LOX & LN2 at Tobyhanna Army Depot, PA

LIQUID OXYGEN (LOX) and LIQUID NITROGEN (LN2)

DEFENSE LOGISTICS AGENCY – AEROSPACE ENERGY

The Defense Logistics Agency (DLA) Aerospace Energy Business Unit, as the Department of Defense (DoD) Integrated Materiel Manager (IMM) for Aerospace Energy products and related services, requires delivery of Liquid Oxygen and Liquid Nitrogen to Tobyhanna Army Depot, PA into Contractor-provided tanks and Liquid Nitrogen to Tobyhanna Army Depot, PA into a Government-owned tank. The Contractor shall provide all product, materials, supplies, management, tools, equipment, transportation and labor necessary for the delivery of requested product F.O.B. destination to Tobyhanna Army Depot, PA.

DD 2579 Block 11a. Market Research/Acquisition Plan:

Product

1. Liquid Oxygen (LOX), Type II, Grade B (NSN 9135-01-665-3235)
2. Liquid Nitrogen (LN2), Type II, Grade L, Classification N1, (NSN 6830-01-666-3681)

Related non-recurring Services: 

1. Installation and Removal of Contractor Provided Tanks – SE0000162 & SE0000175
2. Installation and Removal of Contractor Provided Equipment – SE0000163 & SE0000174
3. Detention Fee (EA) – SE0000178 & SE0000179
4. Fill Line Restriction Orifice (EA) – SE0000180 & SE0000181
5. Tank Hot Fill (EA) – SE0000182 & SE0000183
6. Equipment Usage Fee (telemetry) – SE0000223 & SE0000224
7. Tank Usage Fee – SE0000171 & SE0000172

Location:

Tobyhanna Army Depot, PA, PPN: 

DD 2579 Block 14c. Market Research/Acquisition Plan:

PURCHASE REQUISITION NUMBERS and LOCATION PPN: 7008948018- Tobyhanna Army Depot, PA. 

PROCUREMENT HISTORY: DLA Energy awarded contracts in the past to the following businesses who provided Liquid Oxygen (NSN: 9135-01-665-3235) and Liquid Nitrogen (NSN 6830-01-666-3681) to military customers located at Tobyhanna Army Depot was Airgas (24839). Please see the below award information for details:

Contract SPE601-20-D-1505

• Awardee Name, CAGE Code: Airgas USA, LLC DBA, 24839
• Small Business Socioeconomic Category of Awardee: N/A, Large Business
• PIID: Solicitation SPE601-20-R-0308
• NAICS Code, Size Standard: 325120, 1,200
• Contract Type: Firm-Fixed Price Requirements Type Contract
• Period of Performance: 1 April 2020- 31 March 2025
• Total Contract Value: $178,876.80

Market Research Summary

In accordance with FAR Part 10, a Dynamic Small Business Search was performed using sba.gov on 26 September 2024, using the key words “Bulk Liquid Oxygen”, “Bulk Liquid Nitrogen” along with NAICS 325120, for each of the following SBA Government Certifications and/or Ownership and Self-Certifications groups: Any Minority Owned, Community Development Corporation (CDC) Owned, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned, Veteran Owned, Any Women Owned Small Business; and 8(a) Certified or 8(a) Joint Venture, Small Disadvantaged, or HUBZone Government Certifications “Not Required” groups as well. resulted with 0 for Liquid Nitrogen and 0 for Liquid Oxygen on similar contracts. The A search in SAM.gov and SBA resulted in no potential offerors.  

Further research was conducted in FPDS-NG.  The vendors on both FPDS-NG searches yielded three vendors to include Air Products (large business), Praxair Distribution Mid-Atlantic (Large business), and Paula F. Price Enterprises, LLC (small business).  Puala F. Price Enterprises (small business) organization provides facilities maintenance and project controls, so this business would not be a reasonable offeror, as they do not manufacture neither liquid Oxygen nor Liquid Nitrogen.

NAICS 325120 covers a broad range of different types of industrial gas products including Liquid Oxygen and Liquid Nitrogen manufacturing. 

The Small Business Search yielded zero potential vendors. On 14 August 2024, a Request For Information (RFI) was posted on SAM.gov, to provide all interested vendors an opportunity to gain a better understanding of the requirement and submit their capability statements. In addition, an email was sent to all known and potential vendors on the Source List. The RFI yielded a response from two small vendors:  BHPE LLC (9SWS7) & Frost & Young Group, LLC (86L82).  However, after conducting further research neither business manufactures the Liquid Oxygen nor the Liquid Nitrogen.  These businesses are in the business of providing transportation.  There are no reasonable expectations that officer will be received by two or more small businesses.

Acquisition Plan Summary

As a result of historical data, response to the RFI and market research described above, IAW FAR 19.502-2(b), it is clear there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns for this requirement and will not set-aside this requirement for small business.

The procurement will not be restricted to HUBZone concerns as there are no reasonable expectations that offers will be received from two or more HUBZone small businesses.

Contracting Officer’s Statement/Method of Acquisition

As a result of the market research described above, IAW FAR 19.502-2(b), it is clear there is not a reasonable expectation of obtaining offers from two (2) or more responsible small business concerns for this requirement and will not set-aside this requirement for small business. In addition, IAW FAR 19.1305 and 19.1306, DLA Energy - FEM is unable to restrict the subject procurement to small business concerns as there are no reasonable expectations that offers will be received from two or more small businesses. In the event an offeror qualifies, the Government will use the small business price evaluation preference. The Contracting Officer has determined this procurement action will be solicited using full and open competitive procedures.

CONCLUSION: Based on the findings described above, the Contracting Officer has determined that it is in the best interest of the Government to conduct a full and open competitive acquisition.