DHS awards $18M contract for aircraft parts, with 2 bidders competing for firm-fixed-price order

Contract Overview

Contract Amount: $18,068 ($18.1K)

Contractor: Operations Procurement & Supply Chain Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-09

End Date: 2026-10-10

Contract Duration: 184 days

Daily Burn Rate: $98/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: WINDSHIELD

Place of Performance

Location: POMPANO BEACH, BROWARD County, FLORIDA, 33069

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18,067.85 to OPERATIONS PROCUREMENT & SUPPLY CHAIN SERVICES INC. for work described as: WINDSHIELD Key points: 1. Value appears reasonable given the firm-fixed-price structure and limited competition. 2. Competition dynamics indicate a potentially less aggressive bidding environment. 3. Risk indicators are moderate, with a short performance period and clear deliverables. 4. Performance context is within the scope of aircraft parts manufacturing. 5. Sector positioning is within the broader aerospace and defense supply chain.

Value Assessment

Rating: good

The contract value of $18.1 million for aircraft parts seems within a reasonable range for specialized components. The firm-fixed-price (FFP) structure shifts risk to the contractor, which is generally favorable for the government. Benchmarking against similar contracts for specialized aircraft parts is challenging without more detailed specifications, but the limited competition suggests pricing might not be at its absolute lowest. However, the FFP nature and the specific nature of the parts likely justify the cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Simplified Acquisition Procedures), indicating an expectation of lower dollar value or specific circumstances allowing for streamlined competition. With only two bidders, the level of competition is limited. While two bidders are better than one, it suggests that the market for these specific aircraft parts may be concentrated or that the solicitation did not reach a broader audience. This could lead to less aggressive pricing than a full and open competition with multiple bidders.

Taxpayer Impact: The limited competition means taxpayers may not be receiving the most cost-effective price possible. While the FFP structure provides cost certainty, the government might be paying a premium due to the restricted bidding pool.

Public Impact

The U.S. Coast Guard benefits from the acquisition of essential aircraft parts. Services delivered include the supply of 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' components. Geographic impact is primarily within Florida, where the contractor is located. Workforce implications are likely within the specialized manufacturing sector supporting aviation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in higher prices than a more open bidding process.
Reliance on a small number of bidders may pose supply chain risks if one contractor faces issues.
The specific nature of 'Other Aircraft Parts' might imply specialized manufacturing requiring unique capabilities, potentially limiting the bidder pool.

Positive Signals

Firm-fixed-price contract provides cost certainty and shifts risk to the contractor.
The contractor, OPERATIONS PROCUREMENT & SUPPLY CHAIN SERVICES INC., has a contract award, indicating they met the requirements.
The award falls under Simplified Acquisition Procedures, suggesting efficient procurement for this item.

Sector Analysis

The aerospace and defense sector is characterized by complex supply chains and specialized manufacturing. Contracts for aircraft parts, even for non-combat platforms like those operated by the Coast Guard, are critical for maintaining operational readiness. The market for such parts can be niche, with a limited number of manufacturers possessing the necessary certifications and capabilities. Spending in this area is driven by fleet age, modernization efforts, and operational tempo. Comparable spending benchmarks would typically be found within the broader category of aircraft component manufacturing and maintenance, repair, and overhaul (MRO) services.

Small Business Impact

This contract was competed under SAP and does not indicate a small business set-aside. The prime contractor is OPERATIONS PROCUREMENT & SUPPLY CHAIN SERVICES INC. There is no explicit information provided regarding subcontracting plans or goals for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors often utilize small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting office within the Department of Homeland Security. As a purchase order under SAP, it likely falls under standard procurement regulations and internal agency oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Aircraft Parts Procurement
Aerospace Manufacturing
Department of Homeland Security Contracts
U.S. Coast Guard Aviation Support
Supply Chain Management Services

Risk Flags

Limited Competition
Potential Supply Chain Risk
Vague Item Description ('Other Aircraft Parts')

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18,067.85 to OPERATIONS PROCUREMENT & SUPPLY CHAIN SERVICES INC.. WINDSHIELD

Who is the contractor on this award?

The obligated recipient is OPERATIONS PROCUREMENT & SUPPLY CHAIN SERVICES 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 $18,067.85.

What is the period of performance?

Start: 2026-04-09. End: 2026-10-10.

What is the track record of OPERATIONS PROCUREMENT & SUPPLY CHAIN SERVICES INC. with federal contracts, particularly for aircraft parts?

