NASA awards $3.46M delivery order for liquid hydrogen to Air Products and Chemicals, Inc
Contract Overview
Contract Amount: $3,457,568 ($3.5M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-12-12
End Date: 2027-11-30
Contract Duration: 718 days
Daily Burn Rate: $4.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SSC DELIVERY ORDER (DO) FOR LIQUID HYDROGEN (LH)
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $3.5 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: SSC DELIVERY ORDER (DO) FOR LIQUID HYDROGEN (LH) Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract is a firm fixed-price delivery order, providing cost certainty for the government. 3. The duration of the contract is approximately two years, aligning with anticipated project needs. 4. The product, liquid hydrogen, is critical for aerospace and industrial applications. 5. The award is a delivery order under a larger contract vehicle, indicating potential for future taskings. 6. The small business set-aside status is false, meaning the primary award was not restricted to small businesses.
Value Assessment
Rating: good
The contract value of $3.46 million for liquid hydrogen over approximately two years appears reasonable given the specialized nature of the product and its applications, particularly for a government agency like NASA. Benchmarking against similar contracts for industrial gases is challenging without more specific details on volume and purity requirements. However, the firm fixed-price structure suggests that the contractor has assumed the cost risk, which is generally favorable for the government. The award amount is a single delivery order, and its value should be considered in the context of the parent contract's overall ceiling.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This delivery order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the nature of the competition suggests that multiple companies likely vied for this requirement. Full and open competition is generally expected to drive competitive pricing and ensure the government receives the best value by leveraging market forces.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and a wider selection of qualified vendors, ensuring efficient use of public funds.
Public Impact
The primary beneficiary is NASA, which will receive a critical supply of liquid hydrogen for its operations, likely related to research, development, or testing activities. The service delivered is the provision of industrial gas (liquid hydrogen), essential for various scientific and engineering endeavors. The geographic impact is centered around the delivery location, which is not specified but likely near a NASA facility. Workforce implications are minimal for this specific delivery order, as it focuses on the supply of a commodity rather than extensive labor services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in the liquid hydrogen market impacting future delivery orders.
- Dependence on a single supplier for a critical commodity could pose a risk if supply chains are disrupted.
Positive Signals
- Firm fixed-price contract provides budget certainty for this specific order.
- Awarded under full and open competition, suggesting competitive pricing was sought.
- Long-term relationship with a known supplier (Air Products and Chemicals, Inc.) can ensure reliability.
Sector Analysis
The industrial gas manufacturing sector is characterized by significant capital investment, complex supply chains, and stringent safety regulations. Companies like Air Products and Chemicals, Inc. are major players in this global market, supplying gases essential for a wide range of industries, including aerospace, healthcare, and manufacturing. NASA's procurement of liquid hydrogen falls within this sector, highlighting the critical role industrial gases play in advanced technological applications. Spending benchmarks for liquid hydrogen can vary widely based on volume, purity, and delivery logistics, but government contracts often represent substantial, long-term commitments.
Small Business Impact
This contract was not set aside for small businesses (SS=false, SB=false). Therefore, the primary award was made to a large business. There is no explicit information provided regarding subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem is likely indirect, as the focus of this procurement was on securing a specialized industrial gas from a capable provider.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within NASA. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Material Procurement
- Industrial Gas Supply Contracts
- Defense Logistics Agency (DLA) Energy Contracts
Risk Flags
- Potential supply chain disruption risk
- Price volatility for future requirements
- Dependence on specialized industrial gas
Tags
nasa, air-products-and-chemicals-inc, liquid-hydrogen, industrial-gas-manufacturing, delivery-order, firm-fixed-price, full-and-open-competition, mississippi, aerospace, research-and-development
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $3.5 million to AIR PRODUCTS AND CHEMICALS, INC. SSC DELIVERY ORDER (DO) FOR LIQUID HYDROGEN (LH)
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 $3.5 million.
What is the period of performance?
Start: 2025-12-12. End: 2027-11-30.
What is the historical spending pattern of NASA with Air Products and Chemicals, Inc. for liquid hydrogen?
Analyzing historical spending between NASA and Air Products and Chemicals, Inc. for liquid hydrogen requires access to detailed contract databases beyond the scope of this single delivery order. However, Air Products and Chemicals, Inc. is a major global supplier of industrial gases, including hydrogen, and has a long-standing relationship with various government agencies, including NASA, for a wide range of products and services. Past awards would likely indicate a pattern of recurring needs for such materials, especially for research, testing, and potentially propulsion-related activities. The specific volume and frequency of past awards would provide insight into the scale of NASA's reliance on this supplier for hydrogen and the typical price points negotiated under different contract types and competition levels.
How does the per-unit cost of liquid hydrogen in this contract compare to market rates or similar government contracts?
Determining the precise per-unit cost benchmark for this liquid hydrogen delivery order is challenging without knowing the exact quantity, purity specifications, and delivery terms. The provided data only shows the total award amount ($3.46 million) and duration (718 days). Market rates for liquid hydrogen fluctuate based on global supply and demand, energy costs, and transportation logistics. Government contracts, especially those awarded under full and open competition with firm fixed-price terms, aim to secure favorable pricing. However, without specific volume metrics, a direct comparison to market rates or other government contracts is speculative. Typically, larger, long-term commitments or bulk purchases might secure lower per-unit costs.
What are the primary risks associated with this contract for NASA?
The primary risks associated with this contract for NASA revolve around supply chain reliability and potential price fluctuations for future needs. While this is a firm fixed-price delivery order, ensuring consistent availability of liquid hydrogen is crucial for NASA's operations. Disruptions in production or transportation, though less likely with a major supplier like Air Products, could impact mission timelines. Furthermore, if this delivery order represents only a portion of NASA's total liquid hydrogen requirement, future procurements could be subject to market price increases if not adequately secured through longer-term agreements or if subsequent competitions yield less favorable terms. The specialized nature of liquid hydrogen also implies specific storage and handling requirements, adding a layer of operational risk.
What is the overall effectiveness of using delivery orders for critical supplies like liquid hydrogen?
Delivery orders (DOs) are an effective mechanism for procuring specific quantities of goods or services under an existing indefinite-delivery, indefinite-quantity (IDIQ) or other type of contract. For critical supplies like liquid hydrogen, DOs offer flexibility, allowing agencies like NASA to order what they need, when they need it, up to the contract's ceiling. This is particularly useful for fluctuating requirements. The effectiveness hinges on the underlying contract's structure, including fair pricing, competition levels, and the contractor's ability to meet demand. When used appropriately, DOs streamline procurement, reduce lead times, and provide cost control through pre-negotiated terms, thus enhancing the agency's ability to manage its supply chain efficiently.
What is the track record of Air Products and Chemicals, Inc. as a government contractor, particularly for industrial gases?
Air Products and Chemicals, Inc. has a well-established and extensive track record as a government contractor, including significant work with NASA and the Department of Defense. They are a leading global supplier of industrial gases, including hydrogen, and have demonstrated capabilities in meeting the stringent requirements of government and aerospace clients. Their history likely includes numerous successful awards for various gas products and related services, often under competitive solicitations. While specific performance metrics for every contract are not publicly detailed, their continued success in securing government contracts suggests a strong reputation for reliability, quality, and competitive pricing within the industrial gas sector.
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: $3,457,568
Exercised Options: $3,457,568
Current Obligation: $3,457,568
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: 2025-12-12
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-03-19
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