Interior's Bureau of Reclamation Spends $28.8M on Generator Repair and Refurbishment

Contract Overview

Contract Amount: $28,833,039 ($28.8M)

Contractor: Alstom Power Inc

Awarding Agency: Department of the Interior

Start Date: 2013-09-20

End Date: 2019-04-30

Contract Duration: 2,048 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS FOR A CONTRACTOR TO PROVIDE THE FOLLOWING: REMOVE AND DISPOSE OF EXISTING STATOR CORE AND ARMATURE WINDING FOR GENERATORS. FACTORY TEST, INSTALL AND FIELD TEST NEW STATOR CORE FOR GENERATORS. FACTORY TEST, INSTALL AND FIELD TEST NEW ARMATURE WINDINGS FOR GENERATORS. INSTALL AND FIELD TEST NEW ARMATURE WINDINGS FOR 4 GENERATORS. FURNISH SPARE PARTS FOR GENERATOR ARMATURE WINDING. REMOVE, REFURBISH, RE-INSTALL AND TEST FIELD POLES FOR GENERATORS.

Place of Performance

Location: PAGE, COCONINO County, ARIZONA, 86040

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $28.8 million to ALSTOM POWER INC for work described as: THE PURPOSE OF THIS CONTRACT IS FOR A CONTRACTOR TO PROVIDE THE FOLLOWING: REMOVE AND DISPOSE OF EXISTING STATOR CORE AND ARMATURE WINDING FOR GENERATORS. FACTORY TEST, INSTALL AND FIELD TEST NEW STATOR CORE FOR GENERATORS. FACTORY TEST, INSTALL AND FIELD TEST NEW ARMATURE WINDIN… Key points: 1. The contract focuses on essential generator maintenance, including stator core and armature winding replacement and refurbishment. 2. Alstom Power Inc. was the sole awardee under full and open competition. 3. The contract carries risks related to the specialized nature of generator repair and potential for unforeseen issues during refurbishment. 4. Spending falls within the Motor and Generator Manufacturing sector, with a significant portion allocated to capital equipment repair.

Value Assessment

Rating: good

The total contract value of $28.8 million for generator repair and refurbishment appears reasonable given the scope of work, which includes factory testing, installation, and field testing of new components for four generators. This price point is likely competitive for specialized heavy industrial equipment services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process should have driven a fair price discovery for the complex generator repair services.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value for essential infrastructure maintenance and ensure the longevity of critical power generation equipment.

Public Impact

Ensures continued operation of vital power generation infrastructure managed by the Bureau of Reclamation. Supports the reliability of electricity supply for regions dependent on Bureau of Reclamation facilities. Invests in the maintenance and modernization of aging industrial equipment, extending its service life. The contract's success is tied to the performance and expertise of the awarded contractor in specialized generator repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during refurbishment.
Dependence on a single contractor for critical repair services.
Long lead times for specialized parts could impact project schedule.

Positive Signals

Awarded under full and open competition, promoting price fairness.
Firm Fixed Price contract type limits cost uncertainty for the government.
Focus on essential maintenance ensures operational continuity.

Sector Analysis

This contract falls within the Motor and Generator Manufacturing sector, specifically addressing the repair and refurbishment of large industrial generators. Spending benchmarks for such specialized maintenance can vary widely based on the size and complexity of the equipment, but $28.8 million suggests a significant overhaul of multiple units.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific contract, as it was awarded to Alstom Power Inc. Further analysis would be needed to determine if subcontracting opportunities were available or utilized.

Oversight & Accountability

The Bureau of Reclamation, under the Department of the Interior, managed this contract. Oversight would typically involve monitoring contract performance, ensuring adherence to specifications, and managing payments. The firm fixed price structure provides a degree of financial oversight.

Related Government Programs

Motor and Generator Manufacturing
Department of the Interior Contracting
Bureau of Reclamation Programs

Risk Flags

Specialized nature of work requires high technical expertise.
Potential for unforeseen issues during refurbishment.
Dependence on specific spare parts availability.
Long contract duration (2013-2019) may indicate complex or phased work.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.8 million to ALSTOM POWER INC. THE PURPOSE OF THIS CONTRACT IS FOR A CONTRACTOR TO PROVIDE THE FOLLOWING: REMOVE AND DISPOSE OF EXISTING STATOR CORE AND ARMATURE WINDING FOR GENERATORS. FACTORY TEST, INSTALL AND FIELD TEST NEW STATOR CORE FOR GENERATORS. FACTORY TEST, INSTALL AND FIELD TEST NEW ARMATURE WINDINGS FOR GENERATORS. INSTALL AND FIELD TEST NEW ARMATURE WINDINGS FOR 4 GENERATORS. FURNISH SPARE PARTS FOR GENERATOR ARMATURE WINDING. REMOVE, REFURBISH, RE-INSTALL AND TEST FIELD POLES FOR GENERATORS.

Who is the contractor on this award?

The obligated recipient is ALSTOM POWER INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2013-09-20. End: 2019-04-30.

What was the specific competitive landscape like for this generator repair contract, and how did it influence the final price?

The contract was awarded under 'full and open competition,' indicating that multiple qualified vendors were invited to submit bids. This competitive environment is designed to foster price discovery and ensure the government receives fair market value. The specific number of bids received and the range of proposed prices would provide a clearer picture of how effectively competition drove down costs for this specialized generator repair and refurbishment service.

What are the primary risks associated with the refurbishment and replacement of stator cores and armature windings for large generators?

Key risks include the potential for unforeseen damage discovered during disassembly, leading to scope creep and cost increases. The availability and lead time for specialized replacement parts can also pose schedule risks. Furthermore, the technical expertise required for successful factory and field testing is critical; inadequate execution could result in premature failure or reduced generator efficiency, impacting operational reliability and potentially requiring costly rework.

How does this expenditure contribute to the long-term operational effectiveness and efficiency of the Bureau of Reclamation's power generation assets?

This contract is crucial for maintaining the operational effectiveness of the Bureau of Reclamation's power generation assets by addressing critical components like stator cores and armature windings. By refurbishing and replacing these parts, the contract extends the lifespan of aging generators, prevents costly breakdowns, and ensures they operate at optimal efficiency. This investment safeguards a vital component of the nation's energy infrastructure and supports the reliable delivery of power.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: INR13PS40010

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7901 SOUTHPARK PLZ STE 110, LITTLETON, CO, 80120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,833,039

Exercised Options: $28,833,039

Current Obligation: $28,833,039

Actual Outlays: $264,966

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline