Coast Guard awards $586K for LOX converters, impacting HC-130J aircraft readiness

Contract Overview

Contract Amount: $58,647 ($58.6K)

Contractor: Blue Group LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-01

End Date: 2026-08-04

Contract Duration: 125 days

Daily Burn Rate: $469/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 31

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF LOX CONVERTERS TO BE USED ON UNITED STATES COAST GUARD HC-130J AIRCRAFT.

Place of Performance

Location: TWIN FALLS, TWIN FALLS County, IDAHO, 83301

State: Idaho Government Spending

Plain-Language Summary

Department of Homeland Security obligated $58,647 to BLUE GROUP LLC for work described as: PURCHASE OF LOX CONVERTERS TO BE USED ON UNITED STATES COAST GUARD HC-130J AIRCRAFT. Key points: 1. Value for money appears reasonable given the specialized nature of aircraft parts. 2. Competition dynamics indicate a potentially efficient procurement process under SAP. 3. Risk indicators are low due to a firm fixed-price contract and short duration. 4. Performance context suggests a focus on maintaining operational capability for HC-130J. 5. Sector positioning aligns with critical aviation support services for national security.

Value Assessment

Rating: good

The contract value of $586,470 for LOX converters is modest. Benchmarking against similar specialized aircraft parts is challenging without more detailed specifications. However, the firm fixed-price nature suggests the government has locked in costs, which is a positive sign for value. The relatively short performance period also limits potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition environment, likely due to the relatively low dollar value. While the specific number of bidders is not provided, SAP typically involves fewer bidders than full and open competition. This approach can expedite procurement but may not always yield the lowest possible price.

Taxpayer Impact: Limited competition under SAP may mean taxpayers did not benefit from the full potential of a broader bidding process, potentially leading to a slightly higher price than if more vendors had participated.

Public Impact

Benefits the United States Coast Guard by ensuring the operational readiness of its HC-130J aircraft fleet. Delivers essential components (LOX converters) critical for aircraft safety and functionality. Geographic impact is national, supporting Coast Guard operations across various regions. Workforce implications are indirect, supporting aviation maintenance personnel and flight crews.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor pool due to specialized nature of parts.
Reliance on a single supplier could emerge if competition remains limited in future procurements.

Positive Signals

Firm fixed-price contract mitigates cost escalation risks.
Short contract duration limits exposure to market fluctuations.
Procurement under SAP suggests efficiency for this acquisition size.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing and support. The market for specialized aviation components like LOX converters is often niche, with a limited number of qualified manufacturers. Spending in this area is crucial for maintaining the operational capabilities of military and civilian aviation fleets.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Given the specialized nature of aircraft parts, it's possible that larger, more established manufacturers dominate this particular market segment. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the performance of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement regulations and the U.S. Coast Guard's program management. As a purchase order under SAP, it likely undergoes standard financial and administrative review. Transparency is generally maintained through contract databases, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Aviation Support Services
U.S. Coast Guard Aviation Maintenance
HC-130J Hercules Aircraft Sustainment

Risk Flags

Potential for limited competition due to specialized nature of parts.
Need for further analysis on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $58,647 to BLUE GROUP LLC. PURCHASE OF LOX CONVERTERS TO BE USED ON UNITED STATES COAST GUARD HC-130J AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is BLUE 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 $58,647.

What is the period of performance?

Start: 2026-04-01. End: 2026-08-04.

What is the track record of BLUE GROUP LLC in supplying aircraft components to the federal government?

Information regarding BLUE GROUP LLC's specific track record in supplying aircraft components to the federal government is not detailed in the provided data. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to assess their past performance, contract history, and any reported issues or successes. Understanding their experience with similar components or aircraft platforms would provide valuable context for evaluating their reliability and capability in fulfilling this specific contract for LOX converters.

How does the price of these LOX converters compare to market rates or similar government purchases?

The provided data does not include specific pricing details beyond the total contract value, making a direct per-unit cost comparison difficult. To assess value for money, one would need to know the quantity of LOX converters purchased and their individual price. Benchmarking against commercial off-the-shelf (COTS) prices for similar components, or against historical government purchase prices for the same or comparable items, would be essential. Given the specialized nature of aviation parts, prices can vary significantly based on certification requirements, lead times, and supplier.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks for this contract are relatively low due to its nature. Potential risks include supply chain disruptions affecting delivery timelines, or the possibility of component defects. However, these are mitigated by the firm fixed-price (FFP) contract type, which shifts cost overrun risk to the contractor (BLUE GROUP LLC). The short performance period (125 days) also limits the window for potential issues. The U.S. Coast Guard's quality assurance processes would further mitigate risks related to component defects.

How effective is the U.S. Coast Guard's use of Simplified Acquisition Procedures (SAP) for acquiring aircraft parts?

The use of Simplified Acquisition Procedures (SAP) for acquiring aircraft parts like LOX converters is generally effective for lower-value procurements, aiming for speed and efficiency. For items under the SAP threshold (typically $250,000, though exceptions exist), it allows for less formal competition and documentation, reducing administrative burden. However, its effectiveness in ensuring the best possible price is debatable, as it may limit the number of potential bidders compared to full and open competition. For critical components like those for HC-130J aircraft, a balance between speed and robust competition is key.

What is the historical spending pattern for LOX converters or similar aircraft parts by the U.S. Coast Guard?

The provided data does not offer historical spending patterns for LOX converters or similar parts. To analyze this, one would need to query federal procurement databases for past contracts awarded by the U.S. Coast Guard (or Department of Homeland Security) for these specific items or within the same product service code (PSC). Examining trends in contract values, quantities, awardees, and competition levels over several fiscal years would reveal patterns in demand, pricing, and supplier relationships.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03826QH0000044

Offers Received: 31

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2195 VILLAGE PARK AVE STE 100, TWIN FALLS, ID, 83301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $58,647

Exercised Options: $58,647

Current Obligation: $58,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline