DoD Awards $41.4M for Ice Harbor Turbine Design & Runner Supply to Voith Hydro Inc
Contract Overview
Contract Amount: $41,408,562 ($41.4M)
Contractor: Voith Hydro Inc
Awarding Agency: Department of Defense
Start Date: 2010-03-11
End Date: 2020-02-28
Contract Duration: 3,641 days
Daily Burn Rate: $11.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: ICE HARBOR TURBINE DESIGN AND RUNNER SUPPLY
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $41.4 million to VOITH HYDRO INC for work described as: ICE HARBOR TURBINE DESIGN AND RUNNER SUPPLY Key points: 1. Significant investment in hydropower infrastructure by the Department of Defense. 2. Voith Hydro Inc. is a major player in the turbine manufacturing sector. 3. Potential risks include long-term performance and maintenance costs. 4. Spending falls within the Turbine and Turbine Generator Set Units Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $41.4M for turbine design and runner supply appears substantial. Benchmarking against similar large-scale hydropower component contracts would be necessary to fully assess pricing fairness.
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. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being used for critical infrastructure upgrades, aiming for long-term energy security and operational efficiency.
Public Impact
Ensures continued operation and efficiency of the Ice Harbor Dam's hydropower generation. Supports domestic manufacturing and jobs within the specialized turbine industry. Contributes to the nation's renewable energy infrastructure and grid reliability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns with economic price adjustment.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Long contract duration suggests a comprehensive scope.
- Addresses critical infrastructure needs.
Sector Analysis
This contract falls within the Turbine and Turbine Generator Set Units Manufacturing sector, which is crucial for energy production. Spending benchmarks for similar large-scale turbine projects are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the DoD. Standard government oversight processes for large-scale procurement and project management would apply.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost escalation due to economic price adjustment.
- Lack of explicit small business participation.
- Long contract duration may hide performance issues.
- Dependence on a single supplier for critical components.
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.4 million to VOITH HYDRO INC. ICE HARBOR TURBINE DESIGN AND RUNNER SUPPLY
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 $41.4 million.
What is the period of performance?
Start: 2010-03-11. End: 2020-02-28.
What is the expected lifespan and performance improvement from the new turbine design and runner?
The expected lifespan and performance improvement are critical metrics for assessing the long-term value of this $41.4M investment. Without specific technical details or projected efficiency gains, it's difficult to quantify the return on investment beyond the immediate supply contract. Future reports should detail expected operational enhancements and durability.
How does the economic price adjustment clause impact the final cost and taxpayer risk?
The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, such as labor or material costs. While intended to protect contractors from unforeseen market changes, it introduces uncertainty and potential cost increases for the taxpayer. The government's risk is mitigated by carefully defining the adjustment indices and caps.
What measures are in place to ensure the long-term reliability and maintenance of the supplied turbine components?
Ensuring long-term reliability and maintenance is crucial for hydropower assets. While the contract covers design and supply, details on warranties, performance guarantees, and post-delivery support are essential. The effectiveness of oversight will depend on the DoD's ability to monitor the contractor's adherence to quality standards and to plan for ongoing maintenance needs beyond the initial contract period.
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: W912EF09R0004
Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Voith Hydro Inc. (UEI: 342977569)
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $76,177,093
Exercised Options: $41,408,562
Current Obligation: $41,408,562
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-03-11
Current End Date: 2020-02-28
Potential End Date: 2020-02-28 00:00:00
Last Modified: 2021-06-03
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