Commerce Buys $15.8K in Helium 3 Cylinders from Linde Gas, No Competition

Contract Overview

Contract Amount: $15,811 ($15.8K)

Contractor: Linde GAS & Equipment Inc.

Awarding Agency: Department of Commerce

Start Date: 2024-06-05

End Date: 2024-07-19

Contract Duration: 44 days

Daily Burn Rate: $359/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HELIUM 3 CYLINDERS 15 STP LITERS.

Place of Performance

Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06810

State: Connecticut Government Spending

Plain-Language Summary

Department of Commerce obligated $15,811.34 to LINDE GAS & EQUIPMENT INC. for work described as: HELIUM 3 CYLINDERS 15 STP LITERS. Key points: 1. Spending on specialized gas cylinders is relatively low at $15.8K. 2. Linde Gas & Equipment Inc. is the sole provider in this transaction. 3. The lack of competition raises potential concerns about price discovery. 4. The sector is Industrial Gas Manufacturing, with NIST as the agency.

Value Assessment

Rating: fair

The price of $15,811.34 for 15 STP liter Helium 3 cylinders is difficult to benchmark without specific contract details or market comparisons. Given the specialized nature of the gas and the supplier, it's plausible but warrants scrutiny due to the lack of competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This purchase was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source or limited competition scenario. The absence of competitive bidding means the government may not have secured the best possible price.

Taxpayer Impact: Taxpayer funds are used for this purchase. Without competition, there's a risk of overpayment, impacting the efficient use of public money.

Public Impact

Research and development activities at NIST may be supported by this purchase. Specialized scientific equipment relies on the availability of such gases. The transaction highlights the government's reliance on specific suppliers for critical materials.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source procurement

Positive Signals

Specific need for Helium 3
Established supplier relationship

Sector Analysis

The Industrial Gas Manufacturing sector supplies essential gases for various industrial, medical, and scientific applications. Spending benchmarks vary widely depending on the gas type, purity, and volume. This purchase falls within a niche segment.

Small Business Impact

This contract was not awarded to a small business. Further analysis would be needed to determine if small businesses could have provided similar products or services.

Oversight & Accountability

The purchase order was issued by the Department of Commerce for NIST. Oversight would involve ensuring the cylinders meet specifications and the price is reasonable, though competition is absent.

Related Government Programs

Industrial Gas Manufacturing
Department of Commerce Contracting
National Institute of Standards and Technology Programs

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for price inflation
Limited transparency in price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $15,811.34 to LINDE GAS & EQUIPMENT INC.. HELIUM 3 CYLINDERS 15 STP LITERS.

Who is the contractor on this award?

The obligated recipient is LINDE GAS & EQUIPMENT INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $15,811.34.

What is the period of performance?

Start: 2024-06-05. End: 2024-07-19.

What is the justification for procuring Helium 3 cylinders on a sole-source basis?

The justification for a sole-source procurement of Helium 3 cylinders would typically stem from unique technical requirements, the unavailability of the product from other sources, or a critical time constraint where only one vendor can meet the demand. Without this justification, the procurement method is questionable.

How does the price compare to market rates for similar specialized gases?

Benchmarking the price of Helium 3 cylinders is challenging due to its specialized nature and limited market. However, the absence of competition suggests a potential risk of the price being higher than if multiple bids were solicited. A thorough market research report would be needed for a definitive comparison.

What is the potential impact on NIST's research if this supplier relationship is disrupted?

Disruption of the supplier relationship for Helium 3 cylinders could significantly impact NIST's research, particularly if these cylinders are critical for ongoing experiments or projects. Helium 3 is used in specialized applications like neutron scattering and quantum computing research, making its consistent availability vital.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1333ND24QNB680179

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 RIVERVIEW DR, DANBURY, CT, 06810

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: $15,811

Exercised Options: $15,811

Current Obligation: $15,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline