DoD awards $29.5M for generator sets to support LTAMDS, with no competition
Contract Overview
Contract Amount: $29,480,517 ($29.5M)
Contractor: Cummins Power Generation Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-15
End Date: 2027-07-31
Contract Duration: 593 days
Daily Burn Rate: $49.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACQUIRE GENERATOR SETS IN BOTH THE 500 KW SKID MOBILE ELECTRIC POWER GENERATOR SET (MEPGS) -10001 AND POWER PLANT (PP) (MEPGS- 35001) CONFIGURATIONS TO MEET THE ELECTRICAL POWER NEEDS FOR THE LOWER TIER AIR AND MISSILE DEFENSE SENSOR (LTAMDS).
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432
Plain-Language Summary
Department of Defense obligated $29.5 million to CUMMINS POWER GENERATION INC. for work described as: ACQUIRE GENERATOR SETS IN BOTH THE 500 KW SKID MOBILE ELECTRIC POWER GENERATOR SET (MEPGS) -10001 AND POWER PLANT (PP) (MEPGS- 35001) CONFIGURATIONS TO MEET THE ELECTRICAL POWER NEEDS FOR THE LOWER TIER AIR AND MISSILE DEFENSE SENSOR (LTAMDS). Key points: 1. Significant investment of $29.5 million for critical power generation. 2. Sole-source award to Cummins Power Generation Inc. raises competition concerns. 3. Contract duration of 593 days for delivery through July 2027. 4. Supports the Lower Tier Air and Missile Defense Sensor (LTAMDS) program.
Value Assessment
Rating: questionable
The contract value of $29.5 million for generator sets is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for high-capacity generator systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for multiple vendors to bid.
Taxpayer Impact: The lack of competition on this $29.5 million contract may result in a higher cost to taxpayers than if a competitive process had been employed.
Public Impact
Ensures critical power for advanced missile defense systems. Potential for higher costs due to sole-source award. Impacts the readiness and deployment of LTAMDS. Supports a key defense modernization effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation noted
Positive Signals
- Supports critical defense infrastructure
- Addresses specific technical requirements for LTAMDS
Sector Analysis
The acquisition falls within the Motor and Generator Manufacturing sector (NAICS 335312). Spending in this sector can vary widely based on technological complexity and demand, but a $29.5 million sole-source award warrants scrutiny.
Small Business Impact
There is no indication of small business participation in this contract. Given the sole-source nature and the specialized equipment, it's possible that small businesses were not considered or involved in this specific procurement.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight in the competition phase. Further review would be needed to confirm if justification for other than full and open competition was properly documented and approved.
Related Government Programs
- Motor and Generator Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- No small business participation identified
- Limited transparency in procurement process
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 $29.5 million to CUMMINS POWER GENERATION INC.. ACQUIRE GENERATOR SETS IN BOTH THE 500 KW SKID MOBILE ELECTRIC POWER GENERATOR SET (MEPGS) -10001 AND POWER PLANT (PP) (MEPGS- 35001) CONFIGURATIONS TO MEET THE ELECTRICAL POWER NEEDS FOR THE LOWER TIER AIR AND MISSILE DEFENSE SENSOR (LTAMDS).
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 $29.5 million.
What is the period of performance?
Start: 2025-12-15. End: 2027-07-31.
What is the justification for the sole-source award of this generator set contract?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique technical requirements, proprietary technology, or urgent and compelling needs where competition is not feasible. A thorough review of the contract file would be necessary to ascertain the specific rationale provided by the Department of the Army.
What is the potential cost impact of this sole-source award compared to a competitive process?
Sole-source contracts often result in higher costs for the government compared to competitive awards. Without multiple bids, the contractor has less incentive to offer the lowest possible price. The absence of competition on this $29.5 million contract likely means taxpayers are paying a premium, though the exact amount is unknown without a benchmark.
How does the performance of Cummins Power Generation Inc. on previous contracts inform the risk assessment for this award?
Assessing the risk associated with this sole-source award would benefit from an analysis of Cummins Power Generation Inc.'s past performance. Reviewing their track record on similar government contracts, including on-time delivery, quality of products, and adherence to budget, would provide insights into their reliability and the potential risks of cost overruns or schedule delays.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $29,480,517
Exercised Options: $29,480,517
Current Obligation: $29,480,517
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W909MY26D0001
IDV Type: IDC
Timeline
Start Date: 2025-12-15
Current End Date: 2027-07-31
Potential End Date: 2027-07-31 00:00:00
Last Modified: 2025-12-15
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