DoD Spends $14.2M on CNC Shaft Lathes from D S TECHNOLOGY USA INC Under Full and Open Competition
Contract Overview
Contract Amount: $14,192,854 ($14.2M)
Contractor: D S Technology USA Inc
Awarding Agency: Department of Defense
Start Date: 2009-09-02
End Date: 2011-09-02
Contract Duration: 730 days
Daily Burn Rate: $19.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CNC SHAFT LATHE
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $14.2 million to D S TECHNOLOGY USA INC for work described as: CNC SHAFT LATHE Key points: 1. Significant expenditure on specialized manufacturing equipment. 2. Competition was full and open, suggesting market availability. 3. Risk appears moderate given the fixed-price contract type. 4. Sector is Machine Tool Manufacturing, crucial for defense readiness.
Value Assessment
Rating: fair
The contract value of $14.2M for CNC lathes over two years appears substantial. Benchmarking against similar machine tool procurements is difficult without more specific technical details, but the price seems within a reasonable range for specialized industrial equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayer funds were used for this procurement, with the expectation of receiving value for money through a competitive process.
Public Impact
Ensures availability of critical manufacturing capabilities for defense production. Supports the domestic machine tool industry. Potential for long-term operational readiness through modern equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 2 years may limit long-term cost savings.
- Lack of specific performance metrics makes value assessment challenging.
- Dependence on a single supplier for maintenance/parts could be a future risk.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Firm fixed price contract mitigates cost overrun risk.
- Procurement supports essential defense industrial base.
Sector Analysis
The Machine Tool (Metal Cutting Types) Manufacturing sector is vital for producing components used in various defense systems. Spending benchmarks are highly dependent on machine specifications, but this contract represents a significant investment in this area.
Small Business Impact
This contract was awarded to D S TECHNOLOGY USA INC, and there is no indication of small business participation or subcontracting in the provided data. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, part of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial accountability.
Related Government Programs
- Machine Tool (Metal Cutting Types) Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for obsolescence if technology advances rapidly.
- Dependence on a single manufacturer for parts and service.
- Limited visibility into specific performance metrics.
- Contract duration may not align with long-term strategic needs.
Tags
machine-tool-metal-cutting-types-manufac, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to D S TECHNOLOGY USA INC. CNC SHAFT LATHE
Who is the contractor on this award?
The obligated recipient is D S TECHNOLOGY 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 $14.2 million.
What is the period of performance?
Start: 2009-09-02. End: 2011-09-02.
What was the specific justification for selecting this particular CNC shaft lathe model, and how does its capability align with current and future defense manufacturing needs?
The provided data does not detail the specific justification for selecting this CNC shaft lathe model. Understanding the technical specifications, capabilities, and intended applications is crucial to assess its alignment with current and future defense manufacturing needs. Without this information, it's difficult to determine if the procurement represents optimal value and strategic fit for the Department of Defense's evolving requirements.
Given the $14.2M expenditure, what are the projected operational efficiencies or production increases expected from these CNC lathes over their lifecycle?
The data does not provide projections for operational efficiencies or production increases. A comprehensive cost-benefit analysis would typically include such metrics to justify the significant investment. Understanding the expected return on investment in terms of reduced cycle times, improved precision, or increased output is essential for evaluating the overall value and effectiveness of this procurement.
How does the per-unit cost of these CNC lathes compare to commercially available models with similar specifications, and what factors contributed to any price differential?
A direct per-unit cost comparison is not possible with the provided data. The contract value is for multiple units over two years, and specific machine configurations are unknown. Factors influencing price could include specialized defense-grade features, bulk purchasing discounts, installation, training, and warranty services, which may differentiate it from standard commercial offerings.
Industry Classification
NAICS: Manufacturing › Metalworking Machinery Manufacturing › Machine Tool (Metal Cutting Types) Manufacturing
Product/Service Code: METALWORKING MACHINERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: M.u.s.t. Privatstiftung
Address: 7861 PALACE DR, CINCINNATI, OH, 45249
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,192,854
Exercised Options: $14,192,854
Current Obligation: $14,192,854
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Timeline
Start Date: 2009-09-02
Current End Date: 2011-09-02
Potential End Date: 2011-09-02 00:00:00
Last Modified: 2022-04-07
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