Department of the Army awarded $103.7M for water turbine components, with a significant portion for repairs and modifications

Contract Overview

Contract Amount: $125,768,386 ($125.8M)

Contractor: Voith Holdings, Inc

Awarding Agency: Department of Defense

Start Date: 1996-10-10

End Date: 2013-04-30

Contract Duration: 6,046 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 199703!96CE!0020!CW57 !USA ENGINEER DISTRICT PORTLAND !DACW5795C0002 !A!*!P00015 !19961010!19991231!103720579!103720579!103720579!N!0AT82!VOITH HOLDINGS, INC !E BERLIN RD !YORK !PA!17404!87048!133!42!YORK !YORK !PENN !0001!+000000373950!N!N!000000000000!2830!WATER TURBINES & WATER WHEELS & COMPS !C9E!ALL OTHER SUPPLIES AND EQUIPME!5000!NOT DISCERNABLE OR CLASSIFIED !1731!3!*!*!D!B!B!*!A !N!J!2!004!C!* !A!N!Z!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: CASCADE LOCKS, HOOD RIVER County, OREGON, 97014

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $125.8 million to VOITH HOLDINGS, INC for work described as: 199703!96CE!0020!CW57 !USA ENGINEER DISTRICT PORTLAND !DACW5795C0002 !A!*!P00015 !19961010!19991231!103720579!103720579!103720579!N!0AT82!VOITH HOLDINGS, INC !E BERLIN RD !YORK !PA!17404!87048!133!42!YORK !YORK … Key points: 1. Contract value indicates substantial investment in critical infrastructure maintenance and upgrades. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Long contract duration implies a need for ongoing support and potential for future modifications. 4. The specific product service code points to specialized equipment within the water resource management sector. 5. The contractor's performance history and the contract's final value will be key indicators of value for money.

Value Assessment

Rating: fair

The total contract value of $103.7M over its extended period suggests a significant investment. Benchmarking this against similar contracts for water turbine components is challenging without more specific details on the exact components and services rendered. However, the duration and scale imply a substantial need. The final awarded amount, compared to initial estimates (if available), would provide a clearer picture of cost efficiency. The contract's extension from its original end date also warrants scrutiny regarding scope creep or unforeseen requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially driving down prices and ensuring the government receives the best value. The number of bidders is not explicitly stated in the provided data, but the 'full and open' designation suggests multiple interested parties participated.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process which generally leads to more favorable pricing and a wider selection of qualified contractors, ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are likely federal agencies responsible for water resource management and hydroelectric power generation, such as the Army Corps of Engineers. The contract delivers essential components and services for maintaining and potentially upgrading water turbines, crucial for power generation and flood control. Geographic impact is likely concentrated around facilities utilizing these specific types of water turbines, potentially across the United States. Workforce implications could include specialized manufacturing, engineering, and maintenance jobs related to hydroelectric power infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration may indicate potential for cost overruns or scope creep.
Lack of specific details on components and services makes a precise value-for-money assessment difficult.
The significant total value necessitates close monitoring of performance and expenditures.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The contract addresses critical infrastructure needs for water resource management.
The contractor is a known entity in the relevant industrial sector.

Sector Analysis

This contract falls within the industrial equipment and manufacturing sector, specifically focusing on components for water turbines. The market for such specialized equipment is often characterized by a limited number of highly technical manufacturers. Spending in this area is critical for maintaining national infrastructure, including hydroelectric power generation and water management systems. Comparable spending benchmarks would depend on the specific type and scale of turbine components required.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature of water turbine components, it is possible that the primary contractor is a large business, with potential subcontracting opportunities for small businesses in manufacturing, logistics, or specialized services. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Hydroelectric Power Generation Infrastructure
Water Resource Management Systems
Federal Infrastructure Modernization Initiatives

Risk Flags

Extended contract duration may indicate potential for cost overruns or scope creep.
Lack of specific component details hinders precise value assessment.
Potential for significant modifications over the contract's long lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $125.8 million to VOITH HOLDINGS, INC. 199703!96CE!0020!CW57 !USA ENGINEER DISTRICT PORTLAND !DACW5795C0002 !A!*!P00015 !19961010!19991231!103720579!103720579!103720579!N!0AT82!VOITH HOLDINGS, INC !E BERLIN RD !YORK !PA!17404!87048!133!42!YORK !YORK !PENN !0001!+000000373950!N!N!000000000000!2830!WATER TURBINES & WATER WHEELS & COMPS !C9E!ALL OTHER SUPPLIES AND EQUIPME!5000!NOT DISCERNABLE OR CLASSIFIED !1731!3!*!*!D!B!B!*!A !N!J!2!0

Who is the contractor on this award?

