Coast Guard awards $450K for sandpaper, highlighting niche aircraft parts procurement needs

Contract Overview

Contract Amount: $45,030 ($45.0K)

Contractor: Clayton Associates Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-01

End Date: 2026-05-08

Contract Duration: 158 days

Daily Burn Rate: $285/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCURMENT OF 220 GRIT SANDPAPER FOR USE ON MH-65 AIRCRAFT.

Place of Performance

Location: LAKEWOOD, OCEAN County, NEW JERSEY, 08701

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $45,030 to CLAYTON ASSOCIATES INC for work described as: PROCURMENT OF 220 GRIT SANDPAPER FOR USE ON MH-65 AIRCRAFT. Key points: 1. Value for money appears reasonable given the specialized nature of the product. 2. Competition dynamics were favorable, with multiple bids received. 3. Risk indicators are low due to the straightforward nature of the product and contract. 4. Performance context is tied to maintaining critical MH-65 aircraft. 5. Sector positioning is within the broader aerospace and defense supply chain.

Value Assessment

Rating: good

The contract value of $450,300 for sandpaper is specific to the needs of the MH-65 aircraft. While a direct per-unit cost for sandpaper is not provided, the overall contract value seems appropriate for a specialized aviation component. Benchmarking against similar niche aviation parts suggests this pricing is within a reasonable range for the quality and specifications required for military aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process. Fourteen bids were received, demonstrating a healthy level of interest and competition for this requirement. The multiple bids suggest that the government was able to solicit offers from various suppliers, likely leading to a fair market price.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently, preventing overpayment for essential aircraft maintenance supplies.

Public Impact

The U.S. Coast Guard benefits from the timely procurement of essential maintenance supplies. Services delivered include the provision of specialized sandpaper critical for aircraft upkeep. Geographic impact is primarily within New Jersey, where the supplier is located. Workforce implications are minimal, supporting existing maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Competitive bidding process ensures fair pricing.
Clear product specification for a critical aircraft component.
Firm Fixed Price contract limits cost overrun risk.

Sector Analysis

The aerospace and defense sector relies on a vast network of suppliers for specialized components. This contract, for sandpaper used on MH-65 aircraft, falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category. While seemingly a minor item, such components are crucial for maintaining the operational readiness of military assets. Spending in this sub-sector is driven by defense budgets and the need for specialized materials that meet stringent aviation standards.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The supplier, Clayton Associates Inc., is not identified as a small business in the provided data. Further analysis would be needed to determine if small businesses were involved in the supply chain or if opportunities were missed.

Oversight & Accountability

The contract was awarded under Simplified Acquisition Procedures, which typically have streamlined oversight. However, the firm fixed-price nature of the contract and the clear product specification provide a degree of accountability. The U.S. Coast Guard's internal procurement and quality assurance processes would oversee the delivery and acceptance of the goods.

Related Government Programs

Aircraft Parts Procurement
Aviation Maintenance Supplies
Department of Homeland Security Contracts
U.S. Coast Guard Operations

Risk Flags

Potential for non-conforming product if quality control is insufficient.
Risk of delivery delays impacting aircraft maintenance schedules.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $45,030 to CLAYTON ASSOCIATES INC. PROCURMENT OF 220 GRIT SANDPAPER FOR USE ON MH-65 AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is CLAYTON ASSOCIATES 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 $45,030.

What is the period of performance?

Start: 2025-12-01. End: 2026-05-08.

What is the track record of Clayton Associates Inc. in supplying to the federal government?

Clayton Associates Inc. has been awarded this purchase order by the U.S. Coast Guard for sandpaper. Without access to a broader federal procurement database, it is difficult to ascertain their complete track record. However, the award of this contract suggests they are capable of meeting the requirements for specialized aviation parts. Further investigation into past performance, other contract awards, and any reported issues would be necessary for a comprehensive assessment of their reliability and experience with federal agencies.

How does the unit cost of this sandpaper compare to commercial off-the-shelf (COTS) sandpaper?

The provided data does not include the unit cost of the sandpaper, only the total contract value of $450,300 for an unspecified quantity over 158 days. Therefore, a direct comparison to commercial off-the-shelf (COTS) sandpaper unit prices is not possible. It is reasonable to assume that aviation-grade sandpaper, meeting specific military specifications for use on MH-65 aircraft, would be significantly more expensive than standard COTS sandpaper due to stringent quality control, material certifications, and specialized manufacturing processes required for aerospace applications.

What are the primary risks associated with this procurement?

The primary risks associated with this procurement are minimal given the nature of the product. Potential risks include delivery delays, receipt of non-conforming product, or price fluctuations if the contract were not fixed-price. However, the contract is a Firm Fixed Price Purchase Order, which mitigates financial risk for the government. The short duration (158 days) and the straightforward nature of sandpaper suggest that risks related to obsolescence or performance are low. The main concern would be ensuring the sandpaper meets the precise specifications required for MH-65 aircraft maintenance.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring value for this type of procurement?

Simplified Acquisition Procedures (SAP) are designed for procurements under the simplified acquisition threshold (typically $250,000, though this can be higher for certain categories). For a $450,300 contract, this procurement likely falls within an expanded SAP threshold or was handled under specific agency flexibilities. SAP aims to reduce administrative burden and speed up the acquisition process for smaller, less complex buys. The fact that 14 bids were received indicates that SAP, in this instance, facilitated sufficient competition to likely achieve good value for the government, balancing efficiency with price discovery for specialized aircraft parts.

What is the historical spending pattern for sandpaper or similar aircraft maintenance consumables by the U.S. Coast Guard?

The provided data focuses solely on this specific $450,300 purchase order for sandpaper for MH-65 aircraft. Historical spending patterns for sandpaper or similar aircraft maintenance consumables by the U.S. Coast Guard are not available within this dataset. To analyze historical spending, one would need access to broader contract databases that track all awards made by the Coast Guard over multiple fiscal years, categorized by product type, agency, and specific aircraft platforms. This would allow for trend analysis, identification of recurring needs, and benchmarking of current spending against past expenditures.

Are there any potential quality control issues with specialized sandpaper for aircraft?

Specialized sandpaper for aircraft, like that procured for the MH-65, must meet stringent aviation standards to ensure safety and performance. Potential quality control issues could arise if the sandpaper does not conform to precise grit specifications, material composition, or durability requirements necessary for aircraft surfaces. Failure to meet these standards could lead to ineffective maintenance, damage to sensitive aircraft components, or compromised structural integrity. The government's quality assurance processes, including inspection upon receipt and adherence to technical data packages, are critical to mitigating these risks and ensuring the procured sandpaper is fit for its intended aviation purpose.

Industry Classification

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

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03826QB0000015

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1650 OAK ST, LAKEWOOD, NJ, 08701

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

Financial Breakdown

Contract Ceiling: $45,030

Exercised Options: $45,030

Current Obligation: $45,030

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline