Interior's $62.9M Grand Coulee Dam contract awarded to Grand Coulee Consortium for infrastructure work

Contract Overview

Contract Amount: $62,911,216 ($62.9M)

Contractor: Grand Coulee Consortium

Awarding Agency: Department of the Interior

Start Date: 2000-03-15

End Date: 2011-01-13

Contract Duration: 3,956 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Construction

Place of Performance

Location: GRAND COULEE, GRANT County, WASHINGTON, 99133

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $62.9 million to GRAND COULEE CONSORTIUM for work described as: Key points: 1. The contract value of $62.9 million over its duration suggests a significant investment in critical infrastructure. 2. Awarded under full and open competition, this indicates a broad market solicitation for the services. 3. The fixed-price structure with economic price adjustment aims to manage cost fluctuations over the contract term. 4. The contract duration of nearly 11 years points to a long-term need for ongoing maintenance or development. 5. The geographic location in Washington state highlights the regional importance of the Grand Coulee Dam. 6. The absence of small business set-aside flags suggests the primary contractor is likely a larger entity.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work. However, a $62.9 million expenditure over nearly 11 years for dam infrastructure suggests a substantial, long-term commitment. The fixed-price with economic price adjustment structure is common for large infrastructure projects to account for material and labor cost changes. Without comparable project data, assessing whether this represents excellent value is difficult, but the duration implies a sustained need that the price aims to cover.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Bureau of Reclamation sought bids from all responsible sources. This approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The fact that it was competed broadly suggests that multiple entities were capable of performing the required work, which is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of bidders, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the operators and maintainers of the Grand Coulee Dam, ensuring its continued functionality. Services delivered likely include infrastructure maintenance, repair, or upgrades essential for the dam's operation. The geographic impact is concentrated in Washington state, specifically around the Grand Coulee Dam. Workforce implications could include employment opportunities for skilled labor in construction, engineering, and maintenance within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 11 years) could lead to potential cost overruns if economic price adjustments are not carefully managed.
Fixed-price contracts with economic price adjustments can sometimes shield contractors from significant cost risks, potentially reducing the incentive for extreme cost efficiency.
Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness throughout the contract lifecycle.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The fixed-price nature, even with adjustments, provides a baseline cost expectation for the government.
The contract addresses critical infrastructure needs for a major federal facility, ensuring operational continuity.

Sector Analysis

This contract falls within the Construction and Engineering sector, specifically related to large-scale civil infrastructure. The Grand Coulee Dam is a monumental structure, and contracts for its upkeep represent significant investments. Comparable spending benchmarks would involve other large dam maintenance, power generation facility upkeep, or major civil engineering projects managed by federal agencies like the Army Corps of Engineers or the Bureau of Reclamation itself.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. This suggests that the primary contract was awarded to a larger entity or a consortium capable of handling the extensive scope of work. There may be opportunities for small businesses to participate as subcontractors to the prime contractor, but this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the subcontracting plans of the prime awardee.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's Bureau of Reclamation. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. The Inspector General for the Department of the Interior would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Bureau of Reclamation Infrastructure Projects
Army Corps of Engineers Civil Works
Federal Dam Maintenance Contracts
Large Civil Engineering Construction Contracts

Risk Flags

Long contract duration may increase risk of cost escalation through economic price adjustments.
Lack of specific performance metrics in summary data makes assessing value difficult.
Potential for contractor performance degradation over an extended contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $62.9 million to GRAND COULEE CONSORTIUM. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is GRAND COULEE CONSORTIUM.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $62.9 million.

What is the period of performance?

Start: 2000-03-15. End: 2011-01-13.

What specific types of infrastructure work were covered under this $62.9 million contract for the Grand Coulee Dam?

The provided data does not specify the exact scope of work. However, given the nature of the Grand Coulee Dam, a facility of this magnitude typically requires ongoing maintenance, repair, and potential upgrades to its structural components, power generation equipment, spillways, and associated infrastructure. This could include concrete repair, electrical system servicing, mechanical component refurbishment, and general facility upkeep. The long duration of the contract (nearly 11 years) suggests a comprehensive, long-term maintenance or upgrade program rather than a single, discrete project.

How does the $62.9 million contract value compare to other federal spending on dam maintenance and infrastructure?

Comparing this $62.9 million contract requires context regarding the specific scope and duration. Federal spending on dam maintenance varies widely based on the size, age, and complexity of the facility. Major dams like Grand Coulee, which is one of the largest hydroelectric facilities in the US, often require substantial, multi-year investments. While $62.9 million over nearly 11 years averages around $5.7 million annually, this figure needs to be benchmarked against similar large-scale federal infrastructure projects. For instance, the Army Corps of Engineers manages numerous large dam projects, and their maintenance budgets can run into tens or hundreds of millions annually for complex operations. Without specific comparable project data, it's difficult to definitively state if this represents high or low spending, but it signifies a significant commitment to a critical national asset.

What are the primary risks associated with a fixed-price contract with economic price adjustment (FP-EPA) for a long-duration infrastructure project?

The primary risks with an FP-EPA contract for a long-duration project like this involve managing cost escalations. While the fixed-price element provides a baseline, the economic price adjustment allows for increases based on specified indices (e.g., labor, materials). If these indices rise significantly faster than anticipated, the total cost to the government could exceed initial projections. Conversely, if the adjustment mechanisms are too restrictive, the contractor might face financial strain, potentially impacting performance or leading to disputes. Another risk is ensuring the contractor maintains efficiency incentives; the price adjustment can sometimes buffer against the need for aggressive cost-saving measures. Effective oversight is crucial to monitor the application of economic adjustments and ensure they reflect genuine market changes rather than contractor inefficiencies.

What does the 'full and open competition' award basis imply about the contractor selection and potential for cost savings?

The 'full and open competition' award basis signifies that the Bureau of Reclamation solicited proposals from all responsible sources capable of meeting the contract requirements. This process is designed to maximize competition, theoretically leading to the best value for the government through competitive pricing and innovative solutions. It implies that multiple firms likely bid on this contract, allowing the agency to compare technical approaches and costs. This competitive environment generally pressures bidders to offer more favorable terms and pricing than they might under less competitive award methods like sole-source procurement. Therefore, taxpayers likely benefit from a more efficient allocation of resources and potentially lower overall costs compared to a non-competitively awarded contract.

Given the contract's duration of nearly 11 years, what are the implications for contractor performance monitoring and accountability?

A contract spanning nearly 11 years necessitates robust and continuous performance monitoring and accountability mechanisms. The Bureau of Reclamation would need to establish clear performance metrics, milestones, and regular review periods throughout the contract's life. This could involve periodic technical reviews, progress reports, site inspections, and stakeholder feedback sessions. Accountability is maintained through contractual remedies, such as incentives for meeting or exceeding performance standards, or penalties for deficiencies. Given the long duration, there's a risk of performance degradation over time if oversight wanes; therefore, consistent engagement from contracting officers and technical representatives is essential. Establishing a strong working relationship while maintaining a firm stance on contractual obligations is key to ensuring accountability over such an extended period.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Contractor Details

Address: 10735 DAVID TAYLOR DR STE 500, CHARLOTTE, NC, 12

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

Financial Breakdown

Contract Ceiling: $68,358,726

Exercised Options: $68,358,726

Current Obligation: $62,911,216

Timeline