DoD Awards $22.6M for Milling Equipment to STARRAG USA INC, Competed Under SAP
Contract Overview
Contract Amount: $22,595,142 ($22.6M)
Contractor: Starrag USA Inc
Awarding Agency: Department of Defense
Start Date: 2024-12-12
End Date: 2027-01-26
Contract Duration: 775 days
Daily Burn Rate: $29.2K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511045014!IPE - MILLING EQUIPMENT
Place of Performance
Location: HEBRON, BOONE County, KENTUCKY, 41048
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to STARRAG USA INC for work described as: 8511045014!IPE - MILLING EQUIPMENT Key points: 1. Significant award for specialized milling equipment. 2. Competition was conducted under Simplified Acquisition Procedures (SAP). 3. Contract awarded to STARRAG USA INC, a known entity in the sector. 4. Potential for price discovery limitations due to SAP.
Value Assessment
Rating: good
The contract value of $22.6 million for milling equipment appears reasonable given the specialized nature of the machinery. Benchmarking against similar high-precision equipment contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited number of bidders were solicited. While SAP can expedite procurement, it may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential defense logistics equipment. The use of SAP may result in a slightly higher cost than a fully competed contract, but the efficiency gains could offset this.
Public Impact
Ensures readiness and operational capability for the Department of Defense. Supports advanced manufacturing and maintenance within the defense supply chain. Potential impact on small businesses if they are not subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- Potential for higher unit costs due to SAP
Positive Signals
- Award to established vendor
- Supports critical defense needs
Sector Analysis
The defense sector relies heavily on specialized manufacturing equipment like milling machines for maintenance, repair, and production. Spending benchmarks for such equipment can vary widely based on technological sophistication and quantity.
Small Business Impact
The data indicates the prime contractor is STARRAG USA INC, and the 'sb' field is false, suggesting this is not a small business award. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure proper execution and accountability.
Related Government Programs
- Cutting Tool and Machine Tool Accessory Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Lack of small business participation visibility
Tags
cutting-tool-and-machine-tool-accessory-, department-of-defense, ky, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to STARRAG USA INC. 8511045014!IPE - MILLING EQUIPMENT
Who is the contractor on this award?
The obligated recipient is STARRAG 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 $22.6 million.
What is the period of performance?
Start: 2024-12-12. End: 2027-01-26.
What is the typical price range for similar milling equipment procured through full and open competition?
Procurement data for similar high-precision milling equipment through full and open competition is not readily available in this dataset. However, such contracts often involve extensive technical specifications and rigorous testing, which can influence pricing. Generally, full and open competition aims to maximize price discovery and achieve the lowest possible cost for the government.
What are the specific risks associated with procuring specialized equipment under Simplified Acquisition Procedures?
The primary risk of using SAP for specialized equipment is potentially reduced price competition, leading to higher costs than might be achieved through a broader solicitation. There's also a risk that unique technical requirements might not be fully captured or met by the limited pool of solicited vendors, potentially impacting equipment suitability or long-term performance.
How effectively does this milling equipment support the operational readiness of the Department of Defense?
This milling equipment is crucial for maintaining and repairing various defense assets, directly contributing to operational readiness. Its availability ensures that the DoD can perform necessary upkeep on critical machinery and components, reducing reliance on external repair services and minimizing downtime for essential military hardware.
Industry Classification
NAICS: Manufacturing › Metalworking Machinery Manufacturing › Cutting Tool and Machine Tool Accessory 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: 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: $22,595,142
Exercised Options: $22,595,142
Current Obligation: $22,595,142
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-12-12
Current End Date: 2027-01-26
Potential End Date: 2027-01-26 00:00:00
Last Modified: 2025-06-05
More Contracts from Starrag USA Inc
- Sole Source Requirement to Purchase 3 EA Propeller Profilers to Include Foundations, Installation, Training, Iuid TAG,Reach&access Study IAW PD Vibb 16-25-1039 — $41.3M (Department of Defense)
- CNC Equipment and FMS BPA in Accordance With (IAW) Item Description and Statement of Work (SOW). SEE Individual Orders for End-User Information — $6.1M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)