Roberts Oxygen Co. Inc. awarded $1.3M contract for specialty gas delivery to NIH

Contract Overview

Contract Amount: $13,155 ($13.2K)

Contractor: Roberts Oxygen CO Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-11-01

End Date: 2024-10-31

Contract Duration: 365 days

Daily Burn Rate: $36/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SPECIALTY AND MIXED GAS DELIVERY TO NIH BUILDING 11 LOADING DOCK.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20894

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13,155.09 to ROBERTS OXYGEN CO INC for work described as: SPECIALTY AND MIXED GAS DELIVERY TO NIH BUILDING 11 LOADING DOCK. Key points: 1. The contract value of $1.3M for one year of specialty gas delivery appears reasonable given the critical nature of the services. 2. The sole-source award limits opportunities for competitive pricing and potentially higher costs for taxpayers. 3. The firm-fixed-price structure provides cost certainty for the government, but may not incentivize cost savings from the contractor. 4. The contract supports essential research operations at the National Institutes of Health, a key federal health agency. 5. The geographic location in Maryland is consistent with NIH's primary campus operations. 6. The absence of small business set-aside or subcontracting requirements suggests limited direct impact on the small business ecosystem for this specific award.

Value Assessment

Rating: fair

The contract value of $1.3 million for one year of specialty gas delivery to the NIH is a significant amount. Without specific benchmarks for specialty gas delivery to research facilities of this scale, it is difficult to definitively assess value for money. However, the sole-source nature of the award raises concerns about whether the government secured the most competitive pricing. A comparison to similar contracts for bulk gas supply to federal research institutions would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source is available or in cases of urgent need. The lack of competition means that the government did not benefit from multiple bids, which could have driven down the price. The specific justification for the sole-source award is not detailed here, but it limits the government's ability to explore alternative suppliers and potentially achieve better pricing through a competitive process.

Taxpayer Impact: The sole-source award means taxpayers may have paid a premium compared to what could have been achieved through a competitive bidding process. Without competition, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are researchers and staff at the National Institutes of Health (NIH) who rely on a consistent supply of specialty and mixed gases for their experiments and laboratory work. The contract ensures the delivery of essential gases required for a wide range of biomedical research activities, supporting NIH's mission to uncover new knowledge and accelerate health discoveries. The services are geographically focused on the NIH campus in Bethesda, Maryland, directly supporting federal operations. The contract supports the operational needs of the federal government's health research infrastructure, indirectly impacting the scientific workforce by enabling continued research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of transparency regarding the justification for sole-source procurement.
Firm-fixed-price contract may not incentivize contractor efficiency or cost savings.
No explicit small business subcontracting goals mentioned, potentially limiting opportunities for smaller firms.

Positive Signals

Ensures critical supply of specialty gases for vital NIH research operations.
Firm-fixed-price contract provides budget certainty for the government.
Contract is for a defined period, allowing for future re-evaluation of procurement strategy.
Contractor is an established supplier, likely possessing the necessary expertise for specialty gas delivery.

Sector Analysis

The industrial gas manufacturing sector is characterized by large, established players and significant infrastructure requirements. Specialty gases, in particular, demand precise manufacturing, quality control, and specialized handling and delivery systems. Federal agencies like NIH are significant consumers of these gases for research and development purposes. While the overall market for industrial gases is substantial, contracts for highly specialized gases to research institutions are often niche. Benchmarks for such specialized deliveries are difficult to establish without detailed product specifications and delivery logistics.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there information indicating specific subcontracting requirements for small businesses. As a sole-source award to a likely larger entity (Roberts Oxygen Co. Inc.), the direct impact on the small business ecosystem for this particular contract is minimal. Opportunities for small businesses would typically arise if the contract were competed or if the prime contractor actively sought small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the National Institutes of Health. As a purchase order, it is likely managed through internal procurement systems. Transparency is limited due to the sole-source nature. Accountability would be measured by the contractor's adherence to the terms and conditions of the purchase order, including timely and correct delivery of specified gases. There is no explicit mention of an Inspector General's jurisdiction for this specific award, though the HHS OIG has broad oversight responsibilities for the department's programs and contracts.

Related Government Programs

NIH Research Support Services
Federal Agency Laboratory Supplies
Industrial Gas Procurement
Specialty Chemical Supply Contracts

Risk Flags

Sole Source Award
Lack of Competition
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13,155.09 to ROBERTS OXYGEN CO INC. SPECIALTY AND MIXED GAS DELIVERY TO NIH BUILDING 11 LOADING DOCK.

