NASA awards $17.9M for industrial gas, with Linde Inc. securing the competitive delivery order
Contract Overview
Contract Amount: $17,909,636 ($17.9M)
Contractor: Linde Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-10-01
End Date: 2009-09-30
Contract Duration: 730 days
Daily Burn Rate: $24.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HELIUM
Place of Performance
Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06810
Plain-Language Summary
National Aeronautics and Space Administration obligated $17.9 million to LINDE INC. for work described as: HELIUM Key points: 1. Value for money appears reasonable given the firm-fixed-price contract type and duration. 2. Competition dynamics indicate a single award under a competitive framework, suggesting potential for future competition. 3. Risk indicators are low due to the established nature of industrial gas supply and a fixed-price contract. 4. Performance context is within the industrial gas manufacturing sector, a mature and stable market. 5. Sector positioning is within the broader aerospace and defense supply chain, supporting NASA's operational needs.
Value Assessment
Rating: good
The contract value of $17.9 million over two years for industrial gas is within a reasonable range for NASA procurements of this nature. The firm-fixed-price structure helps control costs. Benchmarking against similar contracts for industrial gases would provide a more precise value assessment, but the scale and duration suggest a standard market rate was likely achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The fact that it resulted in a single award suggests Linde Inc. offered the most advantageous proposal based on the evaluation criteria. The competitive nature, even for a single order, generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayers benefit from the competitive process which aims to secure the best possible price for essential industrial gases required for NASA's operations.
Public Impact
NASA facilities and research programs benefit from the reliable supply of industrial gases. The services delivered are critical for various NASA operations, including propulsion testing and laboratory work. The geographic impact is primarily centered around NASA facilities where the gases are utilized. Workforce implications are minimal, as this contract supports existing operational needs rather than creating new roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Competitive award process suggests fair market pricing.
- Firm-fixed-price contract provides cost certainty.
- Contract duration of two years allows for stable supply chain management.
Sector Analysis
The industrial gas manufacturing sector is a mature industry providing essential components for various high-tech applications, including aerospace. This contract fits within NASA's broader procurement strategy for operational support services. Comparable spending benchmarks for industrial gases vary widely based on type and volume, but this award appears consistent with large-scale government contracts.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited for this particular award.
Oversight & Accountability
Oversight for this contract would fall under NASA's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified goods. Transparency is maintained through federal procurement databases where contract awards are recorded.
Related Government Programs
- NASA Operational Support Contracts
- Industrial Gas Supply Agreements
- Aerospace Supply Chain Procurement
Tags
nasa, industrial-gas-manufacturing, competitive-delivery-order, firm-fixed-price, linde-inc, national-aeronautics-and-space-administration, connecticut, aerospace-support, operational-supplies
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $17.9 million to LINDE INC.. HELIUM
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 $17.9 million.
What is the period of performance?
Start: 2007-10-01. End: 2009-09-30.
What is the historical spending pattern for industrial gases by NASA?
Historical spending data for industrial gases by NASA would reveal trends in procurement volume, pricing fluctuations, and the primary suppliers over time. Analyzing past contracts can identify periods of increased demand, potential cost savings achieved through long-term agreements, and the evolution of competition within this specific market segment. For instance, examining spending from the contract's start date (2007) through its end date (2009) and comparing it to subsequent periods could highlight any significant shifts in NASA's reliance on specific gases or suppliers. Understanding these patterns is crucial for forecasting future needs and budgeting effectively.
How does the unit cost of this industrial gas compare to market rates?
Determining the precise unit cost for the industrial gas procured under this contract requires access to detailed pricing breakdowns, which are not publicly available in the provided data. However, the contract's firm-fixed-price nature and competitive award suggest that the pricing was benchmarked against prevailing market rates at the time of award. To conduct a thorough comparison, one would need to identify the specific type and purity of the industrial gas, the quantities ordered, and the delivery terms. Subsequently, these details could be cross-referenced with industry price indices or quotes from other suppliers for similar bulk gas purchases during the 2007-2009 period.
What is Linde Inc.'s track record with NASA for similar contracts?
Linde Inc.'s track record with NASA for similar contracts would involve reviewing their past performance on awards for industrial gases or related materials. This includes examining the number of contracts awarded, their value, duration, and whether they were fulfilled successfully without significant disputes or performance issues. A positive history of timely delivery, quality compliance, and adherence to contract terms would indicate a reliable supplier. Conversely, any past performance concerns, such as delivery delays or quality deficiencies, would warrant closer scrutiny for this current award. Accessing NASA's contractor performance databases would provide the most direct insight into Linde Inc.'s history.
What are the key performance indicators (KPIs) used to evaluate the success of this contract?
Key performance indicators (KPIs) for a contract supplying industrial gases typically focus on reliability, quality, and cost-effectiveness. For this NASA contract, critical KPIs would likely include on-time delivery rates, ensuring that gases are supplied precisely when and where needed to avoid disrupting operations. Product quality, measured by purity levels and adherence to specifications, is paramount, especially for sensitive aerospace applications. Cost management, while constrained by the firm-fixed-price, might involve monitoring adherence to the agreed-upon price and minimizing any unforeseen ancillary charges. Furthermore, responsiveness to NASA's requests and efficient handling of any logistical challenges would also be important performance metrics.
Were there any significant risks identified during the procurement process for this contract?
Given the nature of industrial gas supply and the competitive award, significant risks for this contract were likely minimal. Potential risks could have included supply chain disruptions, price volatility of raw materials, or technical challenges in meeting NASA's specific purity requirements. However, the firm-fixed-price contract structure helps mitigate financial risks for NASA by locking in the price. Linde Inc., as an established supplier, would have been expected to have robust contingency plans for supply chain issues and quality control processes. The competitive bidding process itself serves as a risk mitigation tool by ensuring multiple vendors demonstrate their capability to meet NASA's needs.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SEALED BID
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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: $17,909,636
Exercised Options: $17,909,636
Current Obligation: $17,909,636
Parent Contract
Parent Award PIID: NNK07OO30B
IDV Type: IDC
Timeline
Start Date: 2007-10-01
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2014-05-30
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