DoD's $55M Webber Falls Turbine Rehab Contract Awarded to ANDRITZ HYDRO CORP Under Full and Open Competition
Contract Overview
Contract Amount: $55,102,511 ($55.1M)
Contractor: Andritz Hydro Corp
Awarding Agency: Department of Defense
Start Date: 2007-12-19
End Date: 2018-10-31
Contract Duration: 3,969 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: REHAB TURBINES AT WEBBERS FALLS POWERPLANT
Place of Performance
Location: WEBBERS FALLS, MUSKOGEE County, OKLAHOMA, 74470
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $55.1 million to ANDRITZ HYDRO CORP for work described as: REHAB TURBINES AT WEBBERS FALLS POWERPLANT Key points: 1. Significant investment in critical infrastructure for national security. 2. ANDRITZ HYDRO CORP secured a large contract, indicating strong market position. 3. Long contract duration (3969 days) presents potential for cost overruns or scope creep. 4. The 'Turbine and Turbine Generator Set Units Manufacturing' sector is vital for energy production.
Value Assessment
Rating: fair
The contract value of $55.1M over nearly 11 years suggests a substantial project. Benchmarking against similar turbine rehabilitation projects is difficult without more specific scope details, but the duration implies significant work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration and specialized nature of turbine rehabilitation may limit the number of truly competitive bids.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers, aiming to secure the best value. The final cost-effectiveness will depend on project execution and adherence to the firm fixed price.
Public Impact
Ensures continued operation of a key power generation facility. Supports energy independence and grid stability. Potential for job creation in manufacturing and skilled trades related to turbine repair.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of unforeseen costs.
- Lack of specific performance metrics makes value assessment challenging.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type limits cost escalation risk.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the manufacturing sector, specifically turbine and generator set production, which is crucial for energy infrastructure. Spending benchmarks for such specialized rehabilitation projects are highly variable based on turbine size and condition.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the work precluded SMB involvement.
Oversight & Accountability
The contract was awarded by the Department of the Army, suggesting oversight from a major federal agency. The long duration necessitates ongoing monitoring to ensure project milestones are met and funds are used efficiently.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 10 years).
- Lack of detailed scope of work.
- No small business participation noted.
- Potential for technological obsolescence over the contract term.
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.1 million to ANDRITZ HYDRO CORP. REHAB TURBINES AT WEBBERS FALLS POWERPLANT
Who is the contractor on this award?
The obligated recipient is ANDRITZ HYDRO CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $55.1 million.
What is the period of performance?
Start: 2007-12-19. End: 2018-10-31.
What was the specific scope of work for the turbine rehabilitation, and how does it compare to industry standards for similar projects?
The provided data lacks specific details on the scope of work for the turbine rehabilitation at Webber Falls Powerplant. A comprehensive comparison to industry standards would require information on the type and age of the turbines, the extent of repairs needed (e.g., component replacement, efficiency upgrades), and the specific performance improvements expected. Without this, assessing the value proposition is challenging.
Given the 11-year duration, what mechanisms were in place to manage potential risks like technological obsolescence or changes in regulatory requirements?
The long duration of this firm fixed-price contract (3969 days) raises questions about risk management for evolving technologies or regulations. While a fixed price offers cost certainty, it might not adequately account for unforeseen technical challenges or necessary upgrades over such an extended period. The contract likely relies on detailed specifications and potentially change order clauses, but the agency's proactive risk mitigation strategies are not detailed.
How effectively did the full and open competition process ensure the best possible price and technical solution for the government?
The award under 'full and open competition' suggests an intention to maximize value. However, the effectiveness hinges on the number and quality of bids received for this specialized rehabilitation work. While competition is generally positive, the long-term nature and technical demands might have limited the pool of qualified bidders, potentially impacting the ultimate price discovery and selection of the most innovative solution.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Andritz AG (UEI: 300197993)
Address: 10715 DAVID TAYLOR DR, CHARLOTTE, NC, 28262
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $55,102,511
Exercised Options: $55,102,511
Current Obligation: $55,102,511
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-12-19
Current End Date: 2018-10-31
Potential End Date: 2018-10-31 00:00:00
Last Modified: 2020-10-03
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