DOT awards $3.06M for generator manufacturing to Discovery Energy, LLC, with a 546-day performance period

Contract Overview

Contract Amount: $305,531 ($305.5K)

Contractor: Discovery Energy, LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-02

End Date: 2027-09-30

Contract Duration: 546 days

Daily Burn Rate: $560/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IIJA EG WICHITA, KS (TWIA) SX JCN:19005988 PROCURING EG SET

Place of Performance

Location: KOHLER, SHEBOYGAN County, WISCONSIN, 53044

State: Wisconsin Government Spending

Plain-Language Summary

Department of Transportation obligated $305,531 to DISCOVERY ENERGY, LLC for work described as: IIJA EG WICHITA, KS (TWIA) SX JCN:19005988 PROCURING EG SET Key points: 1. The contract value of $3.06 million appears reasonable for specialized generator manufacturing, though specific benchmarks are needed. 2. Full and open competition suggests a healthy market for this type of equipment. 3. The fixed-firm price contract structure mitigates cost overrun risks for the government. 4. Performance is expected over 546 days, indicating a medium-term project. 5. The contract falls within the motor and generator manufacturing sector, a critical component for infrastructure. 6. The award to Discovery Energy, LLC, requires assessment of their past performance and capacity.

Value Assessment

Rating: fair

The contract value of $3.06 million for generator manufacturing needs further benchmarking against similar government procurements and commercial market rates. Without specific details on the type and specifications of the generators, a precise value-for-money assessment is challenging. However, the fixed-firm price contract type is favorable as it caps the government's financial exposure. The duration of 546 days suggests a substantial order, and the price per day is approximately $5,595, which requires comparison to industry standards for similar equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This method is generally preferred for ensuring the government receives competitive pricing and the best value. The number of bidders is not specified, but the open competition suggests a robust market for motor and generator manufacturing services.

Taxpayer Impact: Full and open competition typically leads to better price discovery and potentially lower costs for taxpayers by leveraging market forces.

Public Impact

The primary beneficiaries are likely federal agencies requiring specialized generators, potentially for infrastructure projects or operational needs. The services delivered involve the manufacturing of motors and generators, crucial components for various federal operations. The geographic impact is tied to the manufacturing location of Discovery Energy, LLC, and the eventual deployment sites of the generators. Workforce implications may include job creation or sustainment within the manufacturing sector at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific technical details on the generators makes it difficult to assess if the most appropriate technology was procured.
The contractor's track record for delivering similar complex equipment on time and within budget needs thorough review.
Potential for supply chain disruptions affecting timely delivery of specialized components for generator manufacturing.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Fixed-firm price contract type helps control costs and mitigate financial risk for the government.
The contract duration of 546 days allows for structured manufacturing and delivery.

Sector Analysis

The motor and generator manufacturing sector is a vital part of the industrial base, supporting numerous applications across government and commercial industries. This contract fits within the broader category of industrial equipment procurement. Comparable spending benchmarks would involve analyzing other federal contracts for similar types of generators, considering factors like power output, specialized features, and environmental resilience. The market size for such specialized manufacturing can vary significantly based on technological advancements and demand from critical infrastructure sectors.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The impact on the small business ecosystem would be indirect, depending on whether Discovery Energy, LLC, utilizes small businesses in its own supply chain for components or services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or execution.

Related Government Programs

Federal Aviation Administration Procurement
Department of Transportation Contracts
Motor and Generator Manufacturing Services
Industrial Equipment Procurement
Infrastructure Support Contracts

Risk Flags

Contractor Past Performance
Supply Chain Risk
Technological Obsolescence
Market Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $305,531 to DISCOVERY ENERGY, LLC. IIJA EG WICHITA, KS (TWIA) SX JCN:19005988 PROCURING EG SET

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 $305,531.

What is the period of performance?

Start: 2026-04-02. End: 2027-09-30.

What is the specific type and technical specification of the motors and generators being procured under this contract?

The provided data does not specify the exact technical specifications of the motors and generators. It only indicates the North American Industry Classification System (NAICS) code '335312' for Motor and Generator Manufacturing. To fully assess the value and appropriateness of the procurement, details such as power output (kW/MW), voltage, efficiency ratings, environmental operating conditions (temperature, humidity), and any specialized features (e.g., for hazardous environments, specific cooling mechanisms) would be necessary. This information is typically found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract.

How does the contract value of $3.06 million compare to similar federal procurements for motors and generators?

Benchmarking the $3.06 million contract value requires comparing it against similar federal procurements for motors and generators. This involves searching federal procurement databases (like FPDS or SAM.gov) for contracts with similar NAICS codes (335312), contract types (firm-fixed-price), and performance periods (546 days). Key comparison points would include the quantity, power rating, and specific application of the equipment. Without these details, a direct comparison is difficult. However, for context, procurements for large industrial generators can range from hundreds of thousands to millions of dollars, depending heavily on customization and capacity.

What is Discovery Energy, LLC's past performance record with the federal government, particularly for similar equipment?

Assessing Discovery Energy, LLC's past performance is crucial for understanding the risk associated with this contract. Information regarding their track record, including on-time delivery, quality of products, adherence to budget, and customer satisfaction on previous federal contracts, would typically be available in their performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS). A review of these records would indicate their reliability and capability in fulfilling the requirements of this $3.06 million generator manufacturing award.

What are the potential risks associated with the 546-day performance period for this contract?

The 546-day performance period presents several potential risks. Firstly, there's the risk of obsolescence if the technology specified becomes outdated during the manufacturing and delivery timeline, although this is less likely for core motor and generator technology unless highly specialized. Secondly, market fluctuations in raw material costs (e.g., copper, steel, rare earth magnets) could impact the contractor's ability to maintain the firm-fixed price, potentially leading to requests for equitable adjustments or quality compromises if not managed proactively. Lastly, extended timelines increase the possibility of supply chain disruptions or unforeseen manufacturing challenges.

How does the 'full and open competition' procurement method influence the cost-effectiveness for taxpayers?

The 'full and open competition' method is generally beneficial for taxpayers as it maximizes the pool of potential bidders, thereby fostering a competitive environment. This competition drives down prices and encourages vendors to offer their best value propositions, including innovative solutions and high-quality products at competitive rates. By allowing any responsible source to submit an offer, the government is more likely to secure goods and services at a fair and reasonable price, reducing the potential for overpayment compared to sole-source or limited competition scenarios.

What is the strategic importance of this contract within the Department of Transportation's broader mission?

While the specific end-use isn't detailed, motors and generators are fundamental components for a wide array of transportation infrastructure and operational systems. This could include power generation for facilities, propulsion systems for specialized vehicles or equipment, or backup power for critical systems. Ensuring a reliable supply of such components through competitive procurement supports the Department of Transportation's mission to maintain and modernize the nation's transportation infrastructure, ensuring safety, efficiency, and resilience.

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

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: $305,531

Exercised Options: $305,531

Current Obligation: $305,531

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA825D00002

IDV Type: IDC

Timeline