Operations Procurement & Supply Chain Services Inc. has been awarded this specific contract valued at approximately $18.1 million for aircraft parts. A deeper dive into their federal contracting history would involve searching databases like the Federal Procurement Data System (FPDS) or SAM.gov for previous awards, contract types, agencies served, and performance history. Without access to that detailed historical data, it's difficult to provide a comprehensive assessment of their track record. However, securing this award suggests they met the requirements set forth by the U.S. Coast Guard for this particular procurement. Further analysis would look for patterns in contract values, types of goods/services provided, and any reported performance issues or successes.

How does the $18.1 million value compare to similar aircraft parts contracts awarded by the U.S. Coast Guard or DHS?

Benchmarking the $18.1 million value requires comparing it to contracts for similar types and quantities of aircraft parts, considering factors like the specific aircraft model, part criticality, and manufacturer. The provided data indicates 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' which is broad. Contracts for highly specialized, certified components for aviation platforms can vary significantly. A comparison would ideally involve identifying contracts with similar Product Service Codes (PSCs) or North American Industry Classification System (NAICS) codes, and similar contract types (e.g., Firm Fixed Price). Given the limited competition (2 bidders) and the use of Simplified Acquisition Procedures (SAP), this value might represent a specific procurement need rather than a large-scale, highly competitive buy. Without more granular data on the parts themselves, a precise value comparison is difficult, but the FFP structure and limited bidders suggest a focused acquisition.

What are the primary risks associated with this contract, considering the contractor and the nature of the goods?

The primary risks associated with this contract include potential supply chain disruptions if the contractor, Operations Procurement & Supply Chain Services Inc., faces production or delivery issues. Given that it's for aircraft parts, any delay or defect could impact the operational readiness of U.S. Coast Guard aircraft, which is a critical concern. The limited competition (two bidders) also presents a risk of potentially higher costs than might be achieved in a more robustly competed environment. Furthermore, the 'Other Aircraft Parts' designation is vague; if these are highly specialized or safety-critical components, the risk associated with quality control and adherence to stringent aviation standards is elevated. Ensuring the contractor maintains necessary certifications and quality assurance processes is paramount.

How effective is the firm-fixed-price (FFP) contract type in managing costs and risks for this specific procurement?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs and risks when the scope of work and requirements are well-defined, as is typical for the procurement of specific aircraft parts. Under an FFP agreement, the contractor assumes the primary responsibility for cost overruns, providing the government with cost certainty. This shifts the financial risk from the buyer to the seller. For the U.S. Coast Guard, this means the $18.1 million award represents the maximum liability, barring any contract modifications. This structure incentivizes the contractor to control costs efficiently. The effectiveness is maximized when the specifications for the parts are precise, minimizing ambiguity that could lead to disputes or change orders.

What does the use of Simplified Acquisition Procedures (SAP) imply about the contract's value and the procurement strategy?

The use of Simplified Acquisition Procedures (SAP) implies that this contract falls within the U.S. government's thresholds for streamlined procurement, typically for purchases valued up to certain dollar limits (e.g., $250,000, though this can be higher for certain categories or agencies). The award of $18.1 million suggests that either this procurement falls under specific exceptions allowing SAP for higher values (e.g., certain types of supplies or services, or specific agency policies) or the provided data might be illustrative rather than a direct reflection of a single SAP-eligible award. Generally, SAP is used to increase efficiency and reduce administrative burden for smaller procurements. It often involves less formal solicitation and evaluation processes compared to full and open competition, aiming for quicker delivery of goods or services.

What is the potential impact of this contract on the broader aerospace parts manufacturing market?

This contract, valued at $18.1 million and awarded to Operations Procurement & Supply Chain Services Inc. under limited competition, has a localized impact on the aerospace parts manufacturing market. It signifies demand for specific 'Other Aircraft Parts and Auxiliary Equipment.' For the winning contractor, it represents a significant revenue stream and potentially validates their capabilities. For the two bidding companies, it highlights their position within this niche. The broader market impact is likely minimal unless these parts are critical components for a widely used aircraft platform or if the contract signals a trend in government procurement strategies for such items. The limited competition suggests a potentially concentrated market segment, where a few specialized suppliers dominate.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03826QW0000046

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2501 NW 34TH PL STE B21-22, POMPANO BEACH, FL, 33069

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

Financial Breakdown

Contract Ceiling: $18,068

Exercised Options: $18,068

Current Obligation: $18,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline