NASA Awards $23.7M Liquid Hydrogen Delivery Order to Air Products and Chemicals, Inc. for Stennis Space Center
Contract Overview
Contract Amount: $23,672,524 ($23.7M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2022-12-01
End Date: 2025-12-30
Contract Duration: 1,125 days
Daily Burn Rate: $21.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DELIVERY ORDER FOR LIQUID HYDROGEN FOR STENNIS SPACE CENTER (SSC) AS DESCRIBED ON KENNEDY SPACE CENTER'S (KSC) BASE CONTRACT.
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $23.7 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: DELIVERY ORDER FOR LIQUID HYDROGEN FOR STENNIS SPACE CENTER (SSC) AS DESCRIBED ON KENNEDY SPACE CENTER'S (KSC) BASE CONTRACT. Key points: 1. Significant contract for industrial gas manufacturing, supporting critical space center operations. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the firm-fixed-price contract type and established supplier. 4. Spending aligns with the industrial gas manufacturing sector, but specific benchmarks are unavailable.
Value Assessment
Rating: good
The $23.7 million award for liquid hydrogen is a substantial amount. Without direct contract comparisons for similar liquid hydrogen deliveries to NASA facilities, assessing precise value is challenging. However, the firm-fixed-price structure provides cost certainty.
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 competitive nature of the award suggests taxpayers are likely benefiting from a price determined through market forces rather than a sole-source situation.
Public Impact
Ensures continued supply of critical liquid hydrogen for Stennis Space Center's propulsion testing. Supports NASA's ongoing space exploration and research initiatives. Potential for job creation and economic activity in Mississippi related to the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in the volatile industrial gas market.
- Dependence on a single supplier for a critical resource.
Positive Signals
- Firm-fixed-price contract limits cost overruns.
- Awarded under full and open competition.
- Supports vital national space program infrastructure.
Sector Analysis
This contract falls within the Industrial Gas Manufacturing sector, which is essential for various industrial and scientific applications, including aerospace. Benchmarking is difficult without specific data on liquid hydrogen pricing for government contracts.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.
Oversight & Accountability
The award was managed by NASA, a federal agency with established procurement processes. Oversight would involve monitoring contract performance, delivery schedules, and adherence to the firm-fixed-price terms.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for price escalation in industrial gas markets.
- Dependence on a single supplier for a critical resource.
- Limited visibility into specific unit costs.
- No small business participation noted in the primary award.
Tags
industrial-gas-manufacturing, national-aeronautics-and-space-administr, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $23.7 million to AIR PRODUCTS AND CHEMICALS, INC. DELIVERY ORDER FOR LIQUID HYDROGEN FOR STENNIS SPACE CENTER (SSC) AS DESCRIBED ON KENNEDY SPACE CENTER'S (KSC) 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 $23.7 million.
What is the period of performance?
Start: 2022-12-01. End: 2025-12-30.
What is the historical pricing trend for liquid hydrogen from this vendor to government entities?
Analyzing historical pricing data for liquid hydrogen from Air Products and Chemicals, Inc. to government entities would provide valuable context. Understanding past price variations, contract types, and volumes could reveal trends and help assess if the current $23.7 million award represents a fair market price over its duration. This historical perspective is crucial for long-term budget planning and identifying potential cost savings.
What are the risks associated with the long-term supply chain for liquid hydrogen, given its specialized nature?
The specialized nature of liquid hydrogen presents supply chain risks, including production capacity limitations, transportation challenges, and potential disruptions due to geopolitical events or natural disasters affecting production facilities. Ensuring redundancy in supply or alternative sourcing strategies could mitigate these risks. The firm-fixed-price contract offers some protection against immediate price volatility, but long-term availability remains a concern.
How does the operational efficiency of Stennis Space Center's liquid hydrogen infrastructure compare to industry standards?
Assessing the operational efficiency of Stennis Space Center's liquid hydrogen infrastructure is key to understanding the true value of this contract. Comparing its energy consumption, storage losses, and utilization rates against industry benchmarks for similar facilities can identify areas for improvement. Optimizing infrastructure could lead to reduced consumption and potentially lower future contract costs, enhancing overall program effectiveness.
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, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,568,920
Exercised Options: $34,568,920
Current Obligation: $23,672,524
Actual Outlays: $23,672,524
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC023DA011
IDV Type: IDC
Timeline
Start Date: 2022-12-01
Current End Date: 2025-12-30
Potential End Date: 2025-12-30 00:00:00
Last Modified: 2026-02-06
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