DOE Awards $36.8M for Advanced Alloy Signature Center Facility to North Wind General Contractors
Contract Overview
Contract Amount: $36,836,275 ($36.8M)
Contractor: North Wind General Contractors LLC
Awarding Agency: Department of Energy
Start Date: 2024-08-30
End Date: 2026-10-31
Contract Duration: 792 days
Daily Burn Rate: $46.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IRA FUNDED B-34 ADVANCED ALLOY SIGNATURE CENTER FACILITY SBA REQUIREMENT #LV1705525898S
Place of Performance
Location: ALBANY, LINN County, OREGON, 97321
State: Oregon Government Spending
Plain-Language Summary
Department of Energy obligated $36.8 million to NORTH WIND GENERAL CONTRACTORS LLC for work described as: IRA FUNDED B-34 ADVANCED ALLOY SIGNATURE CENTER FACILITY SBA REQUIREMENT #LV1705525898S Key points: 1. Significant investment in advanced materials research infrastructure. 2. Sole-source award raises questions about competition and potential cost savings. 3. Construction sector faces potential risks related to material sourcing and labor. 4. Focus on specialized facility development within the Department of Energy's portfolio.
Value Assessment
Rating: fair
The contract value of $36.8M for a specialized facility appears substantial. Without comparable projects or detailed cost breakdowns, it's difficult to definitively assess pricing against industry benchmarks. The firm-fixed-price structure aims to control costs, but the lack of competition limits price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method bypasses the typical price discovery mechanisms inherent in open competition, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from the cost efficiencies that competitive bidding could have provided.
Public Impact
Enhances national capabilities in advanced materials research and development. Supports specialized construction needs within the federal government. Potential for job creation in the Oregon region during the construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Potential for cost overruns in specialized construction projects.
- Dependency on a single contractor for critical facility development.
Positive Signals
- Investment in critical research infrastructure.
- Firm-fixed-price contract provides cost certainty.
- Supports advanced materials development for national interests.
Sector Analysis
This contract falls within the commercial and institutional building construction sector, specifically for a specialized research facility. Federal spending in this area often involves complex requirements and can be subject to significant cost fluctuations based on material and labor markets.
Small Business Impact
The contract data indicates that small business participation is not explicitly detailed or mandated in this sole-source award. Further analysis would be needed to determine if subcontracting opportunities for small businesses are being pursued.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. Given the sole-source nature, robust oversight is crucial to ensure the project stays within budget and meets its technical objectives, mitigating risks associated with limited competition.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Potential for schedule delays in specialized construction.
- Risk of scope creep impacting the final budget.
- Dependency on a single contractor's performance.
Tags
commercial-and-institutional-building-co, department-of-energy, or, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $36.8 million to NORTH WIND GENERAL CONTRACTORS LLC. IRA FUNDED B-34 ADVANCED ALLOY SIGNATURE CENTER FACILITY SBA REQUIREMENT #LV1705525898S
Who is the contractor on this award?
The obligated recipient is NORTH WIND GENERAL CONTRACTORS LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $36.8 million.
What is the period of performance?
Start: 2024-08-30. End: 2026-10-31.
What specific factors necessitated a sole-source award for this advanced alloy signature center facility, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of qualified sources. For this facility, the Department of Energy would need to document why only North Wind General Contractors LLC could fulfill the requirement. Exploring alternatives, even if ultimately deemed unsuitable, is a standard part of procurement integrity to ensure the best value is sought.
How will the Department of Energy ensure cost-effectiveness and prevent potential overruns given the absence of competitive bidding?
The Department of Energy can employ stringent project management, detailed cost tracking, and regular performance reviews. Utilizing independent cost estimators and ensuring transparent reporting on expenditures will be vital. Clear milestones and performance-based payments can also incentivize the contractor to manage costs effectively and adhere to the fixed-price agreement.
What are the long-term strategic benefits of this facility for the Department of Energy and its research objectives?
This facility is likely intended to advance critical research in areas such as materials science, defense applications, or energy technologies. By providing specialized infrastructure, it enables cutting-edge experiments and development that may not be possible elsewhere. This investment supports the DOE's mission to maintain technological leadership and address national challenges through scientific innovation.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,836,275
Exercised Options: $36,836,275
Current Obligation: $36,836,275
Actual Outlays: $8,530,981
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-30
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-04-02
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