DoD awards $49.8M for generators to Cummins Power Generation Inc. under full and open competition
Contract Overview
Contract Amount: $49,758,013 ($49.8M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-20
End Date: 2013-05-24
Contract Duration: 612 days
Daily Burn Rate: $81.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
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 $49.8 million to CUMMINS POWER GENERATION INC. for work described as: PROVIDE FUNDING FOR THE PURCHASE OF GENERATORS. Key points: 1. Significant award for motor and generator manufacturing, a key defense industrial base sector. 2. Contract awarded to a single, established vendor, indicating potential for strong performance. 3. The firm-fixed-price contract type aims to control costs for the Department of Defense. 4. The duration of the contract is substantial, spanning over 600 days.
Value Assessment
Rating: good
The award amount of $49.8 million for generators appears reasonable given the contract duration and the nature of the equipment. Benchmarking against similar large-scale generator procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages multiple bids and potentially drives down costs.
Public Impact
Ensures operational readiness for Department of Defense assets requiring reliable power. Supports the domestic manufacturing sector for critical power generation equipment. The procurement addresses a fundamental need for power continuity in military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on generator capacity and technical requirements.
- Potential for sole-source reliance on Cummins for future maintenance or parts if not explicitly managed.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type.
- Awarded to a known manufacturer in the sector.
Sector Analysis
This contract falls within the Motor and Generator Manufacturing sector (NAICS 335312), which is critical for national defense and infrastructure. Spending benchmarks for similar large-scale generator procurements are not readily available but are likely substantial given the defense context.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were offered or utilized by the prime contractor.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight. The firm-fixed-price structure provides a degree of cost accountability. However, ongoing monitoring of performance and delivery is crucial.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for sole-source dependency on prime contractor for future support.
- Lack of detailed technical specifications in the award summary.
- No explicit mention of small business subcontracting goals.
- Limited insight into long-term operational and maintenance costs.
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 $49.8 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $49.8 million.
What is the period of performance?
Start: 2011-09-20. End: 2013-05-24.
What is the specific power output and intended use case for these generators?
The provided data does not specify the exact power output (e.g., kW, MW) or the intended operational environment for the generators. Understanding these details is crucial for assessing their suitability and value for the Department of Defense's specific mission requirements and for comparing them to industry standards.
What are the key performance metrics and acceptance criteria for the generators?
The data lacks information on the specific performance metrics and acceptance criteria. These are essential for ensuring the generators meet the DoD's technical specifications and operational needs. Without them, it's difficult to fully evaluate the effectiveness and reliability of the procured equipment.
Are there provisions for long-term maintenance, support, and spare parts availability?
The contract details do not explicitly mention provisions for long-term maintenance, support, or spare parts. This could pose a future risk if not addressed, potentially leading to increased costs or operational downtime if the contractor is not obligated to provide these services.
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: $49,758,013
Exercised Options: $49,758,013
Current Obligation: $49,758,013
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T04DA003
IDV Type: IDC
Timeline
Start Date: 2011-09-20
Current End Date: 2013-05-24
Potential End Date: 2013-05-24 00:00:00
Last Modified: 2014-12-03
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