Over $101.9M Awarded for Grand Coulee Dam Powerplant Overhaul, Awarded to ANDRITZ HYDRO CORP

Contract Overview

Contract Amount: $149,212,483 ($149.2M)

Contractor: Andritz Hydro Corp

Awarding Agency: Department of the Interior

Start Date: 2011-05-06

End Date: 2021-11-21

Contract Duration: 3,852 days

Daily Burn Rate: $38.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: G22, G23, AND G24 OVERHAUL, GRAND COULEE DAM, THIRD POWERPLANT, WASHINGTON. TOTAL AMOUNT OF PROJECT: $101,971,541.00.

Place of Performance

Location: GRAND COULEE, GRANT County, WASHINGTON, 99133

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $149.2 million to ANDRITZ HYDRO CORP for work described as: G22, G23, AND G24 OVERHAUL, GRAND COULEE DAM, THIRD POWERPLANT, WASHINGTON. TOTAL AMOUNT OF PROJECT: $101,971,541.00. Key points: 1. The contract value of $101.9 million represents a significant investment in critical infrastructure maintenance. 2. The project involved the overhaul of multiple generating units (G22, G23, G24) at the Grand Coulee Dam's Third Powerplant. 3. The duration of the contract, spanning from May 2011 to November 2021, indicates a long-term commitment to the project. 4. The firm-fixed-price contract type suggests that the contractor assumed the majority of the cost risk. 5. The project falls under 'Other Heavy and Civil Engineering Construction,' a broad category encompassing large-scale infrastructure development and maintenance. 6. The award was made by the Department of the Interior, Bureau of Reclamation, highlighting federal responsibility for national water and power resources.

Value Assessment

Rating: good

Benchmarking the value of this contract requires comparison to similar large-scale hydroelectric powerplant overhaul projects. Given the complexity and scale of the Grand Coulee Dam, the $101.9 million price tag appears reasonable for a decade-long undertaking. The firm-fixed-price structure generally leads to better cost certainty for the government compared to cost-plus contracts, assuming the initial scope was well-defined. Without specific per-unit cost data for the overhaul of individual turbines and generators, a precise value-for-money assessment is challenging, but the long-term nature and the criticality of the asset suggest a strategic investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 5 bidders suggests a competitive environment, which typically drives down prices and encourages innovation. This level of competition is favorable for the government as it allows for the selection of the most qualified bidder at the best possible price. The Bureau of Reclamation's adherence to full and open competition aligns with federal procurement best practices.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and quality, ultimately benefiting the government's budget.

Public Impact

The primary beneficiaries are the users of electricity generated by the Grand Coulee Dam, ensuring reliable power supply. The services delivered include the comprehensive overhaul of critical power generation equipment, extending its operational lifespan. The geographic impact is concentrated in Washington state, where the Grand Coulee Dam is located and provides power. The project supports specialized jobs in heavy construction, engineering, and skilled trades within the energy sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the decade-long overhaul, despite the fixed-price nature.
Risk of schedule delays impacting power generation reliability if project milestones are not met.
Dependency on a single contractor (ANDRITZ HYDRO CORP) for a critical infrastructure project over an extended period.
Ensuring continued availability of specialized parts and expertise for aging equipment throughout the project lifecycle.

Positive Signals

The firm-fixed-price contract structure shifts significant cost risk to the contractor.
Full and open competition suggests a robust selection process, likely resulting in a qualified and competitive bid.
The long duration indicates a planned, strategic approach to infrastructure maintenance, rather than reactive repairs.
The Department of the Interior's oversight of a critical national asset like the Grand Coulee Dam suggests a high level of accountability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on power generation infrastructure. The Grand Coulee Dam is one of the largest hydroelectric facilities in the United States, making this overhaul a significant undertaking. Comparable spending benchmarks would involve other large-scale dam maintenance and powerplant upgrade projects across federal agencies, often running into tens or hundreds of millions of dollars depending on the scope and age of the facility. The market for such specialized heavy construction and equipment overhaul is concentrated among a few large, experienced firms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and large scale of the Grand Coulee Dam overhaul, it is typical for such contracts to be awarded to large, established firms with the necessary expertise and resources. There is no explicit information on subcontracting plans for small businesses, but it is common for prime contractors on projects of this magnitude to engage small businesses for specific components or services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior and the Bureau of Reclamation. As a large, long-term federal contract, it is subject to standard procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases and reporting. While specific Inspector General (IG) involvement isn't detailed, the DOI IG would have jurisdiction over potential fraud, waste, or abuse related to this expenditure. The firm-fixed-price nature of the contract also provides a degree of accountability by capping the government's financial exposure.

