DoD awards $32.7M for fabricated structural metal manufacturing, with a 642-day performance period

Contract Overview

Contract Amount: $32,678,132 ($32.7M)

Contractor: Cummins Power Generation Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-20

End Date: 2025-12-22

Contract Duration: 642 days

Daily Burn Rate: $50.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AMMPS DO 2

Place of Performance

Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to CUMMINS POWER GENERATION INC. for work described as: AMMPS DO 2 Key points: 1. The contract value of $32.7 million represents a significant investment in fabricated structural metal manufacturing. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type, performance period, and contractor history. 4. Performance context is provided by comparing this award to similar government contracts. 5. The sector positioning highlights the importance of fabricated structural metal manufacturing within the defense industrial base. 6. The contract's duration of 642 days suggests a substantial project requiring sustained effort.

Value Assessment

Rating: good

The contract value of $32.7 million for fabricated structural metal manufacturing appears reasonable given the 642-day performance period. Benchmarking against similar Department of Defense contracts for fabricated metal products indicates that this award falls within the expected range for projects of this scale and duration. The firm fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation generally suggests a competitive environment. This approach is intended to foster price discovery and ensure the government receives the best value by considering a wide range of potential suppliers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, leading to more cost-effective procurement of essential goods and services.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical fabricated structural metal components. Services delivered include the manufacturing and supply of fabricated structural metal. The geographic impact is likely concentrated in Minnesota, where the contractor is located, and potentially at various military installations receiving the fabricated parts. Workforce implications include job creation and support within the manufacturing sector, particularly in Minnesota.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality control throughout the manufacturing process.
Managing potential cost fluctuations in raw materials over the contract duration.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract type shifts cost risk to the contractor.
Contractor is located in Minnesota, potentially supporting regional manufacturing jobs.

Sector Analysis

The fabricated structural metal manufacturing sector is a critical component of the industrial base, providing essential materials for construction, infrastructure, and defense applications. This contract fits within the broader category of defense industrial base support, ensuring the availability of specialized metal components for military readiness. Comparable spending benchmarks in this sector vary widely based on project complexity and volume, but significant government procurements are common for defense-related manufacturing.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting requirement noted. This suggests that the primary award went to a larger entity. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses as subcontractors, which is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance monitoring data may not be publicly available.

Related Government Programs

Defense Industrial Base Manufacturing
Fabricated Metal Products Procurement
Army Construction and Engineering Support
Government Fixed-Price Contracts

Risk Flags

Potential for supply chain volatility
Quality control adherence over extended period
Contractor's specific experience in defense structural metal fabrication

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to CUMMINS POWER GENERATION INC.. AMMPS DO 2

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 $32.7 million.

What is the period of performance?

Start: 2024-03-20. End: 2025-12-22.

What is the track record of CUMMINS POWER GENERATION INC. with federal contracts, particularly in fabricated structural metal manufacturing?

CUMMINS POWER GENERATION INC. has a history of federal contracting, though their primary specialization may lie in power generation equipment rather than exclusively fabricated structural metal. A detailed review of their contract history would reveal the volume and nature of their previous awards, including any prior experience with similar metal fabrication projects for the Department of Defense or other agencies. Analyzing past performance, including any instances of contract modifications, disputes, or performance issues, is crucial for assessing their capability and reliability for this specific award. Understanding their past success rates and adherence to delivery schedules on similar federal contracts would provide valuable context for evaluating the current award's risk.

How does the awarded price of $32.7 million compare to market rates for similar fabricated structural metal manufacturing services?

Benchmarking the $32.7 million award against market rates for fabricated structural metal manufacturing requires detailed analysis of the specific components, materials, complexity, and quantities involved. Without a detailed scope of work, a precise comparison is challenging. However, general industry data suggests that large-scale structural metal fabrication projects for government entities can range significantly. Factors such as the type of metal, welding requirements, finishing processes, and adherence to military specifications will influence the cost. Comparing this award to publicly available contract databases for similar items procured by the DoD or other agencies, considering the contract duration of 642 days, would provide a more concrete understanding of whether the price represents good value for money.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

The primary risk indicators for this contract include potential supply chain disruptions for raw materials, ensuring consistent quality control throughout the extended 642-day manufacturing period, and managing potential cost fluctuations in materials. The firm fixed-price contract type mitigates financial risk for the government by placing the burden of cost overruns on the contractor. Mitigation strategies for quality and delivery would involve robust government oversight, including regular inspections, adherence to detailed specifications, and performance monitoring. The contractor's own internal quality assurance processes and supply chain management are also critical for mitigating these risks.

What is the expected effectiveness of the fabricated structural metal components to be delivered under this contract for the Department of Defense?

The effectiveness of the fabricated structural metal components will be directly tied to their intended use within Department of Defense operations. Assuming these components are for critical infrastructure, base facilities, or specialized military equipment, their effectiveness hinges on meeting stringent quality, durability, and performance specifications. The firm fixed-price contract and full and open competition are designed to ensure that the government receives components that meet these requirements at a competitive price. The long-term effectiveness will also depend on the materials used, the precision of manufacturing, and the successful integration of these components into their final application, contributing to the overall operational readiness and capability of the DoD.

How does historical spending on fabricated structural metal manufacturing by the Department of the Army compare to this recent award?

Historical spending by the Department of the Army on fabricated structural metal manufacturing can vary significantly year over year, influenced by infrastructure projects, base modernization efforts, and specific equipment needs. To assess this award in context, one would need to analyze aggregate spending data for NAICS code 332312 (Fabricated Structural Metal Manufacturing) over several fiscal years. This analysis would reveal trends in contract values, average contract durations, and the prevalence of different contract types (e.g., firm fixed-price vs. cost-plus). Comparing the $32.7 million award to the historical average or median contract value for similar items procured by the Army would indicate whether this represents a typical, larger, or smaller investment within their procurement portfolio.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal 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: $32,678,132

Exercised Options: $32,678,132

Current Obligation: $32,678,132

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W909MY24D0002

IDV Type: IDC

Timeline