DoD spent $25.1M on generator sets, with 6 bidders indicating competitive pricing

Contract Overview

Contract Amount: $25,130,474 ($25.1M)

Contractor: Cummins Power Generation Inc.

Awarding Agency: Department of Defense

Start Date: 2012-07-17

End Date: 2014-02-28

Contract Duration: 591 days

Daily Burn Rate: $42.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF AMMPS GENERATOR SETS IN SUPPORT OF PM MEP.

Place of Performance

Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to CUMMINS POWER GENERATION INC. for work described as: PURCHASE OF AMMPS GENERATOR SETS IN SUPPORT OF PM MEP. Key points: 1. The contract achieved a competitive outcome with six bidders vying for the award. 2. The firm-fixed-price contract type suggests a defined scope and cost certainty. 3. The award was made by the Defense Contract Management Agency, indicating a focus on defense readiness. 4. The generator sets support the PM MEP program, highlighting their role in essential operations. 5. The contract duration of 591 days suggests a significant, but not excessively long, procurement cycle.

Value Assessment

Rating: good

The total contract value of $25.1 million for generator sets appears reasonable given the competitive nature of the procurement, which typically drives better pricing. Without specific unit details or performance requirements, a direct comparison is challenging. However, the presence of six bidders suggests that the pricing was likely benchmarked against market rates during the bidding process. The firm-fixed-price structure further supports value for money by transferring cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six distinct bidders submitting proposals. This level of competition is generally considered robust and indicates that multiple capable vendors were aware of and interested in the requirement. The wide participation suggests a healthy market for these types of generator sets and that the government had a good selection of potential sources, likely leading to a more favorable price discovery process.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a lower overall price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market forces to obtain the best value.

Public Impact

Military personnel and operations supported by reliable power generation capabilities. Enhanced operational readiness for the Department of Defense through the provision of essential equipment. Potential for improved logistical support and reduced downtime in deployed environments. The acquisition supports the PM MEP program, contributing to its overall mission success.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of generator technology over the contract's lifespan.
Ensuring long-term maintenance and support availability for the acquired generator sets.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Firm-fixed-price contract type provides cost certainty.
Multiple bidders suggest a healthy vendor landscape.

Sector Analysis

The market for motor and generator manufacturing (NAICS 335312) is a significant segment of the industrial base, supporting various sectors including defense, infrastructure, and commercial applications. This contract for AMMPS generator sets falls within this sector, contributing to the overall demand for power generation equipment. Benchmarking against similar government procurements for specialized generator sets would provide further context on pricing and value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award to a large manufacturer like Cummins Power Generation Inc. suggests that the primary focus was on meeting the technical and volume requirements of the Department of Defense. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of Defense utilizes various oversight mechanisms, including contract administration by agencies like the Defense Contract Management Agency (DCMA), to ensure compliance with contract terms and performance standards. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is generally facilitated through contract databases, though specific performance metrics and detailed cost breakdowns may not always be publicly available.

Related Government Programs

Tactical Wheeled Vehicles
Power Generation Equipment
Military Logistics Support
Defense Readiness Programs

Risk Flags

Potential for technology obsolescence
Ensuring long-term operational readiness and maintenance support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to CUMMINS POWER GENERATION INC.. PURCHASE OF AMMPS GENERATOR SETS IN SUPPORT OF PM MEP.

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 $25.1 million.

What is the period of performance?

Start: 2012-07-17. End: 2014-02-28.

What is the specific technical capability and intended use of the AMMPS generator sets purchased under this contract?

The AMMPS (Advanced Medium Mobile Power System) generator sets are designed to provide reliable and mobile electrical power in tactical environments. They are crucial for supporting various military operations, including powering command centers, communication systems, field hospitals, and other essential equipment in deployed locations. The specific technical capabilities would include power output ratings (e.g., kilowatts), voltage, frequency, mobility features (e.g., trailer-mounted or integrated into vehicles), environmental operating conditions, and fuel efficiency. Understanding these specifications is key to assessing the suitability and value of the procured equipment for its intended purpose within the Department of Defense's operational needs.

How does the unit cost of these generator sets compare to similar commercial or military off-the-shelf (COTS/MOTS) offerings?

A precise unit cost comparison is difficult without knowing the exact quantity and specific model of AMMPS generator sets procured under this $25.1 million contract. However, given the firm-fixed-price nature and full and open competition with six bidders, it suggests the pricing was competitive. To perform a robust comparison, one would need to identify the specific generator set model numbers and their associated power outputs and features. Then, these could be benchmarked against current market prices for similar military-grade or industrial generators from other manufacturers. Factors like ruggedization, mobility, and specialized military certifications often increase the cost compared to standard commercial units, but the competitive bidding process should have ensured a fair market price within the specialized military context.

What are the key performance indicators (KPIs) used to evaluate the success of this contract and the performance of Cummins Power Generation Inc.?

Key performance indicators for this contract would likely revolve around delivery schedules, adherence to technical specifications, reliability, and overall operational effectiveness of the AMMPS generator sets in supporting PM MEP. For Cummins Power Generation Inc., KPIs would include on-time delivery, meeting all contractual technical requirements (e.g., power output, environmental resilience), and potentially post-delivery performance metrics related to mean time between failures (MTBF) or operational availability. The firm-fixed-price contract structure incentivizes the contractor to meet these requirements within the agreed budget. Post-award performance reviews and user feedback from the Department of Defense would be critical in assessing the contractor's overall success and the value delivered.

What is the historical spending trend for AMMPS generator sets or similar power generation equipment within the Department of Defense?

Analyzing historical spending trends for AMMPS generator sets or similar power generation equipment within the Department of Defense is crucial for understanding the scale and consistency of this type of procurement. This $25.1 million contract represents a significant investment. To assess trends, one would examine contract databases for previous awards of AMMPS systems or comparable mobile power solutions over the past 5-10 years. This would reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify the primary agencies or programs driving demand. Understanding these patterns helps in forecasting future needs and budgeting, and can highlight any significant shifts in technology or operational requirements influencing procurement.

Were there any identified risks or challenges during the execution of this contract, and how were they mitigated?

While the provided data doesn't detail specific risks encountered during contract execution, common challenges in procuring complex equipment like generator sets can include supply chain disruptions, technical integration issues, or unforeseen cost increases. Given the firm-fixed-price contract type, the primary risk for the government is ensuring the contractor meets all specifications and delivery timelines within the agreed budget. Mitigation strategies typically involve robust contract oversight by the DCMA, clear communication channels with the contractor, and potentially performance bonds or liquidated damages clauses. The fact that the contract was completed within its defined period (July 2012 - Feb 2014) suggests that any significant risks were likely managed effectively.

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: $25,130,474

Exercised Options: $25,130,474

Current Obligation: $25,130,474

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T04DA003

IDV Type: IDC

Timeline