Coast Guard awards $1.24M for MH-65 tail rotor servo repair, with Safran Electronics as contractor

Contract Overview

Contract Amount: $124,040 ($124.0K)

Contractor: Safran Electronics & Defense, Avionics USA, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-08

End Date: 2026-06-04

Contract Duration: 147 days

Daily Burn Rate: $844/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

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 $124,040 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 MH-65 aircraft components, ensuring operational readiness. 2. Safran Electronics & Defense, Avionics USA, LLC is the sole awardee. 3. The contract is for repair, maintenance, and overhaul services. 4. This award represents a small portion of the Coast Guard's overall maintenance budget.

Value Assessment

Rating: good

The award amount of $1.24M for repair and overhaul of tail rotor servos appears reasonable given the specialized nature of aviation components. Benchmarking against similar complex aviation maintenance contracts would provide further context.

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. This method is generally expected to yield fair pricing and good value for the government.

Taxpayer Impact: Taxpayer funds are being used for essential aircraft maintenance, ensuring the Coast Guard's operational capabilities are maintained.

Public Impact

Ensures continued operational readiness of the MH-65 helicopter fleet. Supports critical search and rescue, law enforcement, and maritime security missions. Maintains the safety and reliability of vital aircraft components. Contributes to the overall lifecycle management of aging aircraft assets.

Waste & Efficiency Indicators

Waste Risk Score: 84 / 10

Warning Flags

Potential for sole-source follow-on work if Safran is the only qualified provider.
Reliance on a single contractor for critical component repair.

Positive Signals

Awarded under full and open competition.
Clear scope of work for repair and overhaul.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under aviation support services, a critical sector for defense and homeland security operations. Spending in this area is driven by aircraft fleet size, age, and operational tempo.

Small Business Impact

The awardee, Safran Electronics & Defense, Avionics USA, LLC, is a large business. There is no indication that small businesses were subcontracted for this specific award, which is common for highly specialized aerospace maintenance.

Oversight & Accountability

The Department of Homeland Security, specifically the U.S. Coast Guard, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure proper execution and accountability.

Related Government Programs

Other Support Activities for Air Transportation
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Potential for price creep in future contract modifications.
Dependence on a single contractor for critical component.
Limited visibility into subcontractor performance if applicable.
Risk of extended downtime if repair turnaround times are not met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $124,040 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 $124,040.

What is the period of performance?

Start: 2026-01-08. End: 2026-06-04.

What is the historical cost trend for repairing MH-65 tail rotor servos, and how does this award compare?

Analyzing historical repair costs for these specific servos is crucial. If this $1.24M award is significantly higher or lower than previous repair cycles, it warrants further investigation. Factors like inflation, parts availability, and technological obsolescence can influence costs over time, making direct comparisons challenging without detailed historical data.

What are the risks associated with relying on Safran Electronics & Defense for this critical component repair?

The primary risk is potential supply chain disruption or increased pricing power if Safran is the sole or primary manufacturer/repairer. Dependence could lead to longer lead times or higher costs if demand surges or if Safran faces its own production issues. Ensuring robust contract terms and exploring alternative repair capabilities are key mitigation strategies.

How effectively does this contract contribute to the overall readiness and mission capability of the MH-65 fleet?

This contract directly supports MH-65 readiness by ensuring a critical component is maintained. Effective execution means timely repairs and high-quality overhauls, directly translating to more aircraft available for Coast Guard missions. Success hinges on the contractor's performance meeting or exceeding specified turnaround times and quality standards.

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: $124,040

Exercised Options: $124,040

Current Obligation: $124,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DB2000007

IDV Type: IDC

Timeline