NOAA awards $338K for liquid nitrogen, with 7 bidders indicating competitive pricing

Contract Overview

Contract Amount: $33,804 ($33.8K)

Contractor: ARC3 Gases, Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-09-01

End Date: 2027-08-31

Contract Duration: 729 days

Daily Burn Rate: $46/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIQUID NITROGEN FOR NOAA HOLLINGS MARINE LABORATORY IN CHARLESTON, SC BASE YEAR

Place of Performance

Location: DUNN, HARNETT County, NORTH CAROLINA, 28334

State: North Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $33,804 to ARC3 GASES, INC. for work described as: LIQUID NITROGEN FOR NOAA HOLLINGS MARINE LABORATORY IN CHARLESTON, SC BASE YEAR Key points: 1. The contract value appears reasonable given the duration and scope. 2. Strong competition suggests favorable pricing for the government. 3. No immediate red flags regarding contractor performance or risk. 4. This purchase supports critical scientific operations at a key NOAA facility. 5. The contract falls within the Industrial Gas Manufacturing sector. 6. The award was made under simplified acquisition procedures, indicating a focus on efficiency for smaller dollar amounts.

Value Assessment

Rating: good

The award of $338,040 for liquid nitrogen over approximately two years appears to be a fair price. While direct comparisons are difficult without specific volume requirements, the presence of seven bidders suggests a healthy market response. The firm-fixed-price structure helps mitigate cost overrun risks for NOAA. The contract's value is modest, aligning with the needs of a specific laboratory rather than a large-scale operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for broader competition for purchases below certain thresholds. The fact that seven offers were received indicates a robust level of interest and competition within the industrial gas supply market for this region. This level of competition is generally positive for price discovery and ensures that multiple vendors had the opportunity to bid.

Taxpayer Impact: The strong competition among seven bidders is beneficial for taxpayers, as it likely drove down the price through competitive bidding, ensuring the government received a good value for its expenditure on essential laboratory supplies.

Public Impact

Scientists and researchers at the NOAA Hollings Marine Laboratory in Charleston, SC, will benefit from a reliable supply of liquid nitrogen. The liquid nitrogen is essential for various laboratory functions, including sample preservation, cryopreservation, and analytical instrumentation. The geographic impact is localized to Charleston, South Carolina, supporting a specific federal research facility. The contract supports the operational needs of federal scientific personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single supplier for critical laboratory consumables could pose a risk if supply chain issues arise.

Positive Signals

Awarded under a competitive process with multiple bidders, indicating good market engagement.
Firm-fixed-price contract type provides cost certainty.
Contract duration aligns with anticipated needs, avoiding frequent re-competition for a relatively small amount.

Sector Analysis

The industrial gas manufacturing sector is a critical component of the broader chemical industry, supplying essential gases for a wide range of applications, including scientific research, healthcare, and manufacturing. Spending on industrial gases by government agencies like NOAA is typically driven by the operational needs of laboratories and research facilities. Benchmarks for liquid nitrogen contracts vary significantly based on volume, purity, and delivery terms, but this award appears to be within a reasonable range for a laboratory setting.

Small Business Impact

This contract was competed under SAP, which does not inherently include small business set-asides. There is no indication that small businesses were specifically targeted or excluded. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data but would depend on the prime contractor's practices.

Oversight & Accountability

The contract is a Purchase Order, a common instrument for simplified acquisitions. Oversight would typically be managed by the contracting officer and the program office at NOAA responsible for the Hollings Marine Laboratory. Transparency is provided through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NOAA Research Operations
Federal Scientific Equipment Procurement
Industrial Gas Supply Contracts
Laboratory Consumables

Risk Flags

Potential for supply chain disruption
Price volatility in industrial gas market

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $33,804 to ARC3 GASES, INC.. LIQUID NITROGEN FOR NOAA HOLLINGS MARINE LABORATORY IN CHARLESTON, SC BASE YEAR

Who is the contractor on this award?

The obligated recipient is ARC3 GASES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $33,804.

What is the period of performance?

Start: 2025-09-01. End: 2027-08-31.

What is the historical spending by NOAA on liquid nitrogen for the Hollings Marine Laboratory?

Historical spending data for liquid nitrogen specifically for the NOAA Hollings Marine Laboratory is not directly available in this dataset. However, this award of $338,040 over approximately two years (729 days) suggests an average annual expenditure of roughly $169,020. To provide a comprehensive historical view, one would need to access NOAA's historical procurement records or financial systems to identify previous contracts or purchase orders for this specific item at this location. Analyzing past spending would help determine if this current award represents an increase, decrease, or stable level of investment in this critical laboratory supply and assess trends in pricing over time.

How does the per-unit cost of liquid nitrogen in this contract compare to market rates or similar government contracts?

Determining the precise per-unit cost is challenging without knowing the exact volume (e.g., liters or cubic feet) of liquid nitrogen to be supplied under this $338,040 contract. Liquid nitrogen pricing is highly dependent on volume, delivery frequency, container type (dewars, tanks), and purity requirements. Given that this is a Purchase Order under SAP, it's likely for moderate volumes suitable for laboratory use rather than bulk industrial supply. The presence of seven bidders suggests that the pricing achieved is likely competitive within the market for this type of requirement. A detailed comparison would require accessing specific quotes or analyzing the unit price breakdowns from comparable government contracts for similar laboratory-grade liquid nitrogen supplies.

What is the track record of ARC3 GASES, INC. with federal contracts, particularly with NOAA or similar scientific agencies?

ARC3 GASES, INC. has a history of receiving federal contracts, though specific details on their performance with NOAA or similar scientific agencies require further investigation beyond the provided data. Federal procurement databases would list their past awards, including agencies served, contract types, and values. Analyzing these records would reveal their experience in supplying industrial gases and other related products to the government. A review of past performance evaluations, if available, would offer insights into their reliability, quality of service, and adherence to contract terms. This information is crucial for assessing their suitability and minimizing risk for this NOAA award.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential supply chain disruptions affecting the delivery of liquid nitrogen, price volatility in the industrial gas market, and the possibility of equipment malfunction or failure related to storage or delivery. Mitigation strategies are implicitly addressed through the competitive bidding process, which encourages reliable suppliers, and the firm-fixed-price contract type, which caps the government's financial exposure. NOAA's program office would likely have contingency plans for supply interruptions, potentially involving alternative suppliers or emergency procurement procedures. Regular communication and performance monitoring by the contracting officer are also key oversight mechanisms.

How does this contract align with NOAA's broader mission and strategic objectives related to marine research and climate monitoring?

This contract directly supports NOAA's mission by ensuring the operational readiness of the Hollings Marine Laboratory, a key facility for scientific research. Liquid nitrogen is a critical consumable for numerous laboratory functions, including preserving biological samples, operating sensitive analytical equipment (like mass spectrometers or DNA sequencers), and conducting experiments that require low temperatures. By providing a reliable supply of this essential material, the contract enables NOAA scientists to conduct vital research related to marine ecosystems, fisheries management, climate change impacts, and oceanographic studies, thereby contributing to NOAA's overarching goals of understanding and protecting the nation's oceans and coasts.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M225Q0199

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1660 HIGHWAY 301 S, DUNN, NC, 28334

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,352

Exercised Options: $33,804

Current Obligation: $33,804

Actual Outlays: $2,447

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline