Interior's $4.6M generator repair contract awarded to GE Renewables for 130 MW unit in Nevada

Contract Overview

Contract Amount: $4,588,194 ($4.6M)

Contractor: GE Renewables US LLC

Awarding Agency: Department of the Interior

Start Date: 2021-09-24

End Date: 2023-10-27

Contract Duration: 763 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 130 MW GENERATOR (N3) ROTOR REPAIR OR REPLACEMENT

Place of Performance

Location: BOULDER CITY, CLARK County, NEVADA, 89005

State: Nevada Government Spending

Plain-Language Summary

Department of the Interior obligated $4.6 million to GE RENEWABLES US LLC for work described as: 130 MW GENERATOR (N3) ROTOR REPAIR OR REPLACEMENT Key points: 1. Contract value appears reasonable for specialized generator repair, though specific benchmarks are needed. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Contract duration of 763 days indicates a complex or lengthy repair/replacement process. 4. The award to GE Renewables, a likely incumbent or specialist, warrants scrutiny for potential sole-source risks. 5. Fixed-price contract type shifts risk to the contractor, which can be beneficial for the government if well-defined. 6. Geographic location in Nevada may influence logistics and labor costs.

Value Assessment

Rating: fair

The contract value of $4.59 million for the repair or replacement of a 130 MW generator rotor is difficult to benchmark without specific details on the scope of work and the generator's condition. However, for major power generation equipment, this figure could represent a fair price if it includes significant component replacement or extensive refurbishment. Comparing it to similar large-scale generator repairs within the Bureau of Reclamation or other federal agencies would provide a clearer picture of value for money. The firm fixed-price nature suggests the government sought cost certainty.

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 were likely solicited and considered. With 3 bidders participating, this suggests a reasonable level of competition for this specialized service. The open competition is a positive sign for price discovery, as it allows market forces to influence the final award price. However, the specific number of bids received and the range of pricing would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally drives down costs through market pressure, ensuring that federal funds are used more efficiently.

Public Impact

The primary beneficiary is the Bureau of Reclamation, ensuring the operational readiness of a 130 MW generator. The service delivered is critical maintenance or replacement of a major power generation component. The geographic impact is localized to Nevada, where the generator is located. Workforce implications may include specialized technicians and engineers required for complex generator repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen complexities in the repair.
Risk of contractor performance issues if GE Renewables lacks the necessary specialized expertise or resources for this specific repair.
Dependency on a single contractor for a critical piece of infrastructure could pose a risk if future needs arise.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
Contract duration is clearly defined, allowing for project planning and management.

Sector Analysis

This contract falls within the Manufacturing sector, specifically Turbine and Turbine Generator Set Units Manufacturing (NAICS 333611). The market for large-scale power generation equipment repair and maintenance is specialized, often dominated by original equipment manufacturers (OEMs) like GE Renewables. Federal spending in this area is typically driven by the operational needs of agencies managing critical infrastructure, such as the Bureau of Reclamation's power generation facilities. Comparable spending benchmarks would involve analyzing other large generator repair contracts across federal agencies or the broader utility sector.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Given the specialized nature of large generator repair, it is common for such contracts to be awarded to larger, established firms with the requisite technical expertise and resources. There is no explicit information on subcontracting plans, but it is unlikely that significant portions would be subcontracted to small businesses unless they possess highly specialized niche capabilities relevant to the repair.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Reclamation's contracting officers and technical representatives. The firm fixed-price nature provides a degree of accountability by linking payment to deliverables. Transparency is facilitated by the contract award notice, which is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or execution.

Related Government Programs

Bureau of Reclamation Power Generation Maintenance
Federal Energy Infrastructure Contracts
Major Equipment Repair and Overhaul
Turbine and Generator Manufacturing Support

Risk Flags

Potential for cost escalation if scope is not fully defined.
Contractor performance risk for specialized repair.
Dependency on OEM for critical infrastructure repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.6 million to GE RENEWABLES US LLC. 130 MW GENERATOR (N3) ROTOR REPAIR OR REPLACEMENT

Who is the contractor on this award?

The obligated recipient is GE RENEWABLES US LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2021-09-24. End: 2023-10-27.

What is the specific scope of work for the '130 MW GENERATOR (N3) ROTOR REPAIR OR REPLACEMENT' and what was the condition of the generator prior to the award?

The provided data does not detail the specific scope of work beyond 'rotor repair or replacement' for the 130 MW generator (N3). This could range from minor repairs to a complete overhaul or replacement of the rotor assembly. Similarly, the pre-award condition of the generator is not specified. Understanding these details is crucial for assessing the appropriateness of the $4.59 million contract value. A full replacement would justify a higher cost than a simple repair. Without this information, it's difficult to determine if the price reflects the actual work performed or the generator's state. Further investigation into the contract's statement of work (SOW) and any pre-award inspection reports would be necessary for a comprehensive value assessment.

How does the awarded price of $4.59 million compare to market rates for similar 130 MW generator rotor repairs or replacements?

Benchmarking the $4.59 million award against market rates for similar 130 MW generator rotor repairs or replacements is challenging without more specific data. The cost can vary significantly based on the extent of the work (repair vs. replacement), the specific generator model, the manufacturer's proprietary technology, the urgency of the repair, and prevailing labor and material costs. Generally, major overhauls or replacements of large generator components can cost millions of dollars. For instance, a full generator replacement can range from $1 million to over $10 million depending on size and complexity. A rotor repair or partial replacement might fall within the lower to mid-millions. To provide a precise comparison, one would need to consult industry reports, consult with power generation equipment specialists, or analyze recent contracts for similar services awarded by other utilities or government agencies.

What is the track record of GE Renewables US LLC in performing similar large-scale generator repair contracts for the federal government or other utilities?

GE Renewables US LLC is a major player in the energy sector, known for manufacturing and servicing turbines and generators. Their track record in performing large-scale generator repair contracts is generally extensive, given their position as an original equipment manufacturer (OEM) for many power generation facilities. However, the specifics of their performance on federal contracts, particularly for the Bureau of Reclamation, would require a deeper dive into contract databases and performance reviews. Assessing their past performance on similar projects, including adherence to schedule, budget, and quality standards, is essential. Federal procurement systems often contain past performance information that could be reviewed to gauge their reliability and expertise in executing complex projects like the repair or replacement of a 130 MW generator rotor.

What are the potential risks associated with a firm fixed-price contract for a complex repair like a generator rotor, and how are they mitigated?

A firm fixed-price (FFP) contract, while offering cost certainty to the government, carries inherent risks for complex repairs like generator rotor work. The primary risk is that the contractor, GE Renewables US LLC, may underestimate the scope, complexity, or duration of the work, leading to cost overruns for them. If the contractor cannot absorb these overruns, they might cut corners on quality, use substandard materials, or delay the project, impacting performance. Mitigation strategies include a well-defined Statement of Work (SOW) with clear specifications, thorough pre-award technical evaluations, and robust contract administration. The government's technical representatives must closely monitor progress, quality, and adherence to the SOW. For unforeseen issues, contract modifications might be necessary, but the FFP structure aims to minimize such occurrences and place the risk on the contractor.

How does this contract fit into the Bureau of Reclamation's overall strategy for maintaining its power generation infrastructure, particularly in Nevada?

This contract for the repair or replacement of a 130 MW generator rotor is a critical component of the Bureau of Reclamation's (USBR) strategy to maintain the operational integrity and efficiency of its power generation facilities. The USBR operates numerous hydroelectric power plants across the western United States, which are vital for water management, irrigation, and electricity supply. Ensuring the reliability of these generators, especially large ones like a 130 MW unit, is paramount to meeting these objectives. The specific focus on Nevada suggests this generator is part of a key facility in that region. Regular maintenance and timely repairs, as addressed by this contract, prevent costly downtime, extend the lifespan of assets, and ensure consistent power output, aligning with the USBR's mission to manage water and power resources sustainably.

What is the historical spending pattern for generator repair and maintenance by the Department of the Interior, and how does this award compare?

Analyzing the historical spending patterns of the Department of the Interior (DOI) for generator repair and maintenance is crucial for contextualizing this $4.59 million award. The DOI, through agencies like the Bureau of Reclamation, manages significant power generation assets, primarily hydroelectric. Historical data would reveal the frequency and cost of similar repair or replacement projects. Without access to specific historical DOI spending data, it's difficult to make a direct comparison. However, large-scale generator repairs are typically infrequent but high-cost events. If the DOI typically awards one or two such major contracts annually across its portfolio, this $4.59 million award might represent a significant but not unusual expenditure. Trends in maintenance schedules, equipment age, and technological upgrades would influence historical spending levels.

Industry Classification

NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Electric Company

Address: 8000 E MAPLEWOOD AVE STE 250, GREENWOOD VILLAGE, CO, 80111

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

Financial Breakdown

Contract Ceiling: $4,588,194

Exercised Options: $4,588,194

Current Obligation: $4,588,194

Actual Outlays: $4,588,194

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $1,117,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140R3019D0011

IDV Type: IDC

Timeline