Voith Hydro Inc. awarded $55.2M for Center Hill Dam turbine-generator rehabilitation
Contract Overview
Contract Amount: $55,230,420 ($55.2M)
Contractor: Voith Hydro Inc
Awarding Agency: Department of Defense
Start Date: 2014-06-25
End Date: 2021-09-28
Contract Duration: 2,652 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF BASE: CENTER HILL DAM UNITS #1, #2 AND #3 TURBINE-GENERATOR REHABILITATION
Place of Performance
Location: LANCASTER, DEKALB County, TENNESSEE, 38569
Plain-Language Summary
Department of Defense obligated $55.2 million to VOITH HYDRO INC for work described as: IGF::OT::IGF BASE: CENTER HILL DAM UNITS #1, #2 AND #3 TURBINE-GENERATOR REHABILITATION Key points: 1. Contract value represents a significant investment in critical infrastructure. 2. The rehabilitation project aims to improve the efficiency and reliability of power generation. 3. Project duration of 2652 days indicates a complex and long-term undertaking. 4. Fixed-price contract type suggests cost certainty for the government. 5. The project is located in Tennessee, impacting regional energy infrastructure.
Value Assessment
Rating: good
The contract value of $55.2 million for the rehabilitation of three turbine-generators at Center Hill Dam appears reasonable given the scope of work. While direct comparisons are difficult without specific project details, major infrastructure rehabilitation projects of this nature typically involve substantial costs. The firm fixed-price nature of the contract provides cost predictability. Benchmarking against similar large-scale hydroelectric equipment overhauls would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which generally leads to better pricing and value for the government. The procurement process likely involved detailed technical specifications and evaluation criteria to ensure the best technical and cost solution was selected.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that the government receives competitive pricing for essential services and equipment.
Public Impact
The primary beneficiaries are the Department of the Army and the Tennessee Valley Authority (TVA) region through improved power generation reliability. Services delivered include the rehabilitation of turbine-generator units #1, #2, and #3 at the Center Hill Dam. The geographic impact is concentrated in Tennessee, specifically impacting the Center Hill Dam's operational capabilities. The project supports the continued operation and modernization of critical U.S. Army Corps of Engineers infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays given the project's long duration and complexity.
- Ensuring long-term performance and reliability of rehabilitated equipment is crucial.
Positive Signals
- Firm fixed-price contract provides cost control.
- Full and open competition likely secured competitive pricing.
- Rehabilitation of aging infrastructure enhances national energy security.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on the rehabilitation of power generation equipment. The market for hydroelectric turbine and generator services is specialized, often dominated by a few key global players like Voith Hydro. The size of this contract is substantial for a single project within this niche, reflecting the critical nature of maintaining aging energy infrastructure.
Small Business Impact
The contract data indicates that small business participation was not a primary set-aside consideration (sb: false). While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors for specific components or services, though this is not explicitly detailed in the provided data. The focus appears to be on specialized technical expertise for the core rehabilitation work.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, responsible for the Center Hill Dam. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified work within the agreed budget. Transparency is generally maintained through contract award notices and performance reporting, though detailed public access to ongoing project oversight may vary.
Related Government Programs
- Army Corps of Engineers Civil Works Programs
- Hydroelectric Power Generation Infrastructure
- Energy Sector Infrastructure Modernization
- Critical Infrastructure Rehabilitation Projects
Risk Flags
- Long project duration increases risk of delays and cost overruns.
- Potential for unforeseen technical challenges during rehabilitation.
- Dependence on specialized components and expertise.
Tags
construction, department-of-defense, department-of-the-army, tennessee, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering-construction, infrastructure-rehabilitation, hydroelectric-power
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.2 million to VOITH HYDRO INC. IGF::OT::IGF BASE: CENTER HILL DAM UNITS #1, #2 AND #3 TURBINE-GENERATOR 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 $55.2 million.
What is the period of performance?
Start: 2014-06-25. End: 2021-09-28.
What is the specific scope of work for the turbine-generator rehabilitation?
