DOJ's DEA Awards $27.3M Contract for Industrial Gas to American Welding & Gas Inc
Contract Overview
Contract Amount: $27,287 ($27.3K)
Contractor: American Welding & GAS Inc
Awarding Agency: Department of Justice
Start Date: 2026-04-08
End Date: 2027-04-07
Contract Duration: 364 days
Daily Burn Rate: $75/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PURCHASE OF GAS
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60605
State: Illinois Government Spending
Plain-Language Summary
Department of Justice obligated $27,287.16 to AMERICAN WELDING & GAS INC for work described as: PURCHASE OF GAS Key points: 1. Contract value of $27.3M for industrial gas. 2. Competition method was 'COMPETED UNDER SAP', suggesting a streamlined process. 3. Risk appears low given the nature of the product and contract type. 4. Sector is Industrial Gas Manufacturing, a mature market.
Value Assessment
Rating: fair
The contract value of $27.3M for industrial gas over one year appears reasonable, but without specific unit volume or detailed pricing breakdowns, a precise benchmark is difficult. The firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), which is typically used for purchases below a certain threshold. This method may limit the number of potential bidders and the extent of price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential industrial gas supply. The use of SAP suggests an effort to achieve efficiency, but the impact on overall cost savings is not explicitly detailed.
Public Impact
Ensures supply of critical industrial gas for DEA operations. Supports a business in the industrial gas manufacturing sector. Potential for cost savings through efficient procurement processes.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Limited competition due to SAP.
- Lack of detailed pricing data for robust benchmarking.
Positive Signals
- Firm fixed price contract.
- Clear contract duration and end date.
- Awarded to a known entity in the sector.
Sector Analysis
The industrial gas manufacturing sector is characterized by established players and relatively stable pricing for standard products. This contract falls within the typical procurement range for such essential operational supplies.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). Therefore, small businesses were likely not primary participants in this specific procurement.
Oversight & Accountability
The contract was awarded under SAP, which has its own set of oversight requirements. Further review would be needed to confirm adherence to all applicable regulations and policies.
Related Government Programs
- Industrial Gas Manufacturing
- Department of Justice Contracting
- Drug Enforcement Administration Programs
Risk Flags
- Potential for higher costs due to limited competition under SAP.
- Lack of detailed product/pricing information hinders thorough analysis.
- Contract duration of one year may not capture long-term market fluctuations.
- No indication of sustainability or environmental considerations in the award.
Tags
industrial-gas-manufacturing, department-of-justice, il, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $27,287.16 to AMERICAN WELDING & GAS INC. PURCHASE OF GAS
Who is the contractor on this award?
The obligated recipient is AMERICAN WELDING & GAS INC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Drug Enforcement Administration).
What is the total obligated amount?
The obligated amount is $27,287.16.
What is the period of performance?
Start: 2026-04-08. End: 2027-04-07.
What specific industrial gases are being procured and what are their unit costs?
The provided data does not specify the exact types of industrial gases purchased or their per-unit costs. This information is crucial for a detailed value assessment and for comparing pricing against market benchmarks. Without this granularity, it's challenging to determine if the $27.3M represents an optimal price for the required volume and types of gases.
What was the rationale for using SAP, and were any sole-source justifications considered?
The rationale for using SAP likely stems from the contract value falling within the simplified acquisition threshold, aiming for procurement efficiency. The data states it was 'COMPETED UNDER SAP,' implying some level of competition, not a sole-source award. However, the specific justification for choosing SAP over other competitive methods isn't detailed.
How does the $27.3M contract value compare to similar DEA or other agency procurements for industrial gases?
Benchmarking this $27.3M contract requires comparing it to similar procurements for industrial gases by the DEA or other federal agencies. Factors like the specific gases, quantities, delivery locations, and contract duration are critical for a fair comparison. Without this comparative data, it's difficult to definitively assess if the price is competitive or represents optimal value for taxpayer dollars.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: D-26-L5-0013
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: American Welding & GAS, Inc.
Address: 320 N 11TH ST, BILLINGS, MT, 59101
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,287
Exercised Options: $27,287
Current Obligation: $27,287
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-08
Current End Date: 2027-04-07
Potential End Date: 2027-04-07 00:00:00
Last Modified: 2026-04-03
Other Department of Justice Contracts
- Contractor Owned and Operated Existing Correctional Facility for Approximately 3,500 LOW Security Male Inmates — $794.5M (Cornell Companies, Inc.)
- Detention Services - SAN Diego — $776.9M (THE GEO Group, Inc.)
- CO: Telly Renfroe Award of NEW Task Order Base Year Initial Funding — $616.4M (AT&T Enterprises, LLC)
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Corecivic, Inc.)
- Provide Services for the Management and Operation of a Correctional Facility in Accordance With Rfp-Pcc-0014 — $568.9M (Cornell Companies, Inc.)