Homeland Security awards $174,800 for MH65 aircraft electrovalve repair, with a 363-day performance period

Contract Overview

Contract Amount: $17,480 ($17.5K)

Contractor: Prime Industries, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-04

End Date: 2026-03-02

Contract Duration: 363 days

Daily Burn Rate: $48/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REPAIR OF ELECTROVALVES FOR USE OF MH65 AIRCRAFTS. FIRST ARTICLE TESTING REQUIRED. SECTION 2(D).

Place of Performance

Location: PEACHTREE CITY, FAYETTE County, GEORGIA, 30269

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17,480 to PRIME INDUSTRIES, INC. for work described as: REPAIR OF ELECTROVALVES FOR USE OF MH65 AIRCRAFTS. FIRST ARTICLE TESTING REQUIRED. SECTION 2(D). Key points: 1. Contract awarded for essential aircraft component repair, indicating a focus on maintaining operational readiness. 2. The fixed-price nature of the award suggests predictable costs for the government. 3. Competition under SAP (Simplified Acquisition Procedures) implies a streamlined process for smaller value procurements. 4. The award to Prime Industries, Inc. warrants a review of their past performance in similar aviation maintenance. 5. Geographic location of performance in Georgia may have implications for logistics and local economic impact. 6. The inclusion of first article testing highlights a focus on quality assurance for critical components.

Value Assessment

Rating: fair

The contract value of $174,800 for electrovalve repair appears reasonable for specialized aviation maintenance. However, without specific details on the number of electrovalves or the scope of repair, a direct comparison to similar contracts is challenging. The firm fixed-price structure provides cost certainty, but the ultimate value for money will depend on the quality and longevity of the repairs performed. Benchmarking against industry standards for similar component repairs would provide further insight into pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less formal solicitation process than full and open competition. While the specific number of bidders is not detailed, SAP is generally used for procurements valued below the simplified acquisition threshold, suggesting a potentially limited but appropriate level of competition for this contract size. The limited competition may result in less aggressive pricing compared to a full and open competition.

Taxpayer Impact: For taxpayers, competition under SAP can lead to faster contract awards but potentially higher prices than if a broader range of vendors were solicited.

Public Impact

The U.S. Coast Guard benefits from the repair of critical electrovalves, ensuring the continued operational capability of MH65 aircraft. Services delivered include the repair and testing of electrovalves, vital for aircraft safety and performance. The geographic impact is localized to Georgia, where the repair work will be performed. Workforce implications include potential employment opportunities for skilled technicians in aviation maintenance within Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition under SAP to result in suboptimal pricing.
Reliance on a single contractor for specialized repair services could pose a risk if performance issues arise.
The need for first article testing suggests potential quality concerns with initial repair attempts.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to Prime Industries, Inc. suggests they meet the necessary qualifications for this specialized work.
The contract duration of 363 days allows for a structured repair and testing process.

Sector Analysis

The aerospace and defense sector relies heavily on specialized maintenance and repair services to ensure the airworthiness of aircraft. This contract falls within the broader category of aviation support services, a critical segment of the defense industrial base. Spending in this area is driven by the need to maintain aging fleets and ensure mission readiness. Comparable spending benchmarks would typically involve analyzing other contracts for aircraft component repair and overhaul across various military branches and agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Prime Industries, Inc. may be a small business, the procurement method (SAP) does not inherently guarantee small business participation. Subcontracting opportunities for small businesses are not explicitly detailed in this summary, but could arise if Prime Industries, Inc. utilizes them for specific repair or testing aspects.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms and the requirement for first article testing. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

MH65 Helicopter Maintenance
Aviation Component Repair Services
Defense Logistics Agency (DLA) Aviation Support
Naval Air Systems Command (NAVAIR) Contracts

Risk Flags

Potential for price escalation due to limited competition under SAP.
Risk of delays if first article testing fails.
Dependence on contractor's specialized expertise for critical component repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17,480 to PRIME INDUSTRIES, INC.. REPAIR OF ELECTROVALVES FOR USE OF MH65 AIRCRAFTS. FIRST ARTICLE TESTING REQUIRED. SECTION 2(D).

Who is the contractor on this award?

The obligated recipient is PRIME INDUSTRIES, INC..

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 $17,480.

What is the period of performance?

Start: 2025-03-04. End: 2026-03-02.

What is the track record of Prime Industries, Inc. in performing similar aviation component repair services, particularly for MH65 aircraft or comparable rotorcraft?

A thorough review of Prime Industries, Inc.'s contract history with federal agencies, particularly the Department of Homeland Security and the U.S. Coast Guard, is necessary to assess their track record. Specifically, looking for past performance evaluations on aviation component repair, electrovalve maintenance, and adherence to delivery schedules and quality standards for similar aircraft types would be crucial. Any history of contract disputes, performance deficiencies, or successful contract completions on comparable projects would provide valuable insight into their reliability and capability for this specific award.

How does the awarded price of $174,800 compare to market rates for the repair of electrovalves for MH65 aircraft, considering the scope of work and first article testing requirements?

Benchmarking the $174,800 award against market rates requires detailed information on the specific electrovalves, the nature of the required repairs, and the extent of the first article testing. Industry pricing for specialized aviation component repair can vary significantly based on complexity, required certifications, and turnaround time. Obtaining quotes from other qualified aviation maintenance providers for similar services, or consulting industry cost-estimating guides for aerospace components, would be essential for a robust comparison. The inclusion of first article testing adds a layer of complexity and cost that needs to be factored into any value assessment.

What are the specific risks associated with the 'first article testing required' clause in this contract, and how are these risks being mitigated?

The 'first article testing required' clause indicates that the initial repaired electrovalve(s) must undergo rigorous testing to ensure they meet all specifications and performance standards before full production or delivery can commence. The primary risk is that the first article may fail testing, leading to delays, increased costs for rework or redesign, and potential impacts on MH65 aircraft operational readiness. Mitigation strategies typically involve clear definition of testing protocols, performance standards, and acceptance criteria in the contract, as well as close collaboration between the contractor and the government during the testing phase. The government's quality assurance representatives will play a key role in overseeing and approving the test results.

What is the historical spending pattern for electrovalve repair or similar maintenance services for MH65 aircraft by the U.S. Coast Guard?

Analyzing historical spending patterns for MH65 aircraft electrovalve repair and related maintenance by the U.S. Coast Guard would provide context for the current $174,800 award. This involves examining past contracts for similar services, noting award amounts, contract types, and durations over several fiscal years. Understanding whether spending has been consistent, increasing, or decreasing can reveal trends in maintenance needs, fleet age, and the effectiveness of previous repair strategies. Significant deviations from historical spending could warrant further investigation into the underlying causes, such as changes in operational tempo, new maintenance requirements, or shifts in contracting approaches.

What is the anticipated impact of this contract on the operational readiness of the MH65 aircraft fleet?

This contract directly supports the operational readiness of the MH65 aircraft fleet by ensuring that critical electrovalves are repaired and functional. The timely and effective repair of these components is essential for maintaining the airworthiness and safety of the helicopters, enabling them to perform their missions, which may include search and rescue, law enforcement, or transport. The 363-day performance period suggests a sustained effort to address maintenance needs. The success of this contract in bolstering readiness will depend on the quality of the repairs and the contractor's ability to meet performance deadlines.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03825QB0000213

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 406 DIVIDEND DR, PEACHTREE CITY, GA, 30269

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,435

Exercised Options: $17,480

Current Obligation: $17,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline