DHS awards $9.3M for shaft seal services, with a 5-day duration and a $18.7K benchmark

Contract Overview

Contract Amount: $93,865 ($93.9K)

Contractor: Defense Maritime Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-14

End Date: 2026-04-19

Contract Duration: 5 days

Daily Burn Rate: $18.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SHAFT SEAL SERVICES

Place of Performance

Location: CURTIS BAY, BALTIMORE CITY County, MARYLAND, 21226

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $93,865 to DEFENSE MARITIME SOLUTIONS, INC. for work described as: SHAFT SEAL SERVICES Key points: 1. Value for money appears fair, with a benchmark of $18,773 for this purchase order. 2. Competition dynamics indicate a competed contract under SAP, suggesting a moderate level of competition. 3. Risk indicators are low, with a short duration and firm fixed price contract type. 4. Performance context is limited due to the short duration and specific nature of the service. 5. Sector positioning is within the maritime defense industry, supporting U.S. Coast Guard operations.

Value Assessment

Rating: fair

The contract value of $9,386,500 for shaft seal services is within a reasonable range given the benchmark of $18,773. However, the benchmark itself is for a purchase order with a 5-day duration, which may not be directly comparable to the full contract value. Further analysis would be needed to understand the scope of services covered by the $9.3M award and how it relates to the benchmark.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and is used for acquisitions below a certain threshold. While competed, the specific number of bidders is not provided, making it difficult to fully assess the level of competition. Limited competition can sometimes lead to less favorable pricing for the government.

Taxpayer Impact: The use of SAP suggests an effort to streamline the acquisition process for a potentially smaller value requirement. However, taxpayers may not be receiving the absolute best price if the competition was not robust.

Public Impact

The U.S. Coast Guard benefits from these services, ensuring operational readiness of its vessels. Shaft seal services are critical for maintaining the propulsion systems of maritime vessels. The contract is geographically focused on Maryland, where the services are likely performed or managed. This contract supports specialized labor within the maritime repair and shipbuilding sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if competition was not fully leveraged.
Limited visibility into the specific technical requirements and performance standards for the shaft seals.

Positive Signals

Firm fixed price contract type mitigates cost overrun risks.
Short contract duration limits long-term financial commitment and exposure.
Awarded to a specific company, Defense Maritime Solutions, Inc., indicating a known entity in this space.

Sector Analysis

The maritime defense sector involves specialized services for naval and coast guard vessels. This contract for shaft seal services falls under ship building and repairing (NAICS 336611). Spending in this sector is driven by national security needs and the maintenance of aging fleets. Comparable spending benchmarks for such specialized repair services can vary significantly based on vessel type and complexity.

Small Business Impact

The data does not indicate if this contract included a small business set-aside. Given the contract type (Purchase Order) and the nature of the service, it's possible that subcontracting opportunities for small businesses may exist, particularly in specialized repair or parts supply. However, without explicit set-aside information, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

As a purchase order, oversight would typically be managed by the contracting officer and the U.S. Coast Guard's program office responsible for vessel maintenance. Transparency is generally good for federal contract awards, but specific oversight mechanisms for the execution of this particular service are not detailed in the provided data. Inspector General jurisdiction would apply if fraud or significant mismanagement were suspected.

Related Government Programs

Ship Maintenance and Repair
Maritime Vessel Services
Propulsion System Components
U.S. Coast Guard Procurement

Risk Flags

Limited competition due to SAP.
Benchmark data may not be fully comparable.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $93,865 to DEFENSE MARITIME SOLUTIONS, INC.. SHAFT SEAL SERVICES

Who is the contractor on this award?

The obligated recipient is DEFENSE MARITIME SOLUTIONS, 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 $93,865.

What is the period of performance?

Start: 2026-04-14. End: 2026-04-19.

What is the typical cost range for shaft seal services for U.S. Coast Guard vessels?

The provided data includes a benchmark of $18,773 for a 5-day purchase order related to shaft seal services. However, this single data point is insufficient to establish a typical cost range for all U.S. Coast Guard vessels. Costs can vary widely depending on the size and type of vessel, the specific shaft seal technology required, the complexity of the installation or repair, and the urgency of the need. Larger vessels or those with specialized propulsion systems would naturally incur higher costs. Without more data on comparable contracts for similar vessels and services, it is difficult to provide a definitive cost range.

How does the $9.3M contract value compare to historical spending on shaft seal services by the U.S. Coast Guard?

The provided data does not contain historical spending information for shaft seal services by the U.S. Coast Guard. Therefore, a direct comparison to historical spending patterns cannot be made. To assess this, one would need to analyze past contract awards for similar services over several fiscal years. This would involve identifying contracts with relevant NAICS codes (e.g., 336611 for Ship Building and Repairing) and keywords related to shaft seals and maritime vessel maintenance. Such an analysis would reveal trends in spending, average contract values, and potential fluctuations in demand or pricing over time.

What are the specific risks associated with Defense Maritime Solutions, Inc. as a contractor for this service?

The provided data does not contain specific risk information related to Defense Maritime Solutions, Inc.'s past performance or track record. To assess contractor-specific risks, one would need to review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, litigation, or debarment. Additionally, understanding the company's financial stability and capacity to perform complex maritime services would be crucial. Without this information, it is assumed the contractor is capable based on the award, but a deeper dive into their history would be necessary for a comprehensive risk assessment.

What is the expected impact of this contract on the operational readiness of the U.S. Coast Guard fleet?

Shaft seals are critical components of a vessel's propulsion system, preventing water ingress and maintaining lubrication. Ensuring these seals are in good working order is vital for the operational readiness of the U.S. Coast Guard fleet. This contract, by providing necessary services for these seals, directly contributes to maintaining the seaworthiness and operational capability of the vessels. The timely and effective execution of these services will help prevent potential breakdowns, reduce downtime, and ensure the Coast Guard can continue its missions without interruption.

How does the 'Competed Under SAP' designation influence the value proposition for taxpayers?

The 'Competed Under SAP' (Simplified Acquisition Procedures) designation suggests that the contract was competed, but likely among a smaller pool of vendors and potentially with less formal solicitation requirements than full and open competition. While competition is generally beneficial for taxpayers, SAP is designed for smaller dollar value acquisitions. If the $9.3M award, despite being under SAP, still attracted sufficient competition, it could represent a reasonable value. However, if the competition was very limited, taxpayers might not have benefited from the most aggressive pricing achievable through broader competition. The efficiency gains of SAP might offset some of this, but a thorough review of the number of bids received would be needed for a definitive conclusion.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 52000PR260024258

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3617 KOPPENS WAY, CHESAPEAKE, VA, 23323

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

Financial Breakdown

Contract Ceiling: $97,039

Exercised Options: $97,039

Current Obligation: $93,865

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline