DoD's $29.9M contract for generators saw 6 bidders, with CUMMINS POWER GENERATION INC. as the awardee

Contract Overview

Contract Amount: $29,890,047 ($29.9M)

Contractor: Cummins Power Generation Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-21

End Date: 2014-07-31

Contract Duration: 1,774 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BEAR POWER UNITS

Place of Performance

Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to CUMMINS POWER GENERATION INC. for work described as: BEAR POWER UNITS Key points: 1. The contract's value of $29.9 million over approximately 4.9 years suggests a significant investment in power generation capabilities. 2. With six bidders, the competition level indicates a reasonably active market for these types of generators. 3. The firm-fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. Awarded to CUMMINS POWER GENERATION INC., a known entity in the power generation sector, suggests a focus on established suppliers. 5. The North American Industry Classification System (NAICS) code 335312 points to motor and generator manufacturing, a critical industrial base. 6. The contract duration of 1774 days (approx. 4.9 years) implies a long-term need for these power units.

Value Assessment

Rating: good

Benchmarking the $29.9 million award for BEAR POWER UNITS requires specific unit cost data, which is not provided. However, the presence of six bidders in a full and open competition suggests that pricing was likely competitive. The firm-fixed-price contract type also indicates that the government aimed to secure a predictable cost outcome. Without more granular data on the specific units and their capabilities, a precise value-for-money assessment is challenging, but the competitive bidding process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The participation of six bidders indicates a healthy level of market interest and competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider selection of solutions, benefiting the government.

Taxpayer Impact: The robust competition for this contract suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best price and terms. This competitive environment helps prevent inflated costs and ensures the government obtains goods at market-reflective prices.

Public Impact

The Department of the Air Force benefits from reliable power generation units essential for operational readiness. Military installations and deployed forces receive critical power infrastructure to support various missions. The contract supports the manufacturing sector, specifically motor and generator production. The geographic impact is likely concentrated around military bases where these units are deployed, potentially with broader economic effects from the manufacturing supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or unit cost data makes it difficult to fully assess value for money.
The long contract duration could lead to potential obsolescence if technology advances rapidly.
Reliance on a single awardee, even with multiple bidders, concentrates delivery risk.
The absence of small business subcontracting goals (if applicable) might limit opportunities for smaller enterprises.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type helps manage cost certainty for the government.
Awardee has established presence in the power generation market.
Contract duration aligns with expected long-term operational needs for power units.

Sector Analysis

The motor and generator manufacturing sector (NAICS 335312) is a vital part of the industrial base, supplying essential equipment for various applications, including defense. The market is characterized by established players and technological advancements. This contract represents a significant procurement within this sector, likely for critical infrastructure support at Department of Defense facilities. Comparable spending benchmarks would depend on the specific type and capacity of generators procured.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While there were six bidders in total, the extent of small business participation in the supply chain or as subcontractors is not detailed. Without specific subcontracting requirements, the direct impact on the small business ecosystem from this particular prime contract may be limited, though the prime contractor's own supply chain could involve small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified goods. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Tactical Wheeled Vehicles
Base Operations Support
Military Construction
Command and Control Systems
Logistics and Sustainment

Risk Flags

Potential for technological obsolescence due to long contract duration.
Lack of detailed performance metrics hinders full value assessment.
Limited insight into small business participation in the supply chain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to CUMMINS POWER GENERATION INC.. BEAR POWER UNITS

Who is the contractor on this award?

The obligated recipient is CUMMINS POWER GENERATION 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 $29.9 million.

What is the period of performance?

Start: 2009-09-21. End: 2014-07-31.

What is the specific type and capacity of the 'BEAR POWER UNITS' procured under this contract?

The provided data does not specify the exact type or capacity of the 'BEAR POWER UNITS'. The NAICS code 335312 indicates they are related to motors and generators. Without further details, it's difficult to ascertain their precise application, such as mobile generators, stationary units, or specific power output ratings (e.g., kilowatts). This information is crucial for comparing the contract's value against market benchmarks and understanding its operational significance for the Department of Defense.

How does the per-unit cost of these generators compare to similar military or commercial procurements?

A direct per-unit cost comparison is not possible with the available data. The total award amount is $29.9 million over approximately 4.9 years, and the number of units procured is not specified. To benchmark effectively, we would need to know the quantity of generators purchased and their individual specifications (e.g., power output, mobility, fuel type). Comparing this to publicly available data on similar military procurements (e.g., other generator contracts) or commercial market rates for generators of comparable capacity would be necessary to assess cost-effectiveness.

What is CUMMINS POWER GENERATION INC.'s track record with similar Department of Defense contracts?

CUMMINS POWER GENERATION INC. is a well-established entity in the power generation market. While this specific contract award is noted, a comprehensive analysis of their track record with the DoD would involve reviewing their past performance on similar contracts, including delivery timeliness, quality of goods, adherence to specifications, and any past disputes or contract modifications. Accessing historical contract data and performance reviews would provide a clearer picture of their reliability and experience in fulfilling defense requirements.

What were the key performance requirements and evaluation criteria used in the selection process?

The provided data does not detail the specific performance requirements or evaluation criteria for this contract. Typically, for generator procurements, requirements might include power output, fuel efficiency, noise levels, environmental resilience (temperature, humidity tolerance), maintenance intervals, and logistical support. Evaluation criteria often balance technical merit, past performance, delivery timelines, and price. Understanding these factors is essential to fully assess the value and appropriateness of the selected solution.

How has spending on similar power generation equipment evolved for the Department of the Air Force over the past decade?

Analyzing historical spending patterns for similar power generation equipment by the Department of the Air Force would require accessing and aggregating contract data over a ten-year period. This would involve identifying contracts with similar NAICS codes (e.g., 335312) and product service codes related to generators. Such an analysis could reveal trends in procurement volume, average contract values, and shifts in technology or supplier base, providing context for the $29.9 million award.

What are the potential risks associated with the long duration (approx. 4.9 years) of this contract?

The primary risks associated with a long contract duration for power generation equipment include technological obsolescence, potential degradation of performance over time if maintenance is inadequate, and market price fluctuations for components or fuel. If the technology advances significantly during the contract period, the procured units might become outdated. Furthermore, unforeseen operational demands or changes in military strategy could alter the need for such equipment, leading to potential underutilization or the need for costly modifications.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cummins Inc. (UEI: 006415160)

Address: 1400 73RD AVE NE, MINNEAPOLIS, MN, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,890,047

Exercised Options: $29,890,047

Current Obligation: $29,890,047

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA853309D0004

IDV Type: IDC

Timeline