NASA awards $18.4M for liquid hydrogen, with delivery orders extending through November 2025
Contract Overview
Contract Amount: $18,399,204 ($18.4M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-01-19
End Date: 2025-11-30
Contract Duration: 1,046 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIXED PRICE DELIVERY ORDER FOR THE PURCHASE OF LIQUID HYDROGEN REQUIRED FOR MARSHALL SPACE FLIGHT CENTER AS DESCRIBED ON KENNEDY SPACE CENTER'S BASE CONTRACT.
Place of Performance
Location: ALLENTOWN, LEHIGH County, PENNSYLVANIA, 18106
Plain-Language Summary
National Aeronautics and Space Administration obligated $18.4 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: FIXED PRICE DELIVERY ORDER FOR THE PURCHASE OF LIQUID HYDROGEN REQUIRED FOR MARSHALL SPACE FLIGHT CENTER AS DESCRIBED ON KENNEDY SPACE CENTER'S BASE CONTRACT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive market for industrial gases. 2. The contract is a fixed-price delivery order, providing cost certainty for the government. 3. The duration of over 1000 days indicates a long-term need for this critical resource. 4. The awardee, Air Products and Chemicals, Inc., is a major player in the industrial gas sector. 5. The contract supports NASA's Marshall Space Flight Center, highlighting its role in space exploration infrastructure. 6. The use of a delivery order under a base contract streamlines procurement for ongoing needs.
Value Assessment
Rating: good
The contract's fixed-price nature provides a degree of cost control. Benchmarking against similar industrial gas supply contracts for government facilities would offer further insight into value for money. The award amount of $18.4 million for a period extending over two years suggests a significant but potentially reasonable cost for a specialized commodity like liquid hydrogen, especially considering the logistical complexities involved in its production and delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of two bids suggests a reasonably competitive environment for this specialized industrial gas. A higher number of bidders would typically lead to more aggressive pricing, but the fixed-price structure here already aims to cap costs.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where prices are driven down through rivalry, ensuring the government receives competitive rates for its procurements.
Public Impact
This contract directly benefits NASA's space exploration and research initiatives by ensuring a reliable supply of liquid hydrogen. Liquid hydrogen is a critical component for rocket fuel and other scientific applications within NASA's facilities. The services delivered are essential for the operational continuity of the Marshall Space Flight Center. The geographic impact is primarily focused on supporting NASA operations, with potential downstream effects on the aerospace workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in the volatile industrial gas market impacting long-term costs if not managed effectively.
- Dependence on a single supplier for a critical resource could pose a risk if supply chain disruptions occur.
- Ensuring consistent quality and purity of liquid hydrogen is paramount for sensitive NASA operations.
Positive Signals
- Fixed-price contract structure provides budget certainty for NASA.
- Award to an established industry leader suggests reliability and expertise in supply.
- Long-term delivery order indicates a stable and predictable supply chain for a critical commodity.
Sector Analysis
The industrial gas manufacturing sector is characterized by significant capital investment, complex production processes, and stringent safety regulations. Companies like Air Products and Chemicals, Inc. operate in a global market with substantial government contracts, particularly supporting aerospace and defense. Spending in this sector for government purposes often involves specialized gases and delivery systems, making direct comparisons challenging without detailed specifications. The market size for industrial gases is in the billions globally, with government procurement forming a notable segment.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the specialized nature of liquid hydrogen production and delivery, it is likely that larger, established firms dominate this market. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, though it is possible they could be involved in ancillary services.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. NASA's Office of Inspector General would have jurisdiction over any investigations into fraud, waste, or abuse. Transparency is facilitated through public contract databases where such awards are recorded. The fixed-price nature of the contract itself serves as a form of cost oversight by capping the government's expenditure.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Fuel Procurement
- Industrial Gas Supply Agreements
- Space Launch Vehicle Support
Risk Flags
- Critical resource dependency
- Long-term contract duration
- Specialized commodity pricing volatility
Tags
nasa, national-aeronautics-and-space-administration, industrial-gas-manufacturing, liquid-hydrogen, fixed-price-delivery-order, full-and-open-competition, aerospace, space-exploration, marshall-space-flight-center, air-products-and-chemicals, pennsylvania, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $18.4 million to AIR PRODUCTS AND CHEMICALS, INC. FIXED PRICE DELIVERY ORDER FOR THE PURCHASE OF LIQUID HYDROGEN REQUIRED FOR MARSHALL SPACE FLIGHT CENTER AS DESCRIBED ON KENNEDY SPACE CENTER'S BASE CONTRACT.
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 $18.4 million.
What is the period of performance?
Start: 2023-01-19. End: 2025-11-30.
What is the historical spending trend for liquid hydrogen by NASA?
