Interior's $44.5M contract for generator repairs at Yellowtail Powerplant awarded to National Electric Coil, Inc

Contract Overview

Contract Amount: $44,506,633 ($44.5M)

Contractor: National Electric Coil, Inc.

Awarding Agency: Department of the Interior

Start Date: 2013-09-16

End Date: 2021-05-31

Contract Duration: 2,814 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF CRITICAL FUNCTION - RECOATING OF REPLECEMENT OF ARMATURE WINDINGS, FIELD POLES, AND STATOR CORES ON THE FOUR GENERATORS AT YELLOWTAIL POWERPLANT. THE CONTRACT INCLUDES DESIGN, FABRICATE AND INSTALL.

Place of Performance

Location: FORT SMITH, BIG HORN County, MONTANA, 59035

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $44.5 million to NATIONAL ELECTRIC COIL, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTION - RECOATING OF REPLECEMENT OF ARMATURE WINDINGS, FIELD POLES, AND STATOR CORES ON THE FOUR GENERATORS AT YELLOWTAIL POWERPLANT. THE CONTRACT INCLUDES DESIGN, FABRICATE AND INSTALL. Key points: 1. The contract's value of $44.5 million represents a significant investment in maintaining critical energy infrastructure. 2. Full and open competition was utilized, suggesting a robust market for these specialized repair services. 3. The contract duration of 2814 days indicates a long-term need for generator maintenance and potential for ongoing performance monitoring. 4. The firm-fixed-price structure shifts cost risk to the contractor, potentially leading to more predictable project expenses. 5. This contract addresses essential operational needs for the Yellowtail Powerplant, ensuring continued energy generation. 6. The absence of small business set-asides or subcontracting requirements suggests the primary contractor possesses the full capability.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work for each generator component (armature windings, field poles, stator cores). However, the total value of $44.5 million over nearly 8 years suggests a substantial undertaking. Comparing it to similar large-scale power plant generator repair contracts would be necessary for a more precise value-for-money assessment. The firm-fixed-price nature implies that the contractor is responsible for managing costs to meet the agreed-upon price, which can be beneficial for the government if managed effectively.

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 solicited and considered. The presence of two bidders (no) suggests a competitive environment, though the exact number of proposals received and the evaluation process are not detailed. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It provides assurance that the selected contractor offers the best value available in the market for these critical services.

Public Impact

The primary beneficiaries are the Department of the Interior and the Bureau of Reclamation, ensuring the operational integrity of the Yellowtail Powerplant. The services delivered include the design, fabrication, and installation of replacement parts for critical generator components. The geographic impact is localized to the Yellowtail Powerplant in Montana, supporting regional energy supply. The contract supports specialized manufacturing and engineering jobs within the electrical equipment repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during design and fabrication, despite the fixed-price structure.
Risk of delays in fabrication or installation impacting power generation schedules.
Ensuring the long-term reliability and performance of the repaired components requires rigorous quality assurance.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive market and potentially better pricing.
Long contract duration allows for comprehensive execution and potential for relationship building with the contractor.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on the maintenance and repair of large-scale electromechanical equipment for power generation. The market for such specialized services is typically dominated by a few key players with the necessary expertise and manufacturing capabilities. The $44.5 million value is substantial for a single project within this niche, reflecting the complexity and critical nature of power plant generator overhauls. Comparable spending would involve other large federal or utility-scale power plant maintenance contracts.

Small Business Impact

The contract data indicates that this was not set aside for small businesses, and there is no explicit mention of subcontracting requirements. This suggests that the primary contractor, National Electric Coil, Inc., is expected to perform the majority of the work with its own resources or through direct procurement. The absence of small business participation goals implies that the scope of work is highly specialized and likely beyond the typical capabilities of many small businesses in this sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Reclamation, a sub-agency of the Department of the Interior. They would be responsible for monitoring contract performance, ensuring adherence to specifications, and managing payments. The firm-fixed-price nature of the contract means that oversight would focus on schedule adherence, quality of work, and compliance with contractual terms rather than detailed cost accounting. Transparency would be facilitated through contract reporting mechanisms and potential public access to contract award details.

Related Government Programs

Federal Power Marketing Administrations
Bureau of Reclamation Power Operations
Department of Energy - Grid Modernization Initiatives
Army Corps of Engineers - Civil Works Projects

Risk Flags

Long contract duration may increase risk of cost escalation or technological changes.
Firm-fixed-price requires careful contractor cost management to ensure profitability.
Potential for unforeseen site conditions impacting schedule and cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $44.5 million to NATIONAL ELECTRIC COIL, INC.. IGF::CT::IGF CRITICAL FUNCTION - RECOATING OF REPLECEMENT OF ARMATURE WINDINGS, FIELD POLES, AND STATOR CORES ON THE FOUR GENERATORS AT YELLOWTAIL POWERPLANT. THE CONTRACT INCLUDES DESIGN, FABRICATE AND INSTALL.

Who is the contractor on this award?

The obligated recipient is NATIONAL ELECTRIC COIL, 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 $44.5 million.

What is the period of performance?

Start: 2013-09-16. End: 2021-05-31.

What is the historical spending pattern of the Bureau of Reclamation on generator repair and maintenance contracts?

