NASA's $28M Helium Contract with Linde Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $28,132,827 ($28.1M)
Contractor: Linde Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-10-01
End Date: 2007-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $15.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 51
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: NASA CONSOL HELIUM KSC
Place of Performance
Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06810
Plain-Language Summary
National Aeronautics and Space Administration obligated $28.1 million to LINDE INC. for work described as: NASA CONSOL HELIUM KSC Key points: 1. Contract Value: $28.1 million over 5 years. 2. Sole Provider: Linde Inc. is the only known supplier. 3. Risk: Potential for price increases due to economic price adjustment. 4. Sector: Industrial Gas Manufacturing, critical for aerospace operations.
Value Assessment
Rating: fair
The contract's fixed price with economic price adjustment introduces uncertainty. Without a clear benchmark for helium pricing, assessing value is difficult. The $28.1M total award over five years suggests a significant but potentially variable cost.
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. However, the nature of helium supply and the economic price adjustment clause may limit true price discovery over the contract's life.
Taxpayer Impact: Taxpayers are exposed to potential price escalations due to the economic price adjustment clause, although the initial competition aims for a fair price.
Public Impact
Ensures critical helium supply for NASA's space exploration and research activities. Potential for price volatility impacts NASA's budget predictability. Supports industrial gas manufacturing sector, though specific small business impact is unclear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause
- Limited competition information beyond 'full and open'
- No specific small business participation noted
Positive Signals
- Awarded through full and open competition
- Secures essential material for national space programs
Sector Analysis
This contract falls within the Industrial Gas Manufacturing sector, crucial for various government operations, including aerospace. Benchmarking is challenging due to the specialized nature of helium and its pricing mechanisms.
Small Business Impact
The data indicates this contract did not involve small businesses. Further analysis would be needed to determine if opportunities were overlooked or if the nature of the requirement precluded small business participation.
Oversight & Accountability
The contract was awarded by NASA, a major federal agency with established oversight mechanisms. The fixed-price with economic adjustment structure warrants monitoring to ensure costs remain reasonable.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Economic Price Adjustment Clause
- Potential for price volatility
- Lack of specific small business participation
- Limited insight into specific competition details beyond 'full and open'
Tags
industrial-gas-manufacturing, national-aeronautics-and-space-administr, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $28.1 million to LINDE INC.. NASA CONSOL HELIUM KSC
Who is the contractor on this award?
The obligated recipient is LINDE INC..
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 $28.1 million.
What is the period of performance?
Start: 2002-10-01. End: 2007-09-30.
What is the historical price trend for helium under similar economic price adjustment clauses to assess potential cost overruns?
Analyzing historical helium price data, particularly for contracts with economic price adjustment clauses, is crucial. This would involve examining fluctuations in raw material costs, energy prices, and global supply/demand dynamics that influence helium. Understanding these trends allows for a more accurate projection of potential cost increases beyond the base fixed price, informing budget planning and risk assessment for NASA.
How does the cost of helium under this contract compare to market rates for industrial gases of similar criticality?
Comparing this contract's pricing to market rates for comparable industrial gases requires detailed analysis of helium's unique supply chain and market structure. Factors like liquefaction costs, transportation, and the limited number of global producers significantly influence helium prices. Benchmarking against other high-purity industrial gases, while informative, must account for these specific helium market dynamics to provide a fair assessment of value.
What measures are in place to ensure Linde Inc. maintains adequate supply and quality of helium throughout the contract duration?
NASA likely has performance standards and quality assurance clauses within the contract to ensure Linde Inc. meets supply and quality requirements. Regular performance reviews, potential site visits, and adherence to specifications for helium purity and delivery schedules would be standard oversight mechanisms. The agency would also monitor Linde's production capacity and market position to mitigate supply disruption risks.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing
Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 51
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Address: 39 OLD RIDGEBURY RD STE 7, DANBURY, CT, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $28,132,827
Exercised Options: $28,132,827
Current Obligation: $28,132,827
Timeline
Start Date: 2002-10-01
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2010-09-20
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