Bureau of Reclamation Awards $5.1M Contract for Grand Coulee Dam Power Plant Upgrades to Souza Construction

Contract Overview

Contract Amount: $5,133,843 ($5.1M)

Contractor: Souza Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-08-26

End Date: 2026-05-15

Contract Duration: 627 days

Daily Burn Rate: $8.2K/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: GRAND COULEE DAM RIGHT POWER PLANT (RPP), LEFT POWER PLANT (LPP), WASHINGTON POWER PLANT (WPP) AND PGP BATTERY ROOM UPGRADES, GRAND COULEE, WASHINGTON, BUREAU OF RECLAMATION C-PN REGION

Place of Performance

Location: COULEE DAM, OKANOGAN County, WASHINGTON, 99116

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $5.1 million to SOUZA CONSTRUCTION, INC. for work described as: GRAND COULEE DAM RIGHT POWER PLANT (RPP), LEFT POWER PLANT (LPP), WASHINGTON POWER PLANT (WPP) AND PGP BATTERY ROOM UPGRADES, GRAND COULEE, WASHINGTON, BUREAU OF RECLAMATION C-PN REGION Key points: 1. The contract focuses on critical upgrades to the Grand Coulee Dam's power plants, ensuring continued operational efficiency. 2. Souza Construction, Inc. secured the award through full and open competition, indicating a competitive bidding process. 3. The project's fixed-price nature helps mitigate cost overrun risks for taxpayers. 4. This investment in infrastructure supports the region's energy generation capacity.

Value Assessment

Rating: good

The contract value of $5.1M for heavy civil engineering construction appears reasonable given the scale and complexity of power plant upgrades. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

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 that while competition was sought, specific pre-qualifications or exclusions may have been applied. This method aims for competitive pricing while ensuring specialized capabilities.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it drives down costs through market forces. The fixed-price contract further protects against unexpected cost increases.

Public Impact

Ensures continued reliable power generation from a major national asset. Supports regional energy infrastructure and economic stability. Modernizes critical components of the Grand Coulee Dam. Creates construction jobs in Washington state.

Waste & Efficiency Indicators

Waste Risk Score: 85 / 10

Warning Flags

Potential for scope creep in complex infrastructure projects.
Dependency on specialized construction firms.

Positive Signals

Significant investment in national infrastructure.
Competitive award process.
Fixed-price contract mitigates cost risk.

Sector Analysis

This contract falls under the 'Other Heavy and Civil Engineering Construction' sector, which involves large-scale infrastructure projects. Spending in this sector is often driven by government investments in public works, energy, and transportation.

Small Business Impact

The data indicates that neither small business nor small disadvantaged business participation was a stated factor in this award. The contract was awarded to Souza Construction, Inc., and no subcontracting information for small businesses is provided.

Oversight & Accountability

The Bureau of Reclamation, as part of the Department of the Interior, is responsible for overseeing this contract. Standard oversight procedures for large construction projects would apply, including progress monitoring and quality assurance to ensure taxpayer funds are used effectively.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of the Interior Contracting
Bureau of Reclamation Programs

Risk Flags

Complexity of infrastructure upgrades.
Potential for schedule delays.
Reliance on a single prime contractor.
Limited visibility into small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.1 million to SOUZA CONSTRUCTION, INC.. GRAND COULEE DAM RIGHT POWER PLANT (RPP), LEFT POWER PLANT (LPP), WASHINGTON POWER PLANT (WPP) AND PGP BATTERY ROOM UPGRADES, GRAND COULEE, WASHINGTON, BUREAU OF RECLAMATION C-PN REGION

Who is the contractor on this award?

The obligated recipient is SOUZA CONSTRUCTION, 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 $5.1 million.

What is the period of performance?

Start: 2024-08-26. End: 2026-05-15.

What specific technical challenges are associated with upgrading the Grand Coulee Dam's power plants, and how does the chosen contractor's experience address these?

Upgrading aging power plants like those at Grand Coulee Dam involves complex engineering challenges, including integrating new technology with existing systems, managing operational downtime, and ensuring structural integrity. Souza Construction, Inc.'s experience in heavy civil engineering and potentially power infrastructure projects would be crucial. A review of their past performance on similar large-scale projects would clarify their suitability and mitigate risks associated with technical execution.

How does the 'exclusion of sources' clause in the competition method potentially impact the final price and the range of innovative solutions considered?

The 'exclusion of sources' clause, while allowing for competition, suggests that certain potential bidders were pre-qualified or excluded based on specific criteria. This could limit the breadth of innovation if only a few firms meet the stringent requirements. While it can ensure specialized expertise, it might also reduce competitive pressure, potentially leading to a higher final price than a truly open market would yield. The Bureau of Reclamation likely justified this based on unique project needs.

What are the long-term operational and maintenance implications of these upgrades for the Bureau of Reclamation and energy consumers?

These upgrades are expected to enhance the efficiency, reliability, and potentially the lifespan of the Grand Coulee Dam's power generation facilities. This should lead to more consistent power output and reduced maintenance costs in the long run. For energy consumers, this translates to a more stable and potentially more affordable power supply from this critical federal resource. The Bureau will need to factor in new maintenance protocols for the upgraded systems.

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 BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 140R1024B0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 586 S. FARMERSVILLE BLVD, FARMERSVILLE, CA, 93223

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,133,843

Exercised Options: $5,133,843

Current Obligation: $5,133,843

Actual Outlays: $2,892,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline