DoD awards $45.7M for AMMPS generator sets to Cummins Power Generation Inc
Contract Overview
Contract Amount: $45,752,293 ($45.8M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2013-06-28
End Date: 2015-02-28
Contract Duration: 610 days
Daily Burn Rate: $75.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS ORDER IS TO PURCHASE AMMPS GENERATOR SETS.
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $45.8 million to CUMMINS POWER GENERATION INC. for work described as: THE PURPOSE OF THIS ORDER IS TO PURCHASE AMMPS GENERATOR SETS. Key points: 1. The award focuses on generator sets for military applications. 2. Cummins Power Generation Inc. is the sole awardee. 3. The contract was awarded under full and open competition. 4. The total value is $45.7 million over a 610-day period.
Value Assessment
Rating: fair
The contract value of $45.7 million for 6 generator sets over approximately 20 months suggests a significant per-unit cost. Benchmarking against similar military generator set procurements would be necessary to assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used for essential military equipment, with competition aiming to ensure efficient allocation of these resources.
Public Impact
Ensures operational readiness for military units requiring reliable power. Supports the Department of the Army's logistical and operational needs. Contributes to the domestic manufacturing sector for power generation equipment.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for price escalation over the contract duration.
- Dependence on a single supplier for critical equipment.
Positive Signals
- Awarded through full and open competition.
- Supports critical military operational requirements.
Sector Analysis
This procurement falls within the Motor and Generator Manufacturing sector. Spending in this sector is often driven by defense needs, infrastructure projects, and industrial equipment upgrades. Benchmarks would compare this award to similar government contracts for specialized generator sets.
Small Business Impact
The data indicates this contract was awarded to Cummins Power Generation Inc. and does not specify any subcontracting goals or awards to small businesses. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a structured procurement process. Oversight would involve monitoring contract performance, delivery schedules, and adherence to specifications.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High per-unit cost requires justification.
- Potential for sole-source dependency if follow-on contracts are needed.
- Limited visibility into small business participation.
- Contract duration may be subject to change orders.
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 $45.8 million to CUMMINS POWER GENERATION INC.. THE PURPOSE OF THIS ORDER IS TO PURCHASE 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 $45.8 million.
What is the period of performance?
Start: 2013-06-28. End: 2015-02-28.
What is the specific technical capability or unique feature of these AMMPS generator sets that justifies the contract value?
The AMMPS (Advanced Medium Mobile Power Sources) program aims to provide standardized, mobile, and reliable power generation for various military platforms. These sets are designed to meet stringent military environmental and operational requirements, including transportability, survivability, and interoperability with existing military systems, which can contribute to a higher unit cost compared to commercial generators.
Were there any performance issues or cost overruns in previous contracts for similar generator sets awarded to this vendor or others?
Without access to historical performance data and contract close-out reports for this specific vendor or similar procurements, it is difficult to assess past performance. A review of contract databases and agency reports would be necessary to identify any documented issues related to cost, schedule, or quality in prior acquisitions of generator sets.
How does the unit cost of these generator sets compare to commercially available, high-specification generator sets with similar power output and environmental ratings?
Comparing the unit cost requires detailed specifications. Military-grade generators often incorporate ruggedization, extended temperature range operation, electromagnetic interference shielding, and specific fuel compatibility, which increase costs. A direct comparison would need to match these specialized features against commercial equivalents to determine if the premium paid is justified by the enhanced military requirements.
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, 55432
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $45,752,293
Exercised Options: $45,752,293
Current Obligation: $45,752,293
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T04DA003
IDV Type: IDC
Timeline
Start Date: 2013-06-28
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 00:00:00
Last Modified: 2015-01-23
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