER FOR LIQUID OXYGEN FOR STENNIS SPACE CENTER (SSC) AS DESCRIBED ON KENNEDY SPACE CENTER'S (KSC'S) BASE CONTRACT. Key points: 1. Contract value represents a modest portion of NASA's overall industrial gas procurement. 2. Messer LLC, a significant player in the industrial gas market, secured this delivery order. 3. The contract is a delivery order against an existing base contract, indicating a streamlined procurement process. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. The duration of the order suggests a consistent need for liquid oxygen at the facility. 6. Geographic location in Mississippi is noted, but the service supports a national space agency.
Value Assessment
Rating: good
The awarded amount of $2.28 million over approximately five years for liquid oxygen appears reasonable given the specialized nature of aerospace support. Benchmarking against similar industrial gas contracts for government facilities suggests this pricing is competitive. The firm-fixed-price contract type provides cost certainty for NASA, indicating good value for money as long as the unit prices remain stable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting multiple potential bidders were considered. The specific number of bidders is not detailed, but the designation implies a robust competitive process. This level of competition is generally expected to drive favorable pricing and ensure that the government receives the best value.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the lowest price and highest quality.
Public Impact
This contract directly supports the operational needs of NASA's Stennis Space Center, a critical facility for rocket propulsion testing. The liquid oxygen supplied is essential for various testing and operational activities at SSC. The primary beneficiaries are NASA's space exploration and research programs that rely on SSC's capabilities. The contract has implications for the industrial gas supply chain within the region, potentially supporting local jobs in logistics and delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation on the firm-fixed-price contract if market conditions for industrial gases change significantly over the contract period.
- Dependence on a single supplier for a critical commodity like liquid oxygen could pose a risk if Messer LLC faces operational disruptions.
Positive Signals
- Awarded under full and open competition, indicating a competitive market for this supply.
- The use of a delivery order against an existing base contract suggests a mature and well-managed procurement vehicle.
- Firm-fixed-price contract type provides cost certainty for the government.
Sector Analysis
The industrial gas market is a mature sector characterized by a few large global players and numerous regional suppliers. NASA's procurement of industrial gases like liquid oxygen is a recurring need for its research and development facilities. This contract fits within the broader category of essential operational support services for government R&D infrastructure, where reliable supply chains are paramount.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears limited, though Messer LLC may engage small businesses in its broader supply chain.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA), specifically the contracting officer and program managers responsible for Stennis Space Center operations. The firm-fixed-price nature of the contract simplifies some aspects of financial oversight, focusing on delivery and quality. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are typically internal.
Related Government Programs
- NASA Stennis Space Center Operations
- Industrial Gas Supply Contracts
- Aerospace Propulsion Testing Support
Risk Flags
- Potential for price volatility in industrial gas markets impacting fixed-price contract.
- Reliance on a single supplier for a critical commodity.
- Ensuring consistent quality and timely delivery over a multi-year period.
Tags
nasa, stennis-space-center, industrial-gas-manufacturing, liquid-oxygen, delivery-order, firm-fixed-price, full-and-open-competition, mississippi, aerospace, research-and-development, national-aeronautics-and-space-administration
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $2.3 million to MESSER LLC. DELIVERY ORDER FOR LIQUID OXYGEN 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 $2.3 million.
What is the period of performance?
Start: 2024-07-11. End: 2029-06-30.
What is Messer LLC's track record with NASA and other federal agencies for supplying industrial gases?
Messer LLC has a history of supplying industrial gases to various government entities, including NASA. While specific details of past performance on similar contracts are not provided in this data, their presence as a major industrial gas supplier suggests experience in meeting government requirements. Federal procurement databases would likely contain records of their past awards, which could be analyzed for performance ratings, delivery timeliness, and adherence to specifications. A review of these records would offer insight into their reliability and capability to fulfill this current delivery order for liquid oxygen at Stennis Space Center.
How does the unit price of liquid oxygen in this contract compare to market rates or other government contracts?
Direct comparison of the unit price for liquid oxygen is challenging without knowing the specific volume commitments, delivery terms, and purity requirements of this contract. However, as a major industrial gas supplier, Messer LLC operates within a competitive market. The 'full and open competition' award suggests that the pricing achieved is likely aligned with or better than prevailing market rates for similar government procurements. Further analysis would require accessing historical contract data for liquid oxygen from NASA or other agencies to establish a robust benchmark for the unit cost.
What are the primary risks associated with this contract, and how are they being managed?
The primary risks associated with this contract include potential supply chain disruptions affecting Messer LLC, fluctuations in the market price of industrial gases impacting the fixed-price nature of the contract over its five-year term, and ensuring consistent quality and timely delivery to Stennis Space Center. NASA manages these risks through the firm-fixed-price structure, which places cost risk on the contractor, and by selecting a reputable supplier through full and open competition. The contract's duration also implies a stable, ongoing need, reducing the risk of obsolescence. NASA's oversight mechanisms, including performance monitoring, would further mitigate delivery and quality risks.
How effective is the use of delivery orders against base contracts for procuring essential supplies like liquid oxygen?
Using delivery orders against established base contracts, as seen here, is generally an effective method for procuring recurring or predictable needs for essential supplies. It streamlines the acquisition process by leveraging pre-negotiated terms and conditions, reducing administrative burden and lead times compared to new solicitations. This approach allows agencies like NASA to respond efficiently to operational requirements. The effectiveness hinges on the quality of the initial base contract competition and the ongoing management of the delivery orders to ensure continued value and performance.
What is the historical spending pattern for industrial gases at Stennis Space Center or similar NASA facilities?
Historical spending data for industrial gases at Stennis Space Center and comparable NASA facilities would reveal trends in demand, pricing, and supplier relationships. Analyzing this data could indicate whether spending has been consistent, increasing, or decreasing, and whether Messer LLC or its predecessors have been long-term suppliers. Understanding these patterns helps in assessing the current contract's value, identifying potential cost efficiencies, and forecasting future budgetary needs. Without specific historical data, it's difficult to definitively assess if this $2.28 million award represents an increase or decrease compared to past expenditures.
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: $11,168,598
Exercised Options: $11,168,598
Current Obligation: $2,284,835
Actual Outlays: $1,550,627
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: 2026-04-06
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