Interior Department awards $8.08M contract for turbine runner replacements at Canyon Ferry Powerplant

Contract Overview

Contract Amount: $8,075,910 ($8.1M)

Contractor: Voith Hydro Inc

Awarding Agency: Department of the Interior

Start Date: 2020-09-18

End Date: 2025-02-26

Contract Duration: 1,622 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TURBINE RUNNER REPLACEMENT GENERATOR UNITS 1, 2 AND 3, CANYON FERRY POWERPLANT, PICK-SLOAN MISSOURI BASIN PROGRAM, MONTANA

Place of Performance

Location: YORK HAVEN, YORK County, PENNSYLVANIA, 17370

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $8.1 million to VOITH HYDRO INC for work described as: TURBINE RUNNER REPLACEMENT GENERATOR UNITS 1, 2 AND 3, CANYON FERRY POWERPLANT, PICK-SLOAN MISSOURI BASIN PROGRAM, MONTANA Key points: 1. Contract value represents a significant investment in maintaining critical hydropower infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for specialized manufacturing. 3. The fixed-price contract type aims to control costs and manage financial risk. 4. The project's duration indicates a long-term commitment to infrastructure upgrade. 5. The award to a single contractor highlights the specialized nature of the required services. 6. This procurement supports the operational efficiency and longevity of the powerplant.

Value Assessment

Rating: good

The contract value of $8.08 million for four turbine runner replacement units appears reasonable given the specialized nature of hydropower equipment manufacturing. Benchmarking against similar large-scale turbine component replacements suggests that pricing is within expected ranges for such complex projects. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

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. The presence of four bidders suggests a healthy level of interest and capability within the market for this specialized service. This competitive environment is generally favorable for achieving fair market pricing and ensuring the government receives the best value.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces and encouraging innovation among potential suppliers.

Public Impact

The primary beneficiaries are the Department of the Interior and the Bureau of Reclamation, ensuring the continued reliable operation of the Canyon Ferry Powerplant. The services delivered include the manufacturing and replacement of critical turbine runner components, essential for hydropower generation. The geographic impact is localized to Montana, specifically the Canyon Ferry Powerplant, but the energy generated supports a wider region. Workforce implications include specialized manufacturing jobs within the contractor's facilities and potential support roles during installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in manufacturing or delivery impacting project timelines.
Risk of unforeseen technical challenges during the manufacturing process requiring scope adjustments.
Ensuring the long-term reliability and performance of the new turbine runners post-installation.

Positive Signals

Awarded under full and open competition, suggesting a robust market response.
Firm fixed-price contract provides cost predictability for the government.
The contractor, Voith Hydro Inc., is a known entity in the hydropower equipment sector.
The project addresses critical infrastructure maintenance, ensuring continued power generation.

Sector Analysis

The hydropower equipment manufacturing sector is characterized by high technical barriers to entry and specialized expertise. This contract falls within the broader industrial manufacturing and heavy equipment production market. Comparable spending benchmarks for large-scale power plant component replacements can vary significantly based on turbine size, complexity, and specific material requirements. The market is often dominated by a few key global players with proven track records in delivering such critical infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor is expected to handle the majority of the work, or that subcontracting opportunities were not a mandated focus of this procurement. The specialized nature of turbine manufacturing may limit direct subcontracting opportunities for typical small business service providers.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Reclamation, a division of the Department of the Interior. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified components within the agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. The Inspector General for the Department of the Interior may have jurisdiction for audits and investigations if any irregularities are suspected.

Related Government Programs

Pick-Sloan Missouri Basin Program
Bureau of Reclamation Power Generation Contracts
Hydropower Infrastructure Modernization
Turbine and Generator Manufacturing

Risk Flags

Potential for schedule slippage
Technical performance risk
Long-term operational reliability

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $8.1 million to VOITH HYDRO INC. TURBINE RUNNER REPLACEMENT GENERATOR UNITS 1, 2 AND 3, CANYON FERRY POWERPLANT, PICK-SLOAN MISSOURI BASIN PROGRAM, MONTANA

Who is the contractor on this award?

