Army Corps of Engineers Awards $622M for Turbine Repair, Highlighting Long-Term Maintenance Needs
Contract Overview
Contract Amount: $10,613,497 ($10.6M)
Contractor: National Electric Coil Inc
Awarding Agency: Department of Defense
Start Date: 1996-12-10
End Date: 2009-12-01
Contract Duration: 4,739 days
Daily Burn Rate: $2.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 199711!96CE!0088!CW21 !USA ENGINEER DIST SAVANNAH !DACW2196C0056 !A!*!P00002 !19961210!19981021!622681716!622681716!622681716!N!0AM39!NATIONAL ELECTRIC COIL-COLUMBU!800 KING AVE !COLUMBUS !OH!43212!10768!061!48!BROWNSVILLE !CAMERON !TEXAS !0001!+000000250000!N!N!000000000000!J028!MAINT & REPAIR OF EQ/ENGINES, TURBINES & COMPS !S1 !SERVICES !5000!NOT DISCERNABLE OR CLASSIFIED !3511!3!*!*!B!B!A!*!A !N!J!2!002!B!* !A!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: HARTWELL, HART County, GEORGIA, 30643
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $10.6 million to NATIONAL ELECTRIC COIL INC for work described as: 199711!96CE!0088!CW21 !USA ENGINEER DIST SAVANNAH !DACW2196C0056 !A!*!P00002 !19961210!19981021!622681716!622681716!622681716!N!0AM39!NATIONAL ELECTRIC COIL-COLUMBU!800 KING AVE !COLUMBUS !OH!43212!10768!061!48!BROWNSVILLE !CAMERO… Key points: 1. Significant investment in critical infrastructure maintenance. 2. Long contract duration suggests complex or ongoing needs. 3. Potential for cost overruns or performance issues over time. 4. Focus on essential equipment points to sector stability.
Value Assessment
Rating: good
The contract value of $622,681,716 over approximately 13 years is substantial. Benchmarking is difficult without specific repair details, but the scale suggests a significant need for specialized services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair pricing, though the long duration could introduce price volatility.
Taxpayer Impact: Taxpayers benefit from competitive pricing on essential infrastructure maintenance, ensuring funds are used efficiently for critical operational needs.
Public Impact
Ensures continued operation of vital turbines, supporting infrastructure and potentially energy generation. Supports specialized manufacturing and repair jobs within the private sector. Long-term commitment provides stability for the contractor and predictability for the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of scope creep or changing technological needs.
- Potential for cost escalation over the contract's extended period.
- Dependence on a single contractor for critical repairs could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Addresses essential maintenance for critical equipment.
- Long-term contract provides stability and planning certainty for the agency.
Sector Analysis
This contract falls within the maintenance and repair of engines, turbines, and components sector, crucial for government operations and infrastructure. Spending benchmarks in this area are highly variable based on equipment type and age.
Small Business Impact
The contract was awarded to NATIONAL ELECTRIC COIL INC, a firm. There is no explicit indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating established procurement processes. Oversight would focus on performance, adherence to specifications, and financial management over the contract's long term.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (13 years) increases risk.
- Potential for cost escalation over time.
- Lack of specific equipment details hinders precise valuation.
- Dependence on a single contractor for critical repairs.
Tags
department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 million to NATIONAL ELECTRIC COIL INC. 199711!96CE!0088!CW21 !USA ENGINEER DIST SAVANNAH !DACW2196C0056 !A!*!P00002 !19961210!19981021!622681716!622681716!622681716!N!0AM39!NATIONAL ELECTRIC COIL-COLUMBU!800 KING AVE !COLUMBUS !OH!43212!10768!061!48!BROWNSVILLE !CAMERON !TEXAS !0001!+000000250000!N!N!000000000000!J028!MAINT & REPAIR OF EQ/ENGINES, TURBINES & COMPS !S1 !SERVICES !5000!NOT DISCERNABLE OR CLASSIFIED !3511!3!*!*!B!B!A!*!A !N!J!2!0
Who is the contractor on this award?
The obligated recipient is NATIONAL ELECTRIC COIL INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 1996-12-10. End: 2009-12-01.
What specific turbines or equipment are covered by this contract, and what is their operational criticality?
The data specifies 'MAINT & REPAIR OF EQ/ENGINES, TURBINES & COMPS' but lacks detail on the specific assets. Understanding the criticality of these components to the Savannah Engineer District's operations, such as flood control, navigation, or power generation, is essential for assessing the true value and risk associated with this significant expenditure.
How does the $622M contract value compare to industry benchmarks for similar long-term turbine maintenance contracts?
Benchmarking this $622M contract is challenging without specific details on the type, age, and condition of the turbines, as well as the scope of maintenance (e.g., routine vs. major overhaul). However, the substantial value suggests either a large number of assets or particularly complex and critical equipment requiring specialized, long-term support.
What mechanisms are in place to ensure cost control and performance quality over the contract's 13-year duration?
Given the long duration, robust oversight mechanisms are crucial. This likely includes phased delivery schedules, performance metrics, regular progress reviews, and potentially mechanisms for adjusting pricing based on objective market indicators or material cost fluctuations to mitigate risks of cost overruns and ensure sustained quality.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 800 KING AVE, COLUMBUS, OH, 43212
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1996-12-10
Current End Date: 2009-12-01
Potential End Date: 2009-12-01 00:00:00
Last Modified: 2021-02-25
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