Interior Department awards $29.6M contract for Grand Coulee Dam pump gates, with 3 bidders

Contract Overview

Contract Amount: $29,616,974 ($29.6M)

Contractor: Greenberry Industrial LLC

Awarding Agency: Department of the Interior

Start Date: 2017-09-19

End Date: 2028-03-17

Contract Duration: 3,832 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF REVERSE FLOW GATES, JOHN W. KEYS III PUMP GENERATING PLANT, GRAND COULEE DAM, WASHINGTON.

Place of Performance

Location: GRAND COULEE, GRANT County, WASHINGTON, 99133

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $29.6 million to GREENBERRY INDUSTRIAL LLC for work described as: IGF::OT::IGF REVERSE FLOW GATES, JOHN W. KEYS III PUMP GENERATING PLANT, GRAND COULEE DAM, WASHINGTON. Key points: 1. Contract value of $29.6 million for fabricated structural metal manufacturing. 2. Competition involved 3 bidders, indicating a moderate level of market interest. 3. Contract duration extends to March 2017, suggesting a long-term project. 4. The contract is a firm fixed-price type, which shifts cost risk to the contractor. 5. The Bureau of Reclamation is the awarding agency, overseeing critical infrastructure. 6. The work is located in Washington state, impacting regional industrial capacity.

Value Assessment

Rating: good

The contract value of $29.6 million for fabricated structural metal manufacturing appears reasonable given the scope of work for a major federal dam. Benchmarking against similar large-scale infrastructure projects for fabricated metal components suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, though it relies on the contractor's accurate cost estimation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three distinct bidders participating. The presence of multiple bidders suggests that the market for this specialized fabricated structural metal work is accessible and that the government received competitive proposals. This level of competition is generally favorable for achieving fair market pricing.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation from multiple suppliers.

Public Impact

The primary beneficiaries are the Department of the Interior and the Bureau of Reclamation, ensuring the continued operational integrity of the Grand Coulee Dam. The services delivered include the fabrication and supply of essential components for the John W. Keys III Pump Generating Plant. The geographic impact is concentrated in Washington state, specifically at the Grand Coulee Dam site. Workforce implications include employment opportunities for skilled labor in the fabricated structural metal manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during fabrication or installation, despite the fixed-price nature.
Dependence on the contractor's supply chain for raw materials and specialized manufacturing capabilities.
Risk of delays in delivery or installation impacting dam operations if the contractor faces production issues.

Positive Signals

Firm fixed-price contract structure limits the government's exposure to cost increases.
Awarded under full and open competition, suggesting a competitive pricing environment.
Long contract duration allows for phased production and delivery, potentially smoothing resource allocation.
The contractor, Greenberry Industrial LLC, likely has experience with similar large-scale industrial projects.

Sector Analysis

This contract falls within the fabricated structural metal manufacturing sector, a critical component of the construction and heavy industry markets. The market for such specialized components for large infrastructure projects like dams is often concentrated among a few experienced firms. Spending benchmarks for similar dam component fabrication can vary widely based on complexity and material requirements, but contracts in the tens of millions are not uncommon for major federal infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Greenberry Industrial LLC, will likely handle the majority of the fabrication work. Further analysis would be needed to determine if any subcontracting opportunities exist within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Reclamation's project management and contracting officers. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon cost. Transparency is facilitated by the federal contracting data, and the Inspector General for the Department of the Interior would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Bureau of Reclamation Infrastructure Projects
Grand Coulee Dam Operations and Maintenance
Fabricated Structural Metal Manufacturing Contracts
Federal Dam Safety and Modernization Programs

Risk Flags

Supply chain disruption risk
Contractor performance risk
Technical specification adherence risk
Long-term project management complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $29.6 million to GREENBERRY INDUSTRIAL LLC. IGF::OT::IGF REVERSE FLOW GATES, JOHN W. KEYS III PUMP GENERATING PLANT, GRAND COULEE DAM, WASHINGTON.

Who is the contractor on this award?

The obligated recipient is GREENBERRY INDUSTRIAL 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 $29.6 million.

What is the period of performance?

Start: 2017-09-19. End: 2028-03-17.

What is the track record of Greenberry Industrial LLC in performing large-scale federal contracts, particularly for infrastructure projects?

Greenberry Industrial LLC has a history of performing significant industrial construction and fabrication projects. While specific details on their federal contract performance require deeper database searches, their involvement in a contract of this magnitude for the Bureau of Reclamation suggests they possess the necessary experience and capacity. Reviewing past performance evaluations and any reported disputes or claims associated with their federal contracts would provide a more comprehensive understanding of their reliability and quality of work. Their ability to secure this contract under full and open competition also implies a positive assessment of their past performance by the agency.

How does the $29.6 million contract value compare to similar fabricated structural metal contracts for dam components?

Benchmarking this $29.6 million contract requires comparing it to similar fabricated structural metal contracts for dam components, considering factors like size, complexity, and specific components. Contracts for large hydroelectric projects can range significantly, with major component fabrication often costing tens of millions. For instance, contracts for turbine parts, penstocks, or large gate systems can easily reach these figures. The 'Fabricated Structural Metal Manufacturing' NAICS code (332312) covers a broad range of products, so direct comparison is challenging without knowing the exact specifications of the 'REVERSE FLOW GATES'. However, given the critical nature and scale of the Grand Coulee Dam, this value appears to be within a reasonable range for specialized, high-quality fabrication work required for such a facility.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential delays in fabrication or delivery, unforeseen technical challenges during manufacturing, and the contractor's financial stability. Given it's a firm fixed-price contract, cost overruns are primarily the contractor's risk, but delays can still impact project timelines and potentially lead to claims. Mitigation strategies include the Bureau of Reclamation's oversight, adherence to strict manufacturing specifications, and performance bonds. The long contract duration (over 10 years) allows for phased production, potentially mitigating risks associated with immediate large-scale resource commitment. The contractor's selection under full and open competition also suggests a vetting process that considered their capability to manage these risks.

What is the expected impact of these reverse flow gates on the operational effectiveness of the Grand Coulee Dam?

Reverse flow gates are critical safety and operational components for hydroelectric facilities like the Grand Coulee Dam. Their primary function is to prevent water from flowing backward into the turbines under certain conditions, which could cause significant damage and operational disruption. The installation or replacement of these gates is essential for maintaining the dam's efficiency, ensuring the safety of its infrastructure, and guaranteeing reliable power generation. The 'John W. Keys III Pump Generating Plant' specifically deals with pumping operations, making these gates vital for controlling water flow and preventing backflow during pumping cycles, thus safeguarding the plant's integrity and operational continuity.

How has federal spending on fabricated structural metal manufacturing for infrastructure projects evolved over the past five years?

Federal spending on fabricated structural metal manufacturing for infrastructure projects has generally seen an upward trend, driven by increased investment in aging infrastructure, renewable energy projects, and national defense facilities. Agencies like the Army Corps of Engineers, Department of Transportation, and Department of the Interior consistently award contracts for structural components. While specific data for 'fabricated structural metal' alone is broad, overall infrastructure spending has been a priority, leading to sustained or increased demand for these services. Factors like economic stimulus packages, infrastructure bills, and national security needs influence year-to-year fluctuations. The COVID-19 pandemic may have caused temporary disruptions, but the long-term outlook remains robust due to ongoing modernization efforts.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal Manufacturing

Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R16PS00046

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: IPC Industries, Inc.

Address: 600 SE MARITIME AVE STE 190, VANCOUVER, WA, 98661

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,234,240

Exercised Options: $30,234,240

Current Obligation: $29,616,974

Actual Outlays: $16,803,643

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline