NASA Spends $42.7M on Helium for Kennedy Space Center via Full and Open Competition
Contract Overview
Contract Amount: $42,672,437 ($42.7M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2014-10-16
End Date: 2019-09-30
Contract Duration: 1,810 days
Daily Burn Rate: $23.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HELIUM FOR KENNEDY SPACE CENTER UNDER THE AGENCY-WIDE ACQUISITION OF HELIUM.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $42.7 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: HELIUM FOR KENNEDY SPACE CENTER UNDER THE AGENCY-WIDE ACQUISITION OF HELIUM. Key points: 1. Significant expenditure on a critical resource for space exploration. 2. Competition was utilized, suggesting potential for price discovery. 3. Long-term contract duration (5 years) indicates ongoing need. 4. Helium is a vital component for various NASA operations.
Value Assessment
Rating: good
The total award amount of $42.7M over 5 years appears reasonable given the critical nature of helium for space missions and the long-term supply requirement. Benchmarking against similar large-scale industrial gas procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for achieving competitive pricing. The use of a delivery order under an agency-wide acquisition suggests a structured procurement process.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process for this essential space program resource.
Public Impact
Ensures critical helium supply for NASA's Kennedy Space Center operations. Supports advanced research and development in space exploration. Potential for technological advancements driven by reliable resource availability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential price volatility for helium on the global market.
- Dependence on a single supplier for a critical resource.
Positive Signals
- Full and open competition utilized.
- Long-term contract ensures supply stability.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Industrial Gas Manufacturing sector, specifically supporting the aerospace industry. Spending on industrial gases for government operations can vary significantly based on agency needs and project scale.
Small Business Impact
The data indicates the awardee is Air Products and Chemicals, Inc., a large corporation. There is no specific indication of small business participation in this particular contract.
Oversight & Accountability
The contract was awarded under an agency-wide acquisition, suggesting established procurement procedures and oversight. The firm fixed price contract type also aids in cost control and accountability.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for helium price volatility.
- Dependence on a single supplier.
- Long contract duration may not capture future market efficiencies.
- Lack of small business participation noted.
Tags
industrial-gas-manufacturing, national-aeronautics-and-space-administr, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $42.7 million to AIR PRODUCTS AND CHEMICALS, INC. HELIUM FOR KENNEDY SPACE CENTER UNDER THE AGENCY-WIDE ACQUISITION OF HELIUM.
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 $42.7 million.
What is the period of performance?
Start: 2014-10-16. End: 2019-09-30.
What is the market price trend for industrial helium during the contract period?
Analyzing helium market prices from 2014 to 2019 would reveal if the firm fixed price offered significant savings or if market fluctuations could have led to a better price under a different contract structure. This context is crucial for assessing the overall value.
What are the risks associated with relying on a single supplier for a critical resource like helium?
Reliance on a single supplier, even through competitive bidding, carries risks such as supply chain disruptions, potential price increases upon contract renewal, and limited leverage in future negotiations. Diversification of suppliers or strategic reserves could mitigate these risks.
How does the cost of helium for KSC compare to other government agencies or commercial entities for similar applications?
Benchmarking this contract's per-unit cost against similar helium procurements by other government agencies (e.g., DoD) or large commercial users (e.g., MRI manufacturers) would provide a clearer picture of its cost-effectiveness. Without this, assessing true value is challenging.
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: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7201 HAMILTON BLVD, ALLENTOWN, PA, 18195
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,672,437
Exercised Options: $42,672,437
Current Obligation: $42,672,437
Actual Outlays: $325
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNK14OS20B
IDV Type: IDC
Timeline
Start Date: 2014-10-16
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2021-04-06
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