DOT Awards $436M for Motor & Generator Manufacturing to Discovery Energy, LLC

Contract Overview

Contract Amount: $4,365,645 ($4.4M)

Contractor: Discovery Energy, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-08-18

End Date: 2027-09-30

Contract Duration: 1,869 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLOSELY ASSOCIATED TO INHERENTLY GOVERNMENTAL FUNCTIONS

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116

State: Utah Government Spending

Plain-Language Summary

Department of Transportation obligated $4.4 million to DISCOVERY ENERGY, LLC for work described as: CLOSELY ASSOCIATED TO INHERENTLY GOVERNMENTAL FUNCTIONS Key points: 1. Contract awarded to Discovery Energy, LLC for motor and generator manufacturing. 2. The contract has a significant value of $436,564,500. 3. Competition method was 'Full and Open Competition'. 4. The contract duration is 1869 days, ending September 30, 2027. 5. The award is associated with inherently governmental functions.

Value Assessment

Rating: fair

The contract value is substantial. Benchmarking against similar motor and generator manufacturing contracts is difficult without more specific details on the scope of work and technical requirements. The fixed-price nature suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific impact on price discovery depends on the number and quality of bids received.

Taxpayer Impact: Taxpayer funds are being used for motor and generator manufacturing. The use of full and open competition aims to ensure the best value for taxpayer money.

Public Impact

Supports critical infrastructure needs within the Federal Aviation Administration. Potential for job creation in the motor and generator manufacturing sector. Ensures availability of essential components for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Motor and Generator Manufacturing sector. Spending in this sector can vary widely based on defense, infrastructure, and energy needs. Benchmarking requires comparison to similar large-scale manufacturing contracts.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct small business participation evident from this award alone.

Oversight & Accountability

Oversight will be crucial given the contract's association with inherently governmental functions and its long duration. The Federal Aviation Administration will need robust mechanisms to monitor performance and ensure compliance.

Related Government Programs

Risk Flags

Tags

motor-and-generator-manufacturing, department-of-transportation, ut, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.4 million to DISCOVERY ENERGY, LLC. CLOSELY ASSOCIATED TO INHERENTLY GOVERNMENTAL FUNCTIONS

Who is the contractor on this award?

The obligated recipient is DISCOVERY ENERGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

Start: 2022-08-18. End: 2027-09-30.

What specific motor and generator components are being procured, and how do they align with the FAA's mission critical needs?

The specific components are not detailed in the provided data. However, their procurement by the Federal Aviation Administration suggests they are essential for aviation infrastructure, safety systems, or operational equipment. Understanding the exact nature of these components is key to assessing their criticality and ensuring they meet stringent aviation standards.

What were the key factors that led to Discovery Energy, LLC being selected as the awardee under full and open competition?

Under full and open competition, the awardee is typically selected based on a combination of factors including technical capability, past performance, price, and adherence to solicitation requirements. Discovery Energy, LLC likely demonstrated superior qualifications or offered the most advantageous proposal according to the evaluation criteria set forth by the FAA.

How does the $436M contract value compare to typical spending for similar motor and generator manufacturing services by the FAA or other federal agencies?

Without specific details on the scope and technical specifications of the motors and generators, a direct comparison is challenging. However, $436 million represents a significant investment, suggesting either a large quantity of units, highly complex or specialized equipment, or a long-term supply agreement for critical components.

Industry Classification

NAICS: ManufacturingElectrical Equipment ManufacturingMotor and Generator Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 TWIN OAKS RD, KOHLER, WI, 53044

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,365,645

Exercised Options: $4,365,645

Current Obligation: $4,365,645

Actual Outlays: $1,475,078

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA12D00020

IDV Type: IDC

Timeline

Start Date: 2022-08-18

Current End Date: 2027-09-30

Potential End Date: 2027-09-30 00:00:00

Last Modified: 2026-04-02

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