DoD's $261M Hydroelectric Turbine Contract Awarded to ANDRITZ HYDRO CORP Under Full and Open Competition
Contract Overview
Contract Amount: $26,124,113 ($26.1M)
Contractor: Andritz Hydro Corp
Awarding Agency: Department of Defense
Start Date: 2000-05-03
End Date: 2011-12-31
Contract Duration: 4,259 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: FORT GAINES, CLAY County, GEORGIA, 39851
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $26.1 million to ANDRITZ HYDRO CORP for work described as: Key points: 1. Significant contract value of $261 million highlights major investment in infrastructure. 2. Full and open competition suggests a robust market for hydroelectric turbine services. 3. Long contract duration (2000-2011) may indicate complex project requirements or long-term maintenance needs. 4. The contract was awarded by the Department of the Army, a key component of the DoD. 5. The absence of small business participation warrants further investigation.
Value Assessment
Rating: fair
The contract value of $261 million over approximately 11 years suggests a substantial investment. Without specific unit cost data or comparable contracts for similar turbine systems, a precise pricing assessment is difficult. However, the firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were likely able to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The firm fixed-price type further locks in costs.
Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by fostering a competitive environment. The firm fixed-price nature of the contract provides cost certainty for taxpayers.
Public Impact
Ensures critical infrastructure for national security or energy needs is maintained and upgraded. Supports the Department of Defense's operational capabilities through reliable power generation. The long-term nature of the contract could imply ongoing maintenance and support services, impacting long-term budgets. Lack of small business involvement may limit opportunities for smaller, specialized firms in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation.
- Long contract duration could lead to cost overruns if not managed effectively.
- Potential for vendor lock-in if specialized knowledge is required for maintenance.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm fixed-price contract provides cost certainty.
- Significant investment in critical infrastructure.
Sector Analysis
This contract falls within the broader category of heavy equipment and infrastructure maintenance, likely related to energy or operational support for military bases. Benchmarks for similar large-scale hydroelectric turbine contracts are highly variable based on specific system requirements and market conditions.
Small Business Impact
The data indicates that no small businesses were involved in this contract. This could be due to the specialized nature of hydroelectric turbine systems or a lack of outreach to small businesses. Further analysis is needed to understand if small businesses were excluded or simply did not bid.
Oversight & Accountability
The contract was awarded by the Department of the Army, suggesting internal oversight mechanisms are in place. However, the long duration and significant value warrant continuous monitoring to ensure performance and cost adherence, especially concerning the lack of small business participation.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Long contract duration (over a decade).
- Potential for vendor lock-in.
- Limited specific details on procured items.
- No indication of performance metrics or oversight reports.
Tags
department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.1 million to ANDRITZ HYDRO CORP. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is ANDRITZ HYDRO CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $26.1 million.
What is the period of performance?
Start: 2000-05-03. End: 2011-12-31.
What specific hydroelectric systems or components were procured under this contract, and how do their costs compare to industry benchmarks for similar equipment?
The provided data does not specify the exact hydroelectric systems or components. To assess value, a detailed breakdown of the procured items and their associated costs would be necessary. Comparing these to industry benchmarks for similar turbine models, installation, and maintenance services would reveal if the $261 million award represents a competitive price point or if there are potential areas for cost savings.
What were the primary risks associated with this long-term contract, and what mitigation strategies were employed by the Department of the Army?
Key risks likely included technological obsolescence over the 11-year period, potential cost overruns due to unforeseen issues, and performance degradation of the turbines. Mitigation strategies might have involved phased payments tied to milestones, performance-based incentives, strict quality control measures, and clauses for contract modifications or termination if performance standards were not met.
How effective was the full and open competition in ensuring the best value for taxpayers, particularly given the absence of small business participation?
Full and open competition is generally effective in driving down prices. However, the absence of small business participation raises questions about whether the competition was truly comprehensive or if certain market segments were inadvertently excluded. While the primary awardee likely offered competitive pricing, exploring why small businesses did not participate could reveal missed opportunities for innovation or cost efficiencies.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Andritz AG (UEI: 300197993)
Address: 10735 DAVID TAYLOR DR STE 500, CHARLOTTE, NC, 28262
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-05-03
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2020-10-03
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