Army awards $52.6M contract for Norfork Lake turbine rehabilitation, with completion expected in 1,975 days
Contract Overview
Contract Amount: $52,655,129 ($52.7M)
Contractor: Voith Hydro Inc
Awarding Agency: Department of Defense
Start Date: 2022-12-21
End Date: 2028-04-20
Contract Duration: 1,947 days
Daily Burn Rate: $27.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TURBINE REHABILITATION AND GENERATOR REWIND, NORFORK LAKE, DAM AND POWERHOUSE, WHITE RIVER BASIN, BAXTER COUNTY, ARKANSAS. COMPLETION IS EXPECTED NLT 1,975 CALENDAR DAYS AFTER RECEIPT OF NOTICE TO PROCEED.
Place of Performance
Location: MOUNTAIN HOME, BAXTER County, ARKANSAS, 72653
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $52.7 million to VOITH HYDRO INC for work described as: TURBINE REHABILITATION AND GENERATOR REWIND, NORFORK LAKE, DAM AND POWERHOUSE, WHITE RIVER BASIN, BAXTER COUNTY, ARKANSAS. COMPLETION IS EXPECTED NLT 1,975 CALENDAR DAYS AFTER RECEIPT OF NOTICE TO PROCEED. Key points: 1. The contract focuses on critical infrastructure upgrades for the Norfork Lake Dam and Powerhouse. 2. A firm-fixed-price structure aims to control costs for the extensive rehabilitation project. 3. The project duration of nearly 2,000 days indicates a complex and long-term undertaking. 4. Competition was robust, suggesting potential for competitive pricing and value. 5. The award to Voith Hydro Inc. represents a significant investment in regional power generation infrastructure. 6. This project is vital for maintaining the operational integrity of the White River Basin's power capabilities.
Value Assessment
Rating: good
The contract value of $52.6 million for turbine rehabilitation and generator rewind appears reasonable given the project's scope and duration. While direct comparisons are difficult without more specific project details, similar large-scale power infrastructure overhauls can range from tens to hundreds of millions of dollars. The firm-fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator of value management. Benchmarking against similar projects within the Army Corps of Engineers or other federal agencies would provide a more precise assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 3 bids received, the level of competition appears moderate. This suggests that the government likely received a competitive price, but a higher number of bidders could have potentially driven the price down further. The process allowed for a broad range of qualified contractors to participate, promoting market responsiveness.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing for government projects.
Public Impact
Residents and businesses in the White River Basin, Arkansas, will benefit from the reliable operation of the Norfork Lake Dam and Powerhouse. The project will ensure the continued generation of hydroelectric power, contributing to regional energy needs. The rehabilitation of the turbine and generator is crucial for maintaining the dam's structural integrity and operational efficiency. The project's completion will support the long-term energy security and economic stability of the region. Workforce implications may include skilled labor for construction, engineering, and specialized technical services during the project's execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (1,975 days) increases the risk of cost overruns due to inflation or unforeseen technical challenges.
- Reliance on a single contractor for such a critical and lengthy rehabilitation could pose risks if performance issues arise.
- The specific technical expertise required might limit the pool of qualified subcontractors, potentially impacting competition for specialized tasks.
Positive Signals
- Firm-fixed-price contract provides cost certainty and incentivizes contractor efficiency.
- Full and open competition suggests a thorough vetting process and potential for competitive pricing.
- The project addresses essential infrastructure maintenance, ensuring long-term operational reliability and public safety.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on power generation infrastructure. The market for large-scale dam and powerhouse rehabilitation is specialized, often dominated by a few key players with the necessary engineering expertise and experience. Spending in this sector is driven by the need to maintain aging federal infrastructure, ensure energy security, and comply with environmental regulations. Comparable spending benchmarks would typically involve other Army Corps of Engineers projects or similar large-scale power facility upgrades across federal agencies.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary contract was not designated for small businesses. However, the prime contractor, Voith Hydro Inc., may engage small businesses for subcontracting opportunities related to specialized services or materials, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent of any subcontracting efforts.
Oversight & Accountability
Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for the Norfork Lake project. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to complete the work to specified standards within the agreed price. Transparency is generally maintained through contract award announcements and public reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's lifecycle.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Federal Hydroelectric Power Generation Projects
- Infrastructure Rehabilitation and Modernization
- Dam Safety and Maintenance Programs
- White River Basin Development Projects
Risk Flags
- Long project duration may increase risk of cost escalation.
- Potential for unforeseen technical challenges during rehabilitation.
- Dependence on a single contractor for a critical, multi-year project.
- Need for specialized technical expertise could limit subcontractor options.
Tags
construction, heavy-civil-engineering, power-generation, dam-rehabilitation, turbine-maintenance, generator-rewind, department-of-defense, army-corps-of-engineers, arkansas, definitive-contract, firm-fixed-price, full-and-open-competition
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.7 million to VOITH HYDRO INC. TURBINE REHABILITATION AND GENERATOR REWIND, NORFORK LAKE, DAM AND POWERHOUSE, WHITE RIVER BASIN, BAXTER COUNTY, ARKANSAS. COMPLETION IS EXPECTED NLT 1,975 CALENDAR DAYS AFTER RECEIPT OF NOTICE TO PROCEED.
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 $52.7 million.
What is the period of performance?
Start: 2022-12-21. End: 2028-04-20.
What is the track record of Voith Hydro Inc. in completing similar large-scale turbine rehabilitation projects for the federal government?
Voith Hydro Inc. is a globally recognized leader in hydropower technology, with extensive experience in turbine and generator manufacturing, installation, and rehabilitation. They have a significant history of working on large-scale projects for utilities and government agencies worldwide, including numerous projects within the United States. While specific federal project completion data for Voith Hydro Inc. is not detailed here, their established reputation and market presence suggest a strong capability to handle complex projects like the Norfork Lake rehabilitation. A deeper dive into their past performance on Army Corps of Engineers or Department of Energy projects would provide more granular insights into their federal track record, including on-time and on-budget delivery rates for comparable rehabilitation efforts.
How does the awarded amount of $52.6 million compare to the estimated cost or budget for this turbine rehabilitation project?
The provided data indicates an awarded amount of $52,655,129.13. Without access to the government's initial cost estimates or budget allocations for this specific project, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with three bids suggests that the awarded price is likely within a competitive range considered acceptable by the contracting agency. If the awarded amount is significantly higher than initial estimates, it could indicate unforeseen complexities or market conditions. Conversely, if it's well within estimates, it suggests effective procurement and competitive pricing. Further analysis would require access to the government's pre-award cost estimates.
What are the primary risks associated with a project of this duration (1,975 days) and complexity?
Projects with a 1,975-day (approximately 5.4 years) duration and significant complexity, such as the Norfork Lake turbine rehabilitation, carry several inherent risks. These include potential cost escalation due to inflation, changes in material costs, or unforeseen technical challenges discovered during the rehabilitation process. Schedule delays are also a significant risk, stemming from factors like adverse weather, supply chain disruptions, or contractor performance issues. Furthermore, the long timeline increases the possibility of technological obsolescence or the need to adapt to evolving regulatory or environmental standards. Managing these risks requires robust project management, contingency planning, and clear communication channels between the contractor and the contracting agency.
What is the expected impact of this rehabilitation on the power generation capacity and reliability of the Norfork Lake facility?
The rehabilitation of turbines and generators is fundamentally aimed at restoring and often enhancing the power generation capacity and reliability of a hydroelectric facility. For the Norfork Lake Dam and Powerhouse, this project is expected to ensure the continued and efficient operation of its power generation equipment. By addressing wear and tear, modernizing components, and potentially improving efficiency, the project should lead to more consistent power output and reduce the likelihood of unexpected outages. This contributes to the overall reliability of the regional power grid and ensures that the facility can meet its intended energy generation targets for years to come.
How has federal spending on similar heavy and civil engineering construction projects for power infrastructure evolved over the past five years?
Federal spending on heavy and civil engineering construction projects, particularly for power infrastructure like dams and powerhouses, has generally been substantial and driven by the need to maintain and modernize aging federal assets. While specific aggregate data for this niche is not provided, trends indicate consistent investment by agencies like the Army Corps of Engineers and the Bureau of Reclamation in infrastructure upgrades. Factors influencing spending include infrastructure renewal initiatives, energy security goals, and regulatory requirements. Spending levels can fluctuate based on budget appropriations, the identification of critical maintenance needs, and the initiation of large-scale capital projects. A detailed analysis would involve examining historical budget allocations and contract awards across relevant federal agencies.
What are the key performance indicators (KPIs) likely being used to measure the success of this contract?
Key performance indicators (KPIs) for this contract would likely focus on ensuring the successful rehabilitation and modernization of the turbine and generator. Primary KPIs would include adherence to the project schedule (completion within 1,975 calendar days), meeting quality standards for all rehabilitation work (as defined in the contract specifications), and staying within the firm-fixed-price budget of $52.6 million. Technical performance, such as the restored or improved efficiency and capacity of the turbines and generators post-rehabilitation, would be critical. Additionally, safety performance on-site and compliance with environmental regulations throughout the project lifecycle would be closely monitored KPIs.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9127S21R0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 760 E BERLIN RD, YORK, PA, 17408
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $55,468,619
Exercised Options: $52,655,129
Current Obligation: $52,655,129
Actual Outlays: $1,673,046
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-12-21
Current End Date: 2028-04-20
Potential End Date: 2028-04-20 00:00:00
Last Modified: 2025-10-31
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