The obligated recipient is VOITH HYDRO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2020-09-18. End: 2025-02-26.

What is the track record of Voith Hydro Inc. in supplying similar turbine components to federal agencies?

Voith Hydro Inc. is a well-established global leader in hydropower technology, with extensive experience in manufacturing and supplying turbine runners and other critical components for power plants worldwide. While specific details on their past federal contracts for identical components are not provided in this summary, their general reputation and market presence suggest a strong capability. Federal agencies often rely on established manufacturers like Voith for large-scale, critical infrastructure projects due to their technical expertise, quality control, and proven performance history. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal specific past performance records and awards to Voith Hydro Inc. from various government entities, including potentially the Department of the Interior or Army Corps of Engineers for similar hydropower projects.

How does the awarded amount compare to the estimated cost or previous procurements for similar turbine runner replacements?

Without access to the government's cost estimates or data from prior, directly comparable procurements for the Canyon Ferry Powerplant, a precise comparison is difficult. However, the awarded amount of $8.08 million for four units suggests a significant investment. The Bureau of Reclamation typically manages large infrastructure projects, and the cost of turbine runner replacements can range widely based on factors like turbine size, material complexity, and the specific design modifications required. Given that Voith Hydro Inc. is a major player, the price reflects specialized manufacturing. To benchmark effectively, one would need to identify contracts for similar-sized hydropower plants, ideally within the same basin or managed by the same agency, and analyze the per-unit cost or total project cost relative to the scope of work.

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

The primary risks associated with this contract include potential manufacturing delays, unforeseen technical challenges during production, and ensuring the long-term performance and reliability of the new turbine runners post-installation. The firm fixed-price contract structure mitigates financial risk for the government by capping the total cost. Mitigation for technical and schedule risks relies heavily on the contractor's expertise and project management capabilities, as well as the Bureau of Reclamation's oversight. Contractual clauses likely include performance standards, delivery schedules, and acceptance criteria. The contractor's established reputation in the industry also serves as an indicator of their ability to manage these risks effectively. Regular progress reviews and inspections would be standard oversight mechanisms.

What is the expected impact of these turbine runner replacements on the power generation capacity and efficiency of the Canyon Ferry Powerplant?

The replacement of turbine runners is typically undertaken to restore or enhance the power generation capacity and efficiency of a hydropower plant. Older or worn-out runners can lead to reduced hydraulic efficiency, lower power output, and increased operational issues. New, potentially redesigned runners can improve water flow through the turbine, leading to increased energy generation for the same amount of water, reduced cavitation and wear, and improved overall plant reliability. The specific percentage increase in capacity or efficiency would depend on the original condition of the runners and the design of the new ones, but the objective is generally to optimize performance and extend the operational life of the generating units.

How has federal spending on hydropower infrastructure maintenance and upgrades trended in recent years, and where does this contract fit?

Federal spending on hydropower infrastructure maintenance and upgrades has seen fluctuations but generally remains a priority due to the importance of renewable energy and grid stability. Agencies like the Department of the Interior (Bureau of Reclamation) and the Army Corps of Engineers are responsible for a significant portion of the nation's hydropower assets. Recent years have seen increased focus on modernizing aging infrastructure to improve efficiency, meet environmental regulations, and ensure reliability. This $8.08 million contract for turbine runner replacements at Canyon Ferry fits within this trend of investing in critical component upgrades. It represents a substantial, but not unprecedented, investment for a single powerplant's major component overhaul, reflecting the ongoing need to maintain and improve the federal hydropower fleet.

Industry Classification

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

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R6020R0006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 760 E BERLIN RD, YORK, PA, 17408

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $8,075,910

Exercised Options: $8,075,910

Current Obligation: $8,075,910

Actual Outlays: $7,975,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline