Coast Guard awards $15.5K for HC-27J pilot seat repair to IPECO Inc

Contract Overview

Contract Amount: $15,545 ($15.5K)

Contractor: Ipeco Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-22

End Date: 2026-05-28

Contract Duration: 126 days

Daily Burn Rate: $123/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPAIR OF 1EA PILOT SEAT FOR HC-27J AIRCRAFT.

Place of Performance

Location: TORRANCE, LOS ANGELES County, CALIFORNIA, 90501

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15,544.56 to IPECO INC for work described as: REPAIR OF 1EA PILOT SEAT FOR HC-27J AIRCRAFT. Key points: 1. Contract awarded for a specific aircraft component repair, indicating a need for specialized maintenance. 2. The award value is relatively small, suggesting a focused scope of work. 3. Sole-source award raises questions about potential cost efficiencies and market availability. 4. Limited duration of the contract points to a short-term, specific requirement. 5. The contract falls under 'Other Support Activities for Air Transportation', a niche sector. 6. Firm Fixed Price contract type provides cost certainty for the government.

Value Assessment

Rating: fair

The contract value of $15,544.56 is for a single pilot seat repair for the HC-27J aircraft. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. However, the specialized nature of aircraft component repair often commands higher prices due to required expertise and certifications. The firm fixed-price nature provides cost certainty.

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 directly to IPECO Inc. without soliciting bids from other vendors. The reason for this sole-source award is not detailed, but it could be due to the proprietary nature of the part, the specialized repair capabilities of IPECO, or a lack of available alternatives. This limits price discovery and potentially leads to higher costs.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from competitive pricing, potentially paying more than if multiple vendors had bid.

Public Impact

The U.S. Coast Guard benefits from the repair, ensuring operational readiness of its HC-27J aircraft fleet. A specific pilot seat will be repaired, contributing to the safety and functionality of the aircraft. The geographic impact is localized to the repair facility, likely in California. No significant workforce implications are expected from this single, small contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing for taxpayers.
Sole-source award limits transparency in the procurement process.
Potential for vendor lock-in if IPECO is the only authorized repair provider.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Specific repair addresses an immediate operational need for the Coast Guard.
Contract is for a relatively small dollar amount, minimizing financial risk.

Sector Analysis

The aviation support services sector encompasses a wide range of activities, from maintenance and repair to logistics and ground support. This contract falls into the specialized niche of aircraft component repair. The market for such services can be highly specialized, with a limited number of qualified providers for specific aircraft types like the HC-27J. Benchmarking is difficult without knowing the specific part and repair complexity, but general aviation maintenance costs can vary significantly.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of aircraft component repair and the sole-source award, it is unlikely that subcontracting opportunities for small businesses would be significant or mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and financial management departments. As a purchase order under SAP, it may have less formal oversight than larger, competed contracts. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if fraud or significant mismanagement were suspected.

Related Government Programs

Aircraft Maintenance and Repair Services
Aviation Support Services
Department of Homeland Security Procurement
U.S. Coast Guard Aviation Operations

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency in procurement justification.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15,544.56 to IPECO INC. REPAIR OF 1EA PILOT SEAT FOR HC-27J AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is IPECO 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 $15,544.56.

What is the period of performance?

Start: 2026-01-22. End: 2026-05-28.

What is the specific nature of the repair required for the HC-27J pilot seat, and why was it deemed a sole-source requirement?

The data provided does not specify the exact nature of the repair needed for the HC-27J pilot seat. However, sole-source awards are typically justified when only one responsible source is available or capable of providing the required service or item. This could be due to proprietary technology, unique repair expertise held by IPECO Inc., or the unavailability of alternative repair facilities certified for this specific component on the HC-27J aircraft. Without further documentation from the agency, the precise justification remains unclear, but it implies a lack of readily available competition for this particular maintenance task.

How does the $15,544.56 cost compare to typical repair costs for similar aircraft components or for this specific pilot seat in the past?

Benchmarking the $15,544.56 cost for the HC-27J pilot seat repair is challenging without access to historical contract data for this specific component or comparable aircraft. Aircraft component repairs, especially for specialized military or government aircraft, can be expensive due to the required certifications, specialized tools, technical expertise, and the critical nature of the parts. If this repair involves complex structural work, avionics integration, or replacement of high-value materials, the cost could be within a reasonable range for the industry. However, the lack of competition (sole-source award) means there is no direct market comparison to ascertain if this price represents optimal value for taxpayers.

What are the potential risks associated with awarding this contract on a sole-source basis to IPECO Inc.?

The primary risk associated with a sole-source award is the potential for inflated pricing, as the government does not benefit from competitive bidding which typically drives down costs. Taxpayers may end up paying more than necessary. Another risk is reduced transparency in the procurement process. Furthermore, relying on a single source can create vendor dependency; if IPECO Inc. experiences financial difficulties, production issues, or decides to discontinue the service, the U.S. Coast Guard could face significant disruptions in maintaining its HC-27J fleet. This also limits opportunities for other qualified businesses to compete for this work.

What is IPECO Inc.'s track record with government contracts, particularly for aviation component repair?

The provided data indicates IPECO Inc. as the contractor. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS. These databases would reveal the company's history of awarded contracts, past performance ratings, and any reported issues or disputes. Without this external data, it's impossible to comment on IPECO Inc.'s specific track record, reliability, or past performance in delivering aviation component repair services to the government.

How does this contract fit into the broader spending patterns for HC-27J aircraft maintenance within the U.S. Coast Guard?

This contract represents a very small expenditure ($15,544.56) for a single component repair. Broader spending patterns for HC-27J maintenance would encompass larger contracts for scheduled inspections, engine overhauls, avionics upgrades, and potentially fleet-wide structural repairs. This specific award suggests a need for immediate, localized repair rather than a systemic issue or a large-scale maintenance program. Analyzing overall HC-27J sustainment costs would require examining numerous contracts over several fiscal years to identify trends, major cost drivers, and the proportion allocated to different types of maintenance and repair activities.

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: 70Z03826QW0000014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ipeco Holdings Limited

Address: 2275 JEFFERSON ST, TORRANCE, CA, 90501

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

Financial Breakdown

Contract Ceiling: $15,545

Exercised Options: $15,545

Current Obligation: $15,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline