NASA's $120M Helium Contract with Air Products Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $120,344,148 ($120.3M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-10-01
End Date: 2025-09-30
Contract Duration: 2,191 days
Daily Burn Rate: $54.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HELIUM SUPPORT
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $120.3 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: HELIUM SUPPORT Key points: 1. Significant contract value of $120.3 million for industrial gas manufacturing. 2. Sole provider identified as Air Products and Chemicals, Inc. 3. Potential risks associated with single-source procurement and pricing. 4. Sector context: Industrial Gas Manufacturing, crucial for aerospace and research.
Value Assessment
Rating: questionable
The contract's value is substantial, but without clear competitive benchmarks, assessing its value for money is difficult. The firm fixed-price structure provides cost certainty, but the lack of competition raises concerns about optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as full and open competition, the data indicates only one awardee, Air Products and Chemicals, Inc. This suggests either a highly specialized market or potential limitations in the competitive process that may have impacted price discovery.
Taxpayer Impact: The lack of robust competition could lead to taxpayers paying more than necessary for essential helium supplies.
Public Impact
Essential helium supply for NASA's critical missions and research activities. Potential for price increases due to limited competition impacting future budgets. Ensuring reliable access to helium is vital for scientific advancement and space exploration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- High contract value without clear value-for-money assessment
- Dependence on a single supplier for critical resource
Positive Signals
- Firm fixed-price contract provides cost certainty
- Long-term contract ensures supply continuity
Sector Analysis
The Industrial Gas Manufacturing sector is characterized by high capital investment and specialized production. NASA's reliance on helium highlights its critical role in aerospace, research, and other high-tech industries. Benchmarks for similar large-scale helium contracts are not readily available, making direct comparison challenging.
Small Business Impact
This contract does not appear to involve small businesses as prime contractors. The nature of industrial gas manufacturing typically requires large-scale operations and specialized facilities, which are often beyond the capacity of small businesses.
Oversight & Accountability
NASA's procurement processes are subject to oversight by the Government Accountability Office (GAO) and congressional committees. However, the specific details of this contract's oversight and accountability mechanisms require further investigation, especially concerning the competitive aspects.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for non-competitive pricing
- Over-reliance on a single supplier
- Lack of transparency in competition outcome
- Difficulty in assessing true value for money
Tags
industrial-gas-manufacturing, national-aeronautics-and-space-administr, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $120.3 million to AIR PRODUCTS AND CHEMICALS, INC. HELIUM SUPPORT
Who is the contractor on this award?
The obligated recipient is AIR PRODUCTS AND CHEMICALS, INC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $120.3 million.
What is the period of performance?
Start: 2019-10-01. End: 2025-09-30.
What specific factors led to only one awardee under a 'full and open' competition for this helium contract?
Further investigation is needed to determine if the solicitation's requirements were overly restrictive, if only one vendor possessed the necessary technical capabilities and capacity, or if other market dynamics limited participation. Understanding these factors is crucial for ensuring future procurements are genuinely competitive and yield the best value for taxpayers.
How does the unit price of helium under this contract compare to market rates or other government contracts for similar quantities and purity?
A detailed price analysis comparing this contract's unit cost against industry benchmarks and other government contracts is essential. Without this, it's difficult to ascertain if NASA is receiving competitive pricing, especially given the limited competition. This analysis would inform future negotiation strategies and procurement decisions.
What are the contingency plans if Air Products and Chemicals, Inc. is unable to fulfill its contractual obligations for helium supply?
Given the critical nature of helium for NASA's operations and the single-source award, robust contingency planning is paramount. NASA should have established backup supply agreements or alternative sourcing strategies to mitigate risks associated with potential disruptions from the primary supplier, ensuring mission continuity.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7201 HAMILTON BLVD, ALLENTOWN, PA, 18195
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: $172,012,676
Exercised Options: $159,769,552
Current Obligation: $120,344,148
Actual Outlays: $120,168,648
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC019D0032
IDV Type: IDC
Timeline
Start Date: 2019-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-05-29
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