DOI Awards $21.5M for Folsom Powerplant Generator Repair to ANDRITZ HYDRO CORP
Contract Overview
Contract Amount: $21,548,118 ($21.5M)
Contractor: Andritz Hydro Corp
Awarding Agency: Department of the Interior
Start Date: 2009-11-25
End Date: 2016-04-20
Contract Duration: 2,338 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: U1, U2, AND U3 GENERATOR REWIND AND EXCITATION SYSTEM REPLACEMENT AT THE FOLSOM POWERPLANT
Place of Performance
Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630
Plain-Language Summary
Department of the Interior obligated $21.5 million to ANDRITZ HYDRO CORP for work described as: U1, U2, AND U3 GENERATOR REWIND AND EXCITATION SYSTEM REPLACEMENT AT THE FOLSOM POWERPLANT Key points: 1. The contract focuses on essential repair and maintenance for critical power generation equipment. 2. ANDRITZ HYDRO CORP is a significant player in the hydropower equipment market. 3. Potential risks include project delays, cost overruns, and equipment malfunction. 4. The sector is vital for national energy infrastructure and grid stability.
Value Assessment
Rating: fair
The contract value of $21.5M appears substantial for generator repair. Benchmarking against similar large-scale power plant equipment overhauls is necessary to assess if this price is competitive, considering the duration and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, but the final price depends on the number and quality of bids received.
Taxpayer Impact: Taxpayer funds are utilized for essential infrastructure maintenance, ensuring continued power generation capacity. The competitive award aims to maximize value for the investment.
Public Impact
Ensures continued operation of the Folsom Powerplant, a key component of California's energy infrastructure. Supports the reliability of the regional power grid, impacting electricity supply for numerous communities. The repair work may involve specialized labor and equipment, potentially creating local economic activity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2338 days) increases risk of scope creep and price escalation.
- Firm Fixed Price contract may not fully account for unforeseen technical challenges in older equipment.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition, suggesting potential for competitive pricing.
- Essential maintenance for critical national infrastructure.
- Contract awarded to a known industry specialist.
Sector Analysis
This contract falls within the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this area is crucial for maintaining aging infrastructure, particularly in the energy sector, where reliability is paramount.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors in this award. Opportunities for small businesses may exist as subcontractors, but this is not explicitly detailed in the provided information.
Oversight & Accountability
The Bureau of Reclamation, under the Department of the Interior, is responsible for this contract. Oversight would focus on ensuring the contractor meets performance standards, adheres to the schedule, and delivers the required repairs within the agreed-upon budget.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Long contract duration increases risk.
- Firm Fixed Price may not cover all unforeseen technical issues.
- Potential for equipment malfunction post-repair.
- Lack of explicit small business participation.
Tags
commercial-and-industrial-machinery-and-, department-of-the-interior, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $21.5 million to ANDRITZ HYDRO CORP. U1, U2, AND U3 GENERATOR REWIND AND EXCITATION SYSTEM REPLACEMENT AT THE FOLSOM POWERPLANT
Who is the contractor on this award?
The obligated recipient is ANDRITZ HYDRO CORP.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Reclamation).
What is the total obligated amount?
The obligated amount is $21.5 million.
What is the period of performance?
Start: 2009-11-25. End: 2016-04-20.
What specific technical challenges were anticipated for the generator rewind and excitation system replacement that justified the contract's substantial value and long duration?
The substantial value and long duration likely stem from the complexity of overhauling large-scale power generation equipment, including potential unforeseen issues with aging components. Rewinding generators and replacing excitation systems are intricate processes requiring specialized expertise, significant downtime planning, and rigorous testing to ensure safety and performance standards are met.
How will the Bureau of Reclamation ensure that the Firm Fixed Price contract adequately covers all potential risks and technical complexities associated with this critical infrastructure repair?
The Bureau likely conducted thorough technical assessments and risk analyses prior to establishing the Firm Fixed Price. They would also employ stringent contract management, including regular progress reviews, quality assurance checks, and change order controls, to mitigate risks and ensure the contractor addresses all specified requirements effectively within the agreed price.
What is the projected impact of this repair on the Folsom Powerplant's operational efficiency and power generation capacity post-completion?
The repair is expected to restore and potentially enhance the operational efficiency and reliability of the U1, U2, and U3 generators. This should lead to improved power generation capacity, reduced risk of unplanned outages, and potentially lower maintenance costs in the future, thereby ensuring a more stable and consistent energy supply from the facility.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 09SP200017
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Andritz AG (UEI: 300197993)
Address: 10735 DAVID TAYLOR DR STE 500, CHARLOTTE, NC, 28262
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,548,118
Exercised Options: $21,548,118
Current Obligation: $21,548,118
Actual Outlays: $922,264
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-11-25
Current End Date: 2016-04-20
Potential End Date: 2016-04-20 00:00:00
Last Modified: 2019-12-10
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