Army awards $11.8M for Meldaht Locks and Dam fabrication, with Steward Machine Co. Inc. winning the delivery order

Contract Overview

Contract Amount: $11,807,928 ($11.8M)

Contractor: Steward Machine CO Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-26

End Date: 2026-11-25

Contract Duration: 1,521 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MITER GATE FABRICATION FOR MELDAHL LOCKS AND DAM, FELICITY, OH

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35234

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to STEWARD MACHINE CO INC for work described as: MITER GATE FABRICATION FOR MELDAHL LOCKS AND DAM, FELICITY, OH Key points: 1. The contract value of $11.8 million for fabrication services appears reasonable given the scope and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance is expected over approximately 4 years, indicating a significant project timeline. 5. The award falls within the 'Machine Shops' industry sector, a common area for fabrication work. 6. The delivery order mechanism suggests this is part of a larger, potentially indefinite-delivery contract.

Value Assessment

Rating: good

The $11.8 million award for fabrication services for the Meldahl Locks and Dam appears to be a fair price for the scope of work. While specific comparable contracts for this exact type of specialized fabrication are not readily available, the firm-fixed-price structure indicates that the contractor bears the cost risk. The duration of the contract (over 4 years) suggests a substantial project, and the price seems aligned with typical large-scale industrial fabrication projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the opportunity was broadly advertised, but specific sources may have been excluded based on pre-qualification or other criteria. The presence of 3 bidders suggests a moderate level of competition for this specialized fabrication work. The competitive nature of the bidding process likely contributed to price discovery and a more favorable outcome for the government.

Taxpayer Impact: The use of full and open competition, even with some exclusions, generally benefits taxpayers by encouraging multiple companies to bid, which can lead to lower prices and better value.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers, ensuring the continued operation and maintenance of the Meldahl Locks and Dam. The contract will deliver fabricated components essential for the structural integrity and functionality of the locks and dam. The geographic impact is localized to the Meldahl Locks and Dam facility in Felicity, Ohio. The contract supports skilled labor within the machine shop and fabrication industry, potentially in Alabama where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during fabrication, despite the fixed-price nature.
Dependency on the contractor's ability to meet stringent quality and delivery timelines for critical infrastructure components.
Risk associated with the 'Exclusion of Sources' aspect of the competition, which could limit the pool of potential bidders.

Positive Signals

Firm-fixed-price contract type mitigates cost escalation risk for the government.
Award to an established contractor, Steward Machine Co. Inc., suggests a degree of confidence in their capabilities.
The contract duration allows for phased delivery and potential adjustments, accommodating project complexities.

Sector Analysis

This contract falls within the industrial machinery and equipment manufacturing sector, specifically machine shops (NAICS 332710). This sector is crucial for national infrastructure projects, providing essential components for construction, repair, and maintenance of critical facilities like locks and dams. The market for specialized fabrication services can be competitive, with pricing influenced by material costs, labor rates, and the complexity of the required components. The Army Corps of Engineers is a significant procurer of such services for its extensive network of water infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Steward Machine Co. Inc. is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, though the prime contractor's own supply chain may involve small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Corps of Engineers, which manages the Meldahl Locks and Dam. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified components by the deadline. Transparency is facilitated through contract award notices published on federal procurement databases. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Infrastructure Rehabilitation Projects
Lock and Dam Maintenance Contracts
Industrial Fabrication Services

Risk Flags

Potential for schedule delays
Quality control concerns
Contractor performance risk
Dependency on specialized fabrication capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to STEWARD MACHINE CO INC. MITER GATE FABRICATION FOR MELDAHL LOCKS AND DAM, FELICITY, OH

Who is the contractor on this award?

The obligated recipient is STEWARD MACHINE CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2022-09-26. End: 2026-11-25.

What is the track record of Steward Machine Co. Inc. in performing similar federal contracts, particularly for the Army Corps of Engineers?

Steward Machine Co. Inc. has a history of performing federal contracts, though specific details on their track record with the Army Corps of Engineers for lock and dam fabrication require deeper analysis of historical contract data. A review of their past performance would involve examining contract completion rates, any instances of disputes or penalties, and client satisfaction feedback if available. Understanding their experience with similar project scales and technical requirements is crucial for assessing their capability to successfully execute this $11.8 million award. Without direct access to detailed performance reviews, it's assumed the Army Corps conducted due diligence prior to awarding this contract.

How does the awarded price of $11.8 million compare to similar fabrication contracts for lock and dam components?

Benchmarking the $11.8 million award requires identifying comparable contracts for lock and dam fabrication. Factors such as the specific components fabricated (e.g., gates, valves, structural steel), material types, complexity of design, and project duration significantly influence pricing. While a direct, precise comparison is difficult without more granular data on similar projects, the firm-fixed-price nature suggests the government sought a defined cost. The number of bidders (3) indicates some level of market competition, which typically helps in achieving a reasonable price. Further analysis would involve comparing cost per pound or per unit of fabricated material against industry standards and historical data for similar Army Corps of Engineers projects.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential delays in fabrication or delivery, quality control issues with the fabricated components, and unforeseen technical challenges during production. Mitigation strategies are primarily driven by the contract type and oversight. The firm-fixed-price structure shifts the financial risk of cost overruns to Steward Machine Co. Inc. The Army Corps of Engineers will likely implement rigorous quality assurance and inspection protocols throughout the fabrication process. The contract's duration (over 4 years) allows for phased delivery and inspection, providing opportunities to identify and address issues early. The 'Exclusion of Sources' in the competition, however, could be a risk if it limited the pool of highly capable bidders.

What is the expected effectiveness of the fabricated components in ensuring the long-term operational efficiency of the Meldahl Locks and Dam?

The effectiveness of the fabricated components hinges on their adherence to design specifications, material quality, and proper installation. Assuming Steward Machine Co. Inc. meets the contract's requirements, the new or replacement parts should restore or enhance the operational efficiency and reliability of the Meldahl Locks and Dam. This contributes to the overall mission of the Army Corps of Engineers in maintaining navigable waterways and managing water resources. The long-term effectiveness will also depend on the maintenance schedule and any future upgrades or modifications to the facility.

How does historical spending on lock and dam fabrication by the Army Corps of Engineers compare to this award?

Historical spending by the Army Corps of Engineers on lock and dam fabrication is substantial, reflecting the continuous need to maintain and upgrade critical infrastructure. This $11.8 million award is one component of a much larger overall investment. To provide a precise comparison, one would need to analyze aggregate spending on similar fabrication contracts over several fiscal years, considering inflation and the scale of projects. This specific award appears to be a moderate-sized contract within the broader context of the Army Corps' extensive civil works program. Trends in spending can indicate shifts in infrastructure priorities, funding levels, and the types of projects being undertaken.

Industry Classification

NAICS: Manufacturing › Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing › Machine Shops

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9123721R0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3911 13TH AVE N, BIRMINGHAM, AL, 35234

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

Financial Breakdown

Contract Ceiling: $11,807,928

Exercised Options: $11,807,928

Current Obligation: $11,807,928

Actual Outlays: $1,000,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123721D0019

IDV Type: IDC

Timeline