DHS awards $354K for MH65 aircraft starter/generator testing, raising questions on competition and value

Contract Overview

Contract Amount: $35,412 ($35.4K)

Contractor: Safran Power USA, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-02-24

End Date: 2026-05-11

Contract Duration: 76 days

Daily Burn Rate: $466/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TEST AND EVALUATION OF STARTER/GENERATOR TO BE USED ON THE MH65 AIRCRAFT.

Place of Performance

Location: SARASOTA, MANATEE County, FLORIDA, 34243

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35,412.3 to SAFRAN POWER USA, LLC for work described as: TEST AND EVALUATION OF STARTER/GENERATOR TO BE USED ON THE MH65 AIRCRAFT. Key points: 1. Contract awarded on a firm-fixed-price basis, suggesting defined scope and cost control. 2. Short performance period (76 days) indicates a focused, potentially urgent need. 3. Sole-source award raises concerns about potential overpayment and lack of market price discovery. 4. Limited competition may restrict opportunities for other qualified vendors. 5. Contract value is relatively small, suggesting a niche requirement within broader aviation support. 6. Awarded to a single vendor, SAFRAN POWER USA, LLC, highlighting potential reliance on specific suppliers.

Value Assessment

Rating: questionable

The contract value of $354,123 for testing a starter/generator for the MH65 aircraft appears moderate for specialized aviation components. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The firm-fixed-price structure provides cost certainty, but the lack of competition prevents an assessment of whether this represents the best possible value for the government. Further analysis would require comparing this price to historical data for similar testing services or components from other vendors.

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. This means that only one vendor, SAFRAN POWER USA, LLC, was solicited or considered for this requirement. The absence of competition limits the government's ability to explore alternative solutions or negotiate the best possible price. It suggests either a unique capability held by the awarded vendor or a potential oversight in the procurement process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the most cost-effective solution.

Public Impact

The U.S. Coast Guard benefits from the testing of critical components for its MH65 aircraft fleet. Ensures the airworthiness and operational readiness of the MH65 helicopter, vital for search and rescue, law enforcement, and other missions. The testing services are delivered within Florida, the contract's place of performance. Potential indirect workforce implications for specialized technical personnel involved in testing and evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source award raises concerns about the thoroughness of market research and potential for vendor lock-in.
Limited transparency into the justification for a sole-source procurement.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Short duration suggests a focused and manageable scope of work.
Award addresses a specific, critical component for aviation safety and readiness.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for specialized aircraft component testing is often characterized by a limited number of highly qualified vendors due to stringent certification and expertise requirements. While the overall market size for aviation MRO (Maintenance, Repair, and Overhaul) is substantial, individual testing contracts for specific components can be niche. Benchmarking would typically involve comparing costs for similar testing protocols across different aircraft platforms or component types.

Small Business Impact

This contract does not appear to involve any small business set-asides, nor is there an indication of subcontracting opportunities for small businesses. The award to SAFRAN POWER USA, LLC, a known entity in the aerospace power solutions market, suggests a focus on established prime contractors. The absence of small business participation in this specific award means no direct benefit to the small business ecosystem for this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officers and program managers. As a purchase order under $354K, it likely falls below the threshold for extensive Inspector General (IG) review unless specific red flags are raised. Transparency is limited due to the sole-source nature; justifications for such awards are typically documented internally but not always publicly accessible. Accountability rests on the contractor delivering the specified testing services and the agency ensuring proper execution and payment.

Related Government Programs

MH65 Helicopter Support
Aircraft Component Testing Services
Aviation Maintenance, Repair, and Overhaul (MRO)
Department of Homeland Security Aviation Procurement

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing.
Limited transparency on procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35,412.3 to SAFRAN POWER USA, LLC. TEST AND EVALUATION OF STARTER/GENERATOR TO BE USED ON THE MH65 AIRCRAFT.

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 $35,412.3.

What is the period of performance?

Start: 2026-02-24. End: 2026-05-11.

What is SAFRAN POWER USA, LLC's track record with the U.S. Coast Guard or other federal agencies for similar testing services?

SAFRAN POWER USA, LLC is a known entity in the aerospace industry, specializing in power systems for aircraft. While specific details on their track record for MH65 starter/generator testing with the U.S. Coast Guard are not immediately available from this data, their general expertise in aviation power components suggests they possess relevant capabilities. Federal procurement databases would need to be consulted for a comprehensive history of their awards, performance ratings, and any past issues with government contracts. This would help assess their reliability and experience in fulfilling similar technical requirements.

How does the $354,123 contract value compare to similar starter/generator testing contracts for the MH65 or comparable aircraft?

Benchmarking this $354,123 contract value is challenging without access to a broader dataset of similar sole-source or competed contracts for MH65 starter/generator testing. Given the sole-source nature, it's difficult to ascertain if this price reflects competitive market rates. Typically, specialized aviation component testing can be costly due to the required expertise, equipment, and certification processes. A comparative analysis would ideally involve looking at historical data for testing services on similar helicopter platforms or components, considering factors like complexity, duration, and vendor overhead. The firm-fixed-price nature suggests the scope was well-defined, but the lack of competition prevents a definitive value-for-money assessment.

What are the specific risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Another risk is limited innovation and potentially lower quality if the vendor faces no competition. Furthermore, it can create vendor lock-in, making it difficult to switch suppliers in the future. There's also a risk that the government may not be aware of or consider alternative, potentially more cost-effective or technologically advanced solutions available in the market. Finally, sole-source awards can sometimes indicate a lack of adequate market research or planning.

What is the expected effectiveness of this testing in ensuring the reliability of the MH65 aircraft's starter/generator?

The effectiveness of this testing hinges on the comprehensiveness of the test plan and the rigor with which it is executed by SAFRAN POWER USA, LLC. Assuming the contract specifies industry-standard or military-approved testing protocols for starter/generators used on the MH65 aircraft, the testing should identify potential defects, performance degradation, or failure modes. Successful completion of these tests, as defined in the contract, is intended to provide a high degree of confidence in the component's reliability and suitability for flight operations, thereby contributing to the overall safety and mission readiness of the MH65 fleet.

What has been the historical spending pattern for MH65 aircraft component testing by the U.S. Coast Guard?

Analyzing historical spending patterns for MH65 aircraft component testing by the U.S. Coast Guard would require access to detailed procurement data over several fiscal years. This specific contract for $354,123 represents a single instance of spending. To understand patterns, one would need to aggregate data on similar testing contracts, including their values, durations, award types (competed vs. sole-source), and the specific components tested. This would reveal trends in spending, identify key vendors, and highlight any shifts in procurement strategies or component needs for the MH65 fleet over time.

Are there any specific performance metrics or deliverables outlined in the contract to measure the success of the testing?

The provided data indicates a firm-fixed-price contract for 'TEST AND EVALUATION OF STARTER/GENERATOR'. While the specific deliverables are not detailed, such contracts typically require the contractor to provide a comprehensive test report detailing the procedures followed, results obtained, analysis of findings, and a conclusion on the component's performance against specified criteria. Performance metrics would likely be tied to the successful completion of these tests according to an agreed-upon test plan and the timely delivery of the final report. Failure to meet these could result in contract non-compliance.

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

Solicitation ID: 70Z03826QB0000055

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $96,119

Exercised Options: $35,412

Current Obligation: $35,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline