NASA awards $27.7M for liquid hydrogen to Kennedy Space Center, highlighting industrial gas needs
Contract Overview
Contract Amount: $27,666,135 ($27.7M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-01-24
End Date: 2025-11-30
Contract Duration: 1,041 days
Daily Burn Rate: $26.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIXED PRICE DELIVERY ORDER ISSUED FOR THE DELIVERY OF LIQUID HYDROGEN TO 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 $27.7 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: FIXED PRICE DELIVERY ORDER ISSUED FOR THE DELIVERY OF LIQUID HYDROGEN TO KENNEDY SPACE CENTER Key points: 1. Contract value appears reasonable for specialized industrial gas supply over a multi-year period. 2. Full and open competition suggests a competitive market for this type of product. 3. Delivery order structure indicates flexibility in meeting fluctuating demand. 4. Contract duration aligns with anticipated operational needs for space launch activities. 5. Focus on liquid hydrogen points to critical support for NASA's propulsion systems. 6. Geographic concentration in Florida impacts regional industrial supply chains.
Value Assessment
Rating: good
The $27.7 million contract for liquid hydrogen is a significant award, but without specific benchmarks for liquid hydrogen pricing per unit or volume, a precise value-for-money assessment is challenging. However, given the specialized nature of the product and the multi-year delivery schedule, the total value seems aligned with typical industrial supply contracts of this scale. Comparing it to other NASA or DoD contracts for similar propellants or industrial gases would provide further context on its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, which can lead to more favorable pricing and terms for the government. The number of bidders is not specified, but the method of competition suggests a healthy market for industrial gases.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality through market forces.
Public Impact
The primary beneficiary is NASA's Kennedy Space Center, ensuring a consistent supply of liquid hydrogen for its operations. Services delivered include the reliable provision of liquid hydrogen, a critical component for rocket propulsion. The geographic impact is concentrated in Florida, supporting the state's role as a hub for space exploration. Workforce implications may include jobs in production, transportation, and handling of industrial gases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in the industrial gas market impacting long-term costs.
- Dependence on a single supplier for a critical commodity could pose supply chain risks.
- Logistical challenges associated with transporting and storing cryogenic liquids like hydrogen.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Long-term contract provides supply stability for critical NASA operations.
- Firm fixed price contract mitigates cost overrun risks for the government.
Sector Analysis
The industrial gas sector is a mature market with established players, but specialized products like liquid hydrogen for aerospace applications require specific production and handling capabilities. This contract fits within the broader industrial gas manufacturing (NAICS 325120) category. Spending in this sector is often driven by large industrial consumers, including aerospace, manufacturing, and healthcare. Benchmarks for industrial gas supply contracts vary widely based on volume, purity, and delivery logistics.
Small Business Impact
The contract was awarded to Air Products and Chemicals, Inc., a large corporation, and there is no indication of small business set-asides or subcontracting requirements in the provided data. Therefore, the direct impact on small businesses appears minimal for this specific award, though the prime contractor may engage small businesses in its broader supply chain.
Oversight & Accountability
Oversight for this contract would primarily fall under the National Aeronautics and Space Administration (NASA), specifically the contracting officer and program managers responsible for Kennedy Space Center operations. Accountability measures are embedded in the firm fixed price delivery order structure, requiring the contractor to meet specified delivery schedules and quality standards. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not be publicly disclosed.
Related Government Programs
- NASA Launch Services Program
- Space Launch System (SLS) Program
- Commercial Crew Program
- Liquid Propellant Procurement
Risk Flags
- Potential supply chain disruption risk
- Price volatility in industrial gas market
- Dependence on single supplier for critical resource
Tags
nasa, liquid-hydrogen, industrial-gas-manufacturing, kennedy-space-center, florida, firm-fixed-price, delivery-order, full-and-open-competition, aerospace, propellant
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $27.7 million to AIR PRODUCTS AND CHEMICALS, INC. FIXED PRICE DELIVERY ORDER ISSUED FOR THE DELIVERY OF LIQUID HYDROGEN TO 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 $27.7 million.
