DoD's $614K CNC Equipment BPA with Starrag USA Inc. awarded non-competitively

Contract Overview

Contract Amount: $6,148,403 ($6.1M)

Contractor: Starrag USA Inc

Awarding Agency: Department of Defense

Start Date: 2025-12-09

End Date: 2027-11-30

Contract Duration: 721 days

Daily Burn Rate: $8.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

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 $6.1 million to STARRAG USA INC 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. Contract awarded without competition, raising questions about potential cost savings. 2. The contract is for CNC equipment and a Flexible Maintenance System (FMS) Blanket Purchase Agreement (BPA). 3. Performance period extends over two years, ending November 2027. 4. The primary place of performance is Oklahoma. 5. The contract type is Firm Fixed Price, which shifts cost risk to the government. 6. No small business set-aside was applied to this BPA call.

Value Assessment

Rating: questionable

Benchmarking the value of this $614,840 BPA call is challenging without specific order details or comparable contract data. The non-competitive award limits the ability to assess if the pricing reflects market rates or if a better value could have been achieved through competition. The Firm Fixed Price structure, while providing cost certainty, means the government bears the risk if costs exceed estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a BPA call. The data indicates it was a 'NOT COMPETED UNDER SAP' action, suggesting a sole-source or limited competition approach. Without further details on the justification for not competing, it's difficult to assess the breadth of market engagement.

Taxpayer Impact: The lack of competition for this BPA call means taxpayers may not have benefited from the potentially lower prices that could arise from a more open bidding process.

Public Impact

The Department of the Air Force benefits from access to CNC equipment and maintenance services. The specific end-user and exact services are detailed in individual orders under the BPA. The primary geographic impact is in Oklahoma, where the equipment and services will likely be utilized. The contract supports the Air Force's operational readiness and maintenance capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential savings.
Firm Fixed Price contract shifts cost overrun risk to the government.
Lack of small business participation noted.

Positive Signals

BPA provides a streamlined procurement vehicle for future needs.
Contract duration extends over two years, offering stability.
Place of performance is within the US.

Sector Analysis

This contract falls within the Machine Tool Manufacturing sector (NAICS 333517), which is critical for advanced manufacturing and defense industrial bases. The market for CNC equipment is specialized, with a few key manufacturers dominating. Starrag USA Inc. is a known entity in this space. Benchmarking against similar government procurements for specialized CNC machinery is difficult without more specific equipment details.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business participation. This suggests that the procurement was either for specialized equipment not typically supplied by small businesses or that opportunities for small business subcontracting were not explicitly pursued or mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and financial management offices. As a BPA call, individual orders would be subject to review. Transparency is limited due to the non-competitive nature and lack of detailed public information on the specific equipment and justification for the award.

Related Government Programs

Defense Production Act Investments
Industrial Base Support Programs
Air Force Maintenance, Repair, and Overhaul (MRO) Contracts

Risk Flags

Non-competitive award
Lack of detailed equipment specifications
Potential for unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.1 million to STARRAG USA INC. 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 STARRAG USA INC.

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 $6.1 million.

What is the period of performance?

Start: 2025-12-09. End: 2027-11-30.

What specific types of CNC equipment are covered under this BPA, and what is their intended use within the Air Force?

The provided data does not specify the exact types of CNC (Computer Numerical Control) equipment covered under the BPA. It broadly mentions 'CNC EQUIPMENT AND FMS BPA'. FMS typically refers to Flexible Manufacturing Systems, which are automated production lines. The intended use is likely for manufacturing, repair, or modification of aircraft components, parts, or other defense matériel. Without access to the individual orders or the BPA's line item details, the precise nature and application of the equipment remain unspecified. This lack of detail hinders a thorough assessment of the contract's necessity and value.

What is the justification for awarding this BPA call on a non-competitive basis?

The data explicitly states the contract was 'NOT COMPETED UNDER SAP' and lists the award type as 'BPA CALL'. This indicates that the procurement was likely conducted under specific exceptions to full and open competition, such as sole-sourcing due to unique capabilities of the contractor, urgency, or if it was a follow-on to a previously competed contract where only one source could provide the necessary equipment or services. However, the specific justification (e.g., FAR Part 6 exceptions like 6.302) is not provided in the summary data. A non-competitive award necessitates a documented justification to ensure fair and reasonable pricing and to demonstrate that the government's needs are being met appropriately.

How does the $614,840 total value compare to typical government spending on similar CNC equipment or FMS solutions?

Comparing the $614,840 total value to typical government spending on similar CNC equipment or FMS solutions is difficult without knowing the specific configuration, capabilities, and quantity of the machinery procured. The market for CNC machines and FMS varies widely in price, from tens of thousands for basic units to millions for highly automated, complex systems. Given this is a BPA call with a two-year performance period, it might represent a single significant purchase or a series of smaller orders. Without more granular data on the equipment's specifications and the number of units or services procured, a direct benchmark against broader government spending patterns is not feasible. However, for specialized industrial machinery, this figure could represent a moderate investment.

What are the potential risks associated with a Firm Fixed Price (FFP) contract for specialized equipment like CNC machines?

The primary risk associated with a Firm Fixed Price (FFP) contract for specialized equipment like CNC machines is that the government bears the financial risk if the contractor's costs exceed the agreed-upon price. If Starrag USA Inc. encounters unforeseen production challenges, material cost increases, or labor issues, their profit margin will decrease, but the government is obligated to pay the fixed price. This contrasts with cost-reimbursement contracts where the government covers actual costs plus a fee. For complex, custom-built machinery, where cost estimation can be challenging, FFP contracts can sometimes lead to higher initial prices as contractors may build in contingency to mitigate their risk. However, FFP also provides cost certainty for the government's budget.

What is Starrag USA Inc.'s track record with the Department of Defense or other federal agencies for similar procurements?

The provided data identifies Starrag USA Inc. as the contractor but does not offer details on their specific track record with the Department of Defense (DoD) or other federal agencies. To assess their performance history, one would need to consult federal procurement databases (like FPDS or SAM.gov) for past contracts awarded to Starrag USA Inc., examining contract values, performance ratings (if available), and any history of disputes or contract modifications. Their presence as a supplier suggests they have experience, but the extent and quality of that experience with the government specifically would require further investigation.

Industry Classification

NAICS: Manufacturing › Metalworking Machinery Manufacturing › Machine Tool Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2379 PROGRESS DR, HEBRON, KY, 41048

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,148,403

Exercised Options: $6,148,403

Current Obligation: $6,148,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: FA813224A0002

IDV Type: BPA

Timeline