DOJ awards $2.29M for medical gas services to Technical Gas Products, Inc

Contract Overview

Contract Amount: $22,930 ($22.9K)

Contractor: Technical GAS Products, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-05-31

Contract Duration: 242 days

Daily Burn Rate: $95/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MEDICAL GAS SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK.

Place of Performance

Location: WALLINGFORD, NEW HAVEN County, CONNECTICUT, 06492

State: Connecticut Government Spending

Plain-Language Summary

Department of Justice obligated $22,930 to TECHNICAL GAS PRODUCTS, INC. for work described as: MEDICAL GAS SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK. Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract is for a firm-fixed-price delivery order, providing cost certainty for the government. 3. The duration of the contract is 242 days, indicating a short-term need for these services. 4. The award was made to a single vendor, Technical Gas Products, Inc. 5. The North American Industry Classification System (NAICS) code 325120 points to Industrial Gas Manufacturing. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned.

Value Assessment

Rating: fair

The contract value of $2.29 million for medical gas services over approximately 8 months appears to be within a reasonable range for such specialized supplies. However, without specific details on the quantity and type of gases required, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for medical gas supply to federal facilities would provide a clearer picture of whether this pricing is competitive. The firm-fixed-price structure helps mitigate cost overruns for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for more streamlined competition for purchases below certain thresholds. While the specific competition details are not provided, SAP can sometimes involve fewer bidders than full and open competition. The fact that it was competed suggests that multiple vendors were likely solicited, but the level of competition may have been less intense than for larger contracts.

Taxpayer Impact: Competition under SAP generally aims to balance efficiency with obtaining fair market prices. For taxpayers, this means the government likely sought competitive bids to ensure reasonable pricing, though the potential for broader competition that could drive prices lower is reduced compared to full and open solicitations.

Public Impact

The primary beneficiaries are the inmates and staff within the Federal Prison System / Bureau of Prisons, who will receive essential medical gas services. The services delivered are critical for medical operations within correctional facilities, supporting patient care and emergency response. The geographic impact is focused on facilities managed by the Bureau of Prisons, likely within Connecticut where the vendor is located. The contract supports the operational needs of the federal correctional system, ensuring continuity of essential medical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could potentially lead to higher prices than a full and open competition.
Lack of detailed performance metrics makes it difficult to assess the quality of services delivered.
The short contract duration might necessitate a quick re-competition process, potentially leading to continuity risks if not managed well.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under SAP, indicating an effort to streamline procurement for a likely moderate-value requirement.
The vendor, Technical Gas Products, Inc., is in the Industrial Gas Manufacturing sector, suggesting relevant expertise.

Sector Analysis

The industrial gas manufacturing sector (NAICS 325120) is a mature industry that supplies essential gases for various applications, including healthcare, manufacturing, and research. Federal agencies, particularly those with healthcare facilities like correctional institutions, are significant consumers of medical-grade gases. Spending in this sector for government contracts can fluctuate based on the needs of agencies like the Department of Justice, but typically involves recurring supply agreements. Benchmarks for industrial gas supply contracts vary widely based on volume, type of gas, and service requirements.

Small Business Impact

This contract was not awarded as a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary focus was on fulfilling the agency's needs through the most suitable vendor identified during the SAP competition, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. Accountability measures are inherent in the firm-fixed-price delivery order structure, which obligates the contractor to provide specified goods and services at an agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Supplies and Equipment
Industrial Gases
Correctional Facility Operations
Federal Bureau of Prisons Contracts

Risk Flags

Limited Competition
Short Contract Duration
Potential Supply Chain Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $22,930 to TECHNICAL GAS PRODUCTS, INC.. MEDICAL GAS SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK.

Who is the contractor on this award?

The obligated recipient is TECHNICAL GAS PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $22,930.

What is the period of performance?

Start: 2025-10-01. End: 2026-05-31.

What is the track record of Technical Gas Products, Inc. with federal contracts?

A review of federal procurement data indicates that Technical Gas Products, Inc. has received federal contracts in the past, primarily related to the supply of industrial and medical gases. While specific details on past performance quality are not readily available in this summary, the award of this new contract suggests a level of satisfaction or suitability for the agency's needs. Further analysis would involve examining past contract performance evaluations (e.g., CPARS) if available, to gauge their reliability, timeliness, and adherence to contract terms in previous engagements. Understanding their history with the Bureau of Prisons specifically would also be valuable.

How does the pricing of this contract compare to similar medical gas contracts?

Direct comparison of pricing is difficult without knowing the exact quantities and types of medical gases required under this contract. However, the total award of $2.29 million for a period of approximately 8 months (242 days) provides a general benchmark. To assess value for money, one would need to compare the per-unit cost of specific gases (e.g., oxygen, nitrogen, medical air) against other federal contracts awarded to different correctional facilities or healthcare providers. The firm-fixed-price nature of the contract offers cost certainty, but the underlying unit prices are key to determining true value. Benchmarking against commercial market rates for similar volumes and service levels would also be informative.

What are the primary risks associated with this contract?

Key risks include potential supply chain disruptions for critical medical gases, which could impact patient care within the correctional facilities. Given the short duration, there's also a risk of discontinuity if the re-competition process is delayed or if the incumbent contractor's performance falters towards the end of the term. Ensuring consistent quality and purity of the medical gases is paramount, as any deviation could have serious health consequences. Furthermore, reliance on a single vendor, even if competed under SAP, might limit the government's leverage in price negotiations for future renewals or expansions.

How effective is the competition strategy used for this contract?

The contract was competed under Simplified Acquisition Procedures (SAP), which is designed for procurements below the simplified acquisition threshold. This strategy aims to balance the need for competition with procurement efficiency. While it likely involved soliciting bids from multiple vendors, it may not have achieved the same level of price discovery as a full and open competition. The effectiveness hinges on whether a sufficient number of qualified vendors participated and submitted competitive offers. For taxpayers, SAP aims to secure fair prices while reducing administrative burden, but the potential for even lower prices through broader competition is a trade-off.

What is the historical spending pattern for medical gas services by the Federal Prison System?

Analyzing historical spending for medical gas services by the Federal Prison System (FPS) would reveal trends in demand, pricing, and vendor relationships. This specific contract award of $2.29 million represents a single data point. To understand historical patterns, one would need to aggregate spending data over several fiscal years, identifying the total amount spent on medical gases, the primary vendors utilized, and the average contract values. This analysis could highlight whether spending has increased or decreased, identify any shifts in contracting strategies (e.g., more sole-source vs. competed awards), and provide context for the current award's value relative to past expenditures.

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: 15B20522Q00000020

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 N PLAINS INDUSTRIAL RD BLDG 1B STE 1, WALLINGFORD, CT, 06492

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

Financial Breakdown

Contract Ceiling: $22,930

Exercised Options: $22,930

Current Obligation: $22,930

Actual Outlays: $11,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B20522D00000003

IDV Type: IDC

Timeline