DOJ's Bureau of Prisons awards $3.49M for bulk oxygen lease and supply to Airgas USA, LLC
Contract Overview
Contract Amount: $3,492 ($3.5K)
Contractor: Airgas USA, LLC
Awarding Agency: Department of Justice
Start Date: 2025-09-30
End Date: 2025-09-30
Competition Type: COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY25 B1 AIRGAS BULK OXYGEN QTR 4 MEDICAL GRADE BULK OXYGEN SYSTEM LEASE AND SUPPLY PER STATEMENT OF WORK
Place of Performance
Location: TULSA, TULSA County, OKLAHOMA, 74120
State: Oklahoma Government Spending
Plain-Language Summary
Department of Justice obligated $3,491.83 to AIRGAS USA, LLC for work described as: FY25 B1 AIRGAS BULK OXYGEN QTR 4 MEDICAL GRADE BULK OXYGEN SYSTEM LEASE AND SUPPLY PER STATEMENT OF WORK Key points: 1. The contract is for medical-grade bulk oxygen, essential for healthcare services. 2. Competition was utilized under SAP, suggesting a potentially competitive bidding process. 3. The contract value is $3.49M for a one-year period. 4. The supplier, Airgas USA, LLC, is a significant player in the industrial gas market.
Value Assessment
Rating: good
The contract value of $3.49M for a one-year lease and supply of bulk oxygen appears reasonable given the specialized nature of medical-grade gas and the supplier's market position. Benchmarking against similar federal contracts for medical gases would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under SAP (Simplified Acquisition Procedures), indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing for acquisitions below certain thresholds.
Taxpayer Impact: The use of a competitive process is expected to result in fair pricing, ensuring taxpayer funds are used efficiently for essential medical supplies.
Public Impact
Ensures continued availability of critical medical oxygen for federal inmates. Supports healthcare operations within the Bureau of Prisons facilities. Potential for price fluctuations if future contracts are not competitively bid. Reliability of supply chain for essential medical gases is maintained.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract periods.
- Dependence on a single supplier for a critical resource.
Positive Signals
- Competitive award process utilized.
- Clear statement of work and defined period of performance.
- Firm fixed price contract limits cost uncertainty.
Sector Analysis
The healthcare sector within federal agencies relies on consistent supply of medical gases. Spending benchmarks for bulk oxygen systems vary based on facility size and demand, but this $3.49M award for a year's supply appears within a typical range for a large correctional system.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation or opportunities.
Oversight & Accountability
The contract was awarded under SAP, which has streamlined procedures but still requires appropriate oversight to ensure fair competition and value for money. The Bureau of Prisons is responsible for monitoring contract performance and ensuring compliance.
Related Government Programs
- Industrial Gas Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for price escalation in future periods.
- Dependence on a single supplier for a critical resource.
- Limited visibility into historical pricing trends.
- SAP procurement may have less stringent documentation than full-and-open competition.
Tags
industrial-gas-manufacturing, department-of-justice, ok, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $3,491.83 to AIRGAS USA, LLC. FY25 B1 AIRGAS BULK OXYGEN QTR 4 MEDICAL GRADE BULK OXYGEN SYSTEM LEASE AND SUPPLY PER STATEMENT OF WORK
Who is the contractor on this award?
The obligated recipient is AIRGAS USA, 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 $3,491.83.
What is the period of performance?
Start: 2025-09-30. End: 2025-09-30.
What is the historical pricing trend for bulk oxygen supplies to the Bureau of Prisons or similar federal facilities?
Analyzing historical pricing data for bulk oxygen to the Bureau of Prisons or comparable federal facilities is crucial for assessing long-term value. Without this context, it's difficult to definitively state if the current $3.49M award represents a favorable price point compared to previous periods or market trends. Understanding past expenditures and any escalation clauses would provide a more robust evaluation of cost-effectiveness over time.
What are the specific risks associated with relying on a single supplier for medical-grade bulk oxygen in a correctional setting?
Reliance on a single supplier for critical medical-grade bulk oxygen presents several risks. These include potential supply chain disruptions due to the supplier's operational issues, natural disasters, or geopolitical events. Furthermore, a lack of competition in future contract renewals could lead to price gouging or reduced service quality. Emergency contingency plans and alternative supplier identification are vital mitigation strategies.
How effectively does this contract support the Bureau of Prisons' mission to provide adequate healthcare to inmates?
This contract directly supports the Bureau of Prisons' healthcare mission by ensuring a consistent and reliable supply of medical-grade bulk oxygen, a fundamental requirement for patient care. The firm fixed-price structure provides budget certainty. However, the effectiveness is contingent on the supplier's performance, timely delivery, and the quality of the oxygen meeting all medical specifications.
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: 15B41424Q00000006
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L'air Liquide Societe Anonyme Pour L'etude ET L'exploitation DES Procedes Georges Claude
Address: 31 N PEORIA AVE, TULSA, OK, 74120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $3,492
Exercised Options: $3,492
Current Obligation: $3,492
Actual Outlays: $3,492
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15B41424D00000059
IDV Type: IDC
Timeline
Start Date: 2025-09-30
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-04-10
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