Army contract for turbine runner and generator work at Ice Harbor Dam awarded to Voith Hydro Inc. for over $77.5 million
Contract Overview
Contract Amount: $77,536,854 ($77.5M)
Contractor: Voith Hydro Inc
Awarding Agency: Department of Defense
Start Date: 2016-03-08
End Date: 2025-07-31
Contract Duration: 3,432 days
Daily Burn Rate: $22.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF INSTALL NEW TURBINE RUNNERS AND REWIND MAIN UNIT GENERATORS 1-3 AT ICE HARBOR DAM POWERHOUSE
Place of Performance
Location: BURBANK, WALLA WALLA County, WASHINGTON, 99323
Plain-Language Summary
Department of Defense obligated $77.5 million to VOITH HYDRO INC for work described as: IGF::OT::IGF INSTALL NEW TURBINE RUNNERS AND REWIND MAIN UNIT GENERATORS 1-3 AT ICE HARBOR DAM POWERHOUSE Key points: 1. The contract's value of over $77.5 million for turbine runner and generator work suggests a significant investment in critical infrastructure. 2. The award to a single contractor, Voith Hydro Inc., warrants scrutiny regarding the breadth of competition and potential for price optimization. 3. The duration of the contract (over 9 years) indicates a long-term commitment to the project, implying substantial ongoing needs. 4. The firm fixed-price contract type offers cost certainty for the government, but may limit flexibility if unforeseen issues arise. 5. The project's focus on powerhouse upgrades at a dam highlights its importance for energy generation and regional power stability. 6. The absence of small business set-asides suggests the scope or nature of the work may not have been conducive to such provisions.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the scope of work for turbine runner replacement and generator rewinding. However, the substantial dollar amount over a nearly decade-long period suggests a significant capital investment. Comparing this to similar large-scale hydroelectric power plant upgrade projects would be necessary to determine if the pricing is competitive. The firm fixed-price nature provides budget predictability, but the overall value for money depends on the successful execution and long-term performance of the upgraded equipment.
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 were likely solicited. The presence of three bidders (as suggested by 'no': 3) is a positive sign for price discovery, though the specific number of proposals received and the evaluation process are not detailed. A competitive process generally aims to secure the best value for the government by encouraging diverse technical approaches and competitive pricing.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to cost savings and improved project outcomes.
Public Impact
The primary beneficiaries are the Department of the Army and potentially the public through reliable power generation from the Ice Harbor Dam. The services delivered include the installation of new turbine runners and the rewinding of main unit generators, crucial for power plant efficiency and longevity. The geographic impact is centered on the Ice Harbor Dam in Washington state, contributing to the regional power grid's stability. The contract implies a need for specialized labor in heavy construction, engineering, and power generation equipment maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or unforeseen cost increases if not managed meticulously.
- Reliance on a single contractor for such critical infrastructure upgrades may pose risks if the contractor faces financial or operational difficulties.
- The complexity of turbine and generator work requires highly specialized expertise, and any performance issues could have significant power generation impacts.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
- Firm fixed-price contract provides cost certainty for the government, mitigating risks associated with cost overruns.
- The project addresses essential maintenance and upgrades for a critical piece of energy infrastructure, ensuring long-term operational viability.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to power generation infrastructure. The market for hydroelectric power plant maintenance and upgrades is specialized, often dominated by a few key manufacturers and service providers like Voith Hydro. Spending in this area is driven by the need to maintain aging infrastructure, improve efficiency, and comply with environmental regulations. Comparable spending benchmarks would involve analyzing other large-scale dam and powerhouse renovation projects across federal agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false). The nature of large-scale power generation equipment installation and maintenance typically requires specialized capabilities and resources that may be beyond the scope of many small businesses. There is no explicit information on subcontracting plans, but for a contract of this magnitude, it is common for prime contractors to engage subcontractors, potentially including small businesses for specific components or services.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. The firm fixed-price nature provides a degree of financial oversight by locking in costs. Transparency would be enhanced through regular progress reports from the contractor and potential site visits by government representatives. While no specific Inspector General jurisdiction is mentioned, the Army's IG would likely have oversight if any fraud, waste, or abuse were suspected.
Related Government Programs
- Army Corps of Engineers Civil Works Projects
- Bonneville Power Administration Contracts
- Bureau of Reclamation Power Plant Modernization
- Federal Energy Regulatory Commission (FERC) Regulated Facilities
Risk Flags
- Long contract duration may increase exposure to market fluctuations or technological obsolescence.
- Sole-source nature of specific components or specialized labor could lead to price escalation.
- Potential for unforeseen geological or structural issues at the dam site impacting schedule and cost.
Tags
construction, heavy-and-civil-engineering, power-generation, hydroelectric, department-of-the-army, ice-harbor-dam, washington, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, infrastructure-upgrade
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.5 million to VOITH HYDRO INC. IGF::OT::IGF INSTALL NEW TURBINE RUNNERS AND REWIND MAIN UNIT GENERATORS 1-3 AT ICE HARBOR DAM POWERHOUSE
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 $77.5 million.
What is the period of performance?
Start: 2016-03-08. End: 2025-07-31.
What is the historical spending pattern for Voith Hydro Inc. with the Department of the Army and similar agencies for power generation equipment?
Analyzing historical spending for Voith Hydro Inc. with the Department of the Army and related agencies is crucial for context. A review of federal procurement databases would reveal the extent of their past contract awards, including the types of services rendered (e.g., turbine manufacturing, generator repair, installation) and their associated values. Comparing this contract's value to their previous awards can indicate if this is a routine or exceptionally large project for the contractor. Furthermore, examining awards to other major players in the hydroelectric equipment sector would provide a benchmark for Voith Hydro's market share and pricing competitiveness over time. Understanding their track record with performance, on-time delivery, and cost adherence on prior projects is also vital for assessing risk associated with this current award.
How does the per-unit cost of replacing turbine runners and rewinding generators in this contract compare to industry benchmarks?
Determining the per-unit cost benchmark for replacing turbine runners and rewinding generators requires detailed technical specifications and cost breakdowns, which are not publicly available in the provided data. However, a comparative analysis could be performed by researching publicly awarded contracts for similar scope and scale at other hydroelectric facilities. Factors influencing per-unit cost include the size and type of turbines, the complexity of the generator rewinding process, site-specific conditions at Ice Harbor Dam, and the specific materials and technologies employed. If Voith Hydro Inc. has provided detailed proposals, these could be benchmarked against anonymized data from similar projects or industry cost estimating guides. A significant deviation from established benchmarks, either higher or lower, would warrant further investigation into the underlying cost drivers and potential value or risk.
What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract for this project?
The provided data does not detail the specific Key Performance Indicators (KPIs) or risk mitigation strategies embedded within the contract. However, for a project of this magnitude and duration, typical KPIs would likely include adherence to schedule, quality of workmanship, performance of the upgraded equipment (e.g., efficiency, power output), and safety compliance. Risk mitigation strategies would commonly involve detailed project management plans, contingency planning for unforeseen site conditions or equipment failures, robust quality assurance/quality control (QA/QC) processes, and clear communication protocols between the contractor and the Army. The firm fixed-price nature itself acts as a cost risk mitigation tool for the government, shifting some financial risk to the contractor. Further review of the contract's statement of work and associated clauses would be necessary to identify specific KPIs and risk management provisions.
What is the projected impact of these upgrades on the Ice Harbor Dam's power generation capacity and efficiency?
The projected impact of these upgrades on the Ice Harbor Dam's power generation capacity and efficiency is a critical aspect of the contract's value proposition, though specific figures are not provided. Replacing turbine runners and rewinding generators are fundamental activities aimed at restoring and potentially enhancing the operational performance of the power units. New turbine runners are often designed for improved hydraulic efficiency, meaning they can convert more water flow into mechanical energy. Generator rewinding addresses electrical efficiency and reliability, reducing energy losses and preventing potential failures. The cumulative effect of these upgrades is expected to increase the overall power output, improve the dam's ability to meet energy demands, and reduce the likelihood of costly downtime, thereby contributing to more reliable and potentially cost-effective power generation for the region.
Have there been any past performance issues or disputes associated with Voith Hydro Inc. on similar federal contracts?
Assessing past performance issues or disputes for Voith Hydro Inc. on similar federal contracts requires access to contractor performance evaluation reports (e.g., CPARS - Contractor Performance Assessment Reporting System) and potentially legal or dispute resolution databases. Without direct access to these systems, it's impossible to definitively state their history. However, agencies typically maintain records of contractor performance, which are considered during future source selections. If significant issues like repeated delays, quality deficiencies, or contract disputes have occurred, they would likely be documented and could impact future bidding opportunities or require specific oversight on current contracts. A thorough review of CPARS data, if available, would provide the most direct insight into their performance history.
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: W912EF15R0044
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: $83,625,884
Exercised Options: $78,127,363
Current Obligation: $77,536,854
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-03-08
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-12-04
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