Army's $11.1M Detroit Big Cliff Reliability Upgrades contract awarded to Olsson Industrial Electric, Inc
Contract Overview
Contract Amount: $11,107,434 ($11.1M)
Contractor: Olsson Industrial Electric, Inc
Awarding Agency: Department of Defense
Start Date: 2007-09-04
End Date: 2013-04-01
Contract Duration: 2,036 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DETROIT BIG CLIFF RELIABILITY UPGRADES
Place of Performance
Location: MILL CITY, MARION County, OREGON, 97360
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $11.1 million to OLSSON INDUSTRIAL ELECTRIC, INC for work described as: DETROIT BIG CLIFF RELIABILITY UPGRADES Key points: 1. Contract value of $11.1 million for reliability upgrades. 2. Awarded to Olsson Industrial Electric, Inc. under firm fixed price terms. 3. Duration of 2036 days indicates a long-term project. 4. Competition was full and open, suggesting a robust bidding process. 5. The contract falls under 'Other Heavy and Civil Engineering Construction' NAICS code. 6. No small business set-aside was utilized for this contract.
Value Assessment
Rating: fair
The contract value of $11.1 million for reliability upgrades over a period of 2036 days (approximately 5.6 years) suggests a significant investment. Benchmarking this against similar large-scale civil engineering projects would be necessary to determine true value for money. The firm fixed price contract type implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. However, without detailed cost breakdowns or comparisons to industry standards for similar upgrades, a definitive assessment of pricing efficiency is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. With two bidders participating, the competition level appears moderate. This level of competition generally allows for price discovery and can lead to more competitive pricing for the government. However, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide a clearer picture of the competitive intensity.
Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage efficiency.
Public Impact
The primary beneficiaries are likely the Department of the Army and its personnel, who will experience improved reliability at the Detroit Big Cliff facility. The services delivered involve heavy and civil engineering construction for reliability upgrades. The geographic impact is localized to the Detroit Big Cliff facility, likely within Oregon. Workforce implications may include employment opportunities for skilled construction labor and engineering professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of 'reliability upgrades' is not precisely defined, despite the firm fixed price.
- Long contract duration (2036 days) could lead to scope creep or changes if not managed effectively.
- Limited competition (2 bidders) might suggest less aggressive pricing than a more crowded field.
Positive Signals
- Firm fixed price contract type shifts cost risk to the contractor.
- Full and open competition provides a baseline for fair pricing.
- Award to a specific company, Olsson Industrial Electric, Inc., suggests they met the technical and cost requirements.
Sector Analysis
This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of infrastructure projects. The market for such services is often characterized by large, complex projects requiring specialized expertise and significant capital investment. Comparable spending benchmarks would involve analyzing the average cost of similar reliability upgrade projects for federal facilities or large industrial sites, considering factors like project scale, complexity, and location.
Small Business Impact
The contract data indicates that this was not a small business set-aside, and the 'sb' field is false. This suggests that the contract was open to all responsible businesses, including large corporations. There is no explicit information on subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless Olsson Industrial Electric, Inc. voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed price contract type, where the contractor is responsible for delivering the specified upgrades within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed project-specific oversight mechanisms are not specified in the provided data.
Related Government Programs
- Army Corps of Engineers Construction Projects
- Department of Defense Infrastructure Modernization
- Federal Civil Engineering Contracts
- Heavy Construction Services
Risk Flags
- Long contract duration may increase risk of cost escalation or scope creep if not managed meticulously.
- Moderate competition (2 bidders) could imply less aggressive pricing than a more contested bid.
- Lack of specific details on 'reliability upgrades' necessitates careful monitoring of project execution.
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering, infrastructure, oregon, reliability-upgrades
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to OLSSON INDUSTRIAL ELECTRIC, INC. DETROIT BIG CLIFF RELIABILITY UPGRADES
Who is the contractor on this award?
The obligated recipient is OLSSON INDUSTRIAL ELECTRIC, 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 $11.1 million.
What is the period of performance?
Start: 2007-09-04. End: 2013-04-01.
What is the track record of Olsson Industrial Electric, Inc. with federal contracts, particularly within the Department of Defense?
Olsson Industrial Electric, Inc. has a history of federal contracting, as evidenced by this award. To assess their track record thoroughly, one would need to examine their past performance on similar projects, including contract values, types of services rendered, and any history of performance issues or disputes. Analyzing their portfolio within the Department of Defense specifically would reveal their experience with military infrastructure and compliance requirements. A review of contract databases and performance assessment reports (if publicly available) would provide a more comprehensive understanding of their reliability and capability as a federal contractor.
How does the $11.1 million contract value compare to similar reliability upgrade projects for Department of Defense facilities?
Benchmarking the $11.1 million contract value requires identifying comparable projects in terms of scope (reliability upgrades), facility type (military installations), and scale. Without specific project details, it's difficult to provide a precise comparison. However, large-scale civil engineering and construction projects for federal agencies can range from millions to hundreds of millions of dollars. The value of this contract suggests a significant undertaking. A detailed analysis would involve searching for other Army or DoD contracts for infrastructure reliability improvements, factoring in inflation, geographic location, and the specific systems being upgraded to determine if this price point is within the expected range for such work.
What are the primary risks associated with a firm fixed price contract for a project of this duration (2036 days)?
The primary risks associated with a firm fixed price (FFP) contract for a long-duration project like this (over 5 years) revolve around scope definition and potential for unforeseen conditions. While FFP shifts cost overrun risk to the contractor, a poorly defined scope of 'reliability upgrades' could lead to disputes or change orders, potentially increasing the overall cost to the government or causing delays. The contractor might also face challenges in accurately estimating costs over such an extended period due to market fluctuations in labor and materials. Furthermore, if the project requires significant innovation or encounters unexpected technical hurdles, the contractor's ability to absorb additional costs under an FFP agreement could be strained, potentially impacting project completion or quality.
What specific 'reliability upgrades' are being undertaken at the Detroit Big Cliff facility, and what is the expected impact on operational effectiveness?
The provided data identifies the contract as 'DETROIT BIG CLIFF RELIABILITY UPGRADES' but does not specify the exact nature of these upgrades. Typically, reliability upgrades in a civil engineering context could involve reinforcing structures, upgrading electrical systems, improving water management, or enhancing safety features to prevent failures and ensure continuous operation. The expected impact on operational effectiveness would be a reduction in downtime, fewer maintenance interruptions, enhanced safety for personnel, and potentially improved efficiency of the facility's core functions. A detailed project statement of work would be required to understand the specific upgrades and their quantifiable benefits.
How has federal spending on 'Other Heavy and Civil Engineering Construction' evolved over the past decade, and where does this contract fit within that trend?
Federal spending on 'Other Heavy and Civil Engineering Construction' (NAICS 237990) can fluctuate based on infrastructure needs, economic conditions, and government priorities. Historically, this sector sees significant investment during periods of infrastructure renewal or expansion. This $11.1 million contract represents a specific investment within this broader category. To understand its place in the trend, one would analyze aggregate spending data for NAICS 237990 across federal agencies over the last 10 years. This would reveal whether overall spending in this sector has been increasing, decreasing, or remaining stable, and whether this contract's value is typical, large, or small relative to historical averages for similar projects.
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: TWO STEP
Solicitation ID: W9127N07R0017
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1919 LAURA ST, SPRINGFIELD, OR, 97477
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,107,434
Exercised Options: $11,107,434
Current Obligation: $11,107,434
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-04
Current End Date: 2013-04-01
Potential End Date: 2013-04-01 00:00:00
Last Modified: 2020-09-28
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