DoD awards $44.8M for generators to Cummins Power Generation Inc. under full and open competition
Contract Overview
Contract Amount: $44,816,673 ($44.8M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-07
End Date: 2013-11-30
Contract Duration: 815 days
Daily Burn Rate: $55.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE FUNDING FOR THE PURCHASE OF GENERATORS.
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432
Plain-Language Summary
Department of Defense obligated $44.8 million to CUMMINS POWER GENERATION INC. for work described as: PROVIDE FUNDING FOR THE PURCHASE OF GENERATORS. Key points: 1. The contract value of $44.8 million is significant for generator manufacturing. 2. Cummins Power Generation Inc. is a major player in the generator market. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is Motor and Generator Manufacturing, crucial for military operations.
Value Assessment
Rating: good
The award amount of $44.8 million for 6 generators appears reasonable given the unit cost. The average price per unit is approximately $7.47 million, which is within a typical range for high-capacity industrial generators.
Cost Per Unit: $7,470,000
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition suggests that taxpayers likely received a fair price for the generators, maximizing value for the funds expended.
Public Impact
Ensures operational readiness for Department of Defense units by providing essential power generation capabilities. Supports a key manufacturing sector, contributing to domestic industrial capacity. The procurement of generators is critical for maintaining essential services during power outages or in remote locations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation if raw material costs increase significantly.
- Dependence on a single contractor for a critical piece of equipment.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract helps control costs.
- Significant investment in essential equipment.
Sector Analysis
The Motor and Generator Manufacturing sector is vital for national security, providing essential equipment for military operations and infrastructure. Spending benchmarks for similar large-scale generator contracts can vary widely based on capacity, features, and delivery timelines.
Small Business Impact
This contract was awarded to a large business (Cummins Power Generation Inc.) and there is no indication of specific provisions or set-asides for small businesses in the provided data.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management, performance monitoring, and ensuring compliance with terms and conditions.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for sole-source follow-on contracts.
- Dependency on a single manufacturer for critical equipment.
- Risk of obsolescence if technology advances rapidly.
- Geopolitical risks affecting supply chain for components.
Tags
motor-and-generator-manufacturing, department-of-defense, mn, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.8 million to CUMMINS POWER GENERATION INC.. PROVIDE FUNDING FOR THE PURCHASE OF GENERATORS.
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 $44.8 million.
What is the period of performance?
Start: 2011-09-07. End: 2013-11-30.
What is the expected lifespan and maintenance cost of these generators to fully assess long-term value?
The provided data does not specify the expected lifespan or ongoing maintenance costs for the generators. A comprehensive value assessment would require this information, as it significantly impacts the total cost of ownership and operational effectiveness over the equipment's life cycle.
Were there any performance issues or delays reported during the contract period?
The data indicates the contract was awarded in September 2011 and completed in November 2013, with a duration of 815 days. Without specific performance reports or contract modification details, it's impossible to determine if there were any performance issues or delays during this period.
How does the unit cost compare to commercially available generators of similar specifications?
The per-unit cost of approximately $7.47 million is high, but likely reflects specialized military-grade generators with higher power output, ruggedization, and specific operational requirements not found in standard commercial models. A direct comparison would need to account for these critical differences.
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)
Contractor Details
Parent Company: Cummins Inc. (UEI: 006415160)
Address: 1400 73RD AVENUE NE, MINNEAPOLIS, MN, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $44,816,673
Exercised Options: $44,816,673
Current Obligation: $44,816,673
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T04DA003
IDV Type: IDC
Timeline
Start Date: 2011-09-07
Current End Date: 2013-11-30
Potential End Date: 2013-11-30 00:00:00
Last Modified: 2012-07-27
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