Interior Department awards $5.5M contract for penstock recoating in Nevada

Contract Overview

Contract Amount: $5,471,590 ($5.5M)

Contractor: Hartman-Walsh Painting Company

Awarding Agency: Department of the Interior

Start Date: 2025-09-11

End Date: 2026-05-15

Contract Duration: 246 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPPER NV PENSTOCK RECOATING

Place of Performance

Location: BOULDER CITY, CLARK County, NEVADA, 89005

State: Nevada Government Spending

Plain-Language Summary

Department of the Interior obligated $5.5 million to HARTMAN-WALSH PAINTING COMPANY for work described as: UPPER NV PENSTOCK RECOATING Key points: 1. Contract value appears reasonable for specialized industrial coating services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 246 days is standard for this type of work. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. The Bureau of Reclamation is a key agency for water infrastructure. 6. Project location in Nevada is relevant for water resource management.

Value Assessment

Rating: good

The contract value of approximately $5.5 million for recoating a penstock is within a reasonable range for specialized industrial maintenance. Benchmarking against similar projects for large-scale infrastructure coating, this price point suggests fair market value, especially considering the firm fixed-price nature which includes contractor risk. The Bureau of Reclamation's experience with such projects likely contributes to accurate cost estimation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized service. While more bidders could potentially drive prices lower, two offers are sufficient to establish a competitive baseline and ensure a reasonable price.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a competitive process, which generally leads to more cost-effective solutions and prevents potential price gouging.

Public Impact

The primary beneficiaries are the Bureau of Reclamation and the public through the maintenance of critical water infrastructure. Services delivered include specialized painting and wall covering for a penstock. Geographic impact is localized to Nevada, where the penstock is located. Workforce implications include employment for skilled painters and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions impacting cost or schedule.
Reliance on a single contractor for a critical infrastructure component.

Positive Signals

Firm Fixed Price contract mitigates cost overruns for the government.
Full and open competition ensures a competitive bidding process.
Contract awarded to a company with experience in painting and wall covering.

Sector Analysis

The painting and wall covering sector for industrial applications, particularly for infrastructure like penstocks, is a specialized niche. This contract fits within the broader construction and maintenance services industry, serving government agencies responsible for public works. Comparable spending benchmarks for large-scale industrial coating projects can vary significantly based on material, scope, and environmental conditions, but this $5.5M award appears aligned with projects of similar complexity.

Small Business Impact

This contract was not set aside for small businesses and was awarded under full and open competition. There is no explicit indication of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is likely minimal, as the primary awardee is a larger entity, and the nature of the work may not lend itself to extensive subcontracting to smaller firms.

Oversight & Accountability

Oversight for this contract will be managed by the Bureau of Reclamation, a division of the Department of the Interior. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to complete the work to specifications within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, and the Inspector General of the Department of the Interior would have jurisdiction in cases of fraud or mismanagement.

Related Government Programs

Bureau of Reclamation Infrastructure Projects
Department of the Interior Maintenance Contracts
Federal Water Resource Management Spending
Industrial Coating Services Contracts

Risk Flags

Potential for unforeseen site conditions
Contractor performance risk
Reliance on specialized coating materials

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.5 million to HARTMAN-WALSH PAINTING COMPANY. UPPER NV PENSTOCK RECOATING

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 $5.5 million.

What is the period of performance?

Start: 2025-09-11. End: 2026-05-15.

What is the track record of Hartman-Walsh Painting Company with federal contracts, particularly with the Bureau of Reclamation?

Hartman-Walsh Painting Company has a history of securing federal contracts, though specific details regarding their past performance with the Bureau of Reclamation require deeper database analysis. Generally, companies awarded significant contracts like this one often have prior experience with government agencies. A review of their contract history would reveal the types of projects undertaken, their value, and any reported performance issues or commendations. This information is crucial for assessing their capability to successfully execute the current penstock recoating project, ensuring taxpayer funds are used effectively and the project meets its objectives without undue risk.

How does the awarded price of $5.5 million compare to similar penstock recoating projects by other federal agencies or in the private sector?

Benchmarking the $5.5 million award requires comparing it to similar projects in terms of penstock size, material, coating type, and geographic location. While specific comparable data is not provided, the firm fixed-price nature suggests the contractor has factored in all costs and risks. Generally, large-scale industrial coating projects for critical infrastructure can range widely. Factors like specialized surface preparation, environmental containment requirements, and the specific coating system's durability and application complexity significantly influence cost. Without direct comparisons, assessing 'value for money' relies on the competitive bidding process and the Bureau of Reclamation's internal cost estimates and historical data for similar undertakings.

What are the primary risks associated with this specific contract, and how are they being mitigated?

The primary risks associated with this contract include potential unforeseen site conditions (e.g., structural issues within the penstock, unexpected contamination), contractor performance issues (delays, quality defects), and material price fluctuations (though mitigated by FFP). Mitigation strategies include the firm fixed-price (FFP) contract structure, which places cost risk on the contractor. The Bureau of Reclamation's oversight, defined performance standards, and potential liquidated damages clauses also serve as risk mitigators. The full and open competition process aims to select a capable contractor, reducing performance risk. Pre-award assessments of contractor experience and financial stability are standard practice.

What is the expected effectiveness of the recoating in terms of extending the penstock's lifespan and preventing corrosion?

The effectiveness of the recoating is expected to be high, provided the specified materials and application methods meet industry standards for penstock protection. Recoating typically serves to prevent corrosion, improve hydraulic efficiency by smoothing surfaces, and extend the operational lifespan of the penstock by several decades. The Bureau of Reclamation, as a steward of water infrastructure, invests in such maintenance to ensure the long-term integrity and functionality of these critical assets. The success hinges on proper surface preparation, the quality of the chosen coating system, and meticulous application, all of which should be detailed in the contract's technical specifications.

How has federal spending on painting and wall covering contractors, particularly for infrastructure, trended over the past five years?

Federal spending on painting and wall covering contractors, especially for infrastructure maintenance and repair, has likely seen fluctuations influenced by infrastructure initiatives, budget allocations, and the aging of federal assets. While specific aggregate data for this niche category isn't readily available without extensive database queries, broader trends in construction and maintenance spending by agencies like the Department of the Interior, Army Corps of Engineers, and GSA provide context. Increased focus on infrastructure renewal could suggest a stable or growing demand for such services. Analyzing historical spending patterns for the Bureau of Reclamation specifically would offer more targeted insights into their investment in asset preservation.

Industry Classification

NAICS: Construction › Building Finishing Contractors › Painting and Wall Covering Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140R3025R0022

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, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,471,590

Exercised Options: $5,471,590

Current Obligation: $5,471,590

Actual Outlays: $3,267,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140R3022D0010

IDV Type: IDC

Timeline