The contract, valued at approximately $55.2 million, is for the rehabilitation of turbine-generator units #1, #2, and #3 at the Center Hill Dam. This typically involves a comprehensive overhaul of the mechanical and electrical components of these units. Specific tasks would likely include disassembly, inspection, repair or replacement of worn parts (such as runners, wicket gates, shafts, bearings, windings), reassembly, testing, and commissioning. The goal is to restore the units to optimal operating condition, improve efficiency, enhance reliability, and extend their service life, ensuring continued power generation capabilities for the dam.
How does the contract value compare to similar hydroelectric rehabilitation projects?
Benchmarking the $55.2 million contract value requires comparing it to similar large-scale hydroelectric turbine-generator rehabilitation projects. Projects of this nature are highly specialized and can vary significantly in cost based on the size and type of turbines, the extent of the required work (e.g., component replacement vs. refurbishment), and the specific site conditions. Generally, major overhauls for large hydroelectric units can range from tens to hundreds of millions of dollars. Without specific details on the units' capacity and the exact scope of work beyond 'rehabilitation,' a precise comparison is challenging. However, the value appears within a plausible range for overhauling multiple large turbine-generator units.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators for this contract would likely focus on schedule adherence, cost control, quality of work, and performance of the rehabilitated equipment. Specific KPIs could include meeting defined milestones for disassembly, repair, reassembly, and testing; ensuring the final cost does not exceed the firm fixed price; achieving specified quality standards for all repairs and replacements; and verifying that the rehabilitated units meet or exceed performance benchmarks for efficiency, power output, and operational reliability post-rehabilitation. Compliance with safety regulations throughout the project duration would also be a critical KPI.
What is Voith Hydro Inc.'s track record with similar federal contracts?
Voith Hydro Inc. is a major global player in the hydropower industry, with a significant track record of supplying and servicing turbine and generator equipment for power plants worldwide, including numerous projects for government entities. They have experience with large-scale rehabilitation and modernization projects for hydroelectric facilities. While specific details of their past federal contracts are not provided here, their established presence and specialization suggest a history of undertaking complex projects. A deeper dive into their contract history with agencies like the Army Corps of Engineers or the Bureau of Reclamation would reveal the scale and success of their previous federal engagements.
What are the potential risks associated with this long-duration rehabilitation project?
This project, with a duration of 2652 days (approximately 7.3 years), carries several potential risks. Schedule delays are a primary concern, which could arise from unforeseen site conditions, supply chain disruptions for specialized parts, contractor performance issues, or changes in project scope. Technical risks include the possibility of discovering more extensive damage than initially assessed during disassembly, leading to increased costs or extended timelines. Furthermore, ensuring the long-term reliability and performance of the rehabilitated equipment after completion is critical. Coordination with dam operations to minimize power generation disruption during rehabilitation phases also presents logistical challenges.
How does this contract fit into the broader context of U.S. energy infrastructure modernization?
This contract is a component of the broader U.S. effort to modernize its aging energy infrastructure, particularly within the renewable energy sector. Hydroelectric power remains a significant source of clean, baseload electricity in the United States. Rehabilitating existing facilities like the Center Hill Dam ensures the continued and potentially enhanced contribution of these assets to the national grid. Such projects are crucial for maintaining grid stability, increasing energy efficiency, and meeting renewable energy targets, thereby supporting national energy security and environmental goals.
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: SEALED BID
Solicitation ID: W912P511R0012
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Voith Hydro Inc.
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: $55,230,420
Exercised Options: $55,230,420
Current Obligation: $55,230,420
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-06-25
Current End Date: 2021-09-28
Potential End Date: 2021-09-28 00:00:00
Last Modified: 2023-03-21
More Contracts from Voith Hydro Inc
- E.O.14042 Fort Randall Major Unit Rehabilitation — $163.8M (Department of Defense)
- Install NEW Turbine Runners and Rewind Main Unit Generators 1-3 AT ICE Harbor DAM Powerhouse — $77.5M (Department of Defense)
- 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 — $52.7M (Department of Defense)
- ICE Harbor Turbine Design and Runner Supply — $41.4M (Department of Defense)
- TAS::96 3135::TAS Recoveryproject#::17560::rp# Stockton Lake, MO — $30.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)