DoD Awards $32.95M for BEAR Power Units to Cummins, Facing Limited Competition
Contract Overview
Contract Amount: $32,950,000 ($33.0M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2015-05-26
End Date: 2017-05-29
Contract Duration: 734 days
Daily Burn Rate: $44.9K/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 $33.0 million to CUMMINS POWER GENERATION INC. for work described as: BEAR POWER UNITS Key points: 1. Significant award for essential power generation equipment. 2. Sole supplier for this specific unit type may limit competitive pricing. 3. Potential risk of higher costs due to lack of robust competition. 4. Manufacturing sector for motors and generators is competitive, but this specific award might be constrained.
Value Assessment
Rating: fair
The award of $32.95 million for BEAR Power Units appears to be a significant investment. Without specific benchmark data for these specialized units, it's difficult to definitively assess pricing against similar contracts. The firm fixed-price contract type offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific nature of the 'BEAR Power Units' might mean that only a limited number of manufacturers can meet the requirements, potentially reducing the effectiveness of the competition.
Taxpayer Impact: Taxpayer funds are being used for critical defense equipment. While competition was sought, the specialized nature of the product could lead to less than optimal pricing compared to more commoditized goods.
Public Impact
Ensures operational readiness for military units requiring portable power. Supports a key manufacturing sector within the US. Potential for follow-on contracts or sustainment services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition on specialized equipment.
- Reliance on a single manufacturer for specific components.
- Long-term sustainment costs not fully detailed.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Supports domestic manufacturing.
Sector Analysis
This award falls within the Motor and Generator Manufacturing sector (NAICS 335312). Spending in this sector is crucial for defense and infrastructure. Benchmarks for specialized military power units are often difficult to establish due to unique specifications and limited suppliers.
Small Business Impact
The data indicates the prime contractor is Cummins Power Generation Inc., a large business. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific award, which warrants further investigation.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The firm fixed-price contract type suggests a degree of accountability for the contractor to deliver within the agreed budget. However, ongoing monitoring of performance and potential cost overruns is essential.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for limited competition on specialized equipment.
- Reliance on a single manufacturer for specific components.
- Long-term sustainment costs not fully detailed.
- Lack of explicit small business participation noted.
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 $33.0 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 $33.0 million.
What is the period of performance?
Start: 2015-05-26. End: 2017-05-29.
What is the specific technical capability of the BEAR Power Units, and how does it compare to commercially available alternatives?
The specific technical capabilities of the BEAR (Basic Expeditionary Airfield Requirements) Power Units are designed for robust, mobile power generation in austere environments, often exceeding the demands of standard commercial generators. This includes features like enhanced durability, environmental resistance, and specific power outputs tailored for military equipment. While commercial alternatives exist, they may not meet the stringent military specifications for reliability and operational readiness in deployed scenarios.
Given the 'full and open competition' designation, what factors might have limited the number of bidders for these specialized power units?
Factors limiting bidders for specialized equipment like the BEAR Power Units often include stringent technical specifications, unique performance requirements, and demanding operational environments. Manufacturers must possess specific engineering expertise, production capabilities, and potentially existing certifications or security clearances to meet the contract's demands. This can naturally narrow the field of qualified and competitive suppliers, even under a full and open solicitation.
How will the long-term sustainment and maintenance costs of these power units be managed to ensure value for taxpayer money beyond the initial procurement?
Long-term sustainment and maintenance costs are typically managed through separate contracts or task orders that may be awarded competitively or through existing indefinite-delivery/indefinite-quantity (IDIQ) vehicles. The Department of Defense will likely establish maintenance schedules, require spare parts availability, and potentially invest in training for military personnel. Ensuring competitive bidding for sustainment services and monitoring the total cost of ownership over the units' lifecycle are crucial for maximizing taxpayer value.
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: $32,950,000
Exercised Options: $32,950,000
Current Obligation: $32,950,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA853309D0004
IDV Type: IDC
Timeline
Start Date: 2015-05-26
Current End Date: 2017-05-29
Potential End Date: 2017-05-29 00:00:00
Last Modified: 2016-12-05
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