Coast Guard awards $3.16M task order for MH-65 hoist repair to Breeze-Eastern LLC

Contract Overview

Contract Amount: $3,155,640 ($3.2M)

Contractor: Breeze-Eastern LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-25

End Date: 2026-08-28

Contract Duration: 125 days

Daily Burn Rate: $25.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TASK ORDER FOR THE REPAIR OF HOIST ASSEMBLIES USED ON USCG MH-65 AIRCRAFT.

Place of Performance

Location: WHIPPANY, MORRIS County, NEW JERSEY, 07981

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.2 million to BREEZE-EASTERN LLC for work described as: TASK ORDER FOR THE REPAIR OF HOIST ASSEMBLIES USED ON USCG MH-65 AIRCRAFT. Key points: 1. Contract focuses on essential aircraft component repair, ensuring operational readiness. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Short performance period suggests a targeted, urgent need for services. 4. Repair of critical hoist assemblies directly impacts aviation safety and mission capability. 5. Limited competition may reduce opportunities for innovative solutions or cost savings. 6. The contract value is relatively small within the broader aviation maintenance sector.

Value Assessment

Rating: fair

The contract value of $3.16 million for hoist repair appears reasonable for specialized aviation components. However, without a competitive bidding process, it is difficult to benchmark against market rates or assess if the price represents the best value. The fixed-price nature of the contract shifts some risk to the contractor, but the lack of competition limits the government's ability to negotiate favorable terms. Further analysis would require comparing this to similar repair contracts for other aircraft types or previous repairs of the same component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Breeze-Eastern LLC, was solicited. This approach is typically used when there is a lack of competition, the item is unique, or there is an urgent need that cannot be met through a competitive process. The absence of multiple bidders means the government did not benefit from price discovery through competition, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure to drive down prices. Without competition, there is less incentive for the contractor to offer the most cost-effective solution.

Public Impact

The U.S. Coast Guard's MH-65 aircraft fleet benefits from the repair of critical hoist assemblies. Ensures the continued operational readiness and safety of Coast Guard aviation assets. Supports Coast Guard missions, including search and rescue, law enforcement, and homeland security. The contract supports specialized technical labor within the aviation maintenance industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of competitive bidding may reduce opportunities for exploring alternative repair solutions.
Short performance period could indicate potential urgency or unforeseen issues.
Reliance on a single supplier for critical components can create supply chain risks.

Positive Signals

Contract addresses a specific, critical need for aircraft component repair.
Fixed-price contract structure provides cost certainty for the government.
Breeze-Eastern LLC is likely an established provider of hoist systems, suggesting technical expertise.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation maintenance and repair services. The market for specialized aircraft component repair is often characterized by a limited number of qualified vendors due to the high technical expertise and certifications required. Comparable spending in this area would involve other contracts for aircraft component overhaul, repair, and parts for similar rotary-wing or fixed-wing platforms across government agencies.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to Breeze-Eastern LLC, it is unlikely to include specific subcontracting goals for small businesses unless mandated by the prime contractor's overall business practices. The impact on the small business ecosystem is minimal for this specific award, as it bypasses the typical competitive procurement channels where small businesses might participate.

Oversight & Accountability

Oversight for this contract will be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award, but contract details should be available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USCG MH-65 Helicopter Maintenance
Aviation Component Repair Services
Aerospace Parts and Maintenance
Department of Homeland Security Aviation Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.2 million to BREEZE-EASTERN LLC. TASK ORDER FOR THE REPAIR OF HOIST ASSEMBLIES USED ON USCG MH-65 AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is BREEZE-EASTERN 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 $3.2 million.

What is the period of performance?

Start: 2026-04-25. End: 2026-08-28.

What is Breeze-Eastern LLC's track record with the U.S. Coast Guard and other federal agencies for similar repair services?

Breeze-Eastern LLC is a known manufacturer and service provider for aircraft hoists and related systems. Publicly available data indicates they have a history of supplying and servicing hoist assemblies for various military and civilian aviation platforms. While specific contract details with the U.S. Coast Guard for this exact type of repair might require deeper database searches, their specialization in hoist technology suggests a relevant track record. Further investigation into their past performance ratings, any past issues or disputes, and the volume of similar work performed would provide a more comprehensive understanding of their capabilities and reliability for this task order.

How does the $3.16 million contract value compare to historical spending on MH-65 hoist repairs or similar component repairs?

Benchmarking the $3.16 million contract value requires access to historical data for similar MH-65 hoist repairs or comparable component repairs on other Coast Guard aircraft. Without specific historical figures for this exact service, a direct comparison is challenging. However, the value appears to be within a reasonable range for specialized aviation maintenance, considering the complexity and criticality of aircraft components. If previous repairs were significantly lower or higher, it would warrant further investigation into the reasons, such as changes in parts costs, labor rates, or the scope of work. The sole-source nature of this award makes direct price comparison difficult.

What are the primary risks associated with a sole-source award for critical aircraft component repair?

The primary risks associated with a sole-source award for critical aircraft component repair include potential overpricing due to the lack of competitive bidding, reduced incentive for the contractor to innovate or offer cost-saving efficiencies, and a potential lack of transparency in the pricing structure. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single supplier, potentially limiting future options. Furthermore, if the sole-source provider experiences production issues or financial instability, it could directly impact the operational readiness of the aircraft, as there are no immediate alternative suppliers readily available.

What is the expected impact of this contract on the operational readiness and safety of the U.S. Coast Guard's MH-65 aircraft fleet?

This contract is expected to have a positive impact on the operational readiness and safety of the U.S. Coast Guard's MH-65 aircraft fleet by ensuring that critical hoist assemblies are properly repaired and maintained. Hoists are vital for various mission functions, including search and rescue operations, where they are used to hoist personnel or equipment. Ensuring these components are in optimal working condition directly contributes to the safety of aircrews and the effectiveness of Coast Guard missions. Timely and quality repair of these essential parts minimizes the risk of in-flight failures and supports the overall reliability of the MH-65 fleet.

Are there any indications of urgency or specific circumstances that necessitated a sole-source award for this task order?

The provided data does not explicitly state the reasons for the sole-source award. However, sole-source procurements are typically justified by factors such as urgent and compelling needs, the unavailability of comparable products or services from other sources, or when only one responsible source can provide the required supplies or services. The short performance period (August 2026 end date for a contract awarded likely in 2026) might suggest a time-sensitive requirement. A formal justification for other than full and open competition would normally be documented by the agency and could provide specific details on the urgency or unique circumstances.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Calspan Technology Holding Corporation

Address: 35 MELANIE LN, WHIPPANY, NJ, 07981

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,155,640

Exercised Options: $3,155,640

Current Obligation: $3,155,640

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DB2000019

IDV Type: IDC

Timeline