Interior Department awards $34M contract for Grand Coulee Dam controls modernization to Andritz Hydro Corp

Contract Overview

Contract Amount: $33,979,078 ($34.0M)

Contractor: Andritz Hydro Corp

Awarding Agency: Department of the Interior

Start Date: 2019-04-12

End Date: 2027-11-26

Contract Duration: 3,150 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRAND COULEE JOHN W. KEYS III PUMP-GENERATING PLANT EXCITATION SYSTEM, GOVERNOR, AND PROTECTIVE RELAY REPLACEMENT AND CONTROLS MODERNIZATION, COLUMBIA BASIN PROJECT, WASHINGTON

Place of Performance

Location: GRAND COULEE, GRANT County, WASHINGTON, 99133

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $34.0 million to ANDRITZ HYDRO CORP for work described as: GRAND COULEE JOHN W. KEYS III PUMP-GENERATING PLANT EXCITATION SYSTEM, GOVERNOR, AND PROTECTIVE RELAY REPLACEMENT AND CONTROLS MODERNIZATION, COLUMBIA BASIN PROJECT, WASHINGTON Key points: 1. Contract focuses on critical infrastructure upgrades for the John W. Keys III Pump-Generating Plant. 2. The project aims to modernize excitation systems, governors, and protective relays. 3. A firm-fixed-price contract structure suggests predictable costs for the government. 4. The duration of the contract (over 8 years) indicates a complex, long-term undertaking. 5. The award was made under full and open competition, implying a robust bidding process. 6. The Bureau of Reclamation is the overseeing agency for this significant infrastructure project.

Value Assessment

Rating: good

The contract value of approximately $34 million for a comprehensive modernization of critical power plant components appears reasonable given the scope and duration. Benchmarking against similar large-scale power plant upgrade projects suggests that the pricing is within expected ranges for such complex undertakings. The firm-fixed-price nature of the contract provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 6 bids suggests a healthy level of competition for this significant project. This competitive environment is generally expected to drive more favorable pricing and encourage innovation from the bidders.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government received proposals from various capable firms, leading to a more competitive price.

Public Impact

The primary beneficiaries are the operators of the Columbia Basin Project and the broader region relying on its power generation capabilities. The project will deliver modernized and more reliable excitation systems, governors, and protective relays for the Grand Coulee Dam's pump-generating plant. The geographic impact is concentrated in Washington state, specifically at the Grand Coulee Dam. The contract supports specialized engineering and construction jobs within the heavy civil engineering and power generation sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the long contract duration and complexity of infrastructure modernization.
Risk of cost overruns if unforeseen technical challenges arise during the modernization process, despite the fixed-price structure.
Dependence on a single contractor for a critical infrastructure component could pose a risk if performance issues emerge.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
Awarded under full and open competition, suggesting a competitive process that likely secured a fair price.
The contractor, Andritz Hydro Corp, is a known entity in the hydropower equipment and services sector, implying relevant expertise.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on power generation infrastructure. The market for such specialized upgrades is characterized by a limited number of highly qualified firms capable of undertaking large-scale projects at major dams. Spending on maintaining and modernizing aging hydroelectric facilities is a significant component of federal infrastructure investment, particularly for agencies like the Bureau of Reclamation.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large corporation, and the direct impact on the small business ecosystem may be limited unless Andritz Hydro Corp engages them as subcontractors.

Oversight & Accountability

Oversight will be provided by the Bureau of Reclamation, likely through contract officers and technical representatives who will monitor progress, quality, and adherence to specifications. Transparency is expected through standard government contracting reporting mechanisms. The Inspector General of the Department of the Interior may have jurisdiction for audits and investigations if any irregularities are suspected.

Related Government Programs

Bureau of Reclamation - Power Generation Modernization
Grand Coulee Dam Operations and Maintenance
Federal Hydroelectric Power Infrastructure
Critical Infrastructure Modernization Projects

Risk Flags

Long contract duration increases potential for scope creep or unforeseen issues.
Critical infrastructure modernization carries inherent technical and operational risks.
Dependence on a single contractor for essential systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $34.0 million to ANDRITZ HYDRO CORP. GRAND COULEE JOHN W. KEYS III PUMP-GENERATING PLANT EXCITATION SYSTEM, GOVERNOR, AND PROTECTIVE RELAY REPLACEMENT AND CONTROLS MODERNIZATION, COLUMBIA BASIN PROJECT, WASHINGTON

Who is the contractor on this award?

The obligated recipient is ANDRITZ HYDRO CORP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2019-04-12. End: 2027-11-26.

What is the track record of Andritz Hydro Corp. in performing similar large-scale power plant modernization contracts for federal agencies?

Andritz Hydro Corp. is a global supplier of plants and services for the hydropower industry. They have a significant history of involvement in large hydropower projects worldwide, including upgrades and new installations. While specific details on their federal contract performance require deeper database searches, their established presence in the sector suggests they possess the technical capabilities and experience necessary for complex projects like the Grand Coulee Dam modernization. Past performance reviews and contract close-out data from federal procurement databases would provide a more granular assessment of their track record, including on-time delivery, budget adherence, and quality of work on comparable federal projects.

How does the awarded amount of $33.98 million compare to the estimated cost or budget for this specific modernization project?

The provided data indicates the awarded amount is $33,979,078.05. Without access to the initial cost estimates or approved budget for this specific modernization project, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with 6 bids suggests that the awarded price is likely competitive and reflects market conditions. To assess if it aligns with the budget, one would need to consult internal Bureau of Reclamation budget documents or solicitations that may have included estimated cost ranges. The firm-fixed-price nature implies the government agreed this amount was appropriate for the defined scope of work.

What are the primary risks associated with modernizing the excitation system, governor, and protective relays at a facility as critical as Grand Coulee Dam?

Modernizing critical systems at a facility like Grand Coulee Dam carries several inherent risks. Technical risks include unforeseen complexities in integrating new digital controls with aging analog infrastructure, potential compatibility issues, and the need for highly specialized expertise. Operational risks involve minimizing disruption to power generation and water management during the upgrade process; any extended downtime could have significant regional economic and environmental impacts. Schedule risks are also present, as complex infrastructure projects are prone to delays due to logistical challenges, supply chain issues, or unexpected site conditions. Furthermore, cybersecurity risks associated with upgrading control systems to digital platforms require robust protection measures to prevent unauthorized access or disruption.

What is the historical spending pattern for similar modernization or replacement contracts at the Grand Coulee Dam or other Bureau of Reclamation facilities?

Historical spending on modernization and replacement contracts at the Grand Coulee Dam and other Bureau of Reclamation facilities typically involves significant capital investments. These projects often span multiple years and can range from tens to hundreds of millions of dollars, depending on the scope. Past contracts have likely included upgrades to turbines, generators, spillway gates, and control systems. Analyzing historical data would reveal trends in contract values, durations, and the types of technologies being implemented. This specific $34 million contract for excitation, governor, and relay systems appears to be a substantial but potentially typical investment for maintaining the operational integrity and efficiency of a major hydroelectric facility like Grand Coulee.

How will the performance of Andritz Hydro Corp. be measured and evaluated throughout the duration of this contract?

Performance evaluation for this contract will likely be managed through a formal quality assurance program established by the Bureau of Reclamation. Key performance indicators (KPIs) would be defined in the contract, focusing on aspects such as adherence to technical specifications, quality of workmanship, timely completion of milestones, and overall system reliability post-installation. The Contracting Officer's Representative (COR) or a designated technical point of contact will monitor progress, conduct inspections, and review documentation. Regular progress meetings, performance reports from the contractor, and potentially third-party assessments could be utilized. Failure to meet performance standards could result in contractual remedies, including potential penalties or termination, depending on the severity.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R17PS00001

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Andritz AG

Address: 10735 DAVID TAYLOR DR STE 500, CHARLOTTE, NC, 28262

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,979,078

Exercised Options: $33,979,078

Current Obligation: $33,979,078

Actual Outlays: $12,035,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline