REDACTED FINAL Competitive Helium JOFOC - 2021-Comp Advocate Approved REDACTED.pdf

Limited Sources Justification under FAR 8.502

(NB059000-21-01611)

1. CONTRACTING ACTIVITY:

Department of Commerce, National Institute of Standards and Technology, Acquisition and Agreements Management (OAAM), Acquisition Management Division (AMD), National Institute of Standards and Technology (NIST), Gaithersburg, MD.

2. NATURE AND/OR DESCRIPTION OF ACTION TO BE APPROVED:

This Limited Sources Justification is for a limited competition acquisition amongst the seven (7) authorized Federal helium suppliers identified by the Bureau of Land Management (BLM) to continue supplying the NIST Gaithersburg Campus with refined liquid helium (LHe) in accordance with FAR Part 8.502.

3. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (INCLUDING ESTIMATED VALUE):

NIST has a present and ongoing requirement for refined liquid helium (LHe) to support major laboratory research functions. NIST will require the supplier to provide LHe in 30, 60, 100, and 250-liter contractor-owned Dewar’s. NIST Gaithersburg purchases and consumes significant quantities of LHe each year (approximately 65,000 and up to 80,000 liters per year).

The estimated value for these services is .

The period of performance is 36 months from date of award.

4. IDENTIFICATION OF STATUTORY AUTHORITY CITED AND REASON FOR

THIS AUTHORITY:

41 USC 3304(a)(5). In accordance with FAR Part 8.502: “Agencies and their contractors and subcontractors must purchase major helium requirements from Federal helium suppliers, to the extent that supplies are available.” Additionally, in accordance with 43 CFR 3195.21: “You must use an authorized Federal helium supplier for any major helium requirement”.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION THAT REQUIRES USE

OF AUTHORITY CITED:

By regulation, NIST must procure major helium requirements from authorized federal helium suppliers who have an in-kind crude helium sales contract with BLM in accordance with FAR 8.5, Acquisition of Helium.

Three (3) of the seven (7) authorized Federal helium suppliers confirmed their ability to meet NIST’s immediate need for continuation of existing services.

a. Praxair Distribution, INC, P.O Box 38200 Pittsburg, PA 152250

b. Airgas, USA LLC, 6055 Rockside Woods Blvd. N Suite 500

Independence, OH 44131-2337

a. Messer, LLC 200 Somerset Blvd Suite 7000 Bridgewater Township NJ, 08807

All three (3) firms have a satisfactory performance in complying with its subcontracting plan.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS PRACTICABLE:

In accordance with the federal statute all seven (7) authorized helium distributors were contacted for their capabilities to fulfill this requirement.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

A price analysis will be conducted to ensure a fair and reasonable price is obtained.

Pricing will be reviewed against historical prices paid which were determined fair and reasonable on the previous contract. Additionally, a review of pricing found in the marketplace will be utilized and evaluated. Further, as this is a requirement for helium, the Bureau of Land Management historical Helium Price Lists will also be reviewed.

These multiple actions lead us to expect fair and reasonable prices will be obtained.

8. A DESCRIPTION OF MARKET RESEARCH CONDUCTED:

On January 5, 2021 a Notice of Intent to sole source to Praxair Distribution INC was posted for 30 days on beta.sam.gov. NIST received two responses, Praxair Distribution INC, and Geiger Key Operating LLC. Although Geiger is not one of the seven (7) authorized helium suppliers under BLM, several emails were sent to Geiger Key Operating LLC., requesting additional information. However, there were no responses received. Praxair confirmed that all necessary LHe requirements could continue to be met.

On May 11, 2021, the seven (7) authorized BLM distributors were contacted via e-mail to discuss NIST current helium need. On May 18, 2021 two (2) additional authorized suppliers responded and said they could meet NIST need. On May 18, 2021, the Contracting Officer requested a virtual meeting with Messer, Inc and Airgas, Inc to present their capabilities. Airgas requested a virtual meeting for May 21, 2021. Messer did not respond.

On May 21, 2021, NIST held a virtual meeting with Airgas USA, LLC to present their capabilities. After their presentation, it was evident that Airgas could also meet NIST Helium needs. Therefore, it would be in best interest of the Government to only solicit to the seven (7) authorized suppliers for Helium in order to meet NIST future needs.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

NIST is considered a major Federal Helium user that has a “major helium requirement” which is defined as an estimated refined helium requirement greater than 200,000 standard cubic feet (scf) (measured at 14.7 pounds per square inch absolute pressure and 70 degrees Fahrenheit temperature) of gaseous helium or 7510 liters of LHe delivered to a helium use location per year. Per Federal Acquisition Regulation Subpart 8.5 – Acquisition of Helium, “Federal helium supplier” means a private helium vendor that has an in-kind crude helium sales contract with the BLM and that is on the BLM Amarillo Field Office’s Authorized List of Federal Helium Suppliers available via the Internet at http://blm.gov/8pjd, but because of the Bureau of Land Management is due to close on September 30, 2021 the BLM in-kind program will be no longer available to Federal Helium users. Starting on October 1, 2021 all Helium will be privatized, and a new helium contract will be required that no longer has the in-kind program assurances in it.

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

a. Geiger Key Operating LLC, 3616 Linwood Ave, Dallas, TX 75205

b. Praxair Distribution, INC, P.O Box 38200 Pittsburg, PA 152250

c. Airgas, USA LLC, 6055 Rockside Woods Blvd. N Suite 500

Independence, OH 44131-2337

d. Messer, LLC 200 Somerset Blvd Suite 7000 Bridgewater Township NJ, 08807

11. ACTIONS TAKEN TO REMOVE OR OVERCOME ANY BARRIERS TO

COMPETITION:

NIST is currently pursuing plans to reduce the overall dependency on LHe to overcome future barriers to competition although, we do not anticipate, with the current capabilities of facilities and equipment, that we could completely discontinue the use of LHe. Efforts to do so have also been slowed due to the Global Pandemic but continue despite the reduction of research and personnel. NIST intends to promote competition for the future requirements.

12. CONTRACTING OFFICER CERTIFICATION THAT THE JUSTIFICATION IS

ACCURATE AND COMPLETE TO THE BEST OF THE CONTRACTING

OFFICER’S KNOWLEDGE AND BELIEF:

I certify that the facts and representations under my cognizance which are included in this justification are complete and accurate.

Date Program Official

I certify that the justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

I certify that the justification is accurate and complete to the best of my knowledge and belief.

NIST Competition Advocate