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 $13,155.09.

What is the period of performance?

Start: 2023-11-01. End: 2024-10-31.

What is the specific justification for awarding this contract on a sole-source basis to Roberts Oxygen Co. Inc.?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), and it is listed as 'sole-source'. While the specific justification is not detailed in the provided snippet, common reasons for sole-source awards include: 1) Only one responsible source is available to meet the agency's needs. 2) An urgent and compelling requirement exists, and competition is not feasible. 3) The agency is authorized or required by statute or regulation to use a sole-source acquisition. For a specialty gas delivery contract, it's possible that Roberts Oxygen Co. Inc. possesses unique capabilities, proprietary technology, or existing infrastructure that makes them the only viable supplier for the specific gases and delivery requirements at NIH Building 11. Without further documentation from the agency, the precise rationale remains speculative.

How does the price of $1.3 million for one year of specialty gas delivery compare to market rates or similar federal contracts?

Benchmarking the price of $1.3 million for specialty gas delivery is challenging without specific details on the types and quantities of gases, delivery frequency, purity levels, and service requirements. Specialty gases can vary significantly in cost based on these factors. Furthermore, the sole-source nature of this award means it was not subjected to competitive bidding, which typically helps ensure market-based pricing. To conduct a proper comparison, one would need to: 1) Identify comparable federal contracts for similar specialty gas supplies to research institutions. 2) Obtain quotes from other industrial gas suppliers for a comparable scope of work. 3) Analyze the specific product mix and service level agreements. Given the lack of competitive pricing data, it is difficult to definitively state whether $1.3 million represents good value for money.

What are the potential risks associated with a sole-source award for essential laboratory supplies like specialty gases?

Sole-source awards carry several inherent risks. Firstly, the primary risk is a lack of price competition, which can lead to the government paying a higher price than if the contract had been competed. This reduces the overall value for taxpayer money. Secondly, it limits the government's ability to explore innovative solutions or alternative suppliers who might offer better service, quality, or more advanced products. Thirdly, it can create a dependency on a single contractor, potentially reducing leverage in future negotiations. Finally, without the scrutiny of a competitive process, there's a slightly increased risk of inadequate performance or oversight if not managed diligently by the contracting agency.

What is the track record of Roberts Oxygen Co. Inc. in supplying federal agencies, particularly for specialty gases?

Roberts Oxygen Co. Inc. has a history of supplying gases and related equipment. Information available through federal procurement databases (like FPDS or SAM.gov) would typically show their past contract awards, including agencies served, contract types, and values. A deeper dive would involve examining the performance history on those contracts, looking for any reported issues, disputes, or commendations. For specialty gases, their track record would ideally demonstrate consistent quality, reliable delivery, and adherence to safety standards, especially critical for research environments like NIH. Without access to specific performance reviews or a comprehensive contract history, a definitive assessment of their track record is limited to their general presence in the federal supply chain.

How does this contract align with the National Institutes of Health's mission and operational needs?

This contract directly supports the National Institutes of Health's (NIH) core mission of advancing fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to extend health, prevent disease, and improve the health and well-being of the people. Specialty and mixed gases are indispensable tools in many areas of biomedical research, including cell culture, microscopy, mass spectrometry, and various analytical techniques. Ensuring a reliable and timely supply of these gases is crucial for the uninterrupted progress of research projects conducted at NIH facilities. Therefore, this contract is fundamentally aligned with maintaining the operational capacity required for NIH to fulfill its scientific and public health objectives.

What are the potential implications of the firm-fixed-price (FFP) contract type for this service?

A Firm-Fixed-Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. For the government, this offers budget certainty and transfers most of the cost risk to the contractor. If Roberts Oxygen Co. Inc. can procure or produce the gases and deliver them more efficiently than anticipated, they will realize a higher profit margin. Conversely, if their costs increase unexpectedly (e.g., due to raw material price fluctuations or unforeseen logistical challenges), their profit will be reduced, but the government's payment remains fixed. For specialty gas delivery, an FFP contract is generally suitable as the scope of work and associated costs are relatively predictable once defined.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,155

Exercised Options: $13,155

Current Obligation: $13,155

Actual Outlays: $13,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline