DHS awards $166K for engine fan overhaul, raising questions about competition and value

Contract Overview

Contract Amount: $166,167 ($166.2K)

Contractor: Safran Ventilation Systems USA, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-23

End Date: 2026-04-10

Contract Duration: 77 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OVERHAUL OF ENGINE FANS.

Place of Performance

Location: EVERETT, SNOHOMISH County, WASHINGTON, 98203

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $166,166.58 to SAFRAN VENTILATION SYSTEMS USA, LLC for work described as: OVERHAUL OF ENGINE FANS. Key points: 1. The contract's value appears reasonable for specialized engine fan maintenance. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayers. 3. The short performance period suggests a focused, potentially urgent need. 4. This contract falls within the broader category of aviation support services. 5. The firm-fixed-price structure shifts risk to the contractor, which is generally positive. 6. The lack of small business involvement warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this specific engine fan overhaul is challenging without detailed technical specifications and market rates for comparable services. However, the total award amount of $166,166.58 for a 77-day period seems within a plausible range for specialized aviation maintenance. The firm-fixed-price contract type is a positive indicator, as it caps the government's financial exposure. Further analysis would require comparing the scope of work and pricing against similar contracts for engine fan maintenance across different agencies or private sector entities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis or through a limited competition not publicly advertised. The absence of a competitive bidding process means that the U.S. Coast Guard did not explore multiple vendor options, which could lead to higher prices and less innovation. Without a competitive environment, it is difficult to ascertain if the government secured the best possible price and service.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without bids from multiple vendors, the government cannot be certain it obtained the lowest possible price for this essential service.

Public Impact

The U.S. Coast Guard benefits from the maintenance of critical aviation assets. Services include the overhaul of engine fans, ensuring operational readiness of aircraft. The contract's geographic impact is likely localized to the operating bases of the affected aircraft. The contract supports specialized technical labor within the aviation maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Limited transparency in the procurement process hinders accountability.
Potential for missed opportunities to engage small businesses in subcontracting.

Positive Signals

Firm-fixed-price contract protects the government from cost overruns.
Short performance period suggests a focused and potentially urgent need being met.
Specialized nature of the work indicates a focus on critical operational capabilities.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically supporting aviation maintenance and repair services. The market for specialized engine component overhauls is often characterized by a limited number of highly skilled providers. While specific spending benchmarks for engine fan overhauls are not readily available, overall government spending on aviation support services is substantial, reflecting the critical role of air transport across various agencies. This contract represents a small but essential component of maintaining the U.S. Coast Guard's aviation fleet.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false) and does not appear to have a small business set-aside component (ss: false). This suggests that opportunities for small businesses to participate in this specific contract, either as prime contractors or subcontractors, may be limited. Further investigation would be needed to determine if subcontracting opportunities were offered or if the nature of the specialized work precluded small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices within the Department of Homeland Security. Accountability measures are typically embedded in the contract terms, including performance standards and delivery schedules. Transparency regarding the sole-source justification and the specific technical requirements would be crucial for a thorough assessment of oversight effectiveness. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aviation Maintenance and Repair Services
Aircraft Engine Component Overhaul
Department of Homeland Security Aviation Support
U.S. Coast Guard Fleet Readiness

Risk Flags

Sole-source procurement
Lack of transparency in competition
Potential for uncompetitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $166,166.58 to SAFRAN VENTILATION SYSTEMS USA, LLC. OVERHAUL OF ENGINE FANS.

Who is the contractor on this award?

The obligated recipient is SAFRAN VENTILATION SYSTEMS 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 $166,166.58.

What is the period of performance?

Start: 2026-01-23. End: 2026-04-10.

What is the specific technical scope of the 'overhaul of engine fans' and what are the key performance requirements?

The provided data abbreviates the description to 'OVERHAUL OF ENGINE FANS.' A detailed scope of work would typically outline the specific engine models, the extent of disassembly, inspection procedures, repair or replacement of parts, reassembly, testing, and certification requirements. Key performance requirements would likely include adherence to strict aviation safety standards, turnaround time for the overhaul, warranty provisions, and compliance with manufacturer specifications. Without the full contract details, it's impossible to ascertain the precise technical depth and critical performance metrics.

Why was this contract awarded on a sole-source or non-competed basis, and what is the justification?

The contract was marked as 'NOT COMPETED UNDER SAP,' which strongly suggests a sole-source award or a limited competition not subject to standard public solicitation procedures. Government agencies typically sole-source contracts when only one vendor possesses the necessary specialized skills, technology, or proprietary knowledge, or in cases of urgent and compelling need where competition is impractical. The justification for this specific award would need to be documented by the U.S. Coast Guard, likely referencing unique capabilities of SAFRAN VENTILATION SYSTEMS USA, LLC, or critical operational requirements that necessitated a rapid, non-competitive procurement.

How does the $166,166.58 award amount compare to historical spending on similar engine fan overhauls by the U.S. Coast Guard or other agencies?

Direct comparison of this $166,166.58 award for engine fan overhauls is difficult without access to a comprehensive database of similar, specifically defined services across government agencies. However, for specialized aviation component maintenance, this amount for a 77-day period appears to be within a reasonable range, assuming it covers significant labor and parts. To provide a robust benchmark, one would need to analyze contracts for the overhaul of similar engine types (e.g., turbofan, turboprop) for comparable aircraft platforms (e.g., helicopters, fixed-wing patrol aircraft) awarded over the past few years. The lack of competition here makes a direct value-for-money assessment challenging.

What is the track record of SAFRAN VENTILATION SYSTEMS USA, LLC in performing similar aviation maintenance contracts for the U.S. government?

Assessing SAFRAN VENTILATION SYSTEMS USA, LLC's track record would involve reviewing their past performance on federal contracts. This includes examining contract history for on-time delivery, quality of work, adherence to budget (especially relevant for fixed-price contracts), and any past performance issues or disputes. Information on previous awards, contract values, and customer satisfaction ratings (if available through sources like the Contractor Performance Assessment Reporting System - CPARS) would provide insight into their reliability and capability in performing specialized aviation maintenance tasks like engine fan overhauls.

What are the potential risks associated with a sole-source award for critical aviation components?

Sole-source awards for critical aviation components carry several risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, resulting in less value for taxpayer money. It also reduces transparency and accountability in the procurement process. Furthermore, reliance on a single supplier can create vulnerabilities in the supply chain; if the sole-source provider experiences production issues, financial instability, or decides to discontinue a product line, the government may face significant operational disruptions. Finally, it limits opportunities for innovation that might arise from a competitive market.

What is the expected impact of this contract on the operational readiness of the U.S. Coast Guard's aviation assets?

The overhaul of engine fans is critical for maintaining the airworthiness and performance of aircraft. By ensuring these components are in optimal condition, this contract directly contributes to the operational readiness of the U.S. Coast Guard's aviation assets. Timely completion of the overhaul, as indicated by the short performance period (77 days), suggests a focus on minimizing aircraft downtime. This supports the Coast Guard's ability to conduct its missions, such as maritime security, search and rescue, and law enforcement, without interruption due to equipment failure or maintenance delays.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7501 HARDESON RD, EVERETT, WA, 98203

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

Financial Breakdown

Contract Ceiling: $166,167

Exercised Options: $166,167

Current Obligation: $166,167

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70Z03823DB2000003

IDV Type: IDC

Timeline