What is the period of performance?
Start: 2023-01-24. End: 2025-11-30.
What is the historical spending trend for liquid hydrogen procurement by NASA?
Analyzing historical spending on liquid hydrogen by NASA requires accessing detailed procurement data over several fiscal years. Generally, spending in this category would fluctuate based on the cadence of space launch activities, testing requirements, and the specific programs utilizing liquid hydrogen as a propellant or fuel. Factors such as the development and operational phases of programs like the Space Launch System (SLS) would significantly influence demand. Comparing current spending to past periods can reveal trends in volume, pricing, and the number of contracts awarded, providing insight into the stability and growth of this segment of NASA's budget. Without specific historical data, it's difficult to provide precise figures, but increased launch activity generally correlates with higher spending on propellants.
How does the per-unit cost of liquid hydrogen in this contract compare to market rates or other government contracts?
A direct comparison of the per-unit cost of liquid hydrogen for this $27.7 million contract against market rates or other government contracts is challenging without access to the specific pricing details (e.g., price per kilogram or liter) and the total volume procured. Industrial gas pricing is highly variable, influenced by factors such as purity requirements, delivery volume, transportation costs, and contract duration. If this contract specifies a firm fixed price per unit, it offers a degree of cost certainty. Benchmarking against other federal contracts for liquid hydrogen, particularly those awarded by agencies like the Department of Defense or other aerospace entities, would be the most relevant comparison. Publicly available data often lacks the granularity for precise per-unit cost analysis, making it difficult to definitively assess if this contract represents excellent, good, or fair value without further investigation into market conditions and specific contract terms.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this liquid hydrogen delivery contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this liquid hydrogen delivery contract. However, typical KPIs for such a contract would likely include on-time delivery rates, adherence to purity specifications for the liquid hydrogen, and responsiveness to emergency or urgent delivery requests. SLAs would define the acceptable thresholds for these metrics, potentially including penalties for non-compliance or incentives for exceeding performance standards. For a critical commodity like liquid hydrogen used in space launches, reliability and quality are paramount. NASA would likely have stringent requirements regarding the handling, storage, and transportation of the cryogenic liquid to ensure safety and operational readiness at Kennedy Space Center.
What is the track record of Air Products and Chemicals, Inc. in supplying industrial gases to government agencies, particularly NASA?
Air Products and Chemicals, Inc. is a major global supplier of industrial gases and has a significant track record of supplying various gases, including hydrogen, to government agencies and the aerospace industry. They have been involved in numerous projects supporting space exploration, defense, and other critical sectors. For NASA, the company has likely supplied gases for testing, launch operations, and research and development activities over many years. Assessing their specific performance on past NASA contracts, including adherence to delivery schedules, quality standards, and overall reliability, would require a deeper dive into contract performance databases and historical records. Generally, companies of this scale often have established processes and experience in meeting the demanding requirements of government and aerospace clients.
What are the potential risks associated with the long-term supply of liquid hydrogen, and how are they mitigated in this contract?
Potential risks in the long-term supply of liquid hydrogen include price volatility of raw materials and energy, supply chain disruptions (e.g., production facility issues, transportation challenges), and changes in demand. For this contract, the firm fixed price structure helps mitigate the risk of price increases for NASA. The multi-year duration (through November 2025) provides supply stability, assuming the contractor maintains production and delivery capabilities. Mitigation strategies employed by NASA might include requiring contingency plans from the supplier, diversifying suppliers for other critical needs (though not evident here), and maintaining adequate safety stocks. The contractor, Air Products and Chemicals, Inc., would be responsible for managing its own production and logistics risks.
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: NEGOTIATED PROPOSAL/QUOTE
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: $74,952,386
Exercised Options: $74,952,386
Current Obligation: $27,666,135
Actual Outlays: $27,328,646
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC023DA013
IDV Type: IDC
Timeline
Start Date: 2023-01-24
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-12-17
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