Propulsion Systems, Inc.

Propulsion Systems, Inc., doing business as Propeller Services, manufactures controllable pitch propeller (CPP) systems, propeller hubs, and specialized marine propulsion components for the U.S. Coast Guard, Military Sealift Command, and Army Corps of Engineers as a prime contractor on firm fixed-price purchase orders, competing in full-and-open procurements with no recurring small-business set-aside posture.

A for-profit Subchapter S Corporation headquartered in Seattle, Washington, Propulsion Systems operates as an original equipment manufacturer (OEM) with proprietary expertise in CPP systems and propulsion controls that frequently qualifies it for sole-source awards across federal maritime agencies. The vendor's federal footprint spans 304 awards since 1991, with $30.9 million in combined potential value and $25.1 million obligated (81% realization rate). Recent activity shows volatility — four awards in 2022, five in 2023, two in 2024, eight in 2025, and three year-to-date in 2026 — suggesting uneven demand cycles or project-based procurement patterns. Only one sub-award appears in the source (a June 2025 sub to Reliance Test & Technology for steering system repair services), with the vendor operating almost exclusively as a prime.

Coast Guard contracts dominate the dollar value. The Department of Homeland Security U.S. Coast Guard accounts for 81 awards worth $15.8 million combined potential value, centered on 210-foot and 270-foot cutter propulsion components including crank disc assemblies, seal replacement kits, propeller hub change-out kits, and CPP system repairs. Military Sealift Command places 83 awards valued at $5.2 million, focused on propeller hub refurbishment, blade/shaft flange assemblies, and CPP overhaul services for vessels including the USNS GRASP and USNS CATAWBA. The Army Corps of Engineers has issued 29 awards across multiple engineering districts totaling $5.2 million, primarily for controllable pitch propeller hub repair and propulsion control system modifications on dredge vessels (Essayons, Wheeler). Naval Supply Systems Command and the Department of the Navy account for smaller volumes but establish OEM-dependent customer relationships. These five customer groups represent 79% of award count and 90% of combined potential value.

The vendor places task orders under five indefinite delivery contracts: N3198000D4011 (12 task orders, no dollar value disclosed), HSCG4005D60038 (7 task orders, $2.2 million), N6238391D1113 (5 task orders), N6238394D1153 (4 task orders), and HSCG4012D30089 (3 task orders, $2.6 million). These vehicles anchor the recurring revenue stream for Coast Guard and Navy customers. Propulsion Systems' NAICS concentration reflects its maritime specialization: Ship Building and Repairing (94 awards), All Other Miscellaneous Fabricated Metal Product Manufacturing (43 awards), and Machine Shops (28 awards). PSC concentration centers on Ship and Marine Equipment Maintenance/Repair (61 awards), Non-Nuclear Ship Repair West and East (77 awards combined), and Ship and Boat Propulsion Components (50 awards). Recent named work includes a $1.997 million Army Corps of Engineers tailshaft procurement for the Essayons (September 2025), a $545 thousand Military Sealift Command propeller hub overhaul for the USNS CATAWBA (March 2025), and a $197 thousand Coast Guard firm fixed-price purchase order for four units of crank disc assemblies (May 2026). Recompete exposure in the next twenty-four months stands at $418 thousand (two awards), indicating limited near-term contract competition risk. Propulsion Systems' federal position rests on OEM status and sole-source qualification rather than vehicle breadth or teaming density.