NASA Awards $4.49M Industrial Gas Contract to Air Products and Chemicals, Inc. for 2-Year Period
Contract Overview
Contract Amount: $4,487,187 ($4.5M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-12-04
End Date: 2027-11-30
Contract Duration: 726 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
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 80KSC026D0002.
Place of Performance
Location: ALLENTOWN, LEHIGH County, PENNSYLVANIA, 18106
Plain-Language Summary
National Aeronautics and Space Administration obligated $4.5 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 80KSC026D0002. Key points: 1. Contract awarded for industrial gas manufacturing, a critical component for aerospace operations. 2. Competition method was 'Full and Open', suggesting a competitive bidding process. 3. Risk appears moderate given the firm fixed-price structure and established vendor. 4. Spending falls within the typical range for specialized industrial gases in government contracts.
Value Assessment
Rating: good
The contract's firm fixed-price structure provides cost certainty. Benchmarking against similar industrial gas contracts is difficult without specific product details, but the total value appears reasonable for a two-year duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The firm fixed-price contract aims to control costs, ensuring taxpayer funds are used efficiently for essential industrial gases.
Public Impact
Ensures continued supply of essential industrial gases for NASA's operations. Supports a key industry sector, potentially impacting related supply chains. The contract value contributes to the overall federal spending in the industrial goods sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if raw material costs fluctuate significantly.
- Dependence on a single vendor for critical supplies.
Positive Signals
- Firm fixed-price contract limits cost overruns.
- Awarded under full and open competition.
- Long-term contract provides supply stability.
Sector Analysis
The industrial gas manufacturing sector is vital for numerous government operations, including aerospace and defense. Spending benchmarks vary widely based on gas type and volume, but this contract appears to be within a typical range for specialized, long-term supply agreements.
Small Business Impact
The data indicates this contract was awarded to Air Products and Chemicals, Inc., a large corporation. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA). Oversight would involve monitoring delivery schedules, quality control, and adherence to contract terms to ensure value and performance.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for supply chain disruption.
- Dependence on a single vendor.
- Price volatility of raw materials.
- Contract duration may exceed immediate needs.
Tags
industrial-gas-manufacturing, national-aeronautics-and-space-administr, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $4.5 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 80KSC026D0002.
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 $4.5 million.
What is the period of performance?
Start: 2025-12-04. End: 2027-11-30.
What specific industrial gases are being procured under this contract, and how critical are they to NASA's immediate operational needs?
The specific industrial gases are not detailed in the provided data. However, industrial gases like nitrogen, oxygen, and helium are critical for various NASA functions, including life support systems, rocket propulsion testing, and scientific research. Understanding the exact gases and their criticality would allow for a more precise assessment of the contract's value and associated risks.
How does the pricing of this contract compare to industry benchmarks for similar industrial gas supply agreements, considering the volume and duration?
Without specific details on the types and quantities of gases, a precise benchmark is challenging. However, the total value of $4.49 million over two years ($2.245 million annually) for specialized industrial gases suggests a significant but potentially competitive price point, especially given the 'Full and Open' competition.
What are the potential risks associated with relying on Air Products and Chemicals, Inc. for these industrial gases, and what mitigation strategies are in place?
Potential risks include supply chain disruptions, price volatility of raw materials, and vendor performance issues. Mitigation strategies likely involve NASA's contract management, including performance monitoring, clear delivery requirements, and potentially contingency planning for alternative suppliers if feasible.
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: 1940 AIR PRODUCTS BLVD, ALLENTOWN, PA, 18106
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: $13,886,360
Exercised Options: $13,886,360
Current Obligation: $4,487,187
Actual Outlays: $344,486
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC026D0002
IDV Type: IDC
Timeline
Start Date: 2025-12-04
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-04-08
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