Related Government Programs

Grand Coulee Dam Operations and Maintenance
Bureau of Reclamation Power Generation Projects
Federal Hydroelectric Infrastructure Investments
Department of the Interior Capital Improvement Projects

Risk Flags

Long contract duration increases risk of unforeseen issues and obsolescence.
Dependency on a single contractor for critical infrastructure over an extended period.
Potential for schedule delays impacting power generation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $149.2 million to ANDRITZ HYDRO CORP. G22, G23, AND G24 OVERHAUL, GRAND COULEE DAM, THIRD POWERPLANT, WASHINGTON. TOTAL AMOUNT OF PROJECT: $101,971,541.00.

Who is the contractor on this award?

The obligated recipient is ANDRITZ HYDRO CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $149.2 million.

What is the period of performance?

Start: 2011-05-06. End: 2021-11-21.

What is the track record of ANDRITZ HYDRO CORP in performing similar large-scale powerplant overhaul contracts for the federal government?

ANDRITZ HYDRO CORP is a global supplier of turbines, generators, and other electromechanical equipment for hydropower plants. They have a significant history of involvement in major hydropower projects worldwide, including upgrades and overhauls. For federal contracts, their track record would be assessed based on past performance reviews, on-time delivery, adherence to budget (especially in fixed-price contracts), and overall quality of work on similar projects. Agencies typically maintain performance databases (like the Contractor Performance Assessment Reporting System - CPARS) that would inform future award decisions. While specific details of past federal overhauls by ANDRITZ HYDRO CORP are not provided here, their established presence in the hydropower sector suggests they possess the requisite experience for complex projects like the Grand Coulee Dam overhaul.

How does the $101.9 million contract value compare to other major federal hydroelectric powerplant overhaul projects?

The $101.9 million contract value for the Grand Coulee Dam overhaul is substantial, reflecting the scale and complexity of the work. To benchmark this value, one would compare it to similar projects at other large federal dams, such as those managed by the Army Corps of Engineers or other Bureau of Reclamation facilities. For instance, major turbine replacements or comprehensive generator overhauls at dams like Hoover Dam or facilities on the Columbia River could range from tens to hundreds of millions of dollars, depending on the number of units, the extent of the work (e.g., refurbishment vs. replacement), and the age of the equipment. The decade-long duration of this contract also suggests a phased approach, which can sometimes spread costs but also indicates a long-term commitment to maintaining critical infrastructure.

What are the primary risks associated with a decade-long overhaul of critical power generation equipment?

A decade-long overhaul of critical power generation equipment like that at the Grand Coulee Dam presents several risks. Firstly, there's the risk of unforeseen technical challenges arising during the work, which could lead to cost increases or schedule delays, even under a firm-fixed-price contract if scope changes are necessary. Secondly, maintaining operational reliability of the dam while performing extensive work on multiple units is a significant logistical challenge. Thirdly, the long duration increases the risk of technological obsolescence; equipment or methodologies used early in the project might be outdated by its completion. Finally, ensuring the availability of specialized parts, skilled labor, and contractor expertise over such an extended period requires careful planning and management to avoid disruptions.

What is the expected impact of this overhaul on the long-term operational effectiveness and efficiency of the Grand Coulee Dam's power generation?

The overhaul of generating units G22, G23, and G24 is expected to significantly enhance the long-term operational effectiveness and efficiency of the Grand Coulee Dam's power generation. By replacing or refurbishing aging components, the project aims to restore and potentially improve the reliability and output capacity of these units. This means fewer unexpected outages, more consistent power generation, and potentially improved energy conversion efficiency, leading to greater electricity output from the same amount of water. Extending the service life of this critical infrastructure also defers the need for more costly replacements and ensures the dam continues to be a vital source of renewable energy for the region for decades to come.

How has federal spending on Grand Coulee Dam maintenance and upgrades evolved over the past decade leading up to and during this contract?

Analyzing federal spending on Grand Coulee Dam maintenance and upgrades over the past decade would require access to detailed historical budget and contract data. However, it's reasonable to infer that spending would fluctuate based on the dam's condition, planned maintenance cycles, and available appropriations. Large-scale overhauls like the one awarded to ANDRITZ HYDRO CORP represent significant capital investments, often planned years in advance. Prior to this contract, spending might have focused on smaller repairs, assessments, or preparatory work. During the contract's execution (2011-2021), annual spending would reflect the progress payments made against the $101.9 million total. Post-contract, spending would likely shift back to routine maintenance or planning for the next phase of upgrades.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R10PS10048

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Andritz AG

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

Financial Breakdown

Contract Ceiling: $149,407,433

Exercised Options: $149,407,433

Current Obligation: $149,212,483

Actual Outlays: $41,700,536

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline