Interior Dept. Awards $20.6M for Parker Dam Powerplant Generator Overhaul, with Options for Three More Units

Contract Overview

Contract Amount: $20,594,602 ($20.6M)

Contractor: American Hydro LLC

Awarding Agency: Department of the Interior

Start Date: 2004-08-15

End Date: 2010-03-03

Contract Duration: 2,026 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GENERATOR TURBINE RUNNER, ARMATURE WINDINGS AND EXCITATION SYSTEM FOR UNIT 3 AT PARKER DAM POWERPLANT BE REMOVED AND DISPOSED OF, AND THERE BE FURNISHED AND INSTALLED, AND TESTED ONE REPLACEMENT RUNNER AND CONE, REFURBISHEMENT OF THE EXISTING WICKET GATES, STATIONARY WEAR RINGS AND FURNISHING SPARE STATIONARY WEAR RINGS, ONE NEW GENERATOR ARMATURE WINDING, MODIFICATION OF THE EXISTING ROTATING EXCITER, FULL STATIC DIGITAL EXCITATION SYSTEM, ALL NEW POWER AND CONTROL CABLING AND NEW GENERATOR FIELD LEADS. THE GOVERNMENT RESERVES THE RIGHT TO EXERCISE OPTIONAL SCHEDULES TO ACCOMPLISH THE SAME WORK ON UNIT 1, UNIT 2, OR UNIT 4 OF THE GENERATORS AT PARKER DAM POWERPLANT.

Place of Performance

Location: YORK, YORK County, PENNSYLVANIA, 17402

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $20.6 million to AMERICAN HYDRO LLC for work described as: GENERATOR TURBINE RUNNER, ARMATURE WINDINGS AND EXCITATION SYSTEM FOR UNIT 3 AT PARKER DAM POWERPLANT BE REMOVED AND DISPOSED OF, AND THERE BE FURNISHED AND INSTALLED, AND TESTED ONE REPLACEMENT RUNNER AND CONE, REFURBISHEMENT OF THE EXISTING WICKET GATES, STATIONARY WEAR RINGS A… Key points: 1. Significant investment in critical power infrastructure at Parker Dam. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk of cost overruns or delays exists due to the complexity and multi-year duration. 4. The sector involves specialized power generation equipment manufacturing and services.

Value Assessment

Rating: good

The contract value of $20.6 million for a complex generator overhaul appears reasonable given the scope. Benchmarking against similar large-scale power plant equipment replacement projects would provide further validation.

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 had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a more efficient use of funds for this essential infrastructure upgrade.

Public Impact

Ensures continued reliable power generation from Parker Dam. Supports the operational integrity of a significant federal water and power resource. Potential for job creation in specialized manufacturing and engineering sectors. The project's success is vital for regional power supply stability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep with optional schedules for Units 1, 2, and 4.
Long project duration (2004-2010) increases risk of unforeseen issues.
Reliance on a single contractor for complex, critical components.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type helps control costs.
Options for additional units could provide economies of scale if exercised.

Sector Analysis

This contract falls within the power generation equipment and services sector, specifically focusing on hydroelectric power plant components. Spending benchmarks for similar large-scale power plant refurbishments are typically in the millions to tens of millions of dollars, depending on the scale and complexity.

Small Business Impact

The data indicates the primary contractor is AMERICAN HYDRO LLC. There is no specific information provided regarding small business participation or subcontracting goals within this contract.

Oversight & Accountability

The Bureau of Reclamation, under the Department of the Interior, is responsible for this contract. Oversight would involve monitoring project progress, quality control, and adherence to contract terms throughout the multi-year performance period.

Related Government Programs

Power, Distribution, and Specialty Transformer Manufacturing
Department of the Interior Contracting
Bureau of Reclamation Programs

Risk Flags

Complexity of the work
Long performance period
Potential for cost escalation on optional work
Dependency on specialized contractor expertise
Aging infrastructure requiring significant upgrades

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $20.6 million to AMERICAN HYDRO LLC. GENERATOR TURBINE RUNNER, ARMATURE WINDINGS AND EXCITATION SYSTEM FOR UNIT 3 AT PARKER DAM POWERPLANT BE REMOVED AND DISPOSED OF, AND THERE BE FURNISHED AND INSTALLED, AND TESTED ONE REPLACEMENT RUNNER AND CONE, REFURBISHEMENT OF THE EXISTING WICKET GATES, STATIONARY WEAR RINGS AND FURNISHING SPARE STATIONARY WEAR RINGS, ONE NEW GENERATOR ARMATURE WINDING, MODIFICATION OF THE EXISTING ROTATING EXCITER, FULL STATIC DIGITAL EXCITATION SYSTEM, ALL NEW POWER AND CONTROL CABLING AND NEW GENERATOR FIE

Who is the contractor on this award?

The obligated recipient is AMERICAN HYDRO LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2004-08-15. End: 2010-03-03.

What is the estimated cost per unit if all four generator units are refurbished?

The current contract is for one unit at $20.6 million. If the optional schedules for the remaining three units are exercised, the total potential value could be significantly higher. A precise per-unit cost for all four would depend on the pricing structure of the options and any potential volume discounts negotiated at the time of exercise.

What are the primary risks associated with the long-term performance of the new generator armature winding and excitation system?

Key risks include potential material defects, unforeseen environmental impacts on performance, and the obsolescence of technology over the system's lifespan. Ensuring robust warranties, performance guarantees, and incorporating future-proofing in the design are crucial mitigation strategies.

How effectively does the static digital excitation system improve power plant efficiency and grid stability compared to older systems?

Full static digital excitation systems offer significant advantages over older rotating exciter systems. They provide faster response times, greater precision in voltage regulation, improved stability during grid disturbances, and enhanced diagnostic capabilities, leading to better overall power plant efficiency and grid reliability.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Power, Distribution, and Specialty Transformer Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: THE Weir Group PLC (UEI: 214432858)

Address: 135 STONEWOOD ROAD, YORK, PA, 10

Business Categories: Category Business, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,594,602

Exercised Options: $20,594,602

Current Obligation: $20,594,602

Timeline