Coast Guard awards $210K contract for MH-65 tail rotor servo repair, highlighting specialized aviation maintenance needs

Contract Overview

Contract Amount: $209,788 ($209.8K)

Contractor: Safran Electronics & Defense, Avionics USA, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-05-16

End Date: 2023-08-24

Contract Duration: 100 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REPAIR AND OVERHAUL OF THE TAIL ROTOR SERVOS USED IN THE REPAIR, MAINTENANCE, AND OVERHAUL OF THE MH-65 AIRCRAFT.

Place of Performance

Location: MONROE, UNION County, NORTH CAROLINA, 28110

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $209,788 to SAFRAN ELECTRONICS & DEFENSE, AVIONICS USA, LLC for work described as: REPAIR AND OVERHAUL OF THE TAIL ROTOR SERVOS USED IN THE REPAIR, MAINTENANCE, AND OVERHAUL OF THE MH-65 AIRCRAFT. Key points: 1. Contract focuses on critical component repair for MH-65 helicopters, essential for Coast Guard operations. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract value is relatively small, indicating a specific, targeted maintenance requirement. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The short duration suggests a focused repair effort rather than long-term support. 6. The awardee specializes in avionics and defense electronics, aligning with the contract's technical requirements.

Value Assessment

Rating: good

The contract value of approximately $210,000 for repair and overhaul of tail rotor servos is modest. Benchmarking against similar specialized aviation component repair contracts is challenging without more specific data on the complexity of the repair and the number of units involved. However, the firm fixed-price structure provides cost certainty. The award to a company with demonstrated expertise in avionics suggests a reasonable approach to securing specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select from a range of qualified vendors. The open competition suggests that the market for this specialized repair service is not overly concentrated.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers for its needs.

Public Impact

The U.S. Coast Guard benefits from the continued operational readiness of its MH-65 aircraft fleet. Essential components (tail rotor servos) are repaired, ensuring flight safety and mission capability. The services are delivered to support aviation maintenance operations, likely at a specific Coast Guard aviation facility. Workforce implications are minimal, likely involving specialized technicians at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only a few firms possess the highly specialized skills for MH-65 servo repair.
Dependence on a single contractor for critical component repair could pose a risk if that contractor faces operational issues.

Positive Signals

Award to a specialized avionics and defense electronics company suggests technical capability.
Firm fixed-price contract type provides cost predictability.
Full and open competition indicates a healthy market for these services.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation maintenance and repair services. The market for specialized aircraft component repair is often niche, requiring specific certifications, technical expertise, and access to proprietary technical data. Spending in this area is driven by the operational tempo and fleet size of military and government aviation assets. Comparable spending would involve other contracts for depot-level maintenance or overhaul of critical aircraft systems.

Small Business Impact

The contract details do not indicate any small business set-aside. Given the specialized nature of repairing complex aviation components like tail rotor servos, it is possible that the primary market consists of larger, specialized aerospace maintenance firms. There is no explicit information on subcontracting plans, but if the prime contractor lacks certain capabilities, they might engage smaller, specialized repair shops.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle, implying that the parent contract likely underwent a review process. Oversight would involve the U.S. Coast Guard contracting officer and technical representatives ensuring the repair work meets specifications and quality standards. Transparency is provided through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MH-65 Helicopter Maintenance
Aviation Component Repair Services
Avionics Maintenance Contracts
Department of Homeland Security Aviation Support

Risk Flags

Specialized Component Repair
Potential for Limited Competition
Dependence on Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $209,788 to SAFRAN ELECTRONICS & DEFENSE, AVIONICS USA, LLC. REPAIR AND OVERHAUL OF THE TAIL ROTOR SERVOS USED IN THE REPAIR, MAINTENANCE, AND OVERHAUL OF THE MH-65 AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is SAFRAN ELECTRONICS & DEFENSE, AVIONICS USA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $209,788.

What is the period of performance?

Start: 2023-05-16. End: 2023-08-24.

What is the track record of Safran Electronics & Defense, Avionics USA, LLC in performing similar aviation component repair contracts for the U.S. Coast Guard or other federal agencies?

Safran Electronics & Defense, Avionics USA, LLC is a known entity in the aerospace and defense sector, specializing in avionics and related systems. Information from public databases like FPDS indicates they have received other federal contracts, including those related to aviation systems and components. To fully assess their track record for this specific type of repair, a deeper dive into past performance reviews, contract completion history, and any documented issues on prior similar awards would be necessary. Their specialization in avionics suggests a strong foundational capability, but the specific experience with MH-65 tail rotor servos would be the most relevant indicator of suitability and past success.

How does the awarded price of $209,788 compare to the estimated value or benchmark pricing for similar tail rotor servo repair services?

Directly comparing the awarded price of $209,788 for the repair and overhaul of MH-65 tail rotor servos to a precise benchmark is difficult without access to proprietary cost data, the specific scope of work (e.g., number of units, extent of damage), and market research conducted by the agency. However, the contract was awarded under full and open competition, which theoretically drives prices toward market rates. The firm fixed-price nature also caps the government's expenditure. If the Coast Guard conducted thorough market research and received competitive bids, this price is likely within a reasonable range for specialized aviation component repair. Further analysis would require comparing this to other awarded contracts for similar components on different aircraft types or even the same aircraft if historical data is available.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential delays in repair turnaround time, which could impact MH-65 operational readiness, and the possibility of discovering unforeseen damage requiring additional costly repairs, although the firm fixed-price contract limits cost increases. Another risk is the contractor's technical capability to perform the repair to stringent aviation standards. Mitigation strategies include the Coast Guard's oversight through technical representatives to monitor progress and quality, the firm fixed-price contract type to control costs, and the initial selection process under full and open competition to choose a capable vendor. The short contract duration also limits the exposure window for potential issues.

How effective is the U.S. Coast Guard's current strategy for maintaining the MH-65 aircraft fleet's readiness, particularly concerning component repair?

This contract represents a specific instance of the U.S. Coast Guard's strategy for maintaining MH-65 fleet readiness. The reliance on specialized, full-and-open competitive contracts for critical component repairs like tail rotor servos suggests a strategy focused on leveraging external expertise for complex tasks. The effectiveness hinges on the reliability of the MH-65 platform itself, the efficiency of the repair process (turnaround time), the quality of the repairs, and the overall cost-effectiveness compared to alternative strategies (e.g., in-house repair, component replacement). The continued operation of the MH-65 fleet indicates a degree of effectiveness, but a comprehensive assessment would require analyzing fleet readiness rates, maintenance backlogs, and long-term sustainment costs.

What has been the historical spending pattern for MH-65 aircraft maintenance and repair by the U.S. Coast Guard over the past five years?

Analyzing historical spending for MH-65 maintenance and repair requires accessing comprehensive federal procurement data. While this specific contract is for $209,788, broader spending patterns would encompass all contracts related to the MH-65 platform, including airframe maintenance, engine overhauls, avionics upgrades, and component repairs. Historical data would likely show consistent, significant investment in maintaining this critical asset. Spending can fluctuate based on fleet age, operational tempo, major maintenance cycles, and any fleet-wide issues or upgrades. A detailed analysis would involve aggregating all relevant contract actions awarded to various vendors over several fiscal years to identify trends, average annual spending, and major areas of expenditure.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4747 HARRISON AVE, ROCKFORD, IL, 61108

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

Financial Breakdown

Contract Ceiling: $209,788

Exercised Options: $209,788

Current Obligation: $209,788

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DB2000007

IDV Type: IDC

Timeline