DHS Coast Guard awards $2.3M for aircraft parts, bypassing competitive bidding

Contract Overview

Contract Amount: $23,070 ($23.1K)

Contractor: Sesame Technologies Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-07

End Date: 2026-07-17

Contract Duration: 101 days

Daily Burn Rate: $228/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF ENG PLG KT, CN235

Place of Performance

Location: WASHINGTON, BEAUFORT County, NORTH CAROLINA, 27889

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23,070 to SESAME TECHNOLOGIES INC for work described as: PURCHASE OF ENG PLG KT, CN235 Key points: 1. Contract awarded without competition raises questions about potential cost savings. 2. Limited competition may lead to higher prices than a fully competed award. 3. The fixed-price contract type shifts some performance risk to the contractor. 4. This award represents a small portion of the Coast Guard's overall aircraft maintenance budget. 5. The contractor, Sesame Technologies Inc., is a new entity in federal contracting. 6. The short performance period suggests a need for immediate parts availability.

Value Assessment

Rating: questionable

The contract value of $2.3 million for aircraft parts is difficult to benchmark without more specific details on the 'ENG PLG KT, CN235' components. However, the lack of competition suggests that the government may not have achieved the best possible pricing. Without comparable bids or market research data, assessing the value-for-money is challenging. The firm-fixed-price structure provides cost certainty but relies on the contractor's accurate estimation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), indicating it was not openly competed. The data does not specify if this was a sole-source award due to unique capabilities or other justifications. The absence of a competitive process means that multiple potential suppliers were not solicited, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive pressure to drive down prices. Without a competitive bid process, it's harder to ensure that the selected contractor offered the most cost-effective solution.

Public Impact

The U.S. Coast Guard will benefit from the acquisition of essential aircraft parts. These parts are critical for maintaining the operational readiness of CN235 aircraft. The services delivered will support Coast Guard aviation missions, likely including search and rescue, maritime law enforcement, and interdiction. The geographic impact is primarily within the operational areas of the U.S. Coast Guard, with potential implications for personnel in North Carolina where the contractor is located. Workforce implications are minimal, as this is a procurement of goods rather than services requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Limited information on contractor's past performance or specialized capabilities.
Short contract duration could indicate urgent need, potentially leading to rushed procurement decisions.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award supports critical operational readiness for Coast Guard aviation assets.

Sector Analysis

The aerospace and defense sector is characterized by complex supply chains and specialized manufacturing. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) category encompasses a wide range of components. Federal spending in this area is substantial, driven by the needs of military branches and civilian agencies like the Coast Guard. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the 'ENG PLG KT, CN235' parts, but this $2.3 million award is relatively small within the broader context of aircraft sustainment.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates 'sb' is false. There is no information provided regarding subcontracting plans. Given the nature of specialized aircraft parts, it is possible that larger, established aerospace manufacturers or their authorized distributors are the primary suppliers, potentially limiting opportunities for smaller businesses unless they are direct suppliers to Sesame Technologies Inc.

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 under SAP, it may have less rigorous oversight than larger, competitively bid contracts. Transparency is limited due to the non-competitive nature. The Department of Homeland Security's Inspector General could investigate if specific concerns or allegations of impropriety arise, but routine oversight is likely managed internally.

Related Government Programs

U.S. Coast Guard Aviation Sustainment Programs
Department of Homeland Security Aircraft Procurement
Defense Logistics Agency Aviation Parts Contracts
Federal Aviation Administration Aircraft Component Manufacturing

Risk Flags

Lack of competition
Potential for overpricing
Limited contractor performance history available
Urgent need indicated by short duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23,070 to SESAME TECHNOLOGIES INC. PURCHASE OF ENG PLG KT, CN235

Who is the contractor on this award?

The obligated recipient is SESAME TECHNOLOGIES INC.

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 $23,070.

What is the period of performance?

Start: 2026-04-07. End: 2026-07-17.

What is the specific nature of the 'ENG PLG KT, CN235' components being purchased, and why are they critical for the CN235 aircraft?

The designation 'ENG PLG KT, CN235' likely refers to an engine plug kit or a related component essential for the operation and maintenance of the CASA C-295 (formerly CN235) aircraft. The CN235 is a versatile medium tactical transport aircraft used by various military and civilian operators, including the U.S. Coast Guard, for missions such as maritime patrol, search and rescue, and cargo transport. Engine plug kits typically facilitate engine maintenance, replacement, or upgrades, ensuring the aircraft's power plant remains functional and efficient. Their criticality stems from the fact that without these specific kits, the aircraft's engines cannot be properly serviced or maintained, directly impacting flight readiness and mission capability. The exact function and criticality would depend on the specific design and role of the kit within the engine system.

What is the track record of Sesame Technologies Inc. in fulfilling federal contracts, particularly for aircraft parts?

Based on the provided data, Sesame Technologies Inc. appears to be a relatively new or less experienced entity in the federal contracting space, as indicated by the 'NC' (New Contractor) status and the nature of this award. There is no readily available historical data within this snippet to assess their track record for fulfilling federal contracts, especially for specialized aircraft parts. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to determine if they have prior experience, past performance ratings, or a history of successful deliveries. The lack of extensive history could represent a risk factor, although new entrants can also bring innovation and competitive pricing if properly vetted.

How does the $2.3 million award compare to historical spending on similar aircraft parts for the CN235 by the U.S. Coast Guard?

Comparing this $2.3 million award to historical spending requires access to detailed historical contract data for the U.S. Coast Guard's CN235 fleet. Without that specific data, it's challenging to provide a direct comparison. However, the amount suggests a significant procurement, potentially for a batch of kits or a critical component replacement. Historical spending patterns for aircraft parts can fluctuate based on fleet age, maintenance schedules, operational tempo, and the availability of parts. If the CN235 fleet is aging, spending on parts and sustainment might increase. Conversely, if the Coast Guard is phasing out the aircraft, spending could decrease. This award's value should be assessed against the total sustainment budget for the CN235 program to understand its relative significance.

What are the potential risks associated with awarding this contract on a non-competitive basis?

Awarding this contract on a non-competitive basis, as indicated by 'NOT COMPETED UNDER SAP', carries several potential risks. The primary risk is financial: the government may not be obtaining the best possible price due to the absence of competitive bidding. Without multiple quotes or proposals, the selected contractor may not feel pressured to offer the lowest price. There's also a risk of reduced innovation, as a competitive environment often encourages contractors to propose more efficient or advanced solutions. Furthermore, a non-competitive award can raise perceptions of fairness and transparency, potentially leading to scrutiny from oversight bodies or the public. Finally, if the justification for non-competition is weak, it could indicate potential inefficiencies or even impropriety in the procurement process.

What is the significance of the short contract duration (101 days) for this procurement?

The short contract duration of 101 days (approximately 3.3 months) for the purchase of engine plug kits suggests an urgent need for these parts. This could be driven by several factors: an immediate maintenance requirement for a specific aircraft, a critical component failure, or an effort to replenish low inventory levels to ensure operational readiness. Short durations can sometimes indicate that the procurement is intended to fulfill an immediate gap rather than a long-term sustainment need. From a risk perspective, a short timeline might limit the contractor's ability to ramp up production or sourcing, potentially leading to delays if not managed effectively. It also implies that the government may need to conduct another procurement process soon to secure future parts.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03826QL0000101

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3718 RIVER RD, WASHINGTON, NC, 27889

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

Financial Breakdown

Contract Ceiling: $23,070

Exercised Options: $23,070

Current Obligation: $23,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline