DoD awards $23.4M for mobile power sources, with a significant portion allocated to generator sets

Contract Overview

Contract Amount: $23,427,031 ($23.4M)

Contractor: Cummins Power Generation Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-18

End Date: 2026-07-31

Contract Duration: 528 days

Daily Burn Rate: $44.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE PRODUCTION AND DELIVERY OF ADVANCED MEDIUM MOBILE POWER SOURCES (AMMPS) GENERATOR SETS.

Place of Performance

Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to CUMMINS POWER GENERATION INC. for work described as: PURCHASE PRODUCTION AND DELIVERY OF ADVANCED MEDIUM MOBILE POWER SOURCES (AMMPS) GENERATOR SETS. Key points: 1. Value for money appears reasonable given the critical nature of mobile power sources for military operations. 2. Full and open competition suggests a healthy market for these generator sets. 3. Potential risks include supply chain disruptions or performance issues with the advanced technology. 4. This contract supports the Department of the Army's operational readiness and logistical capabilities. 5. The fabricated structural metal manufacturing sector is a key area for defense procurement. 6. The contract's fixed-price nature helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $23.4 million for advanced medium mobile power sources (AMMPS) generator sets appears to be within a reasonable range for specialized military equipment. Benchmarking against similar contracts for generator sets of this scale and technological sophistication is challenging without more specific data on unit count and technical specifications. However, the firm fixed-price contract type suggests that the government has negotiated a set price, which is generally favorable for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is ideal as it typically drives down prices and encourages innovation. The specific number of bidders is not provided, but the designation 'full and open' suggests a robust bidding process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can lead to better pricing and higher quality products, ensuring government funds are used efficiently.

Public Impact

Military personnel deployed in various operational environments will benefit from reliable and advanced mobile power sources. The contract ensures the delivery of essential generator sets that support critical infrastructure and equipment. The geographic impact is likely widespread, supporting Army operations globally. Workforce implications may include skilled labor in manufacturing, assembly, and quality control for generator production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for extended lead times if demand surges or supply chain issues arise for specialized components.
Ensuring long-term maintenance and spare parts availability for advanced generator technology could be a challenge.
Dependence on a single manufacturer for the 'AMMPS' designation might limit future sourcing flexibility.

Positive Signals

The use of advanced technology in power sources enhances operational capabilities and reliability.
Firm fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a competitive market, potentially leading to better product quality and innovation.

Sector Analysis

The defense sector relies heavily on specialized equipment like mobile power sources to maintain operational readiness in diverse environments. The market for generator sets is competitive, with various manufacturers offering solutions for both commercial and military applications. This contract fits within the broader category of defense logistics and sustainment, ensuring that deployed forces have access to essential power generation capabilities. Comparable spending benchmarks would depend on the specific power output and features of the AMMPS units.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that small business subcontracting is not explicitly mentioned. This suggests that the primary awardee is likely a large business capable of fulfilling the requirements. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within the supply chain for these generator sets.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Wheeled Vehicles
Expeditionary Power Systems
Military Logistics Support Equipment
Generator Sets Procurement
Defense Production Act Investments

Risk Flags

Supply Chain Vulnerability
Technology Obsolescence
Performance Reliability in Extreme Conditions
Long-Term Maintenance and Supportability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to CUMMINS POWER GENERATION INC.. PURCHASE PRODUCTION AND DELIVERY OF ADVANCED MEDIUM MOBILE POWER SOURCES (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 $23.4 million.

What is the period of performance?

Start: 2025-02-18. End: 2026-07-31.

What is the specific technical capability and power output of the Advanced Medium Mobile Power Sources (AMMPS) generator sets being procured?

The provided data does not specify the exact technical capabilities or power output (e.g., in kilowatts) of the AMMPS generator sets. However, the designation 'Advanced Medium' suggests they are designed for robust, portable power generation suitable for military field operations, likely capable of powering various tactical equipment, communication systems, and field facilities. Further details would typically be found in the contract's Statement of Work (SOW) or technical specifications, which are not included in the summary data. The procurement falls under NAICS code 332312 (Fabricated Structural Metal Manufacturing), indicating a focus on the physical construction and assembly of these power units.

How does the unit cost of these AMMPS generator sets compare to similar commercial or military generator sets?

Without specific unit counts or detailed technical specifications (like power output in kW, fuel efficiency, noise reduction features, environmental hardening), a precise unit cost comparison is not feasible. The total contract value is $23.4 million. If, for example, 100 units were procured, the average cost per unit would be approximately $234,270. This figure needs to be evaluated against the specialized nature of 'Advanced Medium Mobile Power Sources' for military use, which often include ruggedization, advanced control systems, and specific interoperability requirements not found in standard commercial generators. Commercial generators of comparable power output might cost significantly less, but they would likely lack the military-grade features and certifications.

What is the track record of Cummins Power Generation Inc. in supplying similar advanced power systems to the Department of Defense or other government agencies?

Cummins Power Generation Inc. (now often referred to as Cummins Inc.) is a well-established and reputable manufacturer of power generation equipment. They have a long history of supplying generators to various sectors, including military and government applications. While specific contract details for AMMPS are not provided, Cummins has historically secured numerous contracts with the Department of Defense for various power solutions, including mobile generators, backup power systems, and integrated power units. Their extensive experience suggests a strong track record in meeting demanding specifications and delivery schedules for defense procurements.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential supply chain disruptions for specialized components, manufacturing delays impacting delivery schedules, and ensuring the long-term reliability and maintainability of the advanced technology in austere environments. Mitigation strategies likely involve the firm fixed-price contract type, which incentivizes the contractor to manage costs and schedules effectively. The Department of the Army would also likely have quality assurance surveillance plans (QASPs) in place to monitor production and performance. Furthermore, the use of a well-established supplier like Cummins Power Generation mitigates some supplier-specific risks. The contract duration (through July 2026) allows for phased delivery and testing.

How does this spending on mobile power sources align with broader Department of Defense modernization or readiness initiatives?

This procurement directly supports the Department of Defense's ongoing efforts to enhance operational readiness and deployability. Modern military operations often require mobile, self-sufficient power solutions to support forward operating bases, command centers, communication networks, and advanced equipment in diverse geographical locations. Investing in advanced mobile power sources like AMMPS ensures that forces have reliable power, which is critical for mission success and personnel welfare. It aligns with initiatives focused on expeditionary capabilities and maintaining technological superiority in power generation for tactical applications.

What is the historical spending trend for similar mobile power sources by the Department of the Army over the past five years?

Analyzing historical spending trends for 'mobile power sources' by the Department of the Army requires access to comprehensive contract databases and the ability to filter by relevant product service codes (PSCs) and keywords. Without such specific data, it's difficult to provide precise figures. However, it is reasonable to assume that spending in this category has been consistent, driven by the continuous need for reliable power in deployed environments and the lifecycle replacement of existing equipment. Spending may fluctuate based on major operational deployments, new technology insertions, and budget allocations. The $23.4 million awarded here represents a significant, but likely not unprecedented, investment in this capability.

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: $23,427,031

Exercised Options: $23,427,031

Current Obligation: $23,427,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W909MY24D0002

IDV Type: IDC

Timeline