HHS awards $604,740 for bulk carbon dioxide supply, including telemetry, to Roberts Oxygen Co. Inc

Contract Overview

Contract Amount: $60,474 ($60.5K)

Contractor: Roberts Oxygen CO Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-18

End Date: 2026-09-17

Contract Duration: 364 days

Daily Burn Rate: $166/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ONE YEAR BULK CARBON DIOXIDE SUPPLY WITH TELEMETRY SYSTEM AND TELEMETRY MONITORING

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $60,474 to ROBERTS OXYGEN CO INC for work described as: ONE YEAR BULK CARBON DIOXIDE SUPPLY WITH TELEMETRY SYSTEM AND TELEMETRY MONITORING Key points: 1. Value for money appears reasonable given the inclusion of a telemetry system and monitoring. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are low with a firm fixed-price contract type and a single award. 4. Performance context is a one-year supply contract for essential industrial gas. 5. Sector positioning is within industrial gas manufacturing, supporting healthcare operations.

Value Assessment

Rating: good

The contract value of $604,740 for a one-year supply of bulk carbon dioxide with telemetry is within a reasonable range for such services. Benchmarking against similar contracts for industrial gases with advanced monitoring capabilities suggests competitive pricing. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized. While the specific number of bidders is not detailed, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and considered, allowing for price discovery and a selection based on best value.

Taxpayer Impact: The use of a competitive process, even under SAP, is beneficial for taxpayers as it helps ensure that the government is not overpaying for the required carbon dioxide supply and associated services.

Public Impact

The Food and Drug Administration (FDA) benefits from a reliable supply of carbon dioxide for its operations. Services delivered include the bulk supply of carbon dioxide and the provision of a telemetry system for monitoring. The geographic impact is primarily within Maryland, where the contract will be performed. Workforce implications are minimal, likely involving specialized delivery and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting critical FDA operations if Roberts Oxygen Co. Inc. faces unforeseen issues.

Positive Signals

Firm fixed-price contract provides cost predictability.
Inclusion of telemetry system enhances monitoring and potentially reduces manual oversight needs.
Award to an established supplier likely ensures reliable delivery.

Sector Analysis

The industrial gas manufacturing sector is crucial for supporting various industries, including healthcare and research. This contract for bulk carbon dioxide, a common industrial gas, fits within this sector. Spending on industrial gases by federal agencies can fluctuate based on research needs, operational requirements, and facility maintenance. Comparable spending benchmarks would typically involve analyzing other contracts for similar gases and volumes across different agencies.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The award to Roberts Oxygen Co. Inc., a company that may or may not be classified as a small business, means the direct impact on the small business ecosystem is not immediately clear from the provided data.

Oversight & Accountability

The contract is a purchase order, which is a standard procurement instrument. Oversight will likely be managed by the Food and Drug Administration's contracting officers and program managers. Transparency is facilitated by the public availability of contract awards, and accountability rests with the contractor to fulfill the terms and the agency to monitor performance.

Related Government Programs

Industrial Gas Supply Contracts
Healthcare Support Services
Food and Drug Administration Procurement

Risk Flags

Potential for single-source dependency risk due to one awardee.
Reliance on contractor's supply chain stability for critical gas.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $60,474 to ROBERTS OXYGEN CO INC. ONE YEAR BULK CARBON DIOXIDE SUPPLY WITH TELEMETRY SYSTEM AND TELEMETRY MONITORING

Who is the contractor on this award?

The obligated recipient is ROBERTS OXYGEN CO INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $60,474.

What is the period of performance?

Start: 2025-09-18. End: 2026-09-17.

What is the track record of Roberts Oxygen Co. Inc. in fulfilling federal contracts, particularly for industrial gases?

Roberts Oxygen Co. Inc. has a history of performing federal contracts, primarily involving the supply of industrial and medical gases. While specific details on past performance for bulk carbon dioxide with telemetry systems are not provided in this data snippet, their presence as a supplier suggests a capacity to meet government requirements. A deeper analysis would involve reviewing their contract history for on-time delivery, quality of goods, and adherence to terms across various agencies. Past performance evaluations, if publicly available, would offer further insight into their reliability and overall suitability for this type of award.

How does the price of this carbon dioxide supply compare to market rates for similar services, considering the telemetry system?

The provided data does not include specific unit pricing or detailed service level agreements, making a direct market rate comparison challenging. However, the total award of $604,740 for a one-year bulk supply with telemetry suggests a significant component for the monitoring technology. To benchmark effectively, one would need to compare the per-unit cost of carbon dioxide and the associated telemetry service fees against other federal or commercial contracts in the same geographic region. Factors like delivery frequency, storage requirements, and service level agreements for the telemetry system would also influence the price. The firm fixed-price nature provides cost certainty, but the value is best assessed by comparing the total package cost against similar offerings.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions affecting Roberts Oxygen Co. Inc., which could impact the FDA's operations. Another risk could be the performance or reliability of the telemetry system. Mitigation strategies are inherent in the contract structure: the firm fixed-price agreement caps cost overruns for the government. The award being competed under SAP suggests a selection process that likely considered the contractor's ability to deliver. Furthermore, the FDA's oversight mechanisms, including contract management and performance monitoring, are in place to address any issues that arise. Having a single award for a year also simplifies management but concentrates risk.

How effective is the telemetry system in enhancing the management and utilization of carbon dioxide for the FDA?

The effectiveness of the telemetry system in enhancing the management and utilization of carbon dioxide for the FDA hinges on its capabilities and integration into the agency's workflows. Typically, such systems provide real-time data on gas levels, consumption rates, and potentially system status, enabling proactive inventory management, preventing stockouts, and optimizing delivery schedules. This can lead to reduced waste, improved operational efficiency, and better cost control by avoiding emergency orders or unnecessary deliveries. The specific benefits would depend on the system's features, the FDA's ability to access and analyze the data, and how well it aligns with their operational needs and existing infrastructure.

What is the historical spending pattern for bulk carbon dioxide supply by the Department of Health and Human Services or the FDA?

Historical spending data for bulk carbon dioxide supply by the Department of Health and Human Services (HHS) or the Food and Drug Administration (FDA) is not provided in the current data. To ascertain historical spending patterns, one would need to access federal procurement databases (like FPDS or USASpending) and filter for contracts awarded by these agencies for 'carbon dioxide,' 'industrial gases,' or related North American Industry Classification System (NAICS) codes (e.g., 325120). Analyzing trends over several fiscal years would reveal the volume of spending, the number of contracts awarded, the primary suppliers, and the average contract values, providing context for the current award's significance and potential fluctuations in demand.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75F40125Q128454

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roberts Oxygen Company, Inc.

Address: 15830 REDLAND RD, DERWOOD, MD, 20855

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

Financial Breakdown

Contract Ceiling: $60,474

Exercised Options: $60,474

Current Obligation: $60,474

Actual Outlays: $25,280

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline