NOAA procures two hydrogen generators for $191,520 from Procon Energy Systems Inc

Contract Overview

Contract Amount: $191,520 ($191.5K)

Contractor: Proton Energy Systems Inc

Awarding Agency: Department of Commerce

Start Date: 2025-09-01

End Date: 2026-12-31

Contract Duration: 486 days

Daily Burn Rate: $394/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ROUTINE OR-25-02114, TO PROCURE 2 EACH OF HYDROGEN GENERATORS AND ALL ANCILLARY PARTS FOR UPPER AIR. FUNDS NEEDED TO PROCURE IS: NO FIRST ARTICLE NEEDED. 2 HOGENS WITH ALL ANCILLARIES = $189,920.00 SHIPPING @ $800 A PIECE = $1,600.00 TOTAL IS

Place of Performance

Location: WALLINGFORD, NEW HAVEN County, CONNECTICUT, 06492

State: Connecticut Government Spending

Plain-Language Summary

Department of Commerce obligated $191,520 to PROTON ENERGY SYSTEMS INC for work described as: ROUTINE OR-25-02114, TO PROCURE 2 EACH OF HYDROGEN GENERATORS AND ALL ANCILLARY PARTS FOR UPPER AIR. FUNDS NEEDED TO PROCURE IS: NO FIRST ARTICLE NEEDED. 2 HOGENS WITH ALL ANCILLARIES = $189,920.00 SHIPPING @ $800 A PIECE = $1,600.00 TOTAL IS Key points: 1. Value for money appears fair given the specialized nature of the equipment. 2. Competition dynamics indicate a sole-source procurement, potentially limiting price discovery. 3. Risk indicators are low due to a straightforward purchase of standard equipment. 4. Performance context is for upper air atmospheric research, a niche application. 5. Sector positioning is within specialized scientific instrumentation manufacturing.

Value Assessment

Rating: fair

The total contract value of $191,520 for two hydrogen generators and ancillary parts, including shipping, seems within a reasonable range for specialized scientific equipment. Without specific benchmark data for these particular hydrogen generators, a precise value-for-money assessment is challenging. However, the price per unit at approximately $95,000, inclusive of shipping, does not immediately suggest overpricing for a custom or specialized item.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP), suggesting it was likely procured through a sole-source or limited competition justification. The absence of a competitive bidding process means that the government did not explore multiple vendor options, which could have led to better pricing or more innovative solutions. The specific justification for sole-source procurement is not detailed here.

Taxpayer Impact: The lack of competition means taxpayers may not have received the benefit of a lower price that could have been achieved through a bidding war among multiple suppliers.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits from this procurement. The contract will deliver two hydrogen generators and associated ancillary parts. These generators are intended for use in upper air atmospheric research. The procurement supports scientific research capabilities within the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to sole-source procurement.
Limited visibility into alternative technological solutions available in the market.

Positive Signals

Procurement of specialized equipment to support critical scientific research.
Clear definition of deliverables and fixed-price contract type mitigate cost overrun risks.

Sector Analysis

The market for specialized hydrogen generators for scientific applications is a niche segment within the broader motor and generator manufacturing industry. This sector is characterized by high technical expertise and often involves custom solutions tailored to specific research needs. Comparable spending benchmarks are difficult to establish without more detailed specifications of the generators' capabilities and intended use.

Small Business Impact

This contract does not appear to involve a small business set-aside, nor is there information indicating subcontracting opportunities for small businesses. The primary contractor, Procon Energy Systems Inc., is not explicitly identified as a small business in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific transaction.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Commerce's internal financial and procurement regulations. The National Oceanic and Atmospheric Administration (NOAA) is responsible for ensuring the funds are used appropriately and the equipment meets specifications. Transparency is limited by the sole-source nature of the award, with further details on oversight mechanisms not provided.

Related Government Programs

NOAA Research and Development Programs
Atmospheric Science Research Grants
Scientific Equipment Procurement
Federal Scientific Instrument Acquisition

Risk Flags

Sole-source procurement may limit price competition.
Lack of detailed specifications for comparison.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $191,520 to PROTON ENERGY SYSTEMS INC. ROUTINE OR-25-02114, TO PROCURE 2 EACH OF HYDROGEN GENERATORS AND ALL ANCILLARY PARTS FOR UPPER AIR. FUNDS NEEDED TO PROCURE IS: NO FIRST ARTICLE NEEDED. 2 HOGENS WITH ALL ANCILLARIES = $189,920.00 SHIPPING @ $800 A PIECE = $1,600.00 TOTAL IS

Who is the contractor on this award?

The obligated recipient is PROTON ENERGY SYSTEMS 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 $191,520.

What is the period of performance?

Start: 2025-09-01. End: 2026-12-31.

What is the track record of Procon Energy Systems Inc. in supplying similar hydrogen generators to government agencies?

Information regarding Procon Energy Systems Inc.'s specific track record in supplying hydrogen generators to government agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous government procurements. Without this historical data, it is difficult to definitively assess their reliability and past performance in delivering similar equipment to federal entities. Further investigation into federal procurement databases and contractor performance systems would be necessary to establish a detailed track record.

How does the per-unit cost of these hydrogen generators compare to similar commercially available units?

The provided data indicates a total cost of $191,520 for two hydrogen generators and ancillary parts, including shipping, which averages to approximately $95,760 per unit. A direct comparison to commercially available units is challenging without knowing the exact specifications, capacity, and technological features of the generators procured by NOAA. Specialized scientific equipment often commands higher prices due to unique requirements, research-grade components, and potentially lower production volumes compared to mass-market generators. A thorough benchmark would necessitate identifying comparable commercial models and evaluating their features against the NOAA's specific needs.

What are the primary risks associated with this sole-source procurement?

The primary risks associated with this sole-source procurement include potential overpayment due to the lack of competitive bidding, which limits price negotiation leverage. There is also a risk of not acquiring the most technologically advanced or suitable solution available, as alternative vendors were not solicited. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single supplier, which could pose long-term supply chain risks. The absence of competition also reduces transparency and makes it harder to justify the value received by taxpayers.

How effective are hydrogen generators in supporting upper air atmospheric research?

Hydrogen generators are crucial for upper air atmospheric research as they provide a reliable and on-demand source of high-purity hydrogen gas. This gas is essential for inflating weather balloons, powering certain atmospheric sensors, and in some cases, as a fuel source for research drones or specialized aircraft used for atmospheric sampling. The effectiveness of these generators in this context is directly tied to their ability to consistently produce hydrogen at the required purity levels and volumes, ensuring the uninterrupted operation of research equipment and missions. Their reliability is paramount for collecting critical atmospheric data.

What is the historical spending pattern for hydrogen generators by NOAA or similar agencies?

Historical spending patterns for hydrogen generators by NOAA or similar agencies are not detailed in the provided data. To assess this, one would need to analyze past contracts awarded for similar equipment over several fiscal years. This analysis would involve identifying the number of units procured, the total expenditure, the contractors involved, and the procurement methods used (e.g., competitive vs. sole-source). Understanding historical spending can help contextualize the current procurement's cost and identify trends in equipment acquisition for atmospheric research.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: NEL ASA

Address: 10 TECHNOLOGY DR, WALLINGFORD, CT, 06492

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $191,520

Exercised Options: $191,520

Current Obligation: $191,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline