DHS Coast Guard awards $43K for retaining rings and tuning assemblies, with 4 bidders

Contract Overview

Contract Amount: $42,996 ($43.0K)

Contractor: Aqua-Chem, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-10

End Date: 2026-06-23

Contract Duration: 74 days

Daily Burn Rate: $581/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 5325-01-678-5072 RETAINING RING 4710-01-678-5324 TUNING ASSEMBLY, NONMETALLIC 5325-01-676-8623 RETAINING RING

Place of Performance

Location: KNOXVILLE, KNOX County, TENNESSEE, 37914

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42,995.66 to AQUA-CHEM, INC. for work described as: 5325-01-678-5072 RETAINING RING 4710-01-678-5324 TUNING ASSEMBLY, NONMETALLIC 5325-01-676-8623 RETAINING RING Key points: 1. The contract value of $43,995.66 appears to be for a relatively small quantity of specialized parts. 2. Competition dynamics indicate a healthy level of interest with four bidders for this purchase. 3. The short performance period suggests a need for immediate or near-term supply. 4. The contract falls under the Gasket, Packing, and Sealing Device Manufacturing sector. 5. The award was made under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 6. The fixed-price contract type helps to mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of approximately $43,000 for retaining rings and tuning assemblies is modest. Benchmarking per-unit costs for such specialized components can be challenging without detailed specifications. However, the presence of four bidders suggests that the pricing offered was likely competitive within the market for these specific items. The firm fixed-price nature of the award provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for full and open competition for procurements below a certain threshold. The fact that four bids were received indicates a reasonable level of competition for these specialized parts. This suggests that multiple vendors were aware of and capable of fulfilling the requirement, contributing to price discovery.

Taxpayer Impact: The competition among four bidders for this relatively small purchase likely resulted in a fair market price for the taxpayer, preventing excessive costs for these essential components.

Public Impact

The U.S. Coast Guard is the direct beneficiary, ensuring operational readiness through the supply of necessary parts. The contract provides essential components for potential maintenance or operational needs within the Coast Guard's fleet. The geographic impact is primarily within Tennessee, where the contractor AQUA-CHEM, INC. is located. The contract supports a small segment of the manufacturing workforce involved in producing specialized sealing devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if demand for these specific parts increases significantly.
Reliance on a single contractor for delivery within a short timeframe could pose a risk if unforeseen issues arise.

Positive Signals

Competitive bidding process ensures fair pricing.
Firm fixed-price contract limits cost uncertainty.
Award to a domestic manufacturer supports the U.S. industrial base.

Sector Analysis

This contract falls within the Gasket, Packing, and Sealing Device Manufacturing industry, a niche within the broader manufacturing sector. This industry supplies critical components for various mechanical systems. The market size for such specialized parts is often fragmented, with many small to medium-sized enterprises. This specific award represents a small but necessary procurement for the Department of Homeland Security's operational needs.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the award details. The primary contractor, AQUA-CHEM, INC., is not identified as a small business in this context. Further analysis would be needed to determine if any small business participation occurred indirectly.

Oversight & Accountability

Oversight for this purchase order would typically fall under the U.S. Coast Guard's contracting and financial management departments within the Department of Homeland Security. Standard procurement regulations and internal controls are expected to be in place. Transparency is generally maintained through contract databases, though specific performance monitoring details are not provided.

Related Government Programs

Department of Homeland Security Procurement
U.S. Coast Guard Equipment Maintenance
Gasket, Packing, and Sealing Device Procurement
Federal Purchase Orders

Risk Flags

Short performance period could indicate urgency or potential delivery challenges.
Reliance on specific part numbers may limit future sourcing options if not standardized.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42,995.66 to AQUA-CHEM, INC.. 5325-01-678-5072 RETAINING RING 4710-01-678-5324 TUNING ASSEMBLY, NONMETALLIC 5325-01-676-8623 RETAINING RING

Who is the contractor on this award?

The obligated recipient is AQUA-CHEM, 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 $42,995.66.

What is the period of performance?

Start: 2026-04-10. End: 2026-06-23.

What is the historical spending pattern for retaining rings and tuning assemblies by the U.S. Coast Guard?

Analyzing historical spending for these specific parts by the U.S. Coast Guard would require a deep dive into their procurement databases over several fiscal years. Without access to that granular data, it's difficult to establish a precise pattern. However, procurements of this nature (under SAP, for specialized components) are typically sporadic, driven by specific maintenance needs or equipment lifecycles rather than consistent, high-volume demand. The current award of $43,995.66 suggests a relatively small, targeted purchase. Future spending would likely depend on the operational tempo, equipment sustainment plans, and the remaining service life of the assets requiring these components. It's reasonable to assume similar small-value, competed procurements may occur as needed, but a consistent annual spend is unlikely.

What is the typical lead time for delivery of such specialized components?

The typical lead time for delivery of specialized components like retaining rings and tuning assemblies can vary significantly based on the manufacturer's production capacity, current backlog, and the complexity of the item. For standard, off-the-shelf parts, lead times might range from a few days to a few weeks. However, if these are custom-manufactured or require specific certifications for government use, lead times could extend to several months. The contract's performance period (ending June 23, 2026, from an award likely made earlier in 2026, given the duration) suggests a lead time of approximately two months from award to completion. This implies the parts were either readily available or the manufacturer could produce them within that timeframe, which is relatively prompt for specialized industrial components.

How does the number of bidders (4) impact the value for money in this specific contract?

Having four bidders for this contract is a positive indicator for value for money. Increased competition generally drives down prices as vendors vie for the contract award. In this case, with four offers received, the U.S. Coast Guard likely benefited from a more competitive price than if there had been only one or two bidders. While the total value is modest ($43,995.66), the competitive process helps ensure that the government is not overpaying for these retaining rings and tuning assemblies. It suggests that the market has sufficient suppliers capable of meeting the Coast Guard's requirements, leading to a more efficient use of taxpayer funds for this specific procurement.

What are the potential risks associated with a firm fixed-price contract for these items?

The primary risk associated with a firm fixed-price (FFP) contract, especially for manufactured goods, is that the contractor bears the risk of cost overruns. If AQUA-CHEM, INC. underestimated their production costs, material expenses, or labor hours, they might incur a loss on this contract. Conversely, for the government, the main risk is that the contractor may have built a significant contingency into their price to cover potential risks, potentially leading to a higher initial price than a cost-reimbursable contract might have offered if costs were lower than anticipated. However, for relatively simple, well-defined items like retaining rings and tuning assemblies, FFP is generally preferred as it provides the most cost certainty for the buyer.

What is the significance of the contract being competed under SAP (Simplified Acquisition Procedures)?

Competing this contract under Simplified Acquisition Procedures (SAP) signifies that the total dollar value was likely below the threshold for full and open competition ($250,000 as of recent regulations, though this can vary). SAP is designed to streamline the procurement process for smaller purchases, making it faster and less burdensome. This often involves using methods like GSA Schedules, electronic RFQs (Requests for Quotations), or other simplified methods. The fact that it was competed under SAP and still attracted four bidders suggests that the process was effective in reaching potential suppliers for this specific need, balancing efficiency with a degree of market research and competition.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Gasket, Packing, and Sealing Device Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z08026Q20094

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3001 E GOVERNOR JOHN SEVIER HWY, KNOXVILLE, TN, 37914

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: $42,996

Exercised Options: $42,996

Current Obligation: $42,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline