DHS Coast Guard Spends $243,902 on 5 Main Gear Box Carts for Storage
Contract Overview
Contract Amount: $243,902 ($243.9K)
Contractor: HC Merchandisers, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2026-04-08
End Date: 2026-10-10
Contract Duration: 185 days
Daily Burn Rate: $1.3K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PURCHASE OF FIVE (5) MAIN GEAR BOX CARTS FOR LONG TERM STORAGE.
Place of Performance
Location: ONTARIO, SAN BERNARDINO County, CALIFORNIA, 91764
Plain-Language Summary
Department of Homeland Security obligated $243,902.45 to HC MERCHANDISERS, INC. for work described as: PURCHASE OF FIVE (5) MAIN GEAR BOX CARTS FOR LONG TERM STORAGE. Key points: 1. Spending on specialized aircraft parts for long-term storage. 2. Contract awarded to HC MERCHANDISERS, INC. 3. Potential risk associated with long-term storage of critical components. 4. Sector: Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: fair
The total award of $243,902 for five gear box carts appears high for parts, suggesting potential overpricing or specialized requirements. Benchmarking against similar specialized aircraft component purchases is needed.
Cost Per Unit: $48,780.49
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating a limited competition environment. This method may not always yield the best price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds are used for this purchase, and the limited competition raises questions about whether the best possible price was achieved.
Public Impact
Ensures operational readiness by providing spare parts for long-term storage. Supports the U.S. Coast Guard's aviation fleet maintenance. Investment in equipment for future operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP.
- High per-unit cost for storage components.
- Long-term storage may lead to obsolescence or degradation.
Positive Signals
- Procurement supports critical operational readiness.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This purchase falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on the complexity and criticality of the parts. Benchmarks are difficult without specific part details.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded under SAP, which has less stringent oversight requirements than larger procurements. The U.S. Coast Guard is responsible for ensuring the necessity and value of this purchase.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Limited competition may have led to a higher price.
- High per-unit cost for storage items.
- Risk of component degradation or obsolescence during storage.
- Lack of transparency on specific part details and justification.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-homeland-security, ca, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $243,902.45 to HC MERCHANDISERS, INC.. PURCHASE OF FIVE (5) MAIN GEAR BOX CARTS FOR LONG TERM STORAGE.
Who is the contractor on this award?
The obligated recipient is HC MERCHANDISERS, 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 $243,902.45.
What is the period of performance?
Start: 2026-04-08. End: 2026-10-10.
What is the justification for purchasing five main gear box carts specifically for long-term storage, and what is the expected lifespan of these components in storage?
The justification likely relates to maintaining operational readiness and ensuring availability of critical components for future use, especially given the Coast Guard's extensive operational demands. The expected lifespan in storage would depend on the specific materials, preservation methods used, and environmental conditions, but typically such components are designed for extended periods if properly maintained and stored.
How does the per-unit cost of $48,780.49 compare to industry benchmarks for similar main gear box carts intended for long-term storage?
Without specific technical details of the gear box carts, a precise benchmark is challenging. However, for specialized aviation components, this price could be within a reasonable range if the carts are complex or manufactured to stringent military/aviation standards. A comparison with other government or commercial contracts for similar items is necessary for a definitive assessment.
What measures are in place to ensure the integrity and usability of these main gear box carts after the long-term storage period?
Standard procedures for long-term storage of critical equipment typically involve specific preservation techniques, climate-controlled environments, and periodic inspections. The Coast Guard likely has protocols for material preservation and shelf-life management to ensure these components remain functional when needed, potentially including re-certification processes before deployment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 70Z03826QE0000025
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5536 ONTARIO MILLS PKWY, ONTARIO, CA, 91764
Business Categories: Category Business, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $243,902
Exercised Options: $243,902
Current Obligation: $243,902
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-08
Current End Date: 2026-10-10
Potential End Date: 2026-10-10 00:00:00
Last Modified: 2026-04-08
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