DHS Coast Guard awards $48K for propulsion shaft overhaul, highlighting niche repair services
Contract Overview
Contract Amount: $48,164 ($48.2K)
Contractor: H&H Propeller and Shaft, Inc
Awarding Agency: Department of Homeland Security
Start Date: 2025-09-02
End Date: 2026-09-01
Contract Duration: 364 days
Daily Burn Rate: $132/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OVERHAUL QTY 9 SHAFTS: 2010 01-458-9175 SHAFT, PROPULSION OPEN, INSPECT AND REPORT
Place of Performance
Location: SALEM, ESSEX County, MASSACHUSETTS, 01970
Plain-Language Summary
Department of Homeland Security obligated $48,164 to H&H PROPELLER AND SHAFT, INC for work described as: OVERHAUL QTY 9 SHAFTS: 2010 01-458-9175 SHAFT, PROPULSION OPEN, INSPECT AND REPORT Key points: 1. Niche service: Specialized propeller and shaft repair is a critical but limited market. 2. Competition: Full and open competition was used, but source exclusion suggests specific capabilities were sought. 3. Risk: Potential for limited vendor pool and specialized knowledge requirements could impact future pricing. 4. Sector: Machine shops supporting maritime operations are essential for fleet readiness.
Value Assessment
Rating: good
The $48,164 award for nine shaft overhauls appears reasonable given the specialized nature of the work. Benchmarking is difficult without more detailed cost breakdowns, but the price per shaft is approximately $5,351.
Cost Per Unit: $5,351 per shaft
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating that while the competition was broad, specific technical requirements or past performance may have narrowed the field. This method aims for best value while ensuring a competitive process.
Taxpayer Impact: The relatively small award amount suggests a minimal direct taxpayer impact, but ensures operational readiness of critical Coast Guard assets.
Public Impact
Ensures operational readiness of U.S. Coast Guard vessels. Supports specialized maritime repair industry. Maintains critical propulsion systems for national security missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited qualified sources in future procurements.
- Dependence on specialized repair facilities.
Positive Signals
- Utilizes full and open competition.
- Clear scope of work for shaft overhaul.
Sector Analysis
This contract falls within the Machine Shops sector (NAICS 332710), which provides repair and maintenance services for mechanical equipment. Spending in this sector for government contracts can vary widely based on the specific equipment and agency needs, but typically supports operational readiness.
Small Business Impact
The awardee, H&H PROPELLER AND SHAFT, INC, is not identified as a small business in this data. Further analysis would be needed to determine if small businesses were excluded or if the primary awardee is a large business.
Oversight & Accountability
The award is a delivery order under an existing contract, suggesting that oversight mechanisms are in place. The contract type is Firm Fixed Price, which helps control costs. However, the exclusion of sources warrants attention to ensure fair opportunity.
Related Government Programs
- Machine Shops
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Potential for limited competition in future procurements.
- Reliance on specialized, potentially scarce, technical expertise.
- Need to verify if small businesses had opportunity to compete.
Tags
machine-shops, department-of-homeland-security, ma, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $48,164 to H&H PROPELLER AND SHAFT, INC. OVERHAUL QTY 9 SHAFTS: 2010 01-458-9175 SHAFT, PROPULSION OPEN, INSPECT AND REPORT
Who is the contractor on this award?
The obligated recipient is H&H PROPELLER AND SHAFT, 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 $48,164.
What is the period of performance?
Start: 2025-09-02. End: 2026-09-01.
What specific technical capabilities led to the exclusion of other sources during the full and open competition?
The exclusion of sources during a full and open competition typically indicates that while the solicitation was broadly advertised, only specific vendors met stringent technical requirements, possessed unique certifications, or had demonstrated exceptional past performance on similar complex repairs. This ensures the agency secures the most qualified provider for critical, specialized tasks, even if it narrows the competitive pool.
What is the long-term cost implication of relying on a potentially limited number of specialized shaft repair providers?
Relying on a limited pool of specialized providers can lead to increased costs over time due to reduced competition and the high barrier to entry for new firms. Agencies may face higher prices, longer lead times, and greater vulnerability if a key provider experiences financial difficulties or capacity issues. Proactive market research and fostering new entrants are crucial to mitigate these risks.
How does the firm-fixed-price contract structure mitigate risks for this specific propulsion shaft overhaul service?
A firm-fixed-price (FFP) contract provides cost certainty for the government by establishing a set price for the defined scope of work. This shifts the risk of cost overruns to the contractor, H&H PROPELLER AND SHAFT, INC. For a service like shaft overhaul, where the scope is well-defined, FFP is effective in controlling expenditures and preventing unexpected budget increases.
Industry Classification
NAICS: Manufacturing › Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing › Machine Shops
Product/Service Code: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 0 ESSEX ST, SALEM, MA, 01970
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $92,475
Exercised Options: $48,164
Current Obligation: $48,164
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z08022D15005B00
IDV Type: IDC
Timeline
Start Date: 2025-09-02
Current End Date: 2026-09-01
Potential End Date: 2026-09-01 00:00:00
Last Modified: 2026-04-08
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