Army awards $16.2M for Dexter Dam spillway gate repair, highlighting need for infrastructure maintenance

Contract Overview

Contract Amount: $16,247,508 ($16.2M)

Contractor: Knight Const. & Supply, Inc

Awarding Agency: Department of Defense

Start Date: 2010-08-05

End Date: 2014-05-23

Contract Duration: 1,387 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION CONTRACTS FOR DEXTER DAM AND RESERVOIR SPILLWAY TAINTER GATE REPAIR

Place of Performance

Location: LOWELL, LANE County, OREGON, 97452

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to KNIGHT CONST. & SUPPLY, INC for work described as: CONSTRUCTION CONTRACTS FOR DEXTER DAM AND RESERVOIR SPILLWAY TAINTER GATE REPAIR Key points: 1. Contract addresses critical infrastructure needs for dam safety and water management. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of nearly four years indicates a significant scope of work. 5. Awarded by the Department of the Army, underscoring defense-related infrastructure investment. 6. The contract falls under heavy and civil engineering construction, a vital sector.

Value Assessment

Rating: good

The contract value of $16.2 million for dam spillway gate repair appears reasonable given the scope and duration. Without specific benchmarks for similar complex civil engineering projects, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests an effort to lock in costs, which is generally favorable for the government. The duration of nearly four years implies a substantial undertaking, and the price reflects the complexity and potential risks associated with repairing critical infrastructure.

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 bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of two bidders, as indicated, suggests some level of competition, though a higher number of bidders would generally be preferred to ensure maximum price discovery and value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages contractors to offer their most efficient solutions, potentially leading to cost savings.

Public Impact

Benefits the U.S. Army Corps of Engineers in maintaining critical dam infrastructure. Ensures the continued safe operation of the Dexter Dam and Reservoir. Supports regional water management and flood control capabilities. Provides employment opportunities within the heavy and civil engineering construction sector in Oregon. Contributes to the overall resilience of national infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended repair period.
Risk of schedule delays due to the complexity of dam infrastructure repairs.
Dependence on the contractor's expertise for critical safety-related repairs.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a robust selection process.
Awarded by a major federal agency (Department of the Army) implying adherence to stringent standards.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is crucial for maintaining and upgrading national infrastructure. The market for dam and spillway repair is specialized, often involving a limited number of highly qualified contractors. Spending in this area is driven by the need for infrastructure modernization, safety compliance, and disaster preparedness. Comparable spending benchmarks would typically be found within Army Corps of Engineers projects or similar large-scale civil works.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This suggests that the primary contractor was selected based on qualifications and price, without a specific mandate to engage small businesses. The impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily includes them in their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which is responsible for the maintenance and operation of federal dams. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details may not be publicly available.

Related Government Programs

Army Corps of Engineers Civil Works Program
Federal Dam Safety and Infrastructure Improvement Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for unforeseen conditions impacting cost and schedule.
Long project duration increases risk exposure.
Critical infrastructure repair requires high contractor competency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to KNIGHT CONST. & SUPPLY, INC. CONSTRUCTION CONTRACTS FOR DEXTER DAM AND RESERVOIR SPILLWAY TAINTER GATE REPAIR

Who is the contractor on this award?

The obligated recipient is KNIGHT CONST. & SUPPLY, 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 $16.2 million.

What is the period of performance?

Start: 2010-08-05. End: 2014-05-23.

What is the track record of Knight Construction & Supply, Inc. on similar federal infrastructure projects?

Knight Construction & Supply, Inc. has a history of performing various construction projects, including those for federal agencies. While specific details on their track record for dam and spillway repairs of this magnitude require deeper investigation into past performance reviews and project completion reports, their selection for this significant contract suggests they met the qualification criteria set forth by the Department of the Army. Analyzing their past performance on similar civil engineering projects, including adherence to schedules, budget management, and quality of work, would provide a clearer picture of their capabilities and reliability for this specific task. Federal procurement databases and agency performance rating systems can offer insights into their historical success rates and any past issues encountered.

How does the awarded price compare to similar dam repair contracts?

Benchmarking the $16.2 million award for the Dexter Dam spillway gate repair against similar contracts is challenging without access to a comprehensive database of comparable projects. Factors such as the specific type of gates, the extent of structural repairs needed, geographic location, and prevailing labor and material costs can significantly influence pricing. However, the firm fixed-price nature of the contract suggests an effort to achieve cost certainty. A detailed comparison would involve analyzing contracts for similar dam infrastructure repairs awarded by the Army Corps of Engineers or other federal agencies over the past few years, considering project scope, duration, and complexity to establish a reasonable value-for-money assessment.

What are the primary risks associated with this type of construction contract?

The primary risks associated with this construction contract include unforeseen site conditions, such as discovering structural damage beyond the initial assessment, which could lead to cost overruns and schedule delays. The complexity of working on active dam infrastructure presents safety risks for workers and potential impacts on dam operations. Furthermore, the nearly four-year duration increases the risk of material price escalation and potential contractor performance issues over an extended period. The firm fixed-price contract, while beneficial for cost control, shifts much of this risk to the contractor, potentially leading to claims or disputes if significant unforeseen issues arise.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for projects where the scope of work is well-defined and risks can be reasonably assessed upfront. For the Dexter Dam spillway gate repair, the FFP structure provides the government with cost certainty, as the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and mitigate risks. However, if significant unforeseen issues arise that were not reasonably foreseeable at the time of contract award, the contractor may seek equitable adjustments, potentially increasing the total cost. The success of the FFP in this case depends on the thoroughness of the initial project scope definition and risk assessment.

What is the historical spending pattern for dam and spillway maintenance by the Department of the Army?

Historical spending by the Department of the Army on dam and spillway maintenance reflects a consistent need for infrastructure upkeep and modernization. The Army Corps of Engineers, responsible for a vast portfolio of civil works projects, allocates significant resources annually to ensure the safety and operational integrity of dams and associated structures. Spending patterns are influenced by factors such as the age of the infrastructure, regulatory requirements for dam safety, and the availability of federal funding. Analyzing past budgets and contract awards for similar repair and maintenance projects would reveal trends in investment levels, highlighting recurring needs and the typical scale of such undertakings.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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: W9127N10R0040

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28308 N CEDAR RD, DEER PARK, WA, 99006

Business Categories: Category Business, Emerging Small Business, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,247,508

Exercised Options: $16,247,508

Current Obligation: $16,247,508

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline