NASA awards $11.6M for Helium, highlighting industrial gas manufacturing needs over 5 years
Contract Overview
Contract Amount: $11,660,185 ($11.7M)
Contractor: Union Carbide Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-09-15
End Date: 2007-09-30
Contract Duration: 1,841 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: HELIUM IAW MIL-PRF-27407B. TYPE 1 GASEOUS AND TYPE II LIQUID
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $11.7 million to UNION CARBIDE CORPORATION for work described as: HELIUM IAW MIL-PRF-27407B. TYPE 1 GASEOUS AND TYPE II LIQUID Key points: 1. The contract for Helium, a critical industrial gas, was awarded to Union Carbide Corporation. 2. Spending on this contract falls within the typical range for industrial gas procurement. 3. The fixed-price with economic price adjustment contract type introduces some cost fluctuation risk. 4. The industrial gas manufacturing sector is essential for various aerospace and scientific applications.
Value Assessment
Rating: good
The $11.6 million award over five years for Helium appears reasonable when benchmarked against similar industrial gas contracts. The fixed-price with economic price adjustment structure allows for some market volatility.
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 that likely led to a fair price discovery. The use of fixed-price with economic price adjustment aims to balance cost certainty with market fluctuations.
Taxpayer Impact: The competitive award process for essential gases like Helium aims to ensure taxpayer funds are used efficiently, though economic adjustments may slightly increase final costs.
Public Impact
Ensures supply of a critical gas for NASA's scientific and operational missions. Supports the industrial gas manufacturing sector, contributing to the broader economy. Potential for price increases due to economic adjustments could impact long-term budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to cost overruns.
- Dependence on a single supplier for a critical resource.
- Contract duration may not align with evolving technological needs.
Positive Signals
- Awarded under full and open competition.
- Clear product specification (MIL-PRF-27407B).
- Established supplier with a history of performance.
Sector Analysis
The industrial gas manufacturing sector is vital for numerous government operations, including aerospace. NASA's spending on Helium aligns with typical procurement patterns for such specialized industrial materials.
Small Business Impact
This contract was not awarded to small businesses, indicating a focus on established large corporations for specialized industrial gas supply.
Oversight & Accountability
The contract was awarded by NASA, which has established oversight mechanisms for procurement. The fixed-price with economic price adjustment clause requires monitoring to ensure fair pricing.
Related Government Programs
- Industrial Gas Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost increases due to economic price adjustment.
- Lack of small business participation.
- Long contract duration (5 years) may not be optimal for rapidly evolving needs.
- Dependence on a single supplier (Union Carbide Corporation).
Tags
industrial-gas-manufacturing, 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 $11.7 million to UNION CARBIDE CORPORATION. HELIUM IAW MIL-PRF-27407B. TYPE 1 GASEOUS AND TYPE II LIQUID
Who is the contractor on this award?
The obligated recipient is UNION CARBIDE CORPORATION.
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 $11.7 million.
What is the period of performance?
Start: 2002-09-15. End: 2007-09-30.
What is the primary use of Helium for NASA under this contract?
Helium, particularly in gaseous and liquid forms specified by MIL-PRF-27407B, is crucial for various NASA applications. This includes cooling superconducting magnets in scientific instruments, purging rocket fuel systems, and maintaining controlled atmospheres in sensitive experiments and facilities. Its inert nature and low boiling point make it indispensable for these high-tech operations.
What are the specific risks associated with the 'economic price adjustment' clause?
The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in economic factors, such as raw material costs or labor wages. The primary risk is that these adjustments could lead to a higher final contract cost than initially anticipated, potentially exceeding budget allocations if market conditions trend upwards significantly. This necessitates careful monitoring of the indices used for adjustment.
How does the 'full and open competition' impact the effectiveness of this contract?
Full and open competition generally enhances contract effectiveness by fostering a competitive environment that drives down prices and encourages innovation. For this Helium contract, it suggests that multiple qualified vendors had the opportunity to bid, likely resulting in a more cost-effective award. This process also ensures that NASA procures the gas from a supplier capable of meeting stringent quality and delivery requirements.
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
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Parent Company: DOW Chemical Company, the (UEI: 001381581)
Address: 39 OLD RIDGEBURY RD, DANBURY, CT, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,660,185
Exercised Options: $11,660,185
Current Obligation: $11,660,185
Parent Contract
Parent Award PIID: NAS102031
IDV Type: IDC
Timeline
Start Date: 2002-09-15
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2009-12-12
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