NASA awards $57.5M for Liquid Hydrogen, fueling East Coast operations with Air Products and Chemicals
Contract Overview
Contract Amount: $57,490,145 ($57.5M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-01-27
End Date: 2010-11-30
Contract Duration: 3,960 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: LIQUID HYDROGEN FOR EAST COAST USERS
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $57.5 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: LIQUID HYDROGEN FOR EAST COAST USERS Key points: 1. Significant contract value for a specialized commodity. 2. Sole provider identified, raising questions about competition. 3. Fixed-price with economic adjustment introduces cost fluctuation risk. 4. Essential for aerospace and potentially other energy sectors.
Value Assessment
Rating: fair
Benchmarking the price of liquid hydrogen is challenging due to its specialized nature and limited market. Without comparable contracts, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting an attempt to solicit multiple bids. However, the specific nature of liquid hydrogen supply may limit the number of viable bidders.
Taxpayer Impact: Taxpayer funds are used for a critical but potentially high-cost commodity. Ensuring competitive pricing is key to maximizing value.
Public Impact
Supports critical NASA missions and potentially other East Coast industrial users. Ensures a stable supply chain for a vital energy resource. Economic price adjustment clause may lead to unpredictable costs for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to specialized product
- Economic price adjustment introduces cost volatility
- Potential for sole-source reliance in future
Positive Signals
- Supports critical national infrastructure
- Long-term supply agreement
- Awarded under full and open competition
Sector Analysis
This contract falls within the energy and aerospace sectors, focusing on the supply of a specialized industrial gas. Benchmarking is difficult due to the niche market for liquid hydrogen.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The nature of liquid hydrogen production and distribution typically involves large industrial players.
Oversight & Accountability
NASA's oversight would focus on ensuring timely delivery, quality of the liquid hydrogen, and adherence to contract terms, especially regarding price adjustments.
Related Government Programs
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Limited number of qualified suppliers
- Price volatility due to economic adjustments
- Dependence on a single contractor
- Potential for future sole-source situations
Tags
national-aeronautics-and-space-administr, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $57.5 million to AIR PRODUCTS AND CHEMICALS, INC. LIQUID HYDROGEN FOR EAST COAST USERS
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 $57.5 million.
What is the period of performance?
Start: 2000-01-27. End: 2010-11-30.
How does the economic price adjustment mechanism compare to industry standards for liquid hydrogen, and what safeguards are in place to prevent excessive cost increases?
The economic price adjustment clause allows for modifications based on fluctuations in specific economic indicators, often tied to raw material costs or energy prices. For liquid hydrogen, this could relate to natural gas prices or electricity costs. NASA's oversight would be crucial in verifying the legitimacy of these adjustments and ensuring they align with the contract's intent, preventing undue burden on taxpayers.
What is the long-term strategy for securing liquid hydrogen supply beyond this contract, especially considering the potential for limited suppliers?
NASA's long-term strategy should involve continuous market research to identify potential new suppliers or alternative technologies. Exploring partnerships or investing in domestic production capabilities could mitigate risks associated with a limited supplier base. Proactive engagement with the industry is essential to foster competition and ensure supply chain resilience.
How is the 'value for money' assessed for this contract, given the specialized nature of liquid hydrogen and the potential for limited competition?
Assessing value for money involves comparing the awarded price against any available benchmarks, historical data, or independent cost estimates. For specialized commodities like liquid hydrogen, where direct comparisons are scarce, NASA likely relies on detailed technical evaluations and negotiation strategies to ensure the price is fair and reasonable, considering the unique market dynamics and supplier capabilities.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Address: 7201 HAMILTON BLVD, ALLENTOWN, PA, 07
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,096,369
Exercised Options: $4,096,369
Current Obligation: $57,490,145
Timeline
Start Date: 2000-01-27
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2011-10-21
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