DHS Coast Guard awards $53K for MH-65T aircraft connecting link rig, a sole-source purchase

Contract Overview

Contract Amount: $53,187 ($53.2K)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-06

End Date: 2026-11-09

Contract Duration: 217 days

Daily Burn Rate: $245/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF CONNECTING LINK RIG TO BE USED ON THE MH65T AIRCRAFT.

Place of Performance

Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $53,187.3 to AIRBUS HELICOPTERS, INC. for work described as: PROCUREMENT OF CONNECTING LINK RIG TO BE USED ON THE MH65T AIRCRAFT. Key points: 1. The contract value is relatively small, suggesting a specific, limited need. 2. Sole-source procurement limits price discovery and potentially increases costs. 3. The short performance period indicates a focused, short-term requirement. 4. The purchase order award type is common for smaller, less complex acquisitions. 5. The item is an aircraft part, falling under a specialized manufacturing category. 6. The contract is for a firm-fixed-price, reducing cost overrun risk for the government.

Value Assessment

Rating: fair

The contract value of $53,187.30 is for a specific aircraft part. Without comparable sole-source procurements for this exact part, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure helps mitigate cost escalation risks. The limited scope suggests it might be a fair price for a niche component, but the lack of competition prevents robust benchmarking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely procured through a sole-source justification. This means only one vendor was solicited, bypassing a competitive bidding process. The lack of competition limits the government's ability to explore alternative suppliers or negotiate the best possible price.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no market pressure to drive down costs. This limits the efficient use of public funds.

Public Impact

The U.S. Coast Guard benefits from the acquisition of a critical component for its MH-65T aircraft. This ensures the continued operational readiness and safety of the MH-65T helicopter fleet. The service delivered is the provision of a specialized aircraft part. The geographic impact is primarily related to the operational bases of the MH-65T aircraft within the U.S. Coast Guard's domain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially inflates price.
Lack of transparency in the justification for sole-source procurement.
Short performance period might indicate urgency or a stop-gap measure.

Positive Signals

Firm-fixed-price contract protects against cost overruns.
Specific part ensures operational capability for critical MH-65T aircraft.
Awarded to a known entity (Airbus Helicopters, Inc.) which may have specialized knowledge.

Sector Analysis

The procurement falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. The market for specialized helicopter components like connecting link rigs is often niche, with a limited number of qualified manufacturers. Spending in this sub-sector is driven by fleet maintenance, modernization, and operational requirements of military and civilian aviation entities. Comparable spending would involve other sole-source or limited-competition awards for unique aircraft parts.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the awardee is Airbus Helicopters, Inc., a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific award. The focus is on a specialized part likely manufactured by a prime contractor or its direct suppliers, rather than a broad effort to engage the small business ecosystem.

Oversight & Accountability

As a purchase order under $250,000, this contract likely falls under simplified acquisition procedures, which have streamlined oversight. Oversight would primarily be managed by the U.S. Coast Guard contracting officers and program managers responsible for the MH-65T fleet. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud or waste were suspected.

Related Government Programs

MH-65T Helicopter Maintenance
Aircraft Parts Procurement
Aviation Component Manufacturing
Department of Homeland Security Aviation Support

Risk Flags

Sole Source Justification
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $53,187.3 to AIRBUS HELICOPTERS, INC.. PROCUREMENT OF CONNECTING LINK RIG TO BE USED ON THE MH65T AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is AIRBUS HELICOPTERS, 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 $53,187.3.

What is the period of performance?

Start: 2026-04-06. End: 2026-11-09.

What is the specific function of the connecting link rig for the MH-65T aircraft, and why is it critical?

The connecting link rig is a crucial component within the rotor head assembly of the MH-65T helicopter. Its primary function is to connect the rotor blades to the main rotor hub, allowing for the transmission of forces and control inputs. This connection is vital for the helicopter's ability to generate lift and maneuver. The integrity and proper functioning of this rig are paramount for flight safety and operational effectiveness. Failure of such a component could lead to catastrophic consequences, underscoring its critical nature for the MH-65T's mission readiness.

What is the typical lead time for procuring specialized aircraft parts like this connecting link rig, and does the contract duration reflect that?

The typical lead time for specialized aircraft parts can vary significantly based on factors such as manufacturing complexity, material availability, and the supplier's production schedule. For a critical component like a rotor head assembly part, lead times can range from several weeks to several months. The contract duration of approximately 7 months (from award to expected completion) seems to align with the potential lead time for manufacturing and delivery of such a specialized item. However, without specific knowledge of Airbus Helicopters' production cycles for this part, it's difficult to definitively state if the duration is optimized or reflects standard lead times.

What are the risks associated with sole-source procurement for critical aircraft components?

Sole-source procurement for critical aircraft components carries several risks. Primarily, it eliminates competitive pressure, which can lead to higher prices than might be achieved in a competitive bidding process. This lack of competition can also reduce the incentive for the sole provider to innovate or improve efficiency. Furthermore, it creates a dependency on a single supplier, making the government vulnerable to supply chain disruptions, price increases, or changes in the supplier's business strategy. For critical components, this dependency can impact operational readiness if the sole source cannot meet demand or quality standards.

How does the firm-fixed-price contract type mitigate risk for the U.S. Coast Guard in this acquisition?

The firm-fixed-price (FFP) contract type is highly beneficial for the U.S. Coast Guard in this acquisition as it shifts the majority of the cost risk to the contractor, Airbus Helicopters, Inc. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's actual costs. This means that if the contractor incurs higher-than-expected costs during manufacturing or delivery, their profit margin will decrease, but the government's payment obligation remains fixed. This provides budget certainty and protects the Coast Guard from unforeseen cost escalations, which is particularly important for specialized and potentially expensive aircraft components.

What is the historical spending pattern for similar aircraft parts by the U.S. Coast Guard or Department of Homeland Security?

Analyzing historical spending patterns for similar aircraft parts by the U.S. Coast Guard or DHS requires access to detailed procurement databases. Generally, spending on aircraft parts is driven by fleet size, age, operational tempo, and maintenance schedules. Sole-source procurements for specialized components are not uncommon in the aerospace industry due to proprietary designs or limited manufacturing capabilities. However, the frequency and value of such awards for specific parts like the MH-65T connecting link rig would indicate the overall sustainment cost of the fleet and the reliance on specific vendors. Without specific data on past awards for this exact part or similar critical components, it's difficult to establish a precise historical spending benchmark.

Industry Classification

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

Product/Service Code: MECHANICAL POWER TRANSMISSION EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03826QB0000071

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2701 N FORUM DR, GRAND PRAIRIE, TX, 75052

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

Financial Breakdown

Contract Ceiling: $53,187

Exercised Options: $53,187

Current Obligation: $53,187

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline