DHS Coast Guard awards $103K for generator overhaul, citing non-availability exception

Contract Overview

Contract Amount: $103,029 ($103.0K)

Contractor: Safran Power USA, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-10

End Date: 2026-02-15

Contract Duration: 67 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OVERHAUL STARTER GENERATORS LINE 1-7. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE

Place of Performance

Location: SARASOTA, MANATEE County, FLORIDA, 34243

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $103,029 to SAFRAN POWER USA, LLC for work described as: OVERHAUL STARTER GENERATORS LINE 1-7. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE Key points: 1. Contract awarded for overhaul of starter generators, indicating a need for specialized maintenance. 2. The action was not competed under simplified acquisition procedures, suggesting potential limitations in market availability or urgency. 3. The contract value of $103,029 is relatively small, suggesting a focused scope of work. 4. The duration of the contract is approximately 2 months, pointing to a short-term maintenance requirement. 5. The award is a firm-fixed-price purchase order, which shifts risk to the contractor. 6. The contractor, SAFRAN POWER USA, LLC, is likely a specialized provider in aircraft parts manufacturing.

Value Assessment

Rating: fair

The contract value of $103,029 for the overhaul of starter generators appears reasonable for specialized maintenance. Without specific details on the number of generators or the extent of the overhaul, a direct comparison to similar contracts is difficult. However, the firm-fixed-price nature of the award suggests that the government has secured a defined cost for the service, mitigating potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures and was awarded using a sole-source justification (FAR 25.103(b)(1) - Class determination for non-availability articles). This implies that the required articles or services were determined to be unavailable from domestic sources, leading to an exception from full and open competition. The specific details of this determination are crucial for understanding the competitive landscape.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through a competitive bidding process.

Public Impact

The U.S. Coast Guard benefits from the maintenance of critical aircraft components, ensuring operational readiness. Services delivered include the overhaul of starter generators for aircraft. The geographic impact is localized to Florida, where the contractor is based. Workforce implications are minimal, likely involving specialized technicians at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to sole-source award.
Limited transparency into the justification for non-availability.
Risk of contractor lock-in if alternative sources are not explored.

Positive Signals

Firm-fixed-price contract limits cost uncertainty for the government.
Award to a specialized manufacturer suggests expertise in the required service.
Short contract duration minimizes long-term commitment.

Sector Analysis

The contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector (NAICS 336413). This sector is characterized by specialized production and maintenance of components for the aerospace industry. The market size for such specialized services can vary, but it often involves a limited number of highly qualified providers. This contract represents a small expenditure within this sector, focused on a specific maintenance need for the Coast Guard's aviation assets.

Small Business Impact

This contract was not awarded to a small business and does not appear to have small business subcontracting requirements. The sole-source nature and the specific technical requirements likely favored a larger, specialized manufacturer. Therefore, the direct impact on the small business ecosystem is likely negligible for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and internal review processes. Transparency is limited due to the sole-source justification, but the contract details and award information are publicly available through federal procurement databases.

Related Government Programs

Aircraft Maintenance and Repair
Aviation Component Overhaul
Federal Aviation Administration (FAA) Regulations
Department of Homeland Security Procurement

Risk Flags

Sole-source justification requires careful scrutiny.
Potential for higher costs due to lack of competition.
Dependence on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $103,029 to SAFRAN POWER USA, LLC. OVERHAUL STARTER GENERATORS LINE 1-7. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE

Who is the contractor on this award?

The obligated recipient is SAFRAN POWER 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 $103,029.

What is the period of performance?

Start: 2025-12-10. End: 2026-02-15.

What is the specific nature of the 'non-availability' exception cited for this sole-source award?

The 'non-availability' exception, as cited under FAR 25.103(b)(1), typically applies when a required article or service cannot be procured from domestic sources in sufficient quantity or of satisfactory quality. For this specific contract, the Department of Homeland Security (DHS) Coast Guard would have had to formally document that SAFRAN POWER USA, LLC is the only known source capable of performing the overhaul of these specific starter generators, or that domestic sources cannot meet the required specifications or timeline. This determination requires thorough market research and justification to ensure it is not used to circumvent competition unnecessarily. The file reference 'BAA EXCEPTION MTF IS IN THE FILE' suggests that the detailed justification and supporting documentation are available within the contract's administrative file.

How does the firm-fixed-price (FFP) contract type benefit the government in this scenario?

A firm-fixed-price (FFP) contract type is advantageous for the government in this scenario because it establishes a ceiling on the total cost the contractor will be paid, regardless of the contractor's actual costs incurred. For an overhaul service where the scope of work is well-defined, an FFP contract shifts the risk of cost overruns from the government to the contractor. This provides cost certainty for the $103,029 award, allowing the Coast Guard to budget accurately. It incentivizes the contractor to manage its own costs efficiently to maximize profit, as any savings achieved below the fixed price accrue to them. This is particularly beneficial when dealing with specialized maintenance where unexpected issues could arise, but the FFP structure caps the government's financial exposure.

What is the typical track record of SAFRAN POWER USA, LLC in providing similar services?

SAFRAN POWER USA, LLC is part of the Safran Group, a global leader in aerospace equipment and services. While specific details on their track record for overhauling starter generators for the U.S. Coast Guard are not provided in the abbreviated data, the parent company's extensive experience in aviation systems suggests a high level of technical capability. SAFRAN is known for its work on engines, landing gear, and electrical systems for various aircraft. Their involvement in this contract likely stems from their specialized expertise and potentially their role as the original equipment manufacturer (OEM) or a certified repair station for the specific starter generators used by the Coast Guard. A deeper dive into their contract history with government agencies would reveal more about their performance on similar projects.

What are the potential risks associated with a sole-source award for aircraft parts maintenance?

Sole-source awards for critical aircraft parts maintenance carry several potential risks. Firstly, the absence of competition can lead to higher prices than might be achieved in a competitive bidding environment, as the government lacks the leverage of multiple offers. Secondly, it can create a dependency on a single supplier, potentially limiting future options and flexibility. If the sole-source provider experiences production issues, quality control problems, or significantly increases prices in the future, the government may have limited recourse. Lastly, the justification for sole-sourcing must be robust; if the 'non-availability' claim is weak or based on insufficient market research, it could indicate a failure to adequately explore competitive options, potentially leading to inefficient use of taxpayer funds.

How does this contract fit into the broader spending patterns for U.S. Coast Guard aviation maintenance?

This contract represents a small, specific expenditure within the U.S. Coast Guard's overall aviation maintenance budget. The Coast Guard operates a diverse fleet of aircraft, including helicopters and fixed-wing planes, which require continuous and often costly maintenance. Spending on aviation maintenance typically includes routine servicing, component overhauls, depot-level repairs, and the procurement of spare parts. Contracts for overhauling specific components like starter generators are essential for ensuring the airworthiness and operational readiness of these assets. While the $103,029 value is modest in the context of the entire Coast Guard aviation program, it highlights the ongoing need for specialized maintenance services from qualified providers, often necessitating sole-source or limited-competition awards when unique capabilities are required.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: ENGINE ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03826QL0000008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Zmfh

Address: 2250 WHITFIELD AVE, SARASOTA, FL, 34243

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

Financial Breakdown

Contract Ceiling: $103,029

Exercised Options: $103,029

Current Obligation: $103,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline