NASA awards $57.5M for Liquid Hydrogen, with 2 contracts awarded under full and open competition
Contract Overview
Contract Amount: $57,458,199 ($57.5M)
Contractor: AIR Products and Chemicals, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-12-15
End Date: 2010-11-30
Contract Duration: 3,637 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: LIQUID HYDROGEN, MIL SPEC MIL-PRF-27201C, TYPE II IN ACCORDANCE WITH KCS CONTRACT NAS130 12150
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $57.5 million to AIR PRODUCTS AND CHEMICALS, INC for work described as: LIQUID HYDROGEN, MIL SPEC MIL-PRF-27201C, TYPE II IN ACCORDANCE WITH KCS CONTRACT NAS130 12150 Key points: 1. Spending on liquid hydrogen for NASA totals $57.5 million over the contract period. 2. Air Products and Chemicals, Inc. is the sole awardee for this specific contract. 3. The contract type is Fixed Price with Economic Price Adjustment, introducing potential cost fluctuations. 4. The sector is primarily chemical manufacturing, supporting aerospace operations.
Value Assessment
Rating: good
The contract value of $57.5 million for liquid hydrogen appears reasonable given the specialized nature and long duration. Benchmarking against similar MIL-SPEC chemical contracts is difficult without more specific data, but the price seems within a plausible range for high-purity, military-specification materials.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, only two bids were received, which might indicate limited market participation or specific technical requirements that narrowed the field. This level of competition could impact price discovery.
Taxpayer Impact: Taxpayer funds are utilized for critical aerospace support materials. While competition was sought, the limited number of bids warrants attention to ensure optimal value.
Public Impact
Ensures supply of critical liquid hydrogen for NASA missions. Supports advanced aerospace research and development. Potential for price increases due to economic price adjustment clause. Contract duration of over 10 years indicates long-term reliance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bids received (2).
- Economic Price Adjustment clause introduces cost uncertainty.
- Long contract duration (over 10 years).
Positive Signals
- Awarded under Full and Open Competition.
- Supports critical NASA operations.
- Contractor has a history of performance (implied by award).
Sector Analysis
This contract falls within the Miscellaneous Chemical Product and Preparation Manufacturing sector, specifically for a highly specialized product (liquid hydrogen) meeting military specifications. Spending benchmarks for such niche, high-purity industrial gases are not readily available, but it is a critical component for aerospace propulsion and research.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). The primary contractor, Air Products and Chemicals, Inc., is a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific award data.
Oversight & Accountability
The contract was awarded by NASA, a federal agency with established oversight mechanisms. The 'DO' award action code suggests a direct award, and the presence of two bids under full and open competition implies some level of review. Further oversight would involve monitoring contract performance and adherence to the economic price adjustment terms.
Related Government Programs
- All Other Miscellaneous Chemical Product and Preparation Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Limited competition (2 bids).
- Economic Price Adjustment (EPA) clause.
- Long contract duration.
- No small business participation indicated.
- Potential for price volatility.
Tags
all-other-miscellaneous-chemical-product, national-aeronautics-and-space-administr, ms, do, 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, MIL SPEC MIL-PRF-27201C, TYPE II IN ACCORDANCE WITH KCS CONTRACT NAS130 12150
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: 2000-12-15. End: 2010-11-30.
What is the historical price trend for liquid hydrogen under this contract, considering the economic price adjustment?
Analyzing the historical price data under this contract, particularly how the economic price adjustment clause has impacted the final cost, is crucial. Understanding the fluctuations and the drivers behind them (e.g., energy costs, raw material prices) will reveal the true cost trajectory and the effectiveness of the price adjustment mechanism in balancing contractor risk and taxpayer cost.
What were the specific reasons for only two bids being submitted under full and open competition?
Investigating why only two bids were received for this solicitation is important for understanding market dynamics and potential barriers to entry. Factors could include highly specialized technical requirements, stringent MIL-SPEC compliance, limited number of qualified suppliers, or the economic viability of fulfilling such a long-term contract. This insight can inform future procurement strategies.
How does the per-unit cost of this liquid hydrogen compare to commercial-grade liquid hydrogen, accounting for MIL-SPEC requirements?
A detailed comparison of the per-unit cost of this MIL-SPEC liquid hydrogen against commercial-grade equivalents, while factoring in the added costs of stringent quality control, purity standards, and specialized handling required by MIL-PRF-27201C Type II, is necessary. This analysis helps determine the premium paid for military specifications and ensures the price is justified by the enhanced product attributes.
Industry Classification
NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
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
Financial Breakdown
Contract Ceiling: $57,458,199
Exercised Options: $57,458,199
Current Obligation: $57,458,199
Timeline
Start Date: 2000-12-15
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2011-03-08
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