Commerce Awards $524K Purchase Order to KLA Corp for Semiconductor Manufacturing Equipment
Contract Overview
Contract Amount: $52,429 ($52.4K)
Contractor: KLA Corporation
Awarding Agency: Department of Commerce
Start Date: 2026-04-02
End Date: 2026-06-02
Contract Duration: 61 days
Daily Burn Rate: $859/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OU73-FY26-055-NEW NANOSWIFT CONTROLLER
Place of Performance
Location: MILPITAS, SANTA CLARA County, CALIFORNIA, 95035
Plain-Language Summary
Department of Commerce obligated $52,428.81 to KLA CORPORATION for work described as: OU73-FY26-055-NEW NANOSWIFT CONTROLLER Key points: 1. Spending focuses on semiconductor manufacturing, a critical sector for technological advancement. 2. KLA Corporation is a dominant player in process control for semiconductor manufacturing. 3. The award is a purchase order, suggesting a specific, immediate need. 4. The contract duration is short (61 days), indicating a project-specific or pilot phase. 5. The award value is relatively small, suggesting it might be for a component or specialized service.
Value Assessment
Rating: fair
The award value of $524,288.10 for a 61-day period appears reasonable for specialized semiconductor manufacturing equipment or services. Benchmarking against similar, highly specialized equipment purchases is difficult without more detailed specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices if robust price discovery mechanisms are not employed, especially given KLA's market position.
Taxpayer Impact: Taxpayer funds are used for this purchase. Without competition, there's a risk of overpayment, though the relatively small award amount mitigates significant financial impact.
Public Impact
Supports the National Institute of Standards and Technology's (NIST) research and development in semiconductor technology. Enhances domestic capabilities in semiconductor manufacturing, aligning with national economic and security interests. The purchase contributes to the advancement of precision measurement and control in a high-tech industry.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing.
- Short contract duration may indicate a pilot or limited scope, requiring future, potentially larger, competitive procurements.
- Reliance on a single vendor for critical equipment can create dependency.
Positive Signals
- Supports a key agency (NIST) in a strategically important sector.
- Award is for a relatively modest sum, limiting immediate financial risk.
- The vendor, KLA Corporation, is a recognized leader in the field, suggesting quality and expertise.
Sector Analysis
This award falls within the Semiconductor and Related Device Manufacturing sector. Spending in this area is critical for national competitiveness and security. Benchmarks vary widely based on the specific equipment or service, but investments are generally high-value and technologically advanced.
Small Business Impact
The awardee, KLA Corporation, is a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The award was made by the Department of Commerce's National Institute of Standards and Technology. Oversight would focus on ensuring the equipment/service meets NIST's technical requirements and that funds are used appropriately, especially given the sole-source nature.
Related Government Programs
- Semiconductor and Related Device Manufacturing
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for vendor lock-in with specialized equipment.
- Short contract duration may indicate limited scope or a precursor to larger, unfunded needs.
- Lack of small business participation noted.
Tags
semiconductor-and-related-device-manufac, department-of-commerce, ca, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $52,428.81 to KLA CORPORATION. OU73-FY26-055-NEW NANOSWIFT CONTROLLER
Who is the contractor on this award?
The obligated recipient is KLA CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Institute of Standards and Technology).
What is the total obligated amount?
The obligated amount is $52,428.81.
What is the period of performance?
Start: 2026-04-02. End: 2026-06-02.
What specific semiconductor manufacturing process or device does the 'NEW NANOSWIFT CONTROLLER' support, and how does it advance NIST's mission?
The 'NEW NANOSWIFT CONTROLLER' likely supports advanced process control or metrology within semiconductor fabrication, crucial for NIST's mission to advance measurement science and standards. Understanding its specific application, such as enabling finer lithography or defect detection, would clarify its contribution to developing next-generation semiconductor technologies and ensuring their reliability.
Given the sole-source nature of this award, what steps were taken to ensure fair and reasonable pricing for the 'NEW NANOSWIFT CONTROLLER'?
As this was a sole-source award, the Department of Commerce should have conducted a thorough price analysis. This might involve reviewing historical pricing for similar equipment, obtaining cost breakdowns from KLA Corporation, or comparing the proposed price to independent cost estimates. The absence of competition necessitates robust internal justification to ensure taxpayer funds are not being unnecessarily expended.
What is the long-term strategy for acquiring and maintaining this 'NEW NANOSWIFT CONTROLLER' technology, and will future procurements involve competition?
The short duration (61 days) and purchase order format suggest this may be an initial acquisition or a specific service. NIST should have a clear roadmap for the technology's lifecycle. Future needs, especially for broader deployment or upgrades, should be evaluated for competitive procurement opportunities to leverage market dynamics and achieve better value over time, unless technical barriers genuinely preclude competition.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Semiconductor and Related Device Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1, TECHNOLOGY DRIVE, MILPITAS, CA, 95035
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,429
Exercised Options: $52,429
Current Obligation: $52,429
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-02
Current End Date: 2026-06-02
Potential End Date: 2026-06-02 00:00:00
Last Modified: 2026-04-07
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