DoD's $56.6M Generator Purchase: Cummins Power Generation Wins Amidst Full and Open Competition
Contract Overview
Contract Amount: $56,619,914 ($56.6M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2012-03-30
End Date: 2014-07-31
Contract Duration: 853 days
Daily Burn Rate: $66.4K/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 AMMPS GENERATOR SETS.
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432
Plain-Language Summary
Department of Defense obligated $56.6 million to CUMMINS POWER GENERATION INC. for work described as: PROVIDE FUNDING FOR THE PURCHASE OF AMMPS GENERATOR SETS. Key points: 1. The Department of Defense (DoD) awarded a $56.6 million contract for generator sets. 2. Cummins Power Generation Inc. secured the contract under full and open competition. 3. The contract duration was 853 days, indicating a significant, multi-year procurement. 4. The award was made by the Department of the Army, highlighting a key defense need. 5. The North American Industry Classification System (NAICS) code 335312 points to motor and generator manufacturing.
Value Assessment
Rating: good
The contract value of $56.6 million for generator sets appears reasonable given the quantity of 6 units and the duration of the contract. Benchmarking against similar large-scale generator procurements would provide a more precise assessment.
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 competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by driving down prices through market forces.
Public Impact
Ensures operational readiness for military units by providing essential power generation capabilities. Supports critical infrastructure at military installations, maintaining essential services. The procurement contributes to the domestic manufacturing sector for power generation equipment. The award to a single vendor, Cummins Power Generation, may impact market dynamics for future generator procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data makes precise value assessment difficult.
- Potential for vendor lock-in if this becomes a sole-source supplier for future needs.
- Limited information on the specific technical requirements and performance metrics of the generator sets.
Positive Signals
- Awarded under full and open competition, indicating competitive pricing.
- Procurement supports essential defense operational capabilities.
- Contract duration suggests a planned, strategic acquisition.
Sector Analysis
The procurement falls within the Defense sector, specifically related to equipment manufacturing. Spending benchmarks for generator sets within the DoD can vary widely based on size, power output, and specific military requirements.
Small Business Impact
The data indicates the prime contractor is Cummins Power Generation Inc., a large business. There is no explicit mention of small business participation in this specific award, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The award was made by the Department of the Army, implying adherence to established procurement regulations and oversight processes. Further review of contract performance reports would be needed to assess ongoing accountability.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price escalation in future contracts.
- Limited visibility into small business subcontracting.
- Dependence on a single supplier for critical equipment.
- Lack of detailed technical specifications in the provided data.
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 $56.6 million to CUMMINS POWER GENERATION INC.. PROVIDE FUNDING FOR THE PURCHASE OF AMMPS GENERATOR SETS.
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 $56.6 million.
What is the period of performance?
Start: 2012-03-30. End: 2014-07-31.
What was the average price per generator set awarded under this contract?
The contract value was $56,619,914 for 6 generator sets, resulting in an average price of approximately $9,436,652 per unit. This figure represents the total contract value divided by the number of units, providing a baseline for cost analysis.
What are the primary risks associated with relying on a single vendor for critical equipment like generator sets?
Key risks include potential price increases in future procurements due to lack of competition, reduced innovation if the vendor faces less market pressure, and supply chain vulnerabilities if the vendor experiences production issues. This can lead to higher long-term costs for taxpayers.
How effectively does this procurement support the Department of the Army's long-term power generation strategy?
The effectiveness depends on how these generator sets align with the Army's modernization plans, energy efficiency goals, and deployment requirements. Without details on the specific capabilities and intended use, it's difficult to assess the strategic alignment and long-term value beyond immediate operational needs.
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: $56,619,914
Exercised Options: $56,619,914
Current Obligation: $56,619,914
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T04DA003
IDV Type: IDC
Timeline
Start Date: 2012-03-30
Current End Date: 2014-07-31
Potential End Date: 2014-07-31 00:00:00
Last Modified: 2013-04-15
More Contracts from Cummins Power Generation Inc.
- Ammps Delivery Order #0011 (FY 2021) — $78.4M (Department of Defense)
- Ammps Delivery Order 21 — $76.3M (Department of Defense)
- Ammps Delivery Order #0008 (w909my20f0039) — $61.1M (Department of Defense)
- Ammps Delivery Order #5 (w909my19f0074) — $57.7M (Department of Defense)
- Ammps Delivery Order 0015 — $56.5M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)