Coast Guard awards $8.68M contract for C02 RECHARGE services, with 5 bids received

Contract Overview

Contract Amount: $8,680 ($8.7K)

Contractor: Hidenis Group LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-10

End Date: 2026-05-10

Contract Duration: 30 days

Daily Burn Rate: $289/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: C02 RECHARGE

Place of Performance

Location: NEAH BAY, CLALLAM County, WASHINGTON, 98357

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8,680 to HIDENIS GROUP LLC for work described as: C02 RECHARGE Key points: 1. Contract value of $8.68M for a 30-day period suggests a high daily operational cost. 2. The award was made under Simplified Acquisition Procedures (SAP), indicating a focus on efficiency for smaller procurements. 3. A firm-fixed-price contract type aims to control costs and provide predictability for the government. 4. The North American Industry Classification System (NAICS) code 336611 points to shipbuilding and repair, a specialized sector. 5. The short duration of the contract (30 days) may indicate an urgent or specific operational need. 6. The awarding agency, U.S. Coast Guard, highlights the critical nature of these services for maritime operations.

Value Assessment

Rating: fair

The contract value of $8.68 million for a 30-day period is substantial, averaging approximately $289,333 per day. Without specific details on the services rendered for 'C02 RECHARGE,' it is difficult to benchmark against similar contracts. However, the daily rate appears high, suggesting either a highly specialized service, significant material costs, or potentially an area for further cost scrutiny. The firm-fixed-price nature provides cost certainty, but the overall value proposition requires deeper analysis of the service scope.

Cost Per Unit: $289,333 per day (estimated)

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but is streamlined compared to full and open procedures for larger contracts. The receipt of 5 bids indicates a reasonable level of competition for this procurement. The SAP process aims to balance competition with efficiency for procurements below certain dollar thresholds.

Taxpayer Impact: The competition level suggests that taxpayers likely benefited from a competitive bidding process, leading to a fair market price for the services. The presence of multiple bidders helps ensure that the government is not overpaying due to a lack of alternatives.

Public Impact

The U.S. Coast Guard benefits from the provision of essential C02 recharge services, crucial for operational readiness. Maritime security and environmental protection operations are likely supported by the services rendered under this contract. The contract supports the Coast Guard's mission in the Washington region, where the contractor is located. The contract may indirectly support a specialized workforce within the shipbuilding and repair industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost warrants scrutiny to ensure value for money.
Short contract duration may indicate a reactive need rather than planned strategic procurement.
Lack of detailed service description makes independent value assessment challenging.

Positive Signals

Competitive bidding process under SAP suggests an effort to achieve fair pricing.
Firm-fixed-price contract provides cost certainty for the government.
Award to a single contractor implies capability and responsiveness to the specific need.

Sector Analysis

The shipbuilding and repair industry (NAICS 336611) is a critical sector supporting naval and maritime operations. Contracts in this space often involve specialized equipment, skilled labor, and stringent quality standards. The value of this contract, while significant for a 30-day period, falls within the range of specialized service procurements within the broader defense and maritime support sectors. Benchmarking requires comparison to similar short-term, high-intensity service contracts within this niche.

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 contractor, HIDENIS GROUP LLC, is not explicitly identified as a small business in the provided data. Further investigation would be needed to determine the extent of small business participation, if any, in fulfilling this contract.

Oversight & Accountability

The contract was awarded under Simplified Acquisition Procedures (SAP), which have their own set of oversight and documentation requirements designed for efficiency. The firm-fixed-price nature helps in cost accountability. Further oversight would typically be managed by the U.S. Coast Guard contracting officers and potentially through contract performance reviews. Inspector General involvement would depend on any reported irregularities or performance issues.

Related Government Programs

Shipbuilding and Repair Services
Maritime Operations Support
Coast Guard Readiness Contracts
Environmental Services (potential)

Risk Flags

High daily cost requires justification.
Short contract duration may indicate potential for service gaps.
Limited public information on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8,680 to HIDENIS GROUP LLC. C02 RECHARGE

Who is the contractor on this award?

The obligated recipient is HIDENIS GROUP 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 $8,680.

What is the period of performance?

Start: 2026-04-10. End: 2026-05-10.

What specific services are included under 'C02 RECHARGE' for the U.S. Coast Guard?

The provided data does not specify the exact services encompassed by 'C02 RECHARGE.' This term could refer to the replenishment of carbon dioxide systems, potentially for fire suppression, propulsion, or other onboard equipment critical to vessel operation. Given the NAICS code (336611 - Shipbuilding and Repairing), it is plausible that these services are related to the maintenance, repair, or outfitting of Coast Guard vessels. The high daily cost suggests a service that is either labor-intensive, requires specialized equipment, or involves significant material components. Further clarification from the contracting agency or the contract's statement of work would be necessary to fully understand the scope and necessity of these services.

How does the daily cost of $289,333 compare to industry benchmarks for similar short-term maritime service contracts?

Benchmarking the daily cost of $289,333 for 'C02 RECHARGE' is challenging without a precise definition of the services. However, for specialized maritime support or repair services, daily rates can vary significantly based on complexity, required personnel, equipment, and location. High-demand periods, urgent operational needs, or the involvement of highly specialized technicians and equipment can drive up daily costs. Compared to routine maintenance, this rate appears elevated, suggesting a critical or specialized function. Industry benchmarks for emergency vessel repair or specialized system servicing might approach this figure, but a direct comparison requires detailed service scope and market analysis within the specific maritime sub-sector.

What is the track record of HIDENIS GROUP LLC in performing government contracts, particularly for the Department of Homeland Security or U.S. Coast Guard?

Information regarding the specific track record of HIDENIS GROUP LLC in performing government contracts, especially for the Department of Homeland Security or the U.S. Coast Guard, is not detailed in the provided data. A comprehensive assessment would require accessing contract databases (like FPDS or SAM.gov) to review past performance, contract history, any reported issues, and overall satisfaction ratings. Without this historical data, it is difficult to evaluate the contractor's reliability, experience, and past success in delivering similar services. The award of this contract suggests they met the minimum requirements for this specific procurement under SAP.

What are the potential risks associated with a short-duration contract (30 days) for critical services like 'C02 RECHARGE'?

Short-duration contracts, like this 30-day award, can present several risks. Firstly, there's a risk of service interruption if follow-on procurements are not initiated and awarded in a timely manner, potentially impacting Coast Guard operations. Secondly, the urgency often associated with short-term needs might lead to less thorough vetting of contractors or less favorable pricing compared to longer-term, planned contracts. There's also a risk that the contractor may not fully invest in understanding the long-term needs or optimizing processes, focusing instead on immediate delivery. Finally, if the service is critical and the contractor underperforms, the government has limited recourse or time to switch providers without significant disruption.

How does the procurement method (COMPETED UNDER SAP) influence the overall value and efficiency for taxpayers?

Competing under Simplified Acquisition Procedures (SAP) is designed to increase efficiency and reduce administrative burden for procurements below certain thresholds (typically $250,000, though exceptions exist). For this $8.68M contract, it implies that either the contract was broken down into smaller procurements or that specific exceptions allowed its use. SAP generally aims for faster award times and less stringent documentation compared to full and open competition. When used appropriately, it can lead to better value by reducing acquisition costs and speeding up delivery of needed goods/services. However, if not managed carefully, the streamlined process might reduce the breadth of competition, potentially leading to less optimal pricing than a full and open competition, though the receipt of 5 bids suggests a reasonable level of market interest.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 395 COUNTY ROAD 5010, CLEVELAND, TX, 77327

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,680

Exercised Options: $8,680

Current Obligation: $8,680

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline