DoD Awards $32.5M for Turbine Runner Replacement at Chief Joseph Dam
Contract Overview
Contract Amount: $32,473,691 ($32.5M)
Contractor: Alstom Power Inc
Awarding Agency: Department of Defense
Start Date: 2007-06-29
End Date: 2018-04-06
Contract Duration: 3,934 days
Daily Burn Rate: $8.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: TURBINE RUNNER REPLACEMENT/REFURBISHMENT, CHIEF JOSEPH DAM, BRIDGEPORT, WA
Place of Performance
Location: BRIDGEPORT, DOUGLAS County, WASHINGTON, 98813
Plain-Language Summary
Department of Defense obligated $32.5 million to ALSTOM POWER INC for work described as: TURBINE RUNNER REPLACEMENT/REFURBISHMENT, CHIEF JOSEPH DAM, BRIDGEPORT, WA Key points: 1. The contract value of $32.5M for turbine runner replacement is significant for the manufacturing sector. 2. Alstom Power Inc. secured this award, indicating their competitive position in turbine manufacturing. 3. The firm-fixed-price contract type suggests a defined scope and potential for cost savings if managed efficiently. 4. The long duration (3934 days) implies a complex project with potential for cost escalation if not closely monitored.
Value Assessment
Rating: fair
The contract value of $32.5M for a turbine runner replacement is substantial. Benchmarking against similar large-scale infrastructure projects would be necessary to fully assess its pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The final price reflects the outcome of this competitive process.
Taxpayer Impact: Taxpayer funds are being used for critical infrastructure maintenance, ensuring the continued operation of the dam. The competitive award aims to secure value for money.
Public Impact
Ensures continued operation and power generation capacity of Chief Joseph Dam. Supports critical infrastructure maintenance within the Department of Defense's civil works program. The long-term nature of the contract impacts federal budget planning over nearly a decade.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (3934 days) increases risk of cost overruns and scope creep.
- Potential for unforeseen technical challenges in refurbishing aging turbine components.
- Reliance on a single contractor (Alstom Power Inc.) for a critical component.
Positive Signals
- Awarded through full and open competition, suggesting a competitive price discovery process.
- Firm-fixed-price contract type provides cost certainty for the government.
- Project supports essential national infrastructure.
Sector Analysis
This contract falls within the Turbine and Turbine Generator Set Units Manufacturing sector. Spending in this area is often tied to infrastructure upgrades and maintenance for power generation facilities, with significant capital investment required.
Small Business Impact
The data indicates the primary contractor is Alstom Power Inc., a large corporation. There is no specific information provided regarding subcontracting opportunities for small businesses on this particular award.
Oversight & Accountability
The contract was awarded by the Department of the Army, likely subject to standard federal procurement oversight. The long duration necessitates ongoing monitoring to ensure performance and cost control.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk.
- Potential for unforeseen technical issues.
- Firm-fixed-price may not account for all potential cost increases.
- Lack of small business participation noted.
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.5 million to ALSTOM POWER INC. TURBINE RUNNER REPLACEMENT/REFURBISHMENT, CHIEF JOSEPH DAM, BRIDGEPORT, WA
Who is the contractor on this award?
The obligated recipient is ALSTOM POWER 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 $32.5 million.
What is the period of performance?
Start: 2007-06-29. End: 2018-04-06.
What was the basis for the firm-fixed-price determination, and how were potential risks allocated between the government and the contractor?
Firm-fixed-price contracts are typically used when the scope of work is well-defined and risks are manageable. The government likely determined that the risks associated with turbine runner replacement were predictable enough to establish a fixed price. This allocation places most of the cost risk on the contractor, incentivizing efficiency and cost control on their part.
How does the awarded price compare to industry benchmarks for similar turbine refurbishment projects of this scale and complexity?
Without access to specific industry benchmark data for turbine runner replacements of this magnitude, a direct comparison is difficult. However, the $32.5 million value suggests a significant undertaking. A thorough analysis would require comparing this price against publicly available data for similar projects, considering factors like turbine size, material costs, and labor rates in the region.
What mechanisms are in place to ensure the long-term effectiveness and durability of the refurbished turbine runners beyond the contract period?
The contract's long duration (3934 days) suggests it may include provisions for testing, commissioning, and potentially a warranty period. However, specific details on long-term effectiveness would depend on the contract's technical specifications, quality assurance clauses, and any post-completion performance guarantees stipulated by the Department of the Army.
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: W912DW06R0009
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7901 SOUTHPARK PLZ STE 110, LITTLETON, CO, 80120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $150,612,870
Exercised Options: $150,612,870
Current Obligation: $32,473,691
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-29
Current End Date: 2018-04-06
Potential End Date: 2018-04-06 00:00:00
Last Modified: 2021-02-25
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