Hoover Dam Pressure Regulating Units Refurbishment Contract Awarded for $10.3M
Contract Overview
Contract Amount: $10,297,570 ($10.3M)
Contractor: Precision Machine and Supply, Inc.
Awarding Agency: Department of the Interior
Start Date: 2007-11-07
End Date: 2011-03-01
Contract Duration: 1,210 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE ALL PERSONNEL, EQUIPMENT, MATERIALS, SUPERVISION AND OTHER ITEMS AND SERVICES NECESSARY TO DISASSEMBLE AND REMOVE THE PRESSURE REGULATING UNITS; PACK AND TRANSPORT THE UNITS TO AND FROM THE FACILITY TO BE REFURBISHED; AND ASSEMBLY AND RE-INSTALLATION BACK AT HOOVER DAM. WORK INCLUDES THE REPLACEMENT OF BUSHINGS, SEATS, SEAL RINGS, AND GASKETS; ALL NECESSARY MACHINING TO REFURBISH THE PRVS TO LIKE NEW CONDITION; REPAIR OF CAVITATION DAMAGE, INCLUDING THE AREA BELOW THE VALVE SEAT, EITHER BY WELDING OR REPLACEMENT OF STEEL PARTS; RE-ASSEMBLY OF ALL PRV PARTS; ADJUSTMENT TO EACH PRV IN ACCORDANCE WITH THE OEM REQUIREMENTS; AND PERFORMANCE TESTING.
Place of Performance
Location: BOULDER CITY, CLARK County, NEVADA, 89005
State: Nevada Government Spending
Plain-Language Summary
Department of the Interior obligated $10.3 million to PRECISION MACHINE AND SUPPLY, INC. for work described as: PROVIDE ALL PERSONNEL, EQUIPMENT, MATERIALS, SUPERVISION AND OTHER ITEMS AND SERVICES NECESSARY TO DISASSEMBLE AND REMOVE THE PRESSURE REGULATING UNITS; PACK AND TRANSPORT THE UNITS TO AND FROM THE FACILITY TO BE REFURBISHED; AND ASSEMBLY AND RE-INSTALLATION BACK AT HOOVER DAM. W… Key points: 1. The contract covers comprehensive refurbishment of pressure regulating units at Hoover Dam. 2. Precision Machine and Supply, Inc. secured the award. 3. The work involves disassembly, transport, refurbishment, and re-installation of critical dam components. 4. This is a significant investment in maintaining essential infrastructure.
Value Assessment
Rating: good
The contract value of $10.3 million for refurbishing pressure regulating units appears reasonable given the scope of work, which includes complex machining, repairs, and re-assembly to 'like new' condition. Benchmarking against similar large-scale industrial equipment refurbishment 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,' indicating a competitive bidding process was utilized. This method generally promotes price discovery and ensures fair market value is obtained for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the essential infrastructure maintenance.
Public Impact
Ensures continued safe and reliable operation of Hoover Dam's water and power systems. Supports critical infrastructure maintenance, preventing potential costly failures. The refurbishment process aims to restore units to 'like new' condition, extending their lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen damage is more extensive than anticipated.
- Dependence on a single contractor for specialized refurbishment services.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Competitive award process likely secured a reasonable price.
- Focus on restoring units to 'like new' condition.
Sector Analysis
This contract falls within the manufacturing and maintenance of large industrial equipment, specifically related to power generation and water management infrastructure. Spending benchmarks for similar large-scale refurbishment projects in the energy and water sectors would be relevant for comparison.
Small Business Impact
The contract was awarded to Precision Machine and Supply, Inc., and the data indicates the small business flag is false, suggesting the award was not made to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were pursued.
Oversight & Accountability
The Bureau of Reclamation, under the Department of the Interior, is responsible for overseeing this contract. The firm fixed price structure and the competitive award process are positive oversight mechanisms.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Potential for unforeseen repair complexities.
- Contract duration of 1210 days.
- Reliance on OEM requirements for adjustments and testing.
- Firm Fixed Price contract may limit flexibility for scope changes.
Tags
turbine-and-turbine-generator-set-units-, department-of-the-interior, nv, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $10.3 million to PRECISION MACHINE AND SUPPLY, INC.. PROVIDE ALL PERSONNEL, EQUIPMENT, MATERIALS, SUPERVISION AND OTHER ITEMS AND SERVICES NECESSARY TO DISASSEMBLE AND REMOVE THE PRESSURE REGULATING UNITS; PACK AND TRANSPORT THE UNITS TO AND FROM THE FACILITY TO BE REFURBISHED; AND ASSEMBLY AND RE-INSTALLATION BACK AT HOOVER DAM. WORK INCLUDES THE REPLACEMENT OF BUSHINGS, SEATS, SEAL RINGS, AND GASKETS; ALL NECESSARY MACHINING TO REFURBISH THE PRVS TO LIKE NEW CONDITION; REPAIR OF CAVITATION DAMAGE, INCLUDING THE AREA BELOW THE VALVE SEAT, EITHER
Who is the contractor on this award?
The obligated recipient is PRECISION MACHINE AND SUPPLY, 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 $10.3 million.
What is the period of performance?
Start: 2007-11-07. End: 2011-03-01.
What is the expected lifespan extension of the pressure regulating units after this refurbishment?
The refurbishment aims to restore the pressure regulating units to 'like new' condition, which is expected to significantly extend their operational lifespan. While a precise number of years is not provided, this level of restoration typically implies a decade or more of reliable service, contingent on regular maintenance and operational conditions. This investment is crucial for long-term infrastructure sustainability.
What are the specific risks associated with the cavitation damage repair?
Repairing cavitation damage, particularly below the valve seat, presents risks related to the effectiveness and durability of the repair methods (welding or part replacement). Inadequate repair could lead to recurring damage, reduced efficiency, or premature failure of the units. Thorough quality control and post-repair testing are critical to mitigate these risks and ensure the integrity of the refurbished components.
How does the 'Full and Open Competition After Exclusion of Sources' method impact the overall effectiveness of the procurement?
This procurement method, while competitive, excludes certain sources, which could potentially limit the pool of qualified bidders and the range of innovative solutions. However, if the exclusion was based on specific technical requirements or security needs, it could ensure that only highly capable firms participate, leading to a more effective outcome for this specialized refurbishment. The effectiveness hinges on the justification for source exclusion.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units Manufacturing
Product/Service Code: VALVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 06SP308062
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Andritz AG (UEI: 300197993)
Address: 3218 EAST MAIN STREET, LEWISTON, ID, 01
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,408,604
Exercised Options: $10,408,604
Current Obligation: $10,297,570
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-11-07
Current End Date: 2011-03-01
Potential End Date: 2011-03-01 00:00:00
Last Modified: 2011-03-26
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