Coast Guard awards $433K for electromagnetic relays, impacting aircraft parts manufacturing

Contract Overview

Contract Amount: $43,310 ($43.3K)

Contractor: Samstar LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-02

End Date: 2027-04-07

Contract Duration: 370 days

Daily Burn Rate: $117/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF RELAY, ELECTROMAGNETIC FOR USE ON HC-130J AIRCRAFT.

Place of Performance

Location: NEWARK, NEW CASTLE County, DELAWARE, 19702

State: Delaware Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43,310.4 to SAMSTAR LLC for work described as: PURCHASE OF RELAY, ELECTROMAGNETIC FOR USE ON HC-130J AIRCRAFT. Key points: 1. Value for money appears reasonable given the fixed-price nature of the award. 2. Competition dynamics indicate a standard procurement process for aircraft parts. 3. Risk indicators are low due to the nature of the item and the established contractor. 4. Performance context suggests a routine supply of essential aircraft components. 5. Sector positioning places this within the broader aerospace and defense supply chain.

Value Assessment

Rating: good

The award of $433,104.00 for electromagnetic relays for HC-130J aircraft appears to be within a reasonable range for specialized aircraft components. While direct comparisons are difficult without more granular data on similar relay procurements, the firm fixed-price contract structure suggests that the government has locked in a price. The quantity of 13 units for this price indicates a specialized, likely high-reliability component, which typically commands a higher per-unit cost than standard electronic parts. The contractor, SAMSTAR LLC, has a history of supplying to the government, suggesting familiarity with pricing expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements under a certain dollar threshold. The data indicates 13 bids were received, suggesting a healthy level of interest and competition for this specific requirement. This level of competition is generally positive for price discovery, as multiple vendors had the opportunity to submit offers, likely driving the price down to a competitive level.

Taxpayer Impact: The robust competition for this requirement is beneficial for taxpayers, as it increases the likelihood of obtaining the best possible price for these essential aircraft components.

Public Impact

The U.S. Coast Guard benefits from the reliable supply of critical electromagnetic relays for its HC-130J aircraft fleet. Essential aircraft parts are being delivered, ensuring the operational readiness of vital Coast Guard assets. The geographic impact is primarily within the defense industrial base, supporting manufacturing and supply chains. Workforce implications are likely within the specialized manufacturing and aerospace sectors involved in producing these components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if demand for HC-130J parts increases significantly.
Dependence on a single contractor for this specific part could pose a risk if supply chain issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty.
Multiple bids received indicate a competitive market for this component.
Contractor has experience supplying to the government.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. The market for specialized aircraft components is characterized by high technical requirements, stringent quality control, and often long lead times. Spending in this area is driven by the need to maintain aging fleets and procure parts for new platforms. Comparable spending benchmarks would typically be found within the broader category of aircraft equipment and parts, where numerous contracts exist for various components and systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). However, the competition under SAP, with 13 bids, suggests that small businesses may have participated in the bidding process. The subcontracting implications are not detailed here, but larger prime contractors often have small business subcontracting goals. For this direct award, the impact on the small business ecosystem is neutral unless SAMSTAR LLC itself is a small business and utilizes other small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. As a purchase order under SAP, it is subject to standard procurement regulations and internal review processes. Transparency is provided through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, but routine oversight is managed by the agency.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Aerospace and Defense Supply Chain
U.S. Coast Guard Aviation Maintenance
HC-130J Hercules Aircraft Support

Risk Flags

Potential for supply chain disruption
Component obsolescence risk over long term

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43,310.4 to SAMSTAR LLC. PURCHASE OF RELAY, ELECTROMAGNETIC FOR USE ON HC-130J AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is SAMSTAR 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 $43,310.4.

What is the period of performance?

Start: 2026-04-02. End: 2027-04-07.

What is the track record of SAMSTAR LLC in supplying similar electromagnetic relays to the government?

SAMSTAR LLC has a history of supplying various components to the U.S. government, including items related to aircraft and electronics. While specific details on their track record for electromagnetic relays for the HC-130J are not explicitly detailed in this summary, their presence as a contractor suggests they have met previous government requirements. Further analysis would involve reviewing their past performance evaluations and the types of components they have supplied across different agencies. The fact that they were awarded this contract, which was competed under SAP with multiple bids, implies a satisfactory level of past performance or competitive pricing.

How does the per-unit cost of these relays compare to market rates for similar components?

Determining the exact per-unit cost benchmark is challenging without knowing the specific technical specifications of the electromagnetic relays. However, the total award of $433,104.00 for 13 units suggests a per-unit cost of approximately $33,315.70. This is a significant figure, indicating these are likely highly specialized, mil-spec, or mission-critical components for the HC-130J aircraft. Standard commercial relays would cost orders of magnitude less. Benchmarking would require comparing these specifications against similar mil-spec relays used in other military or civilian aviation platforms, considering factors like operating environment, lifespan, and certification requirements.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract are relatively low given its nature. Potential risks include supply chain disruptions if SAMSTAR LLC faces manufacturing or sourcing issues for these specific relays, which could impact the HC-130J's operational readiness. Another minor risk could be obsolescence if the HC-130J platform is nearing the end of its service life and the availability of these specific parts diminishes over time. However, the firm fixed-price contract mitigates financial risk for the government. The competition under SAP also suggests a reasonably stable market for this component.

How effective is the competition level in ensuring value for the U.S. Coast Guard?

The competition level, indicated by 13 bids received under Simplified Acquisition Procedures, is generally effective in ensuring value for the U.S. Coast Guard. This number of bidders suggests that the market for these electromagnetic relays is sufficiently robust to support multiple suppliers. A competitive environment typically drives down prices and encourages suppliers to offer high-quality products and reliable service to win contracts. The firm fixed-price nature of the award further locks in costs, providing budget certainty and preventing cost overruns, thereby enhancing the overall value proposition for the government.

What is the historical spending pattern for electromagnetic relays for HC-130J aircraft?

Historical spending patterns for electromagnetic relays specifically for the HC-130J aircraft are not detailed in the provided data. However, the U.S. Coast Guard operates a fleet of HC-130J aircraft, which are complex platforms requiring ongoing maintenance and part replacement. It is reasonable to assume that recurring procurements of such components are necessary to sustain fleet readiness. Analyzing past contracts for similar parts, or aggregate spending on HC-130J sustainment, would provide a broader context for this $433K award. The current award represents a single procurement action, and understanding its place within a larger sustainment strategy would require more extensive historical data.

Industry Classification

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

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03826QH0000043

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 254 CHAPMAN RD STE 208 # 14104, NEWARK, DE, 19702

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,310

Exercised Options: $43,310

Current Obligation: $43,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline