DHS Coast Guard Awards $497K for Sturgeon Bay Propulsion Shaft Seal Mount to Defense Maritime Solutions

Contract Overview

Contract Amount: $49,692 ($49.7K)

Contractor: Defense Maritime Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-03

End Date: 2026-08-21

Contract Duration: 140 days

Daily Burn Rate: $355/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CGC STURGEON BAY - PROPULSION SHAFT SEAL MOUNT

Place of Performance

Location: BAYONNE, HUDSON County, NEW JERSEY, 07002

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $49,691.72 to DEFENSE MARITIME SOLUTIONS, INC. for work described as: CGC STURGEON BAY - PROPULSION SHAFT SEAL MOUNT Key points: 1. The contract value is $496,917.72. 2. Defense Maritime Solutions, Inc. is the sole awardee. 3. The contract is for a propulsion shaft seal mount. 4. The sector is Defense Maritime.

Value Assessment

Rating: fair

The contract value of $496,917.72 for a propulsion shaft seal mount appears to be within a reasonable range for specialized maritime components. However, without specific details on the scope of work and materials, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in a higher cost than if multiple vendors had competed.

Taxpayer Impact: The lack of competition for this sole-source award means taxpayers may not be receiving the best possible price for this specialized equipment.

Public Impact

Ensures operational readiness of U.S. Coast Guard vessels. Supports critical maritime security and defense missions. Impacts the supply chain for specialized shipbuilding components.

Waste & Efficiency Indicators

Waste Risk Score: 35 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Potential for higher costs due to lack of competitive bidding.
Limited transparency on the specific technical requirements and justification for sole-source.

Positive Signals

Addresses a specific operational need for the Coast Guard.
Awarded to a known entity in the maritime defense sector.

Sector Analysis

This contract falls within the shipbuilding and repair sector, specifically for maritime defense. Spending in this area is critical for national security, but often involves specialized components and limited vendor pools, impacting cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or possible.

Oversight & Accountability

Oversight is primarily the responsibility of the U.S. Coast Guard. The justification for the sole-source award and the final pricing should be subject to internal review to ensure fiscal responsibility.

Related Government Programs

Ship Building and Repairing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited small business participation potential
Dependency on a single supplier for critical component

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $49,691.72 to DEFENSE MARITIME SOLUTIONS, INC.. CGC STURGEON BAY - PROPULSION SHAFT SEAL MOUNT

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 $49,691.72.

What is the period of performance?

Start: 2026-04-03. End: 2026-08-21.

What is the specific technical justification for awarding this contract on a sole-source basis?

The provided data does not include the specific technical justification for the sole-source award. Typically, such justifications would detail unique capabilities, proprietary technology, or urgent needs that only a single vendor can meet. Without this information, it's difficult to assess the necessity of bypassing competitive bidding.

How does the $496,917.72 price compare to similar propulsion shaft seal mount procurements?

Benchmarking this specific price is challenging without more detailed contract information, such as the exact specifications, materials, and quantity. However, for a single, specialized component like a propulsion shaft seal mount for a vessel, this value is not inherently excessive, but a lack of competition prevents confirmation of optimal pricing.

What is the potential risk to operational readiness if this component fails and cannot be quickly replaced due to sole-source limitations?

The risk to operational readiness is moderate. While the contract specifies a delivery end date, the sole-source nature could lead to longer lead times for replacements or repairs if issues arise post-delivery. The Coast Guard likely has contingency plans, but reliance on a single supplier for critical parts always introduces some level of supply chain vulnerability.

Industry Classification

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

Product/Service Code: SHIP AND MARINE EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70Z08526Q023578

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,692

Exercised Options: $49,692

Current Obligation: $49,692

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline