Reclamation's $20M penstock lining rehabilitation at Grand Coulee Dam aims for long-term infrastructure integrity

Contract Overview

Contract Amount: $20,110,910 ($20.1M)

Contractor: Hartman-Walsh Painting Company

Awarding Agency: Department of the Interior

Start Date: 2020-08-31

End Date: 2027-09-30

Contract Duration: 2,586 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRAND COULEE DAM LEFT&RIGHT POWERPLANTS G1-G18 PENSTOCK LINING REHABILITATION

Place of Performance

Location: GRAND COULEE, LINCOLN County, WASHINGTON, 99133

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $20.1 million to HARTMAN-WALSH PAINTING COMPANY for work described as: GRAND COULEE DAM LEFT&RIGHT POWERPLANTS G1-G18 PENSTOCK LINING REHABILITATION Key points: 1. Focuses on critical infrastructure maintenance for a vital hydroelectric facility. 2. Contract awarded through full and open competition, suggesting a competitive bidding process. 3. Long-term contract duration indicates a significant, multi-year commitment to the project. 4. Firm-fixed-price structure shifts cost risk to the contractor. 5. Project addresses potential risks associated with aging infrastructure and operational continuity. 6. Geographic concentration in Washington state highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of approximately $20 million for penstock lining rehabilitation appears reasonable given the scale and criticality of the Grand Coulee Dam. While direct comparisons are difficult without specific project details, major infrastructure rehabilitation projects of this nature typically involve substantial costs. The firm-fixed-price contract structure suggests that the Bureau of Reclamation has sought to control costs by transferring risk to the contractor. Benchmarking against similar large-scale civil engineering projects would provide further context, but the initial assessment suggests a fair value for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The specific reasons for exclusion are not detailed but could relate to pre-qualification requirements, past performance, or other technical criteria. With two bidders, the level of competition was limited, which could potentially impact price discovery compared to a broader, unrestricted competition.

Taxpayer Impact: Limited competition may result in less aggressive pricing for taxpayers compared to a scenario with numerous bidders vying for the contract.

Public Impact

The primary beneficiaries are the Department of the Interior and the Bureau of Reclamation, ensuring the continued operation and safety of the Grand Coulee Dam. The project delivers essential rehabilitation services to the penstock linings, crucial for efficient hydroelectric power generation. The geographic impact is concentrated in Washington state, supporting a key piece of national energy infrastructure. Workforce implications include employment opportunities for skilled labor in heavy civil engineering and construction trades within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen conditions arise during rehabilitation.
Risk of schedule delays impacting power generation or other dam operations.
Dependence on contractor's specialized expertise and equipment for critical tasks.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Long-term contract duration allows for planned infrastructure investment and resource allocation.
Focus on rehabilitation of essential infrastructure ensures long-term operational reliability.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically addressing infrastructure related to energy production. The market for such specialized rehabilitation services is often characterized by a limited number of highly qualified contractors capable of undertaking large-scale, critical projects. Spending in this sector is driven by the need to maintain and upgrade aging public infrastructure, including dams, bridges, and power generation facilities, often involving significant capital investment.

Small Business Impact

The contract data indicates that small business participation was not a primary consideration, as the 'small business set-aside' flag is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary focus was on securing the most qualified contractor for this specialized infrastructure work, rather than prioritizing small business engagement through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Reclamation's project managers, who are responsible for monitoring progress, ensuring compliance with contract terms, and verifying the quality of work. Accountability measures are embedded in the firm-fixed-price contract, which incentivizes the contractor to manage costs and adhere to the schedule. Transparency is facilitated through contract award data and potentially through public reporting on infrastructure projects, though specific details on ongoing oversight mechanisms are not provided.

Related Government Programs

Bureau of Reclamation Infrastructure Projects
Department of the Interior Capital Investments
Hydroelectric Power Generation Infrastructure
Federal Civil Engineering Contracts
Dam Safety and Maintenance Programs

Risk Flags

Limited competition due to source exclusion.
Potential for unforeseen conditions impacting cost and schedule.
Contractor's past performance on similar large-scale projects requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $20.1 million to HARTMAN-WALSH PAINTING COMPANY. GRAND COULEE DAM LEFT&RIGHT POWERPLANTS G1-G18 PENSTOCK LINING REHABILITATION

Who is the contractor on this award?

The obligated recipient is HARTMAN-WALSH PAINTING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2020-08-31. End: 2027-09-30.

What is the historical spending pattern for penstock lining rehabilitation at the Grand Coulee Dam or similar facilities?

Historical spending on penstock lining rehabilitation at facilities like the Grand Coulee Dam can vary significantly based on the age of the infrastructure, the extent of deterioration, and the specific rehabilitation methods employed. Major rehabilitation efforts are typically project-based and infrequent, often occurring decades after initial construction. For instance, significant work on large-scale infrastructure can range from millions to tens of millions of dollars per project. The Bureau of Reclamation manages numerous dams, and periodic investments are necessary to ensure their long-term operational integrity. Without access to specific historical project data for Grand Coulee's penstocks, a precise historical spending pattern is difficult to establish, but it's understood that such critical maintenance requires substantial, planned capital outlays over time.

How does the contractor, Hartman-Walsh Painting Company, perform on similar federal contracts?

Hartman-Walsh Painting Company has a track record with federal contracts, primarily in construction and maintenance, often involving specialized coatings and linings. Information regarding their performance on similar large-scale infrastructure projects, particularly those involving penstock rehabilitation, would require a deeper dive into contract databases and performance reviews. Agencies typically maintain past performance information, which is considered during source selection. For this specific contract, the award suggests they met the necessary qualifications and demonstrated capability. A comprehensive assessment would involve reviewing their history with the Bureau of Reclamation and other federal agencies for projects of comparable scope and complexity.

What are the key performance indicators (KPIs) for this rehabilitation project?

Key performance indicators for this penstock lining rehabilitation project would likely focus on ensuring the structural integrity and operational efficiency of the penstocks. These could include adherence to the project schedule, completion of work within the firm-fixed-price budget, quality of the lining material and application (e.g., meeting specified thickness, adhesion, and defect-free standards), and successful hydrostatic testing post-rehabilitation. Environmental compliance and safety performance metrics for the workforce would also be critical. The Bureau of Reclamation would monitor these KPIs to ensure the project meets its objectives of extending the service life of the penstocks and maintaining reliable power generation.

What is the potential impact of this contract on the regional economy in Washington state?

This contract is expected to have a positive impact on the regional economy in Washington state by creating jobs for skilled construction workers, engineers, and support staff. The influx of spending on materials, equipment, and labor associated with a multi-year, multi-million dollar project can stimulate local businesses. Furthermore, by ensuring the continued reliable operation of the Grand Coulee Dam, the project supports the region's energy infrastructure and the industries that depend on it. The investment in critical infrastructure also contributes to long-term economic stability and development in the area.

What are the risks associated with the 'exclusion of sources' in the competition process?

The 'exclusion of sources' in a competitive bidding process, even when followed by 'full and open competition' among the remaining eligible bidders, carries inherent risks. The primary risk is that the exclusion may have inadvertently removed potentially highly capable or cost-effective bidders from the pool. If the exclusion criteria were too narrow or based on incomplete information, the government might not have accessed the broadest possible range of solutions or the most competitive pricing. This could lead to a less optimal outcome in terms of value for money. Transparency regarding the reasons for exclusion is crucial for assessing whether the process truly served the government's best interest.

How does this contract align with the Bureau of Reclamation's broader mission and infrastructure goals?

This contract directly aligns with the Bureau of Reclamation's core mission of managing, developing, and protecting water and related resources in an environmentally sustainable manner. The Grand Coulee Dam is a cornerstone of the Bureau's operations, providing hydroelectric power, water for irrigation, and flood control. Rehabilitating the penstock linings is essential for maintaining the dam's structural integrity, ensuring the efficient generation of clean energy, and safeguarding the surrounding environment and communities. It represents a critical investment in preserving a vital piece of national infrastructure that supports multiple objectives, including energy security and water management.

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 NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R1020R0013

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hartman-Walsh Corp

Address: 7144 N MARKET ST, SAINT LOUIS, MO, 63133

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,151,610

Exercised Options: $21,151,610

Current Obligation: $20,110,910

Actual Outlays: $15,310,925

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline