DoD's $3.17M contract for HALON 1301 system cylinders support awarded to AGAS US INC

Contract Overview

Contract Amount: $3,166,582 ($3.2M)

Contractor: Agas US Inc

Awarding Agency: Department of Defense

Start Date: 2021-08-11

End Date: 2026-09-01

Contract Duration: 1,847 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HALON 1301 SYSTEM CYLINDERS SUPPORT

Place of Performance

Location: BOWLING GREEN, WOOD County, OHIO, 43402

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $3.2 million to AGAS US INC for work described as: HALON 1301 SYSTEM CYLINDERS SUPPORT Key points: 1. Value for money appears fair given the firm fixed price contract type and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long contract duration and potential for supply chain disruptions. 4. Performance context is within specialized support services for defense logistics. 5. Sector positioning is within the defense logistics and maintenance support industry.

Value Assessment

Rating: fair

The contract's value of approximately $3.17 million over its 1847-day duration suggests a moderate annual spend. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty for the government. Benchmarking against similar specialized support services contracts would be necessary for a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The Defense Logistics Agency's use of this method suggests a desire to leverage the broadest possible market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of innovative solutions.

Public Impact

The Department of Defense benefits from the continued operational readiness of its HALON 1301 systems. Essential support services for critical fire suppression systems are delivered. The geographic impact is primarily within the operational areas served by the Defense Logistics Agency. Workforce implications include specialized technical support roles for AGAS US INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) increases exposure to potential price escalations or supply chain issues.
Reliance on a single awardee for specialized support could create dependency.
Limited visibility into specific unit costs or detailed performance metrics.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust market was tapped.
Award to a single contractor can streamline management and ensure consistent service delivery.

Sector Analysis

This contract falls within the broader defense logistics and support services sector, a significant market driven by the operational needs of military branches. The specific service relates to specialized fire suppression systems, which are critical for asset protection. Spending in this niche area is often driven by regulatory requirements and the need for specialized technical expertise, making direct comparisons to general support services challenging.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. The absence of a set-aside suggests the primary awardee was selected based on best value through full and open competition, rather than specific small business goals.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Logistics Agency's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring AGAS US INC. to deliver specified support services. Transparency is facilitated by the contract award notice, but detailed performance reports and cost audits would be subject to internal agency procedures and potentially Inspector General reviews if specific concerns arise.

Related Government Programs

Defense Logistics Agency Support Services
Fire Suppression System Maintenance
Specialized Equipment Support Contracts
Department of Defense Procurement

Risk Flags

Long contract duration increases exposure to market volatility.
Reliance on specialized, potentially aging technology (HALON 1301).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.2 million to AGAS US INC. HALON 1301 SYSTEM CYLINDERS SUPPORT

Who is the contractor on this award?

The obligated recipient is AGAS US INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2021-08-11. End: 2026-09-01.

What is the historical spending pattern for HALON 1301 system cylinder support by the Defense Logistics Agency?

Analyzing historical spending for HALON 1301 system cylinder support by the Defense Logistics Agency (DLA) requires access to historical contract databases. Without direct access to such data, we can infer that DLA likely has ongoing requirements for maintaining fire suppression systems across its vast inventory of facilities and equipment. Past contracts might have varied in duration, value, and competition level depending on market conditions and specific DLA needs at the time. It's plausible that spending has fluctuated based on system upgrades, replacements, or changes in regulatory requirements for fire safety. The current $3.17M contract over approximately five years suggests a consistent, albeit specialized, budget allocation for this critical support function.

How does the pricing of this contract compare to similar support services for fire suppression systems in the defense sector?

Benchmarking the pricing of this $3.17 million contract for HALON 1301 system cylinder support against similar defense sector contracts is challenging without specific cost data and comparable service scopes. The firm fixed-price nature provides cost certainty but doesn't reveal the underlying cost structure. Factors influencing price include the specific type and quantity of HALON cylinders, required maintenance frequency, response times, geographic coverage, and the specialized expertise needed. If AGAS US INC. is a sole provider of certain critical components or services, prices might be higher. Conversely, strong competition under the 'full and open' award could indicate competitive pricing. A detailed analysis would require comparing unit costs (e.g., per cylinder serviced or per maintenance visit) across multiple contracts with similar technical requirements and contract durations.

What are the key performance indicators (KPIs) expected for AGAS US INC. under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided award data, typical KPIs for such a support services contract would likely focus on reliability, responsiveness, and compliance. These could include metrics such as the on-time delivery rate of cylinder support services, adherence to maintenance schedules, response times for emergency service calls, successful system functionality tests post-service, and compliance with all relevant safety and environmental regulations (e.g., EPA regulations regarding HALON). The firm fixed-price nature implies that meeting these performance standards is crucial for AGAS US INC. to achieve profitability, and failure to do so could lead to contract disputes or penalties, depending on the specific terms outlined in the full contract.

What is the track record of AGAS US INC. in providing similar defense logistics support services?

Assessing the track record of AGAS US INC. requires examining their past performance on government contracts, particularly those involving specialized support services like fire suppression systems. Information regarding their past performance, including contract history, client satisfaction, and any documented performance issues or accolades, would typically be available through federal procurement databases (like SAM.gov or FPDS). A positive track record would likely involve successful completion of similar contracts, adherence to schedules and budgets, and positive past performance reviews from agencies like the Defense Logistics Agency. Conversely, any history of contract disputes, performance failures, or significant cost overruns would be a concern. Without specific historical data on AGAS US INC.'s performance in this niche, it's difficult to definitively assess their reliability for this HALON 1301 support contract.

What are the potential risks associated with the long duration of this contract (1847 days)?

The long duration of this contract, approximately 1847 days (over 5 years), presents several potential risks. Firstly, there's the risk of price escalation for materials and labor over such an extended period, even with a firm fixed-price contract, if unforeseen market shifts occur and contract modification clauses are invoked. Secondly, technological advancements in fire suppression could render HALON 1301 systems obsolete or less desirable, potentially leading to contract inefficiencies or the need for costly modifications. Thirdly, the long term increases the risk of supply chain disruptions for critical components or the HALON agent itself, potentially impacting AGAS US INC.'s ability to perform. Lastly, there's a risk of contractor performance degradation over time, where initial high performance may wane without continuous oversight and re-evaluation.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP470321R0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 HASKINS RD, BOWLING GREEN, OH, 43402

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $4,090,647

Exercised Options: $3,166,582

Current Obligation: $3,166,582

Actual Outlays: $937,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline