DoD's $5.5M CNC Equipment BPA with Machine Tool Specialties, LLC awarded for 2 years

Contract Overview

Contract Amount: $5,527,032 ($5.5M)

Contractor: Machine Tool Specialties, LLC

Awarding Agency: Department of Defense

Start Date: 2025-11-28

End Date: 2027-11-30

Contract Duration: 732 days

Daily Burn Rate: $7.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CNC EQUIPMENT AND FMS BPA IN ACCORDANCE WITH (IAW) ITEM DESCRIPTION AND STATEMENT OF WORK (SOW). SEE INDIVIDUAL ORDERS FOR END-USER INFORMATION.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to MACHINE TOOL SPECIALTIES, LLC for work described as: CNC EQUIPMENT AND FMS BPA IN ACCORDANCE WITH (IAW) ITEM DESCRIPTION AND STATEMENT OF WORK (SOW). SEE INDIVIDUAL ORDERS FOR END-USER INFORMATION. Key points: 1. Value for money appears fair given the 2-year duration and firm-fixed-price structure. 2. Competition dynamics are unclear due to the BPA structure, requiring analysis of individual orders. 3. Risk indicators are low with a 'OK' status and firm-fixed-price contract type. 4. Performance context is broad, covering CNC equipment and FMS BPA, with end-user details in individual orders. 5. Sector positioning is within Machine Tool Manufacturing, a critical component of defense readiness.

Value Assessment

Rating: fair

The total contract value of $5.53 million over two years suggests a moderate annual spend. Benchmarking against similar Blanket Purchase Agreements (BPAs) for CNC equipment is difficult without more specific details on the types and quantities of machines procured. The firm-fixed-price (FFP) nature of the contract provides cost certainty for the government, but the ultimate value for money will depend on the pricing of individual orders placed against the BPA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP), indicating an expectation of competition. However, the specific number of bidders or the details of the competitive process are not provided. As a BPA, it likely allows for multiple calls or orders to be placed over its duration, and the competition level for each individual order would need separate examination.

Taxpayer Impact: The use of SAP suggests an effort to obtain competitive pricing, which is beneficial for taxpayers. However, the lack of transparency on the number of bidders for the BPA itself makes it difficult to definitively assess the extent of price discovery achieved.

Public Impact

The Department of Defense benefits from access to CNC equipment and related services. Services delivered include the provision of CNC equipment and potentially related field maintenance services. Geographic impact is likely nationwide, supporting various Air Force installations requiring such equipment. Workforce implications may include the need for trained personnel to operate and maintain the acquired CNC machinery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information for the BPA itself.
End-user information is deferred to individual orders, limiting immediate insight into specific needs.
The broad scope of 'CNC Equipment and FMS BPA' could lead to variability in pricing and performance.

Positive Signals

Firm-fixed-price contract type provides cost predictability.
Contract status is 'OK', suggesting no immediate performance issues.
The BPA structure allows for flexibility in acquiring needed equipment over time.

Sector Analysis

The Machine Tool Manufacturing sector (NAICS 333517) is crucial for defense industrial base capabilities, enabling the production of critical components and platforms. This contract fits within the broader category of defense procurement for manufacturing equipment. Comparable spending benchmarks are difficult to establish without knowing the specific types and quantities of CNC equipment procured, but the overall defense spending on industrial equipment is substantial.

Small Business Impact

The data indicates that small business participation (sb) is false, meaning this contract was not specifically set aside for small businesses. There is no information provided regarding subcontracting plans. This suggests that larger businesses are likely the primary recipients of this contract, with potential limited opportunities for small businesses unless they are part of the supply chain for the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a BPA, individual orders would be subject to their own oversight. Transparency is limited by the lack of detailed competition data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Industrial Base Programs
Air Force Equipment Procurement
Manufacturing Equipment Contracts
Field Maintenance Services

Risk Flags

Limited transparency on competition details for the BPA.
End-user specifics deferred to individual orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to MACHINE TOOL SPECIALTIES, LLC. CNC EQUIPMENT AND FMS BPA IN ACCORDANCE WITH (IAW) ITEM DESCRIPTION AND STATEMENT OF WORK (SOW). SEE INDIVIDUAL ORDERS FOR END-USER INFORMATION.

Who is the contractor on this award?

