DoD Awards $27M for Francis Turbine Runners, Boosting Hydropower Infrastructure
Contract Overview
Contract Amount: $27,084,645 ($27.1M)
Contractor: Voith Hydro Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2014-08-28
Contract Duration: 2,159 days
Daily Burn Rate: $12.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: FRANCIS TURBINE RUNNERS FOR THE LOOKOUT POINT DAM
Place of Performance
Location: LOWELL, LANE County, OREGON, 97452
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $27.1 million to VOITH HYDRO INC for work described as: FRANCIS TURBINE RUNNERS FOR THE LOOKOUT POINT DAM Key points: 1. Significant investment in critical hydropower components. 2. Voith Hydro Inc. secured the contract, indicating potential market concentration. 3. Long contract duration (2159 days) may impact price flexibility. 4. Fixed-price contract offers cost certainty but limits contractor upside. 5. Manufacturing of turbine components falls under industrial base concerns.
Value Assessment
Rating: good
The contract value of $27.1M for turbine runners appears reasonable given the specialized nature of the equipment and the long-term project scope. Benchmarking against similar large-scale hydropower component procurements would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should have driven price discovery. The specific number of bids received and their spread would further clarify the effectiveness of this competition.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, ensuring the continued operation of the Lookout Point Dam and its power generation capabilities.
Public Impact
Ensures continued operation and power generation from the Lookout Point Dam. Supports the manufacturing sector for heavy industrial equipment. Invests in national energy infrastructure resilience. Potential for long-term maintenance and operational benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price escalation if not managed.
- Reliance on a single supplier (Voith Hydro Inc.) for critical components.
- Potential for obsolescence if technology advances rapidly during the contract period.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Investment in critical national infrastructure.
Sector Analysis
This contract falls within the heavy machinery manufacturing sector, specifically for power generation equipment. Spending benchmarks for similar turbine runner procurements are highly variable based on size, complexity, and specific dam requirements.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial audits.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- Potential market concentration
- Lack of small business participation
- Firm Fixed Price risk for contractor
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, or, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.1 million to VOITH HYDRO INC. FRANCIS TURBINE RUNNERS FOR THE LOOKOUT POINT DAM
Who is the contractor on this award?
The obligated recipient is VOITH HYDRO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $27.1 million.
What is the period of performance?
Start: 2008-09-29. End: 2014-08-28.
What was the competitive landscape like for this procurement, and did the pricing reflect a robust competition?
The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting multiple bidders were eligible. However, without knowing the number of bids received or the price range, it's difficult to definitively assess if the pricing truly reflected a robust competition. Voith Hydro Inc. being the sole awardee warrants further investigation into bid competitiveness.
What are the primary risks associated with a long-duration fixed-price contract for specialized equipment like turbine runners?
A primary risk is potential cost overruns for the contractor if material or labor costs escalate significantly over the 2159-day period, potentially leading to claims or reduced quality. For the government, the risk lies in the equipment becoming technologically outdated or facing performance issues that are difficult to rectify under a fixed-price agreement.
How does this investment contribute to the long-term effectiveness and reliability of the Lookout Point Dam's power generation capabilities?
By procuring new Francis turbine runners, this contract directly addresses the modernization and maintenance needs of the dam. This ensures the continued efficient and reliable generation of hydroelectric power, contributing to energy security and the operational longevity of a critical piece of national infrastructure.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9127N07R0005
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Voith Familien Verwaltung Gmbh (UEI: 312557518)
Address: 760 E BERLIN RD, YORK, PA, 17408
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,930,225
Exercised Options: $27,084,645
Current Obligation: $27,084,645
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-29
Current End Date: 2014-08-28
Potential End Date: 2014-08-28 00:00:00
Last Modified: 2020-10-03
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