Interior's $6M Marys Lake Runner Replacement Contract Awarded to American Hydro LLC
Contract Overview
Contract Amount: $6,075,061 ($6.1M)
Contractor: American Hydro LLC
Awarding Agency: Department of the Interior
Start Date: 2021-03-24
End Date: 2024-10-25
Contract Duration: 1,311 days
Daily Burn Rate: $4.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MARYS LAKE RUNNER REPLACEMENT AND TURBINE OVERHAUL
Place of Performance
Location: ESTES PARK, LARIMER County, COLORADO, 80517
State: Colorado Government Spending
Plain-Language Summary
Department of the Interior obligated $6.1 million to AMERICAN HYDRO LLC for work described as: MARYS LAKE RUNNER REPLACEMENT AND TURBINE OVERHAUL Key points: 1. Contract awarded for turbine overhaul and runner replacement at Marys Lake. 2. American Hydro LLC secured the $6.075 million contract. 3. The project falls under 'Other Heavy and Civil Engineering Construction'. 4. Full and open competition was utilized for this procurement.
Value Assessment
Rating: good
The contract value of $6.075 million appears reasonable for a complex heavy civil engineering project involving turbine overhaul and replacement. Benchmarking against similar large-scale hydropower infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified bidders to submit proposals, theoretically leading to more competitive pricing and better value for the government.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for this critical infrastructure upgrade.
Public Impact
Ensures continued reliable operation of the Marys Lake power facility. Supports infrastructure modernization within the Bureau of Reclamation. Potential for job creation in the heavy civil engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (1311 days).
- Potential for cost overruns in complex construction projects.
- Reliance on a single contractor for a significant overhaul.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type mitigates cost risk.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to hydropower infrastructure. Spending in this sector is often driven by the need for infrastructure maintenance, upgrades, and new development, with significant capital investment required.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this procurement.
Oversight & Accountability
The Bureau of Reclamation, under the Department of the Interior, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including progress monitoring and quality assurance, would be expected.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Long contract duration.
- Complexity of heavy civil engineering construction.
- Potential for unforeseen site conditions.
- Reliance on a single contractor for critical infrastructure.
Tags
other-heavy-and-civil-engineering-constr, department-of-the-interior, co, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $6.1 million to AMERICAN HYDRO LLC. MARYS LAKE RUNNER REPLACEMENT AND TURBINE OVERHAUL
Who is the contractor on this award?
The obligated recipient is AMERICAN HYDRO LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Reclamation).
What is the total obligated amount?
The obligated amount is $6.1 million.
What is the period of performance?
Start: 2021-03-24. End: 2024-10-25.
What is the historical performance of American Hydro LLC on similar federal contracts?
Assessing American Hydro LLC's past performance on comparable federal contracts is crucial for understanding their reliability and capability. Reviewing past project completion times, adherence to budget, and quality of work on similar turbine overhaul and replacement projects would provide valuable insights into their suitability for this undertaking and potential risks.
Are there any specific environmental or operational risks associated with this turbine overhaul?
Turbine overhauls can present environmental risks such as potential spills of lubricants or hydraulic fluids, and operational risks related to temporary power generation disruption. The contract should detail mitigation strategies for these risks, including containment measures and contingency plans for power supply, to ensure minimal environmental impact and continued service.
How does the firm-fixed-price structure impact the government's ability to manage costs during unforeseen issues?
A firm-fixed-price contract generally shifts cost risk to the contractor, providing budget certainty for the government. However, unforeseen issues during complex construction can lead to change orders, potentially increasing costs. Robust contract management and clear scope definition are essential to minimize the impact of such changes on the overall project expenditure.
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: 140R6020R0005
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wärtsilä OYJ ABP
Address: 135 STONEWOOD RD, YORK, PA, 17402
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: $6,075,061
Exercised Options: $6,075,061
Current Obligation: $6,075,061
Actual Outlays: $4,979,382
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-03-24
Current End Date: 2024-10-25
Potential End Date: 2024-10-25 00:00:00
Last Modified: 2026-03-26
More Contracts from American Hydro LLC
Other Department of the Interior Contracts
- Department of Health and Human Services, Administration of Children and Families, Office of Refugee Resettlement's Legal Services for Unaccompanied Children — $832.4M (Acacia Center for Justice)
- Military Family Life Counseling Program Igf::ot::igf — $638.8M (MHN Government Services LLC)
- Military Family Life Counseling Program — $637.0M (Magellan Healthcare Inc)
- Grants Program Solutions and Information Technology Support Services — $446.3M (Guidehouse Digital LLC)
- THE Purpose of This Requirement for Grants Program Solutions and IT Support Services IS to Provide Efficient and Effective Grant, Financial, and Contract Management Services, IT Solutions, and Support to the Grantsolutions and ITS Partners — $403.1M (Guidehouse Inc.)