NASA awards $347M for Helium to Air Products and Chemicals, Inc. under existing contract
Contract Overview
Contract Amount: $346,980,504 ($347.0M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2022-12-01
End Date: 2026-10-31
Contract Duration: 1,430 days
Daily Burn Rate: $242.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS DELIVERY ORDER IS ISSUED PURSUANT TO THE SCHEDULE OF SUPPLIES, CONTRACT PERIOD PRICING, OTHER PRICING OPTIONS, AND TERMS AND CONDITIONS OF CONTRACT 80KSC023DA010 FOR HELIUM AT KENNEDY SPACE CENTER.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $347.0 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: THIS DELIVERY ORDER IS ISSUED PURSUANT TO THE SCHEDULE OF SUPPLIES, CONTRACT PERIOD PRICING, OTHER PRICING OPTIONS, AND TERMS AND CONDITIONS OF CONTRACT 80KSC023DA010 FOR HELIUM AT KENNEDY SPACE CENTER. Key points: 1. Significant award value of $347 million for essential helium supply. 2. Sole-source award to Air Products and Chemicals, Inc. raises competition concerns. 3. Risk of price escalation due to lack of competitive bidding. 4. Industrial Gas Manufacturing sector is critical for space operations.
Value Assessment
Rating: questionable
The contract is firm fixed price, which provides some cost certainty. However, without competition, it's difficult to assess if the pricing is truly optimal compared to market rates for industrial gases.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This delivery order was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition for this substantial contract may result in taxpayers paying a premium for helium.
Public Impact
Ensures critical helium supply for NASA's Kennedy Space Center operations. Potential for higher costs due to sole-source nature of the award. Lack of transparency in pricing due to no competitive bidding process. Impact on small businesses in the industrial gas sector is minimal as it's a sole-source award to a large corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Firm fixed price contract
- Ensures critical supply
Sector Analysis
The Industrial Gas Manufacturing sector is vital for numerous government operations, including aerospace. Benchmarks for helium supply contracts are difficult to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
This award was made to a large corporation, Air Products and Chemicals, Inc., and does not appear to include specific provisions or set-asides for small businesses. The sole-source nature further limits opportunities for small business participation.
Oversight & Accountability
The award is issued under an existing contract, suggesting some level of prior oversight. However, the lack of re-competition for this significant delivery order raises questions about ongoing oversight and value for money.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in price determination
- No small business participation noted
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 $347.0 million to AIR PRODUCTS AND CHEMICALS, INC. THIS DELIVERY ORDER IS ISSUED PURSUANT TO THE SCHEDULE OF SUPPLIES, CONTRACT PERIOD PRICING, OTHER PRICING OPTIONS, AND TERMS AND CONDITIONS OF CONTRACT 80KSC023DA010 FOR HELIUM AT KENNEDY SPACE CENTER.
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 $347.0 million.
What is the period of performance?
Start: 2022-12-01. End: 2026-10-31.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing without competition?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one source can meet the requirement. NASA would need to provide documentation detailing why competition was not feasible. Without competitive bids, assessing fair and reasonable pricing relies heavily on historical data, cost analysis, or price negotiation techniques, which may not yield the best value.
What are the potential risks associated with a sole-source contract for a critical resource like helium, particularly regarding price volatility and supply chain security?
Sole-source contracts for critical resources like helium carry risks of price escalation due to the absence of competitive pressure. The government may pay above market rates. Supply chain security could also be a concern if the sole provider faces production issues or market shifts, as there are no alternative suppliers readily available under contract.
How does this contract contribute to NASA's mission effectiveness, and are there alternative strategies to ensure cost-effective helium procurement in the future?
Helium is essential for various NASA applications, including cooling superconducting magnets in scientific instruments and inflating balloons for atmospheric research. To ensure cost-effectiveness in the future, NASA could explore strategies like longer-term strategic sourcing, encouraging new market entrants through R&D support, or consolidating helium requirements across different agencies to achieve economies of scale.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1940 AIR PRODUCTS BLVD, ALLENTOWN, PA, 18106
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $770,145,657
Exercised Options: $770,145,657
Current Obligation: $346,980,504
Actual Outlays: $315,219,952
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC023DA010
IDV Type: IDC
Timeline
Start Date: 2022-12-01
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-04-01
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