Analyzing historical spending data for liquid hydrogen by NASA is crucial for understanding long-term trends and identifying potential cost efficiencies. While specific figures for liquid hydrogen alone are not readily available in this snippet, NASA's overall budget for propulsion and materials research provides context. Historically, NASA has consistently invested significant funds in cryogenic fuels like liquid hydrogen due to their high energy density, essential for space missions. Fluctuations in spending can be attributed to the cadence of major programs, such as the Space Shuttle program's retirement and the development of new launch systems like the Space Launch System (SLS). Comparing the current $18.4 million award over approximately two years against previous contract values for similar quantities and durations would reveal whether pricing has remained stable, increased, or decreased, offering insights into market dynamics and the effectiveness of procurement strategies over time.
How does the price per unit of liquid hydrogen in this contract compare to market rates or other government contracts?
Determining the precise price per unit for liquid hydrogen in this contract is challenging without knowing the exact volume of hydrogen to be delivered over its term. However, the total award of $18.4 million for a period of roughly two years (from January 2023 to November 2025) provides a basis for high-level comparison. Industrial gas prices can vary significantly based on purity, delivery method (e.g., bulk cryogenic tanks), distance from production facilities, and market demand. Government contracts often benefit from bulk purchasing power and competitive bidding, which can lead to lower unit costs compared to commercial rates. To benchmark effectively, one would need to compare the implied price per kilogram or liter against publicly available market indices for industrial gases or against similar NASA or Department of Defense contracts for liquid hydrogen, considering regional differences and specific contract terms.
What are the key risks associated with the supply chain for liquid hydrogen for NASA?
The supply chain for liquid hydrogen presents several key risks for NASA. Firstly, liquid hydrogen is a cryogenic fluid requiring specialized storage and transportation infrastructure, making it susceptible to disruptions from extreme weather, transportation accidents, or equipment failures. Secondly, production facilities are often large and capital-intensive, meaning there are fewer suppliers compared to more common industrial gases, potentially leading to supply vulnerabilities if a primary producer faces operational issues. Thirdly, geopolitical factors or energy market volatility can impact the cost of the natural gas feedstock often used in hydrogen production, leading to price escalations. Finally, ensuring the consistent purity and quality of liquid hydrogen is critical for sensitive rocket engine testing and spaceflight; any deviation could lead to mission failure or safety hazards. NASA's reliance on this specific fuel necessitates robust contingency planning and strong supplier relationships to mitigate these risks.
What is the track record of Air Products and Chemicals, Inc. in supplying industrial gases to the government?
Air Products and Chemicals, Inc. has a long and established track record of supplying industrial gases, including hydrogen, to government agencies, particularly NASA and the Department of Defense. They are a major global player in the industrial gas market, known for their extensive production capabilities and sophisticated distribution networks. Their involvement in supplying critical gases for aerospace applications, such as rocket propellants, is well-documented. Past performance data, often available through government contract databases like the Federal Procurement Data System (FPDS), would detail the types of contracts they have held, their performance ratings, and the value of those contracts. Generally, large, established companies like Air Products are awarded significant contracts due to their proven ability to meet stringent technical requirements, safety standards, and delivery schedules demanded by government entities, especially in high-stakes sectors like space exploration.
How does this contract fit into NASA's broader strategy for space exploration and propulsion?
This contract for liquid hydrogen is integral to NASA's broader strategy for space exploration and propulsion, particularly concerning its use as a high-performance rocket fuel. Liquid hydrogen, when combined with liquid oxygen, offers one of the highest specific impulses of any known chemical propellant combination, making it highly efficient for upper stages of rockets and deep-space missions. NASA's continued investment in programs like the Space Launch System (SLS), which utilizes liquid hydrogen, underscores its commitment to this fuel source. Ensuring a reliable and cost-effective supply of liquid hydrogen is therefore a foundational requirement for maintaining launch capabilities, supporting ongoing research and development in advanced propulsion systems, and enabling future crewed missions to the Moon, Mars, and beyond. This contract directly supports the operational needs of facilities like the Marshall Space Flight Center, which plays a key role in propulsion development and testing.
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
Solicitation ID: 80KSC023DA011
Offers Received: 2
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: $18,399,204
Exercised Options: $18,399,204
Current Obligation: $18,399,204
Actual Outlays: $18,347,417
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC023DA011
IDV Type: IDC
Timeline
Start Date: 2023-01-19
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-09-15
More Contracts from 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 — $347.0M (National Aeronautics and Space Administration)
- Helium Support — $120.3M (National Aeronautics and Space Administration)
- Liquid Hydrogen for East Coast Users — $57.5M (National Aeronautics and Space Administration)
- Liquid Hydrogen, MIL Spec Mil-Prf-27201c, Type II in Accordance With KCS Contract NAS130 12150 — $57.5M (National Aeronautics and Space Administration)
- Helium for Kennedy Space Center Under the Agency-Wide Acquisition of Helium — $42.7M (National Aeronautics and Space Administration)
View all AIR Products and Chemicals, Inc federal contracts →
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →