DoD Awards $17.2M for Milling Equipment to DMG MORI USA, Inc
Contract Overview
Contract Amount: $17,199,787 ($17.2M)
Contractor: DMG Mori USA, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-18
End Date: 2024-12-31
Contract Duration: 1,657 days
Daily Burn Rate: $10.4K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8507446332!IPE - MILLING EQUIPMENT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135
Plain-Language Summary
Department of Defense obligated $17.2 million to DMG MORI USA, INC. for work described as: 8507446332!IPE - MILLING EQUIPMENT Key points: 1. Contract awarded to a single vendor, DMG MORI USA, Inc. 2. Spending falls within the Machine Tool Manufacturing sector. 3. The contract is for milling equipment, a critical component for defense manufacturing. 4. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements.
Value Assessment
Rating: fair
The contract value of $17.2 million for milling equipment appears reasonable given the specialized nature of the machinery. Benchmarking against similar large-scale milling equipment procurements is difficult without more specific technical details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, which typically involves a limited number of quotes. While this can expedite the process, it may limit price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential defense manufacturing equipment, with the cost efficiency dependent on the competitive nature of the SAP process.
Public Impact
Ensures the Department of Defense has access to advanced milling capabilities. Supports the domestic manufacturing base for defense-critical machinery. Potential for job creation within the machine tool manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- Potential for price overruns if competition was insufficient
Positive Signals
- Acquisition of critical manufacturing equipment
- Awarded to a known entity in the industry
Sector Analysis
This contract falls within the Machine Tool Manufacturing sector, which is vital for producing complex components for various defense systems. Spending benchmarks for specialized milling equipment can vary significantly based on technological sophistication and volume.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the vendor, DMG MORI USA, Inc., is likely a large corporation. There is no direct indication of small business participation in this specific award.
Oversight & Accountability
Oversight would focus on ensuring the milling equipment meets all specified technical requirements and that the pricing remains competitive within the SAP framework. The definitive contract nature suggests a structured approach to delivery and payment.
Related Government Programs
- Machine Tool Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for limited price competition
- Lack of detailed technical specifications
- Vendor concentration in a critical supply chain
Tags
machine-tool-manufacturing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to DMG MORI USA, INC.. 8507446332!IPE - MILLING EQUIPMENT
Who is the contractor on this award?
The obligated recipient is DMG MORI USA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $17.2 million.
What is the period of performance?
Start: 2020-06-18. End: 2024-12-31.
What specific capabilities does this milling equipment offer, and how do they align with current and future defense manufacturing needs?
The specific capabilities of the milling equipment are not detailed in the provided data. However, milling equipment is fundamental for precision manufacturing of metal parts used in aircraft, vehicles, and weapon systems. Understanding the advanced features, such as multi-axis capabilities or automation, would clarify its alignment with evolving defense requirements and technological advancements.
Given the limited competition under SAP, what measures were in place to ensure fair and reasonable pricing for this $17.2 million award?
While SAP typically involves limited competition, agencies are still required to obtain fair and reasonable pricing. This often involves obtaining multiple quotes (though fewer than full and open competition), referencing historical pricing data, and conducting market research. The contracting officer would have documented their justification for the price being fair and reasonable based on available information.
How will the performance and effectiveness of this milling equipment be evaluated throughout the contract period to ensure value for taxpayer money?
Performance and effectiveness will likely be evaluated through acceptance testing upon delivery, ensuring the equipment meets all technical specifications and performance metrics. Ongoing evaluation may involve monitoring uptime, maintenance records, and the quality of parts produced. The firm fixed-price nature incentivizes the contractor to deliver functional equipment, while the government's acceptance process validates its effectiveness.
Industry Classification
NAICS: Manufacturing › Metalworking Machinery Manufacturing › Machine Tool Manufacturing
Product/Service Code: METALWORKING MACHINERY
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: 2400 HUNTINGTON BLVD, HOFFMAN ESTATES, IL, 60192
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,199,787
Exercised Options: $17,199,787
Current Obligation: $17,199,787
Actual Outlays: $1,542,297
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-06-18
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-04-22
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