Coast Guard awards $1.8M for MH-65 tail rotor servo repair, highlighting critical aviation maintenance needs

Contract Overview

Contract Amount: $180,525 ($180.5K)

Contractor: Safran Electronics & Defense, Avionics USA, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-08

End Date: 2026-04-20

Contract Duration: 102 days

Daily Burn Rate: $1.8K/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 $180,524.81 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 addresses essential maintenance for MH-65 aircraft, crucial for Coast Guard operations. 2. The firm-fixed-price structure aims to control costs for repair and overhaul services. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The contract duration is relatively short, indicating a focused scope of work. 5. Performance is expected in North Carolina, aligning with existing Coast Guard infrastructure. 6. This award falls under air transportation support activities, a vital but often overlooked sector.

Value Assessment

Rating: good

The contract value of approximately $1.8 million for repair and overhaul of tail rotor servos appears reasonable given the specialized nature of aviation components. Benchmarking against similar contracts for complex aircraft parts is challenging without more specific data, but the firm-fixed-price nature suggests an effort to establish a clear cost ceiling. The award amount is within the expected range for such technical services, especially considering the critical safety and operational requirements for military-grade aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and quality for the government. The number of bidders is not specified, but the open competition suggests that the U.S. Coast Guard sought the best value from the market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting market efficiencies and driving down costs through vendor rivalry, ensuring that government funds are used effectively for essential services.

Public Impact

The U.S. Coast Guard benefits directly through the enhanced readiness and operational capability of its MH-65 aircraft fleet. Services delivered include the repair, maintenance, and overhaul of critical tail rotor servo components. The geographic impact is primarily centered around the operational bases and maintenance facilities of the MH-65 fleet, likely within the United States. Workforce implications include specialized technicians and engineers required for the intricate repair and overhaul processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting critical aircraft components.
Ensuring consistent quality and turnaround time for specialized repair services.
Dependence on a single contractor for a critical, safety-related component.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust market for these services.
Clear performance period with defined delivery dates.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation maintenance, repair, and overhaul (MRO). The market for specialized aircraft component MRO is highly technical and often dominated by original equipment manufacturers or authorized service centers. The U.S. Coast Guard's reliance on the MH-65 helicopter necessitates consistent and high-quality maintenance, making this a critical, albeit niche, area of spending within the defense and public safety sectors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, larger prime contractors may engage small businesses for specialized support services, though this is not a stated objective of this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting officers and program managers responsible for aviation maintenance. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services by a certain date. Transparency is facilitated by the contract award notice, which is publicly available, allowing for general scrutiny of government spending.

Related Government Programs

MH-65 Helicopter Maintenance
Aviation Component Repair Services
Department of Homeland Security Aviation Support
U.S. Coast Guard Aircraft Readiness

Risk Flags

Critical component maintenance
Potential for supply chain dependencies
Safety-critical system repair

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $180,524.81 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 $180,524.81.

What is the period of performance?

Start: 2026-01-08. End: 2026-04-20.

What is the historical spending trend for the repair and overhaul of MH-65 tail rotor servos?

Analyzing historical spending for this specific component requires access to detailed contract databases. However, general trends in aviation maintenance spending for the U.S. Coast Guard often reflect fleet age, operational tempo, and technological upgrades. For critical components like tail rotor servos, consistent annual spending is expected to maintain fleet readiness. Fluctuations may occur due to major overhauls, component lifespan replacements, or changes in maintenance philosophy. Without specific historical data for this line item, it's difficult to pinpoint precise trends, but the recurring need for such repairs suggests a stable, ongoing expenditure.

How does the awarded price compare to previous contracts for similar MH-65 tail rotor servo services?

A direct price comparison to previous contracts for the exact same service is not readily available from the provided data. However, the firm-fixed-price nature of this award suggests an effort to lock in costs. If previous contracts were also firm-fixed-price, a comparison of the unit prices or total award values over time, adjusted for inflation and any scope changes, would be informative. Given the specialized nature of aviation components and potential market consolidation among repair providers, prices can be sensitive to demand and the availability of qualified vendors. The full and open competition aims to ensure the current price reflects market conditions.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

While specific KPIs are not detailed in the summary data, typical performance indicators for aircraft component repair contracts include turnaround time (TAT) for repairs, adherence to quality standards (e.g., FAA or military specifications), defect rates upon return to service, and compliance with delivery schedules. The U.S. Coast Guard would likely monitor these through regular progress reports from the contractor, inspections of returned components, and tracking of aircraft availability. Failure to meet these performance standards could result in contractual remedies, including penalties or termination.

What is the track record of Safran Electronics & Defense, Avionics USA, LLC with similar government contracts?

Safran Electronics & Defense, Avionics USA, LLC, is a known entity in the aerospace and defense sector, often involved in avionics and related systems. Their track record with government contracts would typically be assessed through past performance evaluations included in the bidding process. Agencies often review a contractor's history of on-time delivery, quality of work, and overall reliability on previous, similar contracts. A positive past performance rating is usually a significant factor in award decisions, suggesting that the Coast Guard likely found their track record satisfactory for this critical maintenance task.

What are the potential risks associated with relying on external vendors for critical aircraft component repair?

Key risks include potential delays in repair turnaround impacting aircraft availability, quality control issues leading to component failures, and price escalation over time if competition diminishes. There's also a risk of intellectual property or data security concerns, depending on the nature of the repair and the information shared. For critical components like tail rotor servos, a failure could have severe safety implications. The government mitigates these risks through robust contract terms, performance monitoring, and maintaining relationships with multiple qualified vendors where possible.

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: $180,525

Exercised Options: $180,525

Current Obligation: $180,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DB2000007

IDV Type: IDC

Timeline