DOJ's $7.85M Oxygen BPA to RCG of North Carolina for Industrial Gas Manufacturing

Contract Overview

Contract Amount: $7,850 ($7.9K)

Contractor: RCG of North Carolina, LLC

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $88/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 B1 RCG LD - OXYGEN QTR 2 BPA #15B41221A00000002

Place of Performance

Location: PINEHURST, MOORE County, NORTH CAROLINA, 28374

State: North Carolina Government Spending

Plain-Language Summary

Department of Justice obligated $7,850.27 to RCG OF NORTH CAROLINA, LLC for work described as: FY26 B1 RCG LD - OXYGEN QTR 2 BPA #15B41221A00000002 Key points: 1. Contract awarded to RCG of North Carolina, LLC for industrial gas manufacturing. 2. The contract is a Blanket Purchase Agreement (BPA) with a duration of 89 days. 3. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code is 325120 for Industrial Gas Manufacturing. 6. The contract is not set aside for small businesses. 7. The contract is not a small business subcontracting goal. 8. The contract is for Federal Prison System / Bureau of Prisons.

Value Assessment

Rating: fair

The total award amount is $7.85 million for a short duration of 89 days. Without more detailed cost breakdowns or comparisons to similar oxygen supply contracts for correctional facilities, it's difficult to definitively assess value for money. The firm fixed price structure is positive for budget certainty, but the per-unit cost or overall efficiency cannot be determined from the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP). While the specific number of bidders is not provided, SAP generally implies a competitive process, though potentially with fewer bidders than full and open competition for larger contracts. This method is typically used for purchases below certain dollar thresholds, aiming for efficiency while still allowing for competition.

Taxpayer Impact: Competing under SAP generally allows for price discovery and can lead to better pricing for taxpayers compared to sole-source awards, though the level of competition may be less intense than for larger, more complex procurements.

Public Impact

This contract directly benefits the Federal Prison System by ensuring a supply of oxygen. The services delivered are critical for medical care and operational needs within federal correctional facilities. The geographic impact is primarily within North Carolina, where the contractor is located, and potentially at federal facilities served by this BPA. Workforce implications are likely related to the manufacturing and distribution of industrial gases, supporting jobs in that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (89 days) may indicate a need for rapid fulfillment or a temporary solution, raising questions about long-term supply strategy.
Lack of detailed cost breakdown makes it challenging to assess true value for money and potential for overpricing.
Competition under SAP, while present, might not yield the most aggressive pricing compared to larger, more widely competed contracts.

Positive Signals

Firm Fixed Price contract type provides budget certainty for the agency.
Awarded to a specific company (RCG of North Carolina, LLC) suggests a known entity capable of fulfilling the requirement.
The contract is competed, indicating some level of market engagement and price discovery.

Sector Analysis

The industrial gas manufacturing sector is a mature industry that supplies essential gases like oxygen to various sectors, including healthcare, manufacturing, and government. The market size for industrial gases is substantial globally and within the US. This contract represents a small portion of overall federal spending on industrial supplies and fits within the broader category of essential operational support for government facilities.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting goals mentioned. This means the primary award went to a potentially larger entity, and the direct impact on the small business ecosystem for this specific procurement is likely minimal unless the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's Bureau of Prisons. Accountability measures would include adherence to the terms of the Firm Fixed Price BPA, delivery schedules, and quality standards for the oxygen supplied. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost audits may not be publicly available.

Related Government Programs

Federal Prison System Medical Supplies
Bureau of Prisons Operational Contracts
Industrial Gas Procurement
Department of Justice Supply Chain Management

Risk Flags

Short contract duration
Limited cost transparency
Potential for less intense competition under SAP

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7,850.27 to RCG OF NORTH CAROLINA, LLC. FY26 B1 RCG LD - OXYGEN QTR 2 BPA #15B41221A00000002

Who is the contractor on this award?

The obligated recipient is RCG OF NORTH CAROLINA, LLC.

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 $7,850.27.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-31.

What is the historical spending pattern for oxygen supply to the Federal Prison System?

Historical spending data for oxygen supply to the Federal Prison System is not directly available in the provided snippet. However, understanding past contract values, durations, and awarded vendors for similar oxygen requirements would be crucial for benchmarking the current $7.85 million BPA. Analyzing trends in pricing, competition levels, and vendor performance over previous fiscal years would offer context on whether this award represents an increase, decrease, or stable spending pattern. Without this historical data, assessing the long-term financial implications and potential efficiencies or inefficiencies of the current procurement is challenging.

How does the per-unit cost of oxygen under this BPA compare to market rates or other federal contracts?

The provided data does not include specific per-unit cost information for oxygen under this BPA, making a direct comparison impossible. To assess this, one would need to know the quantity of oxygen procured and the total cost, or have access to the detailed pricing structure within the BPA. Benchmarking against publicly available contract data for similar industrial gas procurements by other federal agencies or comparing against commercial market rates for bulk oxygen would be necessary. Factors such as delivery logistics, purity requirements, and contract volume significantly influence per-unit pricing, so a like-for-like comparison is essential for a meaningful evaluation of value.

What is RCG of North Carolina, LLC's track record with federal contracts, particularly for industrial gases?

Information regarding RCG of North Carolina, LLC's specific track record with federal contracts, especially for industrial gases, is not detailed in the provided data. A thorough assessment would require reviewing their past performance on similar government contracts, including contract values, durations, compliance records, and any reported issues or successes. Examining their history with the Department of Justice or the Bureau of Prisons would be particularly relevant. Understanding their experience in supplying critical gases like oxygen to correctional facilities or similar high-demand environments would provide insight into their capability and reliability for this BPA.

What are the specific risks associated with a short-duration BPA for essential supplies like oxygen?

A short-duration Blanket Purchase Agreement (BPA), like this 89-day contract, for essential supplies such as oxygen can present several risks. Firstly, it may indicate a reactive procurement rather than proactive planning, potentially leading to higher costs due to urgency or limited vendor availability. Secondly, it could signal an interim solution, requiring a subsequent, potentially more expensive, competitive process to establish a longer-term supply. Thirdly, frequent short-term contracts can increase administrative burden and reduce the opportunity for economies of scale that longer-term agreements might offer. Finally, it might not provide sufficient lead time for vendors to optimize production or logistics, potentially impacting reliability or cost-effectiveness.

How does the 'COMPETED UNDER SAP' classification impact potential cost savings for taxpayers?

Competing under Simplified Acquisition Procedures (SAP) generally aims to streamline the procurement process for purchases below certain thresholds (e.g., $250,000, though this can vary). While SAP mandates competition, the level and intensity of that competition might be less than for larger, full-and-open solicitations. This can mean that while taxpayers benefit from a competitive price discovery, the savings might be less pronounced compared to procurements attracting a wider array of bidders or more complex proposals. The efficiency gains from SAP could offset some of this, but the ultimate cost savings depend heavily on the specific market dynamics and the number of responsive bidders.

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: 15B41221Q00000005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 404 OVERLAKE DR STE A, RAEFORD, NC, 28376

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,850

Exercised Options: $7,850

Current Obligation: $7,850

Actual Outlays: $2,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15B41221A00000002

IDV Type: BPA

Timeline