DoD Awards $32.9M for BEAR Power Units to Cummins, Highlighting Motor Manufacturing Sector
Contract Overview
Contract Amount: $32,940,000 ($32.9M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2014-08-14
End Date: 2016-03-29
Contract Duration: 593 days
Daily Burn Rate: $55.5K/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
Plain-Language Summary
Department of Defense obligated $32.9 million to CUMMINS POWER GENERATION INC. for work described as: BEAR POWER UNITS Key points: 1. Significant award for motor and generator manufacturing, indicating demand in defense. 2. Full and open competition suggests a healthy market for these power units. 3. Potential risk associated with long contract duration and firm fixed price. 4. Focus on defense sector spending, with implications for related industries.
Value Assessment
Rating: good
The award of $32.9 million for BEAR Power Units appears reasonable given the contract type and duration. Benchmarking against similar defense contracts for power generation equipment would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order mechanism suggests flexibility in procurement.
Taxpayer Impact: The competitive nature of this award is positive for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source procurement.
Public Impact
Ensures operational readiness for military personnel by providing essential power generation capabilities. Supports the domestic manufacturing sector, specifically in motor and generator production. The long duration of the contract (593 days) suggests a sustained need for these units. Firm fixed price contract protects the government from cost overruns but may limit contractor flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to obsolescence or changing technological needs.
- Firm fixed price could disincentivize innovation or cost-saving measures by the contractor.
Positive Signals
- Awarded under full and open competition, promoting market efficiency.
- Supports critical defense infrastructure needs.
Sector Analysis
This award falls within the Motor and Generator Manufacturing sector, a key component of the broader industrial base supporting defense operations. Spending in this area is often driven by military readiness requirements and equipment modernization.
Small Business Impact
The data indicates the prime contractor is Cummins Power Generation Inc., a large business. There is no explicit information on small business participation in this specific award, which warrants further investigation to ensure opportunities for small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating established oversight mechanisms. However, the long duration and firm fixed price nature necessitate ongoing monitoring to ensure performance and value.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (593 days).
- Firm fixed price contract type.
- Potential for technological obsolescence.
- Lack of explicit small business participation data.
Tags
motor-and-generator-manufacturing, department-of-defense, mn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.9 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $32.9 million.
What is the period of performance?
Start: 2014-08-14. End: 2016-03-29.
What is the specific operational requirement driving the need for these BEAR Power Units, and how does their performance compare to industry standards?
The BEAR Power Units likely fulfill a critical need for mobile, reliable power in deployed military environments. Their performance specifications would be tailored to military operational requirements, which may exceed typical commercial standards in terms of ruggedness, environmental resistance, and power output under demanding conditions. A detailed comparison would require access to the technical specifications and performance test results.
Given the firm fixed price and long duration, what are the potential risks to the government regarding technological obsolescence or contractor performance?
A firm fixed price contract for a long duration carries a risk of technological obsolescence if the technology rapidly advances during the contract period. The government might end up with outdated equipment. Additionally, while the fixed price protects against cost increases, it could disincentivize the contractor from proactively addressing performance issues or implementing cost-saving innovations if profit margins are already secured.
How effectively did the full and open competition process ensure the best value was achieved for these critical defense assets?
Full and open competition is generally the most effective method for ensuring best value by fostering a competitive environment that drives down prices and encourages innovation. The fact that this method was used suggests that multiple capable vendors could meet the requirements. The ultimate effectiveness would be assessed by comparing the awarded price and proposed technical solutions against the government's needs and available alternatives.
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, 55432
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: $32,940,000
Exercised Options: $32,940,000
Current Obligation: $32,940,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA853309D0004
IDV Type: IDC
Timeline
Start Date: 2014-08-14
Current End Date: 2016-03-29
Potential End Date: 2016-03-29 00:00:00
Last Modified: 2016-01-19
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