Coast Guard spends $249K on starter/generator for MH-65 aircraft, awarded via purchase order

Contract Overview

Contract Amount: $249,326 ($249.3K)

Contractor: Safran Power USA, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-01

End Date: 2026-05-04

Contract Duration: 33 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 10EA STARTER/GENERATOR FOR USE OF MH-65 AIRCRAFT.

Place of Performance

Location: SARASOTA, MANATEE County, FLORIDA, 34243

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $249,326.3 to SAFRAN POWER USA, LLC for work described as: PROCUREMENT OF 10EA STARTER/GENERATOR FOR USE OF MH-65 AIRCRAFT. Key points: 1. Value for money appears fair given the specialized nature of aviation components. 2. Competition dynamics were limited, with the contract awarded on a non-competed basis. 3. Risk indicators are moderate, primarily related to sole-source procurement and potential price escalation. 4. Performance context is specific to maintaining operational readiness of MH-65 helicopters. 5. Sector positioning is within aerospace manufacturing, a critical but often high-cost industry.

Value Assessment

Rating: fair

The contract value of $249,326.30 for 10 starter/generator units seems within a reasonable range for specialized aviation components. However, without direct comparable contracts for the exact MH-65 starter/generator, a precise value-for-money assessment is challenging. The benchmark of $7,555 per unit (br: 7555) suggests a potentially high cost, but this needs to be weighed against the specific technical requirements and limited market for such parts.

Cost Per Unit: $7,555 per unit (benchmark provided)

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. The lack of competition means that the U.S. Coast Guard did not explore potential alternative suppliers or negotiate pricing against multiple offers. This approach is typically used when only one source can fulfill the requirement, but it limits the opportunity for price discovery and potentially leads to higher costs.

Taxpayer Impact: The absence of competition means taxpayers may not have received the lowest possible price for these essential aircraft components. Without competitive bidding, there's less pressure on the supplier to offer cost savings.

Public Impact

The primary beneficiaries are the U.S. Coast Guard aviation units operating the MH-65 aircraft. Essential services delivered include the procurement of critical starter/generator components for helicopter maintenance. Geographic impact is focused on Coast Guard air stations where MH-65 helicopters are deployed. Workforce implications are minimal, primarily affecting maintenance personnel who will install and utilize the parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of competition may indicate a lack of market research or reliance on a single supplier.
The high per-unit cost benchmark warrants further investigation into cost drivers.

Positive Signals

Procurement ensures continued operational readiness of vital MH-65 aircraft.
Firm Fixed Price contract type provides cost certainty once awarded.
The contract is for a specific, critical component, addressing a clear operational need.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically for aircraft parts. The market for specialized components like starter/generators for specific helicopter models (MH-65) is often niche, with a limited number of qualified manufacturers. Spending in this sector is driven by defense and public safety aviation needs, where reliability and performance are paramount, often justifying higher costs compared to commercial parts.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of aviation components and the sole-source award, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or explored as part of this specific procurement action. Further analysis would be needed to determine if the prime contractor has broader small business subcontracting goals.

Oversight & Accountability

Oversight for this purchase order would typically fall under the U.S. Coast Guard's internal procurement and financial management systems. As a sole-source award, it may receive additional scrutiny from contracting officers to ensure justification and compliance with regulations. Transparency is limited due to the non-competed nature, and specific Inspector General jurisdiction would depend on broader Coast Guard oversight mandates.

Related Government Programs

MH-65 Helicopter Maintenance
Aviation Component Procurement
U.S. Coast Guard Aviation Operations
Sole-Source Aircraft Parts

Risk Flags

Sole-source award
Limited competition
Potential for price inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $249,326.3 to SAFRAN POWER USA, LLC. PROCUREMENT OF 10EA STARTER/GENERATOR FOR USE OF MH-65 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 $249,326.3.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-04.

What is the specific technical justification for awarding this contract on a sole-source basis?

The provided data does not specify the technical justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the requirement. This could be due to proprietary technology, unique manufacturing capabilities, or urgent and compelling needs where competition is not feasible. For aviation components like starter/generators, it often relates to specific design compatibility with the MH-65 airframe and stringent airworthiness certifications required by the manufacturer or regulatory bodies. A detailed justification document would normally be required by the agency to support such an award.

How does the per-unit cost of $7,555 compare to similar starter/generator units for other Coast Guard aircraft?

The provided data includes a benchmark value (br: 7555) which suggests a per-unit cost of $7,555. Comparing this to similar starter/generator units for other Coast Guard aircraft is difficult without specific data on those other aircraft and their respective components. However, for general aviation, starter/generator costs can vary widely from a few hundred dollars for smaller general aviation aircraft to tens of thousands for large commercial or military aircraft. The $7,555 figure for a component on a medium-lift helicopter like the MH-65 might be within the expected range for specialized, certified aviation parts, but a direct comparison to other Coast Guard platforms would require access to their procurement data for similar components.

What are the potential risks associated with a sole-source procurement for critical aircraft components?

Sole-source procurements for critical aircraft components carry several risks. Firstly, the absence of competition can lead to inflated prices, as the supplier faces no pressure to offer the most cost-effective solution. Secondly, it can limit innovation and the adoption of newer, potentially more efficient technologies if the sole supplier does not offer them. Thirdly, it creates a dependency on a single supplier, which can be problematic if that supplier experiences production issues, financial instability, or decides to discontinue the product line. This dependency can also lead to supply chain vulnerabilities, especially for critical safety items like aircraft parts.

What is the expected operational impact of having these new starter/generator units available?

The procurement of 10 new starter/generator units for the MH-65 aircraft is expected to directly support the operational readiness and reliability of the U.S. Coast Guard's helicopter fleet. These components are critical for engine start-up and electrical power generation. Having new units available ensures that maintenance personnel have readily accessible, functional parts to replace aging or malfunctioning components, thereby minimizing aircraft downtime. This directly contributes to the Coast Guard's ability to conduct its missions, such as search and rescue, maritime law enforcement, and port security, without interruption due to equipment failure.

What is the historical spending pattern for MH-65 aircraft components by the U.S. Coast Guard?

The provided data does not offer historical spending patterns for MH-65 aircraft components. To analyze this, one would need to examine past contracts awarded by the U.S. Coast Guard for parts related to the MH-65 helicopter. This would involve looking at the frequency of purchases, the types of components procured, the total expenditure over time, and the procurement methods used (competed vs. sole-source). Understanding historical spending can reveal trends in maintenance needs, identify potential cost savings through strategic sourcing or long-term agreements, and assess the consistency of pricing for similar parts over different contract periods.

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: 70Z03826QB0000058

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: $249,326

Exercised Options: $249,326

Current Obligation: $249,326

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline