DoD's $6.8M CNC Equipment BPA with Machine Tool Specialties, LLC awarded for 2 years

Contract Overview

Contract Amount: $6,803,075 ($6.8M)

Contractor: Machine Tool Specialties, LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-11

End Date: 2027-11-30

Contract Duration: 719 days

Daily Burn Rate: $9.5K/day

Competition Type: 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 $6.8 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. The contract leverages a Blanket Purchase Agreement (BPA) structure, suggesting potential for streamlined future procurements. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), indicating a focus on efficiency for smaller dollar values. 3. The contract is Firm Fixed Price (FFP), which transfers cost risk to the contractor. 4. The duration of 719 days (approx. 2 years) provides a moderate timeframe for equipment delivery and support. 5. The award to Machine Tool Specialties, LLC suggests a specific market niche or established relationship for this type of equipment. 6. The North American Industry Classification System (NAICS) code 333517 points to specialized machine tool manufacturing.

Value Assessment

Rating: fair

The total award amount of $6.8 million for a 2-year BPA for CNC equipment is difficult to benchmark without specific item descriptions and quantities. However, the use of SAP suggests the individual orders are likely below the threshold for full and open competition, implying a focus on smaller, more manageable procurements. The Firm Fixed Price (FFP) contract type is standard for equipment purchases and helps control costs, but the overall value-for-money depends heavily on the specific equipment procured and its intended use.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bidders is not provided, SAP is designed for procurements under a certain dollar threshold, aiming for efficiency. This level of competition may not always yield the lowest possible price, but it balances cost with the administrative burden of a more extensive bidding process.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean slightly higher prices than might be achieved in a broader competition, but it also ensures that funds are spent efficiently on necessary equipment without excessive administrative overhead.

Public Impact

The Department of the Air Force is the primary beneficiary, acquiring critical CNC equipment. This equipment is essential for manufacturing and maintenance operations within the defense sector. The contract supports the defense industrial base by procuring specialized machinery. The geographic impact is primarily within the operational areas of the Department of the Air Force, potentially including bases in Oklahoma where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed item descriptions within the provided data makes it challenging to assess if the pricing is competitive.
The limited competition under SAP might not have explored the full range of potential suppliers, potentially missing cost-saving opportunities.
The BPA structure, while efficient, could lead to vendor lock-in if not managed carefully with periodic re-competition of the BPA itself.

Positive Signals

The Firm Fixed Price contract type provides cost certainty for the government.
The use of a BPA can streamline the ordering process for recurring needs.
The award to a specialized company suggests access to specific expertise and equipment.

Sector Analysis

The machine tool manufacturing sector (NAICS 333517) is a critical component of the broader industrial and defense manufacturing landscape. This sector produces the machinery used to create a vast array of goods, from automotive parts to aerospace components. The Department of Defense is a significant consumer of machine tools, requiring advanced capabilities for manufacturing and maintaining complex systems. Spending in this sector is often characterized by high unit costs for specialized equipment, with competition driven by technological capabilities, precision, and reliability.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific BPA award (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary contractor, Machine Tool Specialties, LLC, is likely not a small business, and the contract was not specifically structured to promote small business involvement. Consequently, the direct impact on the small business ecosystem from this particular award appears minimal, though the contractor may engage small businesses as suppliers.

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 call, individual orders would be subject to specific end-user verification and acceptance. Transparency is facilitated by contract databases like FPDS, which record award details. While no specific Inspector General (IG) jurisdiction is mentioned, the DoD IG has broad authority over defense spending, and any significant issues could be subject to their review.

Related Government Programs

Defense Production Act Investments
Industrial Base Modernization Programs
Air Force Sustainment and Logistics Support
Advanced Manufacturing Equipment Procurement

Risk Flags

Limited competition under SAP
Lack of detailed performance metrics in award data
Potential for vendor lock-in with BPA structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.8 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 $6.8 million.

What is the period of performance?

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

What specific types of CNC equipment are being procured under this BPA, and what are their intended applications within the Department of the Air Force?

The provided data does not specify the exact types of CNC (Computer Numerical Control) equipment being procured. The description broadly states 'CNC EQUIPMENT AND FMS BPA'. FMS likely refers to Flexible Manufacturing Systems. These systems are typically used for automated production processes, involving computer-controlled machines that can perform various operations like milling, turning, and grinding. Within the Department of the Air Force, such equipment is crucial for manufacturing spare parts, prototyping new components, maintaining existing aircraft and weapon systems, and supporting research and development efforts. The specific applications would depend on the operational needs of the Air Force units placing orders under the BPA, potentially ranging from high-precision aerospace components to general maintenance tooling.

How does the $6.8 million award amount compare to historical spending on similar CNC equipment by the Department of Defense or Air Force?

Benchmarking the $6.8 million award requires more granular data on the specific types and quantities of CNC equipment procured. However, as a Blanket Purchase Agreement (BPA), this figure represents the ceiling value over the contract's lifespan, not necessarily the amount that will be spent. The Department of Defense historically spends billions on industrial equipment, including advanced manufacturing machinery. The fact that this BPA was competed under Simplified Acquisition Procedures (SAP) suggests that individual orders are likely to be below the threshold for full and open competition (typically $250,000). Therefore, $6.8 million over two years for potentially multiple Air Force units is a moderate amount, likely covering a range of standard to specialized CNC machines and related services, rather than a single, extremely high-value acquisition.

What are the key performance indicators (KPIs) or quality assurance measures associated with this contract to ensure the equipment meets Air Force standards?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific quality assurance (QA) measures for this contract. However, standard government contracting practices would apply. For a Firm Fixed Price (FFP) contract involving equipment, QA typically involves inspection and acceptance of the delivered goods against the Statement of Work (SOW) and any technical specifications. The 'ST: OK' and 'SN: OKLAHOMA' fields might relate to contractor status or location, not performance metrics. The end-user would be responsible for verifying that the CNC equipment functions as specified, meets performance tolerances, and is free from defects. The BPA call structure implies that each individual order would have its own acceptance criteria, overseen by the ordering activity.

What is the track record of Machine Tool Specialties, LLC in fulfilling government contracts, particularly for the Department of Defense?

Information regarding the specific track record of Machine Tool Specialties, LLC in fulfilling government contracts is not detailed in the provided data snippet. A comprehensive assessment would require searching federal procurement databases (like FPDS or SAM.gov) for past awards, contract performance evaluations (e.g., CPARS), and any history of disputes or terminations. However, the award of this BPA suggests the company has demonstrated capabilities and potentially past performance that met the Air Force's requirements under SAP. Without access to their full contract history, it's difficult to definitively assess their reliability and past success rates with government clients.

What are the potential risks associated with relying on a single BPA for CNC equipment, and how are these risks mitigated?

A primary risk associated with relying on a single BPA is potential vendor lock-in and a lack of continued price competition if the BPA is not periodically re-competed or if market alternatives emerge. If Machine Tool Specialties, LLC is the sole provider or has a significant advantage, the government might not achieve the best possible pricing on subsequent orders. Mitigation strategies include clearly defining the BPA's scope and duration, establishing clear criteria for future competition, and actively monitoring the market for alternative suppliers. The Air Force could also implement clauses that allow for competition among multiple award BPA holders if applicable, or ensure the BPA itself is re-competed before its expiration to encourage new offers.

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: $6,803,075

Exercised Options: $6,803,075

Current Obligation: $6,803,075

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA813224A0005

IDV Type: BPA

Timeline