Interior's $49.4M Transformer Contract with Yellowstone Electric Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $49,394,903 ($49.4M)
Contractor: Yellowstone Electric CO
Awarding Agency: Department of the Interior
Start Date: 2015-07-16
End Date: 2026-06-30
Contract Duration: 4,002 days
Daily Burn Rate: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::CT::IGF REPLACE MAIN S.U. TRANSFORMERS&ISO PHASE BUS
Place of Performance
Location: PAGE, COCONINO County, ARIZONA, 86040
State: Arizona Government Spending
Plain-Language Summary
Department of the Interior obligated $49.4 million to YELLOWSTONE ELECTRIC CO for work described as: IGF::CT::IGF REPLACE MAIN S.U. TRANSFORMERS&ISO PHASE BUS Key points: 1. The contract's value of $49.4 million for transformer replacement is significant. 2. Yellowstone Electric Co. is the sole awardee, raising questions about competition. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause warrants further investigation. 4. The sector is Power and Communication Line and Related Structures Construction.
Value Assessment
Rating: questionable
The contract value of $49.4 million for transformer replacement needs benchmarking against similar projects. The 'DEFINITIVE CONTRACT' type and 'FIRM FIXED PRICE' suggest a defined scope, but the lack of clear competitive pricing data makes assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall value for taxpayers.
Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price for this significant infrastructure investment.
Public Impact
Ensuring reliable power infrastructure for federal facilities. Potential for increased costs due to limited competition. Impact on local economies through contract awards. Long-term maintenance and operational considerations for the transformers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises price concerns.
- Contract duration is lengthy (4002 days).
- Exclusion of sources needs justification.
Positive Signals
- Addresses critical infrastructure needs.
- Firm fixed price provides cost certainty.
Sector Analysis
This contract falls within the Power and Communication Line and Related Structures Construction sector. Spending in this area is crucial for maintaining essential government infrastructure, but often involves high-value, specialized projects.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract, suggesting a potential missed opportunity for small business participation.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause requires careful oversight to ensure it was justified and that fair pricing was achieved. The Bureau of Reclamation's oversight is critical.
Related Government Programs
- Power and Communication Line and Related Structures Construction
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Limited competition may have inflated costs.
- Justification for source exclusion is unclear.
- Long contract duration limits flexibility.
- Potential for contractor cost overruns impacting future pricing.
Tags
power-and-communication-line-and-related, department-of-the-interior, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $49.4 million to YELLOWSTONE ELECTRIC CO. IGF::CT::IGF REPLACE MAIN S.U. TRANSFORMERS&ISO PHASE BUS
Who is the contractor on this award?
The obligated recipient is YELLOWSTONE ELECTRIC CO.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Reclamation).
What is the total obligated amount?
The obligated amount is $49.4 million.
What is the period of performance?
Start: 2015-07-16. End: 2026-06-30.
What was the specific justification for excluding sources in this full and open competition, and how did it impact the final price?
The justification for excluding sources needs to be thoroughly reviewed. Typically, such exclusions are based on specific technical requirements, proprietary technology, or urgent needs. Without this justification, it's difficult to assess if the exclusion was necessary or if it led to a higher price than could have been achieved through broader competition.
How does the $49.4 million contract value compare to industry benchmarks for similar transformer replacement projects of this scale and complexity?
Benchmarking this $49.4 million contract against similar projects is crucial for assessing value. Factors like transformer capacity, voltage, environmental conditions, and installation complexity influence costs. A detailed comparison with publicly available data or industry cost databases would reveal if this price is competitive or potentially inflated due to the limited bidding environment.
What are the long-term implications of this contract's duration and firm fixed price on the government's ability to adapt to future technological advancements or unforeseen issues?
The long duration (4002 days) and firm fixed price present both benefits and risks. While it offers cost certainty, it might limit the government's flexibility to incorporate newer, more efficient technologies that emerge during the contract period. It also means potential cost overruns for the contractor if unforeseen issues arise, which could indirectly impact future contract negotiations or require change orders.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: R15PS00272
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1919 4TH AVE N, BILLINGS, MT, 59101
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,394,903
Exercised Options: $49,394,903
Current Obligation: $49,394,903
Actual Outlays: $29,802,294
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-16
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-02
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