DoD Awards $7.3M Gantry Crane Rehabilitation Contract to Sievert Electric in Pennsylvania

Contract Overview

Contract Amount: $7,329,407 ($7.3M)

Contractor: Sievert Electric Service and Sales Company

Awarding Agency: Department of Defense

Start Date: 2024-12-05

End Date: 2028-01-09

Contract Duration: 1,130 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GANTRY CRANES REHABILITATION AT LOYALHANNA RIVER LAKE, SALTSBURG, PA.

Place of Performance

Location: SALTSBURG, WESTMORELAND County, PENNSYLVANIA, 15681

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to SIEVERT ELECTRIC SERVICE AND SALES COMPANY for work described as: GANTRY CRANES REHABILITATION AT LOYALHANNA RIVER LAKE, SALTSBURG, PA. Key points: 1. Contract awarded for essential infrastructure rehabilitation at Loyalhanna River Lake. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm fixed price, providing cost certainty for the government. 4. The project duration is over three years, indicating a significant scope of work.

Value Assessment

Rating: good

The contract value of $7.3M for gantry crane rehabilitation appears reasonable given the project's scope and duration. Benchmarking against similar heavy civil engineering construction projects would provide further validation.

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 robust bidding process. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The firm fixed price structure provides cost predictability, protecting taxpayers from potential cost overruns associated with the rehabilitation project.

Public Impact

Ensures continued safe operation of critical infrastructure at Loyalhanna River Lake. Supports regional economic activity through construction services. Rehabilitation of aging equipment prevents potential failures and associated costs.

Waste & Efficiency Indicators

Waste Risk Score: 64 / 10

Warning Flags

  • Potential for scope creep in long-term rehabilitation projects.
  • Reliance on a single contractor for a multi-year project.

Positive Signals

  • Firm fixed price contract limits cost uncertainty.
  • Full and open competition promotes value.
  • Project addresses critical infrastructure needs.

Sector Analysis

This contract falls under the Other Heavy and Civil Engineering Construction sector. Spending in this sector is crucial for maintaining and upgrading public infrastructure, with benchmarks varying widely based on project complexity and location.

Small Business Impact

The contract was awarded to Sievert Electric Service and Sales Company. Further analysis is needed to determine if small businesses were involved as subcontractors or if the prime contractor qualifies as a small business.

Oversight & Accountability

The Department of the Army, through the Department of Defense, is responsible for oversight. Standard contract management procedures should ensure adherence to scope, quality, and timelines.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long project duration increases exposure to market fluctuations.
  • Potential for unforeseen site conditions impacting cost and schedule.
  • Dependence on a single contractor for a critical infrastructure project.

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, pa, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to SIEVERT ELECTRIC SERVICE AND SALES COMPANY. GANTRY CRANES REHABILITATION AT LOYALHANNA RIVER LAKE, SALTSBURG, PA.

Who is the contractor on this award?

The obligated recipient is SIEVERT ELECTRIC SERVICE AND SALES COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2024-12-05. End: 2028-01-09.

What is the historical performance of Sievert Electric Service and Sales Company on similar government contracts?

Assessing Sievert Electric's past performance on comparable projects is crucial for understanding their reliability and capability. Reviewing past contract awards, completion records, and any documented issues or commendations will provide insight into their track record and ability to successfully execute this rehabilitation project within the specified timeline and budget.

Are there any identified risks associated with the rehabilitation of these specific gantry cranes?

Potential risks could include unforeseen structural issues with the existing cranes, availability of specialized parts, or environmental concerns during the rehabilitation process. A thorough risk assessment by the contracting agency should have identified these and outlined mitigation strategies to ensure project success and prevent delays or cost increases.

How will the successful rehabilitation of these gantry cranes impact the operational efficiency and safety at Loyalhanna River Lake?

The successful rehabilitation is expected to significantly enhance the operational efficiency and safety of the gantry cranes. This will ensure the continued reliable functioning of critical infrastructure, supporting the lake's intended purposes, preventing potential disruptions, and mitigating risks associated with aging or malfunctioning equipment.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W911WN24B8017

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1230 HANNAH AVE, FOREST PARK, IL, 60130

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

Financial Breakdown

Contract Ceiling: $7,329,407

Exercised Options: $7,329,407

Current Obligation: $7,329,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2024-12-05

Current End Date: 2028-01-09

Potential End Date: 2028-01-09 00:00:00

Last Modified: 2025-12-01

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