The obligated recipient is VOITH HOLDINGS, 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 $125.8 million.

What is the period of performance?

Start: 1996-10-10. End: 2013-04-30.

What specific types of water turbine components were procured under this contract, and what was their intended application?

The Product Service Code (PSC) '2830' indicates 'Air and Gas Compressors and Pumping Equipment,' which can encompass components for water turbines. However, the description 'WATER TURBINES & WATER WHEELS & COMPS' is more specific. Without further detail, it's difficult to ascertain the exact components. These could range from blades and shafts to control systems and auxiliary equipment. The application is likely related to the maintenance, repair, and overhaul (MRO) of existing hydroelectric power generation facilities managed by the Army Corps of Engineers or other federal entities responsible for water management and power production.

How does the final awarded amount of $103.7M compare to the initial estimated value or ceiling of the contract?

The provided data indicates a total contract value of $103,720,579. However, it does not explicitly state an initial estimated value or contract ceiling. The 'P00015' notation might refer to a modification, and the presence of '103720579' multiple times suggests this was the final obligated amount. To assess value, a comparison with the original solicitation's estimated cost or ceiling price is necessary. If the final amount significantly exceeded initial estimates without a proportional increase in scope or services, it could indicate potential issues with cost control or unforeseen challenges during contract performance.

What is the track record of VOITH HOLDINGS, INC. in fulfilling similar federal contracts, particularly those involving large-scale infrastructure components?

Voith Holdings, Inc. is a subsidiary of the global Voith Group, a company with extensive experience in the energy and industrial sectors, including hydropower. While this specific contract is substantial, Voith's general track record in supplying turbines, components, and related services to the energy industry is well-established. A detailed analysis of their past performance on federal contracts, specifically those with the Department of Defense or Army Corps of Engineers, would be required to assess their reliability, quality of work, and adherence to schedules and budgets in the context of government procurement.

What were the key performance metrics or deliverables outlined in this contract, and how was contractor performance measured?

The provided data does not detail the specific performance metrics or deliverables for this contract. Typically, such contracts would include specifications for the components, delivery schedules, quality assurance requirements, and potentially installation or maintenance support. Performance would be measured against these criteria, often through contract officer representative (COR) reports, acceptance testing, and adherence to delivery timelines. The contract type, 'FIRM FIXED PRICE,' suggests that the contractor is responsible for delivering the specified goods or services at a predetermined price, with incentives for meeting quality and schedule requirements.

Are there any indications of contract modifications, extensions, or disputes that might affect the overall value or efficiency of this award?

The contract's 'end date' is listed as '2013-04-30', while the 'start date' is '1996-10-10', indicating a duration of over 16 years. This extended period strongly suggests multiple modifications and extensions from the original award. The presence of 'P00015' could signify the 15th modification. Long contract durations and numerous modifications can sometimes signal scope creep, evolving requirements, or challenges in initial planning. Without access to the details of these modifications, it's difficult to definitively assess their impact on the contract's overall value and efficiency, but they warrant further investigation.

How does the spending on water turbine components compare to other major equipment procurements within the Department of the Army or the broader Department of Defense?

Spending on water turbine components, while significant for specific infrastructure needs, is likely a niche area compared to broader defense procurement categories like aircraft, vehicles, or IT systems. The $103.7M awarded over 16 years for this contract represents a substantial investment in a particular type of critical infrastructure. To contextualize this, one would need to compare it against annual budgets for major weapon systems, general equipment procurement, or maintenance and repair contracts across the DoD. This contract's value would likely be considered moderate within the overall DoD spending landscape, but high within the specialized sector of water resource infrastructure.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: E BERLIN RD, YORK, PA, 17404

Business Categories: Category Business, 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