Analyzing the historical spending of the Bureau of Reclamation on generator repair and maintenance reveals a consistent need for significant capital investment to ensure the operational longevity of its numerous hydroelectric facilities. While specific figures for generator repair alone are not readily available without deep dives into individual project procurements, the agency's overall budget allocation for operations and maintenance of its power systems often runs into hundreds of millions of dollars annually. Contracts for major overhauls, such as the one awarded to National Electric Coil, Inc., represent a substantial portion of this spending. These large-scale projects are typically awarded infrequently due to their complexity and cost, often occurring on a 10-20 year cycle per major generating unit. The agency prioritizes these investments to prevent costly failures, maintain energy output, and comply with environmental regulations. Historical data would likely show a trend of increasing costs for such specialized repairs due to inflation, technological advancements, and the aging infrastructure of many of its power plants.

How does the price of this contract compare to similar generator repair projects at other federal power plants?

Directly comparing the $44.5 million price tag for the Yellowtail Powerplant generator repairs to similar projects at other federal power plants requires access to detailed scope of work and pricing data for those comparable contracts. Factors such as the specific type and size of generators, the extent of the required work (e.g., full rewinding vs. partial repair, component replacement), the age and condition of the equipment, and the prevailing market rates at the time of award significantly influence pricing. However, given the contract's inclusion of design, fabrication, and installation for multiple critical components (armature windings, field poles, stator cores) on four generators, the price appears substantial, reflecting a comprehensive overhaul. Projects involving similar scope and scale at other Bureau of Reclamation or Army Corps of Engineers facilities could potentially fall within a similar multi-million dollar range. Without specific benchmark data, it's difficult to definitively state if this contract represents excellent or questionable value, but the firm-fixed-price structure and full and open competition suggest an effort to secure competitive pricing.

What are the key performance indicators (KPIs) used to assess the success of this contract?

The success of this contract, valued at $44.5 million for generator repairs at the Yellowtail Powerplant, would likely be assessed using a combination of performance, schedule, and quality-related Key Performance Indicators (KPIs). Performance KPIs would focus on the restored efficiency and output of the generators post-repair, ensuring they meet or exceed original design specifications. Schedule adherence is critical, as delays in completing the repairs could impact power generation targets and revenue. Quality KPIs would involve rigorous testing and inspection of the fabricated and installed components to ensure they meet all technical specifications and industry standards, minimizing the risk of premature failure. Furthermore, adherence to safety protocols during the fabrication and installation phases would be a crucial KPI. The contractor's ability to manage the project within the firm-fixed-price, despite potential unforeseen issues, would also be a key indicator of successful cost management.

What is the track record of National Electric Coil, Inc. in performing similar large-scale generator repair contracts for federal agencies?

National Electric Coil, Inc. has a significant track record in the electric motor and generator repair industry, often undertaking large and complex projects for industrial clients, including federal agencies. While specific details on all their federal contracts require database searches, their specialization in rewinding and rebuilding large rotating equipment suggests they possess the technical expertise and manufacturing capacity for projects like the Yellowtail Powerplant generator overhaul. Their ability to secure a $44.5 million firm-fixed-price contract under full and open competition indicates a level of confidence from the Bureau of Reclamation in their capabilities. Past performance evaluations, if available through federal procurement databases, would provide more granular insights into their on-time delivery, quality of work, and adherence to budget on previous government contracts. Generally, companies winning such substantial contracts have demonstrated a history of successful project execution.

What are the potential risks associated with the long duration (2814 days) of this contract?

The 2814-day (approximately 7.7 years) duration of this contract presents several potential risks. Firstly, there's the risk of technological obsolescence; while the core components being repaired are fundamental, advancements in repair techniques or materials could emerge during the contract period, potentially making the chosen methods less optimal over time. Secondly, economic fluctuations, such as significant inflation in material costs or labor rates, could impact the contractor's profitability if not adequately accounted for in the firm-fixed-price, potentially leading to disputes or requests for equitable adjustments. Thirdly, personnel continuity on the government oversight side could be an issue, with different contracting officers and technical representatives managing the project over its lifespan, potentially leading to inconsistencies in oversight. Finally, the extended timeline increases the window for unforeseen site conditions or environmental factors to affect the work, requiring careful management and contingency planning.

How does the firm-fixed-price (FFP) contract type influence the risk allocation and potential for cost savings in this project?

The Firm-Fixed-Price (FFP) contract type significantly shifts the primary cost risk from the government to the contractor, National Electric Coil, Inc. Under an FFP agreement, the contractor is obligated to complete the specified work for a predetermined price, regardless of their actual costs incurred. This provides the government with budget certainty and protects against cost overruns, which is a major advantage. For the contractor, it incentivizes efficient performance and cost control, as any savings achieved below the fixed price directly contribute to their profit. However, it also means the contractor bears the risk of unforeseen difficulties, material price increases, or labor shortages. To mitigate this, contractors typically build significant contingency into their FFP bids. For the government, the potential cost savings are realized if the contractor successfully manages the project efficiently. Conversely, if the contractor underestimated the complexity or costs, they might face financial losses, potentially impacting their motivation or ability to complete the work to the highest standards, although the contract's structure aims to prevent this through competitive bidding.

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: R13PS60127

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 KING AVE, COLUMBUS, OH, 43212

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

Financial Breakdown

Contract Ceiling: $44,506,633

Exercised Options: $44,506,633

Current Obligation: $44,506,633

Actual Outlays: $11,849,820

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline