NIH Awards Roberts Oxygen $856K for Bulk Oxygen Supply Over Two Years

Contract Overview

Contract Amount: $85,632 ($85.6K)

Contractor: Roberts Oxygen CO Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-01

End Date: 2027-08-31

Contract Duration: 729 days

Daily Burn Rate: $117/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BULK OXYGEN SUPPLY FOR THE NIH FROM ROBERTS OXYGEN CO. INC.:1107708 [25-006782]

Place of Performance

Location: DERWOOD, MONTGOMERY County, MARYLAND, 20855

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $85,632 to ROBERTS OXYGEN CO INC for work described as: BULK OXYGEN SUPPLY FOR THE NIH FROM ROBERTS OXYGEN CO. INC.:1107708 [25-006782] Key points: 1. The contract value of $856,320 for bulk oxygen is moderate. 2. Competition under SAP suggests a potentially efficient price discovery process. 3. Risk appears low given the essential nature of the product and established supplier. 4. The sector is Industrial Gas Manufacturing, a critical component of healthcare infrastructure.

Value Assessment

Rating: good

The award amount of $856,320 over two years for bulk oxygen appears reasonable when considering the specialized nature of the product and the supplier's role. Benchmarking against similar government contracts for industrial gases would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below the simplified acquisition threshold. This method generally promotes fair pricing and efficient procurement.

Taxpayer Impact: The firm fixed price contract ensures cost certainty for taxpayers, with competition likely contributing to a fair market price.

Public Impact

Ensures continuous supply of a critical medical gas for NIH research and patient care. Supports ongoing operations at NIH facilities in Maryland. The contract value is within a range that typically involves multiple bidders under SAP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years if not locked in.
Dependence on a single supplier for a critical resource.

Positive Signals

Firm fixed price contract provides budget certainty.
Competition under SAP suggests a potentially good value.
Long-term relationship with a known supplier.

Sector Analysis

The Industrial Gas Manufacturing sector is vital for healthcare and research institutions. Spending benchmarks for bulk oxygen can vary significantly based on volume, purity requirements, and delivery logistics. This award appears to be a standard procurement for essential medical supplies.

Small Business Impact

This contract does not appear to have specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were excluded or if the prime contractor utilizes small business subcontractors.

Oversight & Accountability

The contract is a purchase order awarded by the National Institutes of Health, a component of HHS. Standard government oversight for purchase orders would apply, focusing on delivery, quality, and payment.

Related Government Programs

Industrial Gas Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole reliance on one supplier for a critical resource.
Potential for price escalation in future contract periods.
Lack of detailed cost breakdown for unit pricing.
Limited transparency on specific service level agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $85,632 to ROBERTS OXYGEN CO INC. BULK OXYGEN SUPPLY FOR THE NIH FROM ROBERTS OXYGEN CO. INC.:1107708 [25-006782]

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $85,632.

What is the period of performance?

Start: 2025-09-01. End: 2027-08-31.

What is the historical pricing trend for bulk oxygen from Roberts Oxygen Co. Inc. to the NIH?

Historical pricing data would be crucial to assess if the current award reflects a favorable trend or a potential increase. Analyzing past purchase orders and contract modifications for similar oxygen supplies would reveal if Roberts Oxygen has consistently provided competitive pricing or if there have been significant escalations over time, impacting the long-term value for the NIH.

What are the specific purity and delivery requirements for this bulk oxygen supply?

The specific purity and delivery requirements are essential for understanding the complexity and cost drivers of this contract. Higher purity grades or more demanding delivery schedules (e.g., just-in-time delivery to multiple locations) can significantly impact the price. Without these details, it's difficult to benchmark the cost-effectiveness accurately against industry standards or other government contracts.

Are there alternative suppliers for bulk oxygen in the Maryland region that could be leveraged for future competition?

Identifying alternative suppliers in the region is key to ensuring future competition and potentially better pricing. Researching other industrial gas manufacturers or distributors capable of meeting NIH's volume and purity needs would inform negotiation strategies for contract renewals and prevent over-reliance on a single vendor, thereby mitigating long-term cost risks.

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: RFQ-CC-25-006782

Offers Received: 3

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $220,404

Exercised Options: $85,632

Current Obligation: $85,632

Actual Outlays: $16,646

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline