Interior Dept. Awards $18.9M for Hungry Horse Dam Crane Replacements

Contract Overview

Contract Amount: $18,899,514 ($18.9M)

Contractor: BCI Construction USA, Inc.

Awarding Agency: Department of the Interior

Start Date: 2020-03-16

End Date: 2023-06-01

Contract Duration: 1,172 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WORK IS FOR REPLACEMENT OF 5 CRANES AT HUNGRY HORSE DAM. THE NORTH POWERHOUSE BRIDGE CRANE, SOUTH POWERHOUSE BRIDGE CRANE, VALVE HOUSE BRIDGE CRANE, MACHINE SHOP BRIDGE CRANE AND GANTRY CRANE ON THE CREST OF THE DAM.

Place of Performance

Location: HUNGRY HORSE, FLATHEAD County, MONTANA, 59919

State: Montana Government Spending

Plain-Language Summary

Department of the Interior obligated $18.9 million to BCI CONSTRUCTION USA, INC. for work described as: WORK IS FOR REPLACEMENT OF 5 CRANES AT HUNGRY HORSE DAM. THE NORTH POWERHOUSE BRIDGE CRANE, SOUTH POWERHOUSE BRIDGE CRANE, VALVE HOUSE BRIDGE CRANE, MACHINE SHOP BRIDGE CRANE AND GANTRY CRANE ON THE CREST OF THE DAM. Key points: 1. Significant investment in critical infrastructure for dam operations. 2. BCI Construction USA, Inc. secured the contract. 3. Competition method aimed for broad participation. 4. Project duration spans over three years.

Value Assessment

Rating: good

The $18.9 million contract for crane replacement appears reasonable given the scope and complexity of replacing five major cranes at a large dam. Benchmarking against similar large-scale industrial equipment procurements would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process was intended. This method typically allows for robust price discovery and potentially better pricing.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance and upgrades, ensuring the continued safe and efficient operation of the Hungry Horse Dam.

Public Impact

Ensures continued safe and reliable operation of the Hungry Horse Dam. Supports critical infrastructure maintenance for a major federal facility. Modernizes aging crane equipment, potentially improving efficiency and reducing future maintenance costs. Impacts local economy through construction and related services in Montana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on complex infrastructure projects.
Ensuring long-term reliability of new equipment.
Coordination challenges with dam operations during replacement.

Positive Signals

Addresses critical infrastructure need.
Utilizes competitive bidding process.
Firm fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the heavy industrial equipment and construction services sector, specifically related to infrastructure maintenance for federal water resource management facilities. Spending benchmarks for similar dam infrastructure projects vary widely based on scale and specific components.

Small Business Impact

While the prime contractor is BCI Construction USA, Inc., the contract details do not specify any subcontracting goals or achievements for small businesses. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Interior, through the Bureau of Reclamation, is responsible for overseeing this contract. Oversight would focus on ensuring timely completion, adherence to specifications, and quality of work to maintain dam integrity.

Related Government Programs

Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
Department of the Interior Contracting
Bureau of Reclamation Programs

Risk Flags

Potential for scope creep or change orders.
Dependency on contractor's specialized expertise.
Risk of delays due to site-specific conditions.
Ensuring long-term operational compatibility and maintenance support.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.9 million to BCI CONSTRUCTION USA, INC.. WORK IS FOR REPLACEMENT OF 5 CRANES AT HUNGRY HORSE DAM. THE NORTH POWERHOUSE BRIDGE CRANE, SOUTH POWERHOUSE BRIDGE CRANE, VALVE HOUSE BRIDGE CRANE, MACHINE SHOP BRIDGE CRANE AND GANTRY CRANE ON THE CREST OF THE DAM.

Who is the contractor on this award?

The obligated recipient is BCI CONSTRUCTION USA, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2020-03-16. End: 2023-06-01.

What is the expected lifespan of the new cranes and how does this compare to the replaced units?

The expected lifespan of the new cranes is a critical factor in assessing the long-term value of this investment. While not explicitly stated in the provided data, modern industrial cranes typically have design lives of 20-30 years or more. This should be compared to the operational history and remaining useful life of the original cranes to fully evaluate the necessity and benefit of the replacement.

Were there any significant technical challenges or unforeseen risks encountered during the project that impacted cost or schedule?

The data provided does not detail specific technical challenges or unforeseen risks. However, large-scale infrastructure replacements at active dams often involve complex logistical planning, potential environmental considerations, and integration with existing systems. A review of project close-out reports or post-award modifications would be necessary to identify any such issues and their impact.

How does the cost per crane compare to industry benchmarks for similar equipment and installation?

The total contract value of $18.9 million for five cranes averages $3.78 million per crane. This figure needs to be benchmarked against the specific types and capacities of cranes (bridge, gantry) and the complexity of installation within the dam's unique environment. Without detailed specifications, a precise comparison is difficult, but this average provides a starting point for further cost analysis.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Overhead Traveling Crane, Hoist, and Monorail System Manufacturing

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140R1019R0011

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4154 LUTHER FOWLER RD, PACE, FL, 32571

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,899,514

Exercised Options: $18,899,514

Current Obligation: $18,899,514

Actual Outlays: $18,899,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline