Transportation awards $4.3M contract for motor and 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: OBERLIN, LORAIN County, OHIO, 44074

State: Ohio 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 value appears reasonable given the duration and scope of motor and generator manufacturing services. 2. Full and open competition suggests a healthy market for these specialized manufacturing capabilities. 3. Fixed price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly 5 years provides long-term stability for the supplier. 5. The award to Discovery Energy, LLC, a firm based in Ohio, indicates a focus on domestic manufacturing.

Value Assessment

Rating: good

The contract value of $4.3 million over approximately 5 years, for motor and generator manufacturing, suggests a moderate annual spend. Without specific details on the exact units or services procured, a direct per-unit cost comparison is difficult. However, the fixed-price nature of the contract provides a degree of cost certainty. Benchmarking against similar, publicly available contracts for specialized motor and generator manufacturing would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair market prices and encourage innovation. The specific number of bidders is not provided, but the designation implies a robust bidding environment for motor and generator manufacturing services.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value for its investment.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, likely receiving critical components for its operations. Services delivered include the manufacturing of motors and generators, essential for various transportation infrastructure. The geographic impact is centered in Ohio, where Discovery Energy, LLC is located, potentially supporting local jobs and the regional economy. Workforce implications may include skilled manufacturing jobs related to electrical and mechanical engineering and production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or deliverables makes it difficult to assess the quality and timeliness of the manufactured goods.
The duration of the contract, while providing stability, could also lead to complacency if not actively managed.
Limited information on the specific types of motors and generators procured hinders a deeper understanding of the technological sophistication required.

Positive Signals

The use of a firm fixed-price contract structure is a positive indicator for cost control.
Awarding under full and open competition suggests a competitive market and potential for good pricing.
The contract's focus on manufacturing within the US could support domestic industrial capacity.

Sector Analysis

The motor and generator manufacturing sector is a critical component of the broader industrial and defense supply chains. This contract falls within the North American Industry Classification System (NAICS) code 335312. The market for specialized motors and generators can be competitive, with established players and niche manufacturers. Federal spending in this area often supports infrastructure, defense systems, and research and development initiatives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Discovery Energy, LLC, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts can sometimes lead to subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a component of the Department of Transportation. The contract's fixed-price nature simplifies some aspects of financial oversight. Accountability measures would be tied to the delivery of specified motors and generators according to the contract's terms. Transparency is facilitated by the public nature of federal contract awards, though detailed performance data may not always be readily available.

Related Government Programs

Federal Aviation Administration Operations
Department of Transportation Procurement
Industrial Manufacturing Contracts
Electrical Equipment Procurement

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of manufacturing defects requiring rework or replacement.
Contractor's performance history is not detailed, posing a potential execution risk.

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 is the specific nature and technical specification of the motors and generators being manufactured under this contract?

The provided data identifies the NAICS code as 335312 (Motor and Generator Manufacturing) and the procuring agency as the Federal Aviation Administration (FAA). However, it does not detail the specific types, power ratings, or technical requirements of the motors and generators. These could range from small components for control systems to larger generators for power backup at air traffic control facilities. Understanding these specifications is crucial for assessing the contract's true value and the contractor's capabilities. Further details would likely be found in the contract's statement of work or technical exhibits, which are not included in the provided summary data.

How does the awarded price compare to market rates for similar motor and generator manufacturing services?

The total contract value is $4.36 million over approximately 5 years (August 2022 to September 2027), with a duration of 1869 days. This averages to roughly $2,336 per day or approximately $873,000 annually. Without knowing the exact quantity, specifications, and complexity of the motors and generators, a precise market rate comparison is challenging. However, the 'full and open competition' suggests that the pricing was vetted against market capabilities. To perform a robust comparison, one would need to identify comparable contracts for similar manufactured goods, considering factors like power output, efficiency ratings, environmental resilience, and lead times. The fixed-price nature implies the contractor took on the risk of cost fluctuations.

What is Discovery Energy, LLC's track record with federal contracts, particularly with the FAA or DOT?

The provided data does not include information on Discovery Energy, LLC's past performance or track record with federal contracts. To assess this, one would typically look at contract databases (like FPDS or SAM.gov) for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A strong track record with similar agencies or contract types would indicate a lower performance risk. Conversely, a history of issues might raise concerns about the contractor's ability to meet the current contract's requirements effectively and on time.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include supply chain disruptions for raw materials, manufacturing defects, delays in production, and potential cost increases if the fixed-price contract did not adequately account for all contingencies. Mitigation strategies often involve robust quality assurance processes by the contractor, clear performance standards in the contract, and active oversight by the FAA contracting officer. The fixed-price structure itself mitigates the risk of cost overruns for the government, shifting that risk to the contractor. However, if unforeseen issues arise, the contractor might seek contract modifications or face penalties.

How does this spending align with the FAA's overall strategic goals for infrastructure modernization or operational efficiency?

This contract supports the FAA's mission by ensuring the availability of essential components like motors and generators, which are critical for the functioning of air traffic control systems, navigation aids, and potentially airport infrastructure. Modernizing or maintaining these systems requires reliable equipment. By procuring these components, the FAA is likely investing in the upkeep and potential upgrade of its operational infrastructure, contributing to the safety and efficiency of the National Airspace System. The specific alignment would depend on whether these components are for new installations, replacements, or upgrades.

What is the historical spending trend for motor and generator manufacturing by the Department of Transportation or FAA?

The provided data only details this specific contract award of $4.36 million. To understand historical spending trends, one would need to analyze multi-year procurement data for NAICS code 335312 or similar classifications within the Department of Transportation (DOT) and specifically the FAA. This would involve querying databases like FPDS to aggregate spending over several fiscal years. Such an analysis would reveal whether this award represents an increase, decrease, or steady level of investment in motor and generator manufacturing compared to previous periods, and identify any major shifts in procurement strategies or technology adoption.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor 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