DoD awards $32.7M for BEAR Power Units to Cummins, highlighting motor manufacturing competition
Contract Overview
Contract Amount: $32,742,000 ($32.7M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2017-09-18
End Date: 2019-10-02
Contract Duration: 744 days
Daily Burn Rate: $44.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BEAR POWER UNITS (PRODUCTION ORDER)
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432
Plain-Language Summary
Department of Defense obligated $32.7 million to CUMMINS POWER GENERATION INC. for work described as: BEAR POWER UNITS (PRODUCTION ORDER) Key points: 1. Significant award for motor and generator manufacturing. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration of 744 days indicates a substantial operational need. 4. Awarded by the Department of the Air Force, a major defense spender.
Value Assessment
Rating: good
The award amount of $32.7 million for BEAR Power Units appears reasonable given the contract's duration and the nature of the equipment. Benchmarking against similar large-scale power generation contracts 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, which typically fosters competitive bidding and can lead to more favorable pricing for the government. This method ensures a broad range of potential suppliers can participate.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value and price through market forces.
Public Impact
Ensures operational readiness for Air Force units requiring reliable power generation. Supports the domestic manufacturing sector for critical power equipment. Potential for follow-on contracts based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation over the contract duration.
- Dependence on a single supplier for critical power units.
Positive Signals
- Awarded through full and open competition.
- Supports a key defense requirement.
- Utilizes a firm fixed price contract type.
Sector Analysis
This contract falls within the Motor and Generator Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often driven by modernization and operational readiness requirements for military equipment.
Small Business Impact
The data indicates the prime contractor is Cummins Power Generation Inc., a large corporation. There is no explicit information on small business subcontracting in the provided data, which warrants further investigation to ensure small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed price contract type provides some cost control, but monitoring performance and delivery schedules is crucial for accountability.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration
- Firm Fixed Price
- Full and Open Competition
- Motor and Generator Manufacturing sector
Tags
motor-and-generator-manufacturing, department-of-defense, mn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.7 million to CUMMINS POWER GENERATION INC.. BEAR POWER UNITS (PRODUCTION ORDER)
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 Air Force).
What is the total obligated amount?
The obligated amount is $32.7 million.
What is the period of performance?
Start: 2017-09-18. End: 2019-10-02.
What is the specific operational context for these BEAR Power Units and how do they contribute to mission effectiveness?
BEAR Power Units (Mobile Electric Power Plants) are essential for providing reliable electricity to deployed forces in various operational environments. They support critical functions such as command and control, life support systems, medical facilities, and communications equipment, directly contributing to mission effectiveness and personnel safety in austere or damaged infrastructure scenarios.
Are there any identified risks associated with the long-term sustainment and maintenance of these power units post-delivery?
Risks associated with long-term sustainment could include the availability of spare parts, specialized maintenance personnel, and potential obsolescence of technology over the units' lifecycle. Ensuring robust sustainment planning and potentially securing long-term service agreements with the manufacturer or third parties is crucial to mitigate these risks.
How does the performance of these units compare to previous generations or alternative power solutions in terms of efficiency and reliability?
A comparative analysis of the BEAR Power Units' performance against previous generations or alternative solutions would require access to operational data, reliability metrics (MTBF), fuel efficiency reports, and user feedback. Such an assessment would inform future procurement decisions and identify areas for technological improvement.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cummins Inc.
Address: 1400 73RD AVE NE, MINNEAPOLIS, MN, 55432
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,742,000
Exercised Options: $32,742,000
Current Obligation: $32,742,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA853309D0004
IDV Type: IDC
Timeline
Start Date: 2017-09-18
Current End Date: 2019-10-02
Potential End Date: 2019-10-02 00:00:00
Last Modified: 2025-04-23
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