The obligated recipient is MACHINE TOOL SPECIALTIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-11-28. End: 2027-11-30.

What is the historical spending pattern for CNC equipment and FMS BPAs by the Department of the Air Force?

Analyzing historical spending patterns for CNC equipment and Field Maintenance Services (FMS) BPAs by the Department of the Air Force (DoD) requires access to extensive contract databases. Generally, the DoD procures significant amounts of manufacturing and maintenance equipment to support its global operations and readiness. Spending on CNC equipment is driven by the need for precision manufacturing capabilities for aircraft, vehicles, and other platforms. FMS BPAs are often established to provide efficient and cost-effective ways to procure specialized maintenance services and parts for complex systems. Historical data would likely show fluctuations based on modernization programs, operational tempo, and budget allocations. Without specific data for this contract vehicle, it's difficult to provide precise historical figures, but the overall trend for such procurements within the DoD is consistently high due to the vast and complex nature of military assets requiring advanced manufacturing and maintenance support.

How does the pricing of individual orders under this BPA compare to market rates for similar CNC equipment?

Assessing the pricing of individual orders under this BPA against market rates requires detailed information on the specific CNC equipment procured (e.g., make, model, specifications, quantity) and the negotiated prices. The current data only provides the total BPA value and its duration. To perform a meaningful comparison, one would need to: 1. Identify the specific items ordered against the BPA. 2. Research current market prices for those identical or comparable items from various manufacturers and distributors. 3. Analyze the pricing structure within the BPA to understand if discounts were applied or if markups are present. Given that this is a competed BPA under SAP, there's an expectation of competitive pricing, but the actual value realization depends on the diligence in evaluating each order against prevailing market conditions and the level of competition achieved at the order level.

What are the specific risks associated with Machine Tool Specialties, LLC's performance on this contract?

The provided data indicates a contract status of 'OK' for Machine Tool Specialties, LLC, suggesting no current performance issues or significant red flags. However, potential risks associated with any contractor, including Machine Tool Specialties, LLC, can include delivery delays, quality control issues with the CNC equipment, inadequate or untimely field maintenance services (if included in FMS), and financial stability concerns that could impact long-term support. The firm-fixed-price nature of the contract shifts some cost risk to the contractor but does not eliminate performance risks. A thorough risk assessment would also consider the contractor's past performance on similar contracts, their technical capabilities, and their capacity to meet the demands of the Department of the Air Force over the contract's duration. Without a detailed performance history or specific risk indicators flagged, the current assessed risk appears low.

What is the expected impact of this contract on the Air Force's readiness and operational capabilities?

This contract is expected to positively impact the Air Force's readiness and operational capabilities by ensuring access to modern and well-maintained CNC equipment. CNC machines are vital for the rapid and precise manufacturing of parts, tools, and components needed for aircraft, ground vehicles, and other military assets. Having reliable CNC equipment allows for on-demand production, reducing reliance on lengthy supply chains and enabling quicker repairs and modifications. Furthermore, if the BPA includes Field Maintenance Services (FMS), it ensures that this critical equipment remains operational and is serviced effectively, minimizing downtime. This directly supports the Air Force's ability to maintain its fleet, respond to operational demands, and sustain its technological advantage in diverse mission environments.

How does the $5.53 million BPA value compare to the total annual spending on machine tools and related services by the DoD?

The $5.53 million BPA value represents a specific procurement vehicle for CNC equipment and FMS over a two-year period for the Department of the Air Force. To contextualize this amount, one would need to compare it against the total annual spending on machine tools and related services by the entire Department of Defense (DoD). The DoD's annual budget is in the hundreds of billions of dollars, and a significant portion is allocated to maintaining and modernizing its vast array of equipment and infrastructure. Spending on industrial machinery, including CNC equipment, is a necessary component of this. While $5.53 million is a substantial sum for a single BPA, it is likely a relatively small fraction of the DoD's overall annual expenditure on manufacturing equipment and maintenance services, which can easily run into hundreds of millions or even billions of dollars across all branches and agencies.

Industry Classification

NAICS: Manufacturing › Metalworking Machinery Manufacturing › Machine Tool Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5280 S 100TH EAST AVE, TULSA, OK, 74146

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,527,032

Exercised Options: $5,527,032

Current Obligation: $5,527,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: FA813224A0005

IDV Type: BPA

Timeline