DoD's $21M Helium Contract Awarded to Global Gases Group FZE Under Full and Open Competition
Contract Overview
Contract Amount: $21,051,134 ($21.1M)
Contractor: Global Gases Group FZE
Awarding Agency: Department of Defense
Start Date: 2010-06-12
End Date: 2012-03-31
Contract Duration: 658 days
Daily Burn Rate: $32.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GASEOUS HELIUM, TYPE 1, GRADE A; TRANSPORTATION AND REPAIR
Plain-Language Summary
Department of Defense obligated $21.1 million to GLOBAL GASES GROUP FZE for work described as: GASEOUS HELIUM, TYPE 1, GRADE A; TRANSPORTATION AND REPAIR Key points: 1. Contract value of $21.05 million for gaseous helium. 2. Awarded to Global Gases Group FZE, indicating a specific supplier. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration was 658 days, ending in March 2012.
Value Assessment
Rating: fair
The contract value of $21.05 million for gaseous helium appears reasonable given the duration and nature of the product. Benchmarking against similar large-scale industrial gas contracts would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the broadest range of potential bidders and can lead to competitive pricing. The specific price discovery mechanism within this competition is not detailed.
Taxpayer Impact: The use of full and open competition suggests an effort to secure the best possible price for taxpayers, though the final price is dependent on market conditions and the number of responsive bids.
Public Impact
Ensures supply of critical industrial gas for defense operations. Competition potentially led to cost savings for the government. Contract completion in 2012 means current pricing and availability may differ significantly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of current pricing data for comparison.
- Limited information on specific helium grade and purity requirements.
- Potential for price volatility in the industrial gas market.
Positive Signals
- Utilized full and open competition.
- Awarded to a single entity, simplifying contract management.
- Contract was firm fixed price, providing cost certainty.
Sector Analysis
The contract falls under the Industrial Gas Manufacturing sector. Spending in this sector is crucial for various government operations, including research, manufacturing, and specialized equipment maintenance. Benchmarks for helium procurement vary widely based on grade, quantity, and delivery terms.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key component of the DoD's supply chain. Oversight would involve monitoring delivery, quality, and adherence to contract terms throughout the performance period.
Related Government Programs
- Industrial Gas Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price volatility in the helium market.
- Limited information on specific grade and purity requirements.
- Contract performance period has concluded (ended 2012).
- No indication of small business participation.
Tags
industrial-gas-manufacturing, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to GLOBAL GASES GROUP FZE. GASEOUS HELIUM, TYPE 1, GRADE A; TRANSPORTATION AND REPAIR
Who is the contractor on this award?
The obligated recipient is GLOBAL GASES GROUP FZE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $21.1 million.
What is the period of performance?
Start: 2010-06-12. End: 2012-03-31.
What was the specific unit price or cost per unit of gaseous helium under this contract?
The provided data does not include a specific per-unit cost for the gaseous helium. The total award value was $21,051,133.50 over 658 days. To determine a unit cost, we would need the quantity of helium procured (e.g., in cubic feet or liters) and the specific delivery points or terms.
What were the primary risks associated with procuring gaseous helium for the Department of Defense?
Key risks include supply chain disruptions, price volatility of helium (a finite resource), potential quality control issues ensuring the correct grade and purity, and logistical challenges in transportation and storage. The contract's firm fixed price mitigates some financial risk, but supply availability remains a concern.
How effective was the full and open competition in achieving value for money?
Full and open competition is generally considered effective in promoting value for money by encouraging multiple bids and fostering price discovery. However, the ultimate effectiveness depends on the number of qualified bidders, the competitiveness of their offers, and the specific market conditions for gaseous helium at the time of award.
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
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 644, JEBEL ALI FREE ZONE, DUBAI
Business Categories: Category Business, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,051,134
Exercised Options: $21,051,134
Current Obligation: $21,051,134
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060009D1539
IDV Type: IDC
Timeline
Start Date: 2010-06-12
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2012-11-01
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