DoD's $30M R&D Contract with Air Products and Chemicals Faces Scrutiny for Limited Competition
Contract Overview
Contract Amount: $30,096,092 ($30.1M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: Department of Defense
Start Date: 2000-08-23
End Date: 2011-08-31
Contract Duration: 4,025 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200012!5700!000271!GW03 !HSW/PKR !F4162400C6000 !A!*!* !20000823!20010720!003001070!003001070!003001070!N!00742!AIR PRODUCTS AND CHEMICALS, IN!7201 HAMILTON BLVD !ALLENTOWN !PA!18195!02000!077!42!ALLENTOWN !LEHIGH !PENN !0001!+000002537574!N!N!000000000000!AZ12!RDTE/OTHER RESEARCH & DEVELOPMENT-APPLIED RESEARC !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!C!S!*!B!A!*!D !N!U!1!001!N!1A!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: ALLENTOWN, LEHIGH County, PENNSYLVANIA, 18195
Plain-Language Summary
Department of Defense obligated $30.1 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: 200012!5700!000271!GW03 !HSW/PKR !F4162400C6000 !A!*!* !20000823!20010720!003001070!003001070!003001070!N!00742!AIR PRODUCTS AND CHEMICALS, IN!7201 HAMILTON BLVD !ALLENTOWN !PA!18195!02000!077!42!ALLENTOWN !LEH… Key points: 1. The contract awarded to Air Products and Chemicals, Inc. for applied research and development totals $30,009,609. 2. Awarded by the Department of the Air Force, the contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 3. The procurement method was 'NOT COMPETED', raising questions about the extent of competition and potential price discovery. 4. The contract's duration is 4025 days, indicating a long-term commitment for research and development services.
Value Assessment
Rating: questionable
The contract value of $30,009,609 for R&D services is significant. Without comparable contract data or a detailed breakdown of services, assessing its pricing against similar contracts is difficult. The 'NOT COMPETED' status further complicates a direct value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded using a 'NOT COMPETED' method, indicating a lack of broad competition. This approach may limit opportunities for price discovery and potentially lead to higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for the $30 million invested in research and development.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding on this significant R&D contract. The long duration of the contract (over 11 years) suggests a substantial, ongoing investment in a specific area of research. The Department of Defense's reliance on non-competitive awards for R&D could stifle innovation by limiting the pool of potential contractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Lack of transparency in award justification.
- Long contract duration may not reflect evolving R&D needs.
Positive Signals
- Supports critical R&D for the Air Force.
- Engages a known industry player with specialized capabilities.
Sector Analysis
This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' sector. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value and innovation, especially when awarded through limited competition.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The 'NOT COMPETED' award method typically limits opportunities for small business participation.
Oversight & Accountability
The 'NOT COMPETED' award justification needs thorough review to ensure it aligns with federal procurement regulations and that all reasonable efforts were made to foster competition. Oversight should focus on the necessity of sole-sourcing and the justification for the contract's value.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Potential for missed innovation from a wider vendor pool.
- Long contract duration increases risk of obsolescence or changing requirements.
- Insufficient transparency regarding the necessity of non-competitive award.
Tags
research-and-development-in-the-physical, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to AIR PRODUCTS AND CHEMICALS, INC. 200012!5700!000271!GW03 !HSW/PKR !F4162400C6000 !A!*!* !20000823!20010720!003001070!003001070!003001070!N!00742!AIR PRODUCTS AND CHEMICALS, IN!7201 HAMILTON BLVD !ALLENTOWN !PA!18195!02000!077!42!ALLENTOWN !LEHIGH !PENN !0001!+000002537574!N!N!000000000000!AZ12!RDTE/OTHER RESEARCH & DEVELOPMENT-APPLIED RESEARC !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!C!S!*!B!A!*!D !N!U!
Who is the contractor on this award?
The obligated recipient is AIR PRODUCTS AND CHEMICALS, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $30.1 million.
What is the period of performance?
Start: 2000-08-23. End: 2011-08-31.
What specific R&D advancements are expected from this $30 million contract, and how do they align with the Air Force's strategic objectives?
The contract is for 'Research and Development in the Physical, Engineering, and Life Sciences,' specifically 'Applied Research.' While the exact advancements are not detailed in the provided data, such contracts typically aim to develop new technologies, materials, or processes that enhance military capabilities. The alignment with strategic objectives would require further investigation into the Air Force's specific R&D priorities in areas like advanced materials or propulsion systems, which Air Products and Chemicals might specialize in.
Given the 'NOT COMPETED' status, what was the justification for not seeking bids from other qualified vendors, and how was the price determined to be fair and reasonable?
The justification for a 'NOT COMPETED' award typically involves factors like unique capabilities, urgent needs, or lack of market availability. Without the specific justification document, it's impossible to know the exact reason. Price determination usually involves cost analysis, comparison to historical data, or negotiation. The lack of competition makes it harder to ascertain if the price truly reflects market value or if potential savings were missed.
What mechanisms are in place to measure the effectiveness and successful completion of the R&D objectives under this long-term, non-competitively awarded contract?
Effectiveness measurement typically relies on contract milestones, deliverables, and performance metrics defined in the contract. For R&D, this might include successful prototype development, testing results, or scientific publications. Oversight by the contracting officer and technical monitors is crucial. However, the non-competitive nature and long duration necessitate robust interim reviews and clear exit criteria to ensure accountability and prevent scope creep or cost overruns.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7201 HAMILTON BLVD, ALLENTOWN, PA, 07
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2000-08-23
Current End Date: 2011-08-31
Potential End Date: 2011-08-31 00:00:00
Last Modified: 2011-05-05
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