DoD Awards $32.5M for Medium Mobile Generator Sets to Cummins Power Generation
Contract Overview
Contract Amount: $32,536,400 ($32.5M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2015-06-18
End Date: 2016-11-30
Contract Duration: 531 days
Daily Burn Rate: $61.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS CONTRACT IS TO PURCHASE ADVANCED MEDIUM-SIZED MOBILE POWER SOURCES (AMMPS) GENERATOR SETS.
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432
Plain-Language Summary
Department of Defense obligated $32.5 million to CUMMINS POWER GENERATION INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PURCHASE ADVANCED MEDIUM-SIZED MOBILE POWER SOURCES (AMMPS) GENERATOR SETS. Key points: 1. Significant award for mobile power generation equipment. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Manufacturing sector (NAICS 335312) is the focus.
Value Assessment
Rating: fair
The award amount of $32.5M for 531 days of delivery appears reasonable for generator sets. However, without competitive bidding, it's difficult to definitively assess if this represents the best value or if the pricing is optimized compared to similar government contracts.
Cost Per Unit: $61,274
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award could result in the government paying more than necessary for these generator sets, impacting taxpayer funds.
Public Impact
Ensures operational readiness for military units requiring mobile power. Supports the manufacturing sector, specifically motor and generator production. Potential for reliance on a single supplier for critical equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bids.
- No small business participation noted.
Positive Signals
- Provides essential mobile power capabilities.
- Supports a key manufacturing industry.
Sector Analysis
The Department of Defense is a major consumer of manufactured goods, including power generation equipment. Spending benchmarks for similar generator sets can vary widely based on size, features, and competitive landscape. This award falls within the motor and generator manufacturing sector.
Small Business Impact
The data indicates that small business participation was not a factor in this contract, as the award went to a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and contract compliance. The Department of the Army's contracting office would be responsible for monitoring performance and expenditures to mitigate risks associated with non-competitive awards.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award.
- Lack of competitive pricing.
- No small business participation.
- Potential for overpayment.
- Limited market visibility.
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 $32.5 million to CUMMINS POWER GENERATION INC.. THE PURPOSE OF THIS CONTRACT IS TO PURCHASE ADVANCED MEDIUM-SIZED MOBILE POWER SOURCES (AMMPS) GENERATOR SETS.
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 Army).
What is the total obligated amount?
The obligated amount is $32.5 million.
What is the period of performance?
Start: 2015-06-18. End: 2016-11-30.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation, it's unclear why competitive bidding was bypassed. This lack of transparency hinders the ability to assess if the government truly received the best possible price and value for the advanced medium-sized mobile power sources.
How does the per-unit cost of $61,274 compare to market rates for similar advanced mobile generator sets, considering the lack of competition?
Benchmarking the per-unit cost of $61,274 is challenging without competitive data. Sole-source awards often result in prices higher than those achieved through open competition. A thorough market analysis or comparison with recently awarded, competitively bid contracts for similar generator sets would be necessary to determine if this price is reasonable or inflated.
What is the long-term strategic risk of relying on a single supplier for critical mobile power generation equipment?
The long-term strategic risk of sole-source reliance includes potential price escalations in future procurements, limited access to technological advancements from competing firms, and vulnerability to supply chain disruptions if the sole provider faces issues. This can impact the DoD's ability to maintain operational readiness and cost-effectiveness over time.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $32,536,400
Exercised Options: $32,536,400
Current Obligation: $32,536,400
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W909MY15D0010
IDV Type: IDC
Timeline
Start Date: 2015-06-18
Current End Date: 2016-11-30
Potential End Date: 2016-11-30 12:11:00
Last Modified: 2016-10-31
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