Coast Guard awards $8,140 for MH-65 aircraft parts, highlighting specialized manufacturing needs

Contract Overview

Contract Amount: $8,141 ($8.1K)

Contractor: Aero Rubber CO Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-09

End Date: 2026-05-21

Contract Duration: 42 days

Daily Burn Rate: $194/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 15YD RUBBER COATED MATER FOR US ON MH-65 AIRCRAFT.

Place of Performance

Location: TINLEY PARK, WILL County, ILLINOIS, 60487

State: Illinois Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8,140.5 to AERO RUBBER CO INC for work described as: PROCUREMENT OF 15YD RUBBER COATED MATER FOR US ON MH-65 AIRCRAFT. Key points: 1. The contract addresses a specific need for specialized rubber-coated materials for MH-65 aircraft. 2. A single supplier was selected, indicating potential limitations in market competition for this niche item. 3. The short duration suggests a focus on immediate or short-term supply requirements. 4. The award is a purchase order, a common mechanism for acquiring goods and services. 5. The procurement falls under the 'Other Aircraft Parts' manufacturing category.

Value Assessment

Rating: fair

The contract value is relatively small at $8,140.50. Without specific cost breakdowns or benchmarks for '15yd rubber coated mater,' a precise value-for-money assessment is difficult. However, given the specialized nature of aircraft parts, pricing can often be higher due to stringent quality and performance requirements. Comparing this to similar, albeit likely larger, procurements for aircraft components would be necessary for a more robust benchmark.

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 awarded on a sole-source basis or through a limited competition not detailed here. The absence of broader competition suggests that Aero Rubber Co. Inc. may be the only or primary provider of this specific material, or that the procurement process did not necessitate a wider solicitation.

Taxpayer Impact: For taxpayers, a sole-source award can sometimes lead to higher prices if competitive pressures are absent. However, for highly specialized or proprietary items, it may be the most efficient way to secure necessary components.

Public Impact

The U.S. Coast Guard benefits directly through the acquisition of essential parts for its MH-65 aircraft fleet. This ensures the continued operational readiness and maintenance of critical aviation assets. The services delivered are the provision of specialized rubber-coated materials. The geographic impact is primarily within the operational areas of the MH-65 fleet, likely nationwide and potentially overseas. Workforce implications are minimal for this specific contract, but it supports the aviation maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Reliance on a single supplier could pose supply chain risks.
Limited transparency in the procurement process due to sole-source award.

Positive Signals

Addresses a specific, critical need for aircraft maintenance.
Utilizes a standard procurement vehicle (Purchase Order).
Awarded to a known entity in the aerospace supply sector.

Sector Analysis

The aerospace parts manufacturing sector is characterized by high technical barriers to entry, stringent quality control, and often long lead times. This contract, for specialized rubber-coated materials for MH-65 aircraft, fits within the niche of 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' While the dollar amount is small, it represents a component of the broader defense and homeland security industrial base, where specialized materials are crucial for maintaining complex systems like helicopters.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans. The award to Aero Rubber Co. Inc. does not provide insight into their size status, but the nature of specialized aerospace components often involves larger, established suppliers.

Oversight & Accountability

The oversight for this contract would typically fall under the U.S. Coast Guard's internal procurement and financial management systems. As a Purchase Order under $10,000, it likely falls below the threshold for extensive external oversight or Inspector General review unless specific concerns are raised. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

MH-65 Helicopter Maintenance
Aircraft Parts Procurement
Homeland Security Aviation Assets
Specialized Material Manufacturing

Risk Flags

Sole-source award may limit price competition.
Potential supply chain risk due to single supplier.
Lack of detailed justification for non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8,140.5 to AERO RUBBER CO INC. PROCUREMENT OF 15YD RUBBER COATED MATER FOR US ON MH-65 AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is AERO RUBBER CO 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 $8,140.5.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-21.

What is the specific function and importance of the '15yd rubber coated mater' for the MH-65 aircraft?

The '15yd rubber coated mater' likely refers to a specific type of specialized material used in the construction or maintenance of the MH-65 helicopter. Given its description as 'rubber coated,' it could be used for seals, vibration dampening, protective coverings, or other components requiring flexibility, durability, and resistance to environmental factors. The MH-65 is a versatile aircraft used for search and rescue, law enforcement, and maritime patrol, making the reliability of all its components, including specialized materials, critical for mission success and crew safety. The exact function would be detailed in the technical specifications of the contract, which are not publicly available in this data.

Why was this contract not competed under Simplified Acquisition Procedures (SAP)?

Contracts are typically competed under Simplified Acquisition Procedures (SAP) for procurements valued below a certain threshold (currently $250,000 for most agencies). The fact that this $8,140.50 contract was 'NOT COMPETED UNDER SAP' suggests it may have been awarded using a specific exception or authority that bypasses standard SAP competition, such as a sole-source justification (e.g., only one responsible source exists, or urgency). Alternatively, it could indicate an administrative classification error in the data provided. Without further details on the specific procurement action, it's difficult to definitively state the reason for not using standard SAP competition.

What is the typical cost range for similar specialized aircraft components?

Determining a 'typical' cost range for highly specialized aircraft components like '15yd rubber coated mater' is challenging without precise specifications and market data. Aircraft parts, especially those for military or specialized service aircraft like the MH-65, often command premium prices due to rigorous testing, certification requirements, unique material properties, and low-volume production. Costs can range from hundreds to tens of thousands of dollars per unit or component, depending on complexity, material, and supplier. A $8,140 award for a quantity of material could be reasonable if it meets stringent aerospace-grade standards and is sourced from a specialized manufacturer.

What are the potential risks associated with a sole-source award for aircraft parts?

Sole-source awards for critical aircraft parts carry several potential risks. Firstly, the absence of competition can lead to higher prices than might be achieved in a competitive bidding process, increasing costs for the government. Secondly, it creates a dependency on a single supplier, which can lead to supply chain vulnerabilities. If the sole-source provider experiences production issues, financial difficulties, or decides to discontinue the product, the government may face significant delays or be unable to procure necessary parts. This also limits the government's ability to leverage market dynamics for better terms or innovation.

How does this procurement fit into the overall spending on MH-65 aircraft maintenance and support?

This $8,140.50 contract represents a very small fraction of the overall spending required to maintain and support a fleet of MH-65 aircraft. The MH-65, operated by the U.S. Coast Guard, requires continuous maintenance, repair, and overhaul services, which involve numerous components, labor, and specialized support. Annual budgets for fleet readiness can run into millions or tens of millions of dollars, encompassing everything from engine overhauls and avionics upgrades to routine inspections and the procurement of various spare parts. This specific award is likely for a minor component or a small quantity of a specialized material needed for a particular maintenance task.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03826QB0000074

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8100 185TH ST, TINLEY PARK, IL, 60487

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,281

Exercised Options: $8,141

Current Obligation: $8,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline