Army Awards $163.8M Fort Randall Dam Rehab to Voith Hydro Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $163,799,711 ($163.8M)
Contractor: Voith Hydro Inc
Awarding Agency: Department of Defense
Start Date: 2021-12-15
End Date: 2032-09-27
Contract Duration: 3,939 days
Daily Burn Rate: $41.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: E.O.14042 FORT RANDALL MAJOR UNIT REHABILITATION
Place of Performance
Location: PICKSTOWN, CHARLES MIX County, SOUTH DAKOTA, 57367
Plain-Language Summary
Department of Defense obligated $163.8 million to VOITH HYDRO INC for work described as: E.O.14042 FORT RANDALL MAJOR UNIT REHABILITATION Key points: 1. Significant investment in critical infrastructure, potentially boosting regional economic activity. 2. Voith Hydro Inc. secured a large contract, indicating strong capabilities in heavy civil engineering. 3. Long contract duration (2032) presents potential for cost overruns or scope creep. 4. Focus on rehabilitation suggests aging infrastructure needs, a common challenge across government sectors.
Value Assessment
Rating: fair
The contract value of $163.8M for a major unit rehabilitation is substantial. Benchmarking against similar large-scale civil engineering projects is difficult without more specific scope details, but the price appears within a reasonable range for the complexity and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified vendors to bid.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, aiming for long-term reliability and potentially avoiding more costly emergency repairs later.
Public Impact
Ensures continued operation of a critical energy infrastructure component. Supports jobs in the construction and engineering sectors in South Dakota. Addresses aging infrastructure, enhancing national energy security and reliability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost escalation.
- Potential for unforeseen site conditions impacting budget.
- Dependence on a single contractor for a decade-long project.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which often involves large, complex projects with long timelines. Spending benchmarks for dam rehabilitation vary widely based on specific components and scale.
Small Business Impact
While the primary award went to Voith Hydro Inc., the nature of large-scale civil engineering projects often involves significant subcontracting opportunities. It's unclear from this data if small businesses were specifically targeted or utilized in the bidding process.
Oversight & Accountability
The Department of the Army, through its contracting arm, is responsible for oversight. The long duration necessitates diligent monitoring of progress, quality, and adherence to the firm fixed price to ensure accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 10 years)
- Potential for scope creep or change orders
- Dependence on a single prime contractor
- Risk of unforeseen site conditions
- Inflationary pressures over the contract term
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, sd, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.8 million to VOITH HYDRO INC. E.O.14042 FORT RANDALL MAJOR UNIT REHABILITATION
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 $163.8 million.
What is the period of performance?
Start: 2021-12-15. End: 2032-09-27.
What specific components of the Fort Randall Dam are included in this rehabilitation, and how does this scope compare to similar projects?
The provided data lacks specific details on the rehabilitation scope beyond 'major unit rehabilitation.' A comprehensive comparison to similar projects would require a detailed breakdown of the work, such as turbine, generator, or spillway repairs, and the specific condition assessments that informed the project's requirements and cost.
What are the key performance indicators (KPIs) and risk mitigation strategies in place for this decade-long contract?
Given the 2032 completion date, robust KPIs for performance, quality, and safety are crucial. Risk mitigation strategies should address potential supply chain disruptions, labor availability, inflation, and unforeseen geological or structural issues inherent in aging infrastructure projects.
How will the effectiveness of this rehabilitation be measured post-completion to ensure long-term value for taxpayers?
Effectiveness will likely be measured by the dam's restored operational capacity, improved efficiency, reduced maintenance needs, and enhanced safety and reliability. Post-completion assessments and ongoing performance monitoring against baseline metrics will be key to verifying long-term value.
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: W9128F21R0005
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: $189,717,659
Exercised Options: $163,799,711
Current Obligation: $163,799,711
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-15
Current End Date: 2032-09-27
Potential End Date: 2032-09-27 00:00:00
Last Modified: 2025-09-11
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