Army awards $16.4M for fish ladder pump replacement, impacting Oregon's aquatic ecosystems

Contract Overview

Contract Amount: $16,393,682 ($16.4M)

Contractor: Olsson Industrial Electric, Inc

Awarding Agency: Department of Defense

Start Date: 2010-08-20

End Date: 2017-12-15

Contract Duration: 2,674 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::138171::RP# JOHN DAY NORTH FISH LADDER AWS PUMP REPLACEMENT PROJECT. CONTRACT AWARDS BASE CLINS 7001 AND 7002 FOR THE ENGINEERING AND DYNAMIC ANALYSIS MODEL REPORT AND HYDRAULIC MODEL TESTING.

Place of Performance

Location: RUFUS, SHERMAN County, OREGON, 97050

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to OLSSON INDUSTRIAL ELECTRIC, INC for work described as: TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::138171::RP# JOHN DAY NORTH FISH LADDER AWS PUMP REPLACEMENT PROJECT. CONTRACT AWARDS BASE CLINS 7001 AND 7002 FOR THE ENGINEERING AND DYNAMIC ANALYSIS MODEL REPORT AND HYDRAULIC MODEL TESTING. Key points: 1. Contract focused on engineering analysis and hydraulic model testing for a critical fish passage project. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The project duration of 2674 days indicates a long-term, complex undertaking. 4. The firm-fixed-price contract type aims to control costs for the government. 5. The project is situated in Oregon, potentially benefiting local aquatic environments and infrastructure. 6. The North American Industry Classification System (NAICS) code 333911 points to pump and pumping equipment manufacturing.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the engineering services and hydraulic testing performed. The total award amount of $16.4 million over a multi-year period suggests a significant investment in the project's design and analysis phases. Comparisons to similar fish ladder modernization projects would be necessary to fully assess value for money, as the scope includes specialized engineering and modeling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders suggests a reasonable level of competition for this specialized engineering and analysis work. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are likely the aquatic ecosystems in Oregon, with improved fish passage. Services delivered include engineering analysis and hydraulic model testing for pump replacement. The geographic impact is focused on the John Day Dam area in Oregon. The project supports environmental infrastructure and potentially the long-term health of fish populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2674 days) could introduce risks of cost overruns or scope creep if not managed effectively.
Specialized engineering services may have limited contractor availability, potentially impacting future competition.
Reliance on specific pump technology could lead to vendor lock-in if not carefully specified.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps mitigate cost uncertainty for the government.
The project addresses critical environmental infrastructure needs, aligning with conservation goals.

Sector Analysis

This contract falls within the broader engineering services and infrastructure development sector. The specific focus on hydraulic modeling and pump replacement for environmental purposes highlights a niche within civil and environmental engineering. Comparable spending benchmarks would typically be found in projects related to dam maintenance, environmental remediation, and aquatic ecosystem restoration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, OLSSON INDUSTRIAL ELECTRIC, INC, is not explicitly identified as a small business in this context. There is no direct information on subcontracting plans for small businesses within this award. Further investigation into subcontracting goals would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management offices. The firm-fixed-price nature of the award provides a degree of cost control. Transparency would be enhanced through contract award databases and reporting requirements. Specific Inspector General jurisdiction would depend on the nature of any potential issues arising during contract performance.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Fish and Wildlife Service Restoration Projects
Bonneville Power Administration Fish Passage Programs
Environmental Infrastructure Projects

Risk Flags

Long project duration may increase risk of cost overruns.
Potential for scope creep given the extended timeline.
Dependence on specialized engineering analysis requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to OLSSON INDUSTRIAL ELECTRIC, INC. TAS::96 3134::TAS ARRA::YES::ARRA RECOVERYPROJECT#::138171::RP# JOHN DAY NORTH FISH LADDER AWS PUMP REPLACEMENT PROJECT. CONTRACT AWARDS BASE CLINS 7001 AND 7002 FOR THE ENGINEERING AND DYNAMIC ANALYSIS MODEL REPORT AND HYDRAULIC MODEL TESTING.

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 $16.4 million.

What is the period of performance?

Start: 2010-08-20. End: 2017-12-15.

What is the specific technical scope of the 'engineering and dynamic analysis model report' and 'hydraulic model testing' for the AWS pump replacement?

The 'engineering and dynamic analysis model report' likely involves detailed structural and operational assessments of the existing pump systems and the proposed replacements, ensuring they meet performance and safety standards under various conditions. The 'hydraulic model testing' would simulate water flow dynamics through the fish ladder and around the new pumps to optimize efficiency, minimize disruption to fish passage, and ensure the pumps operate effectively within the specific environmental conditions of the John Day Dam. This testing is crucial for validating the design and predicting real-world performance, especially concerning fish migration patterns and water levels.

How does the $16.4 million award compare to the typical costs for similar fish ladder pump replacement projects?

Direct cost comparisons for fish ladder pump replacements are difficult without detailed project specifications and geographic context. However, $16.4 million for the engineering, analysis, and testing phases of a major pump system upgrade at a large facility like the John Day Dam appears to be within a reasonable range, considering the complexity of hydraulic modeling and environmental compliance. Smaller, less complex pump replacements might cost significantly less, while projects involving extensive structural modifications or multiple pump units could exceed this figure. The long duration (2674 days) suggests a comprehensive scope that justifies a substantial investment.

What are the primary risks associated with a project of this duration and scope?

The primary risks for a project spanning 2674 days (over 7 years) include significant potential for cost escalation due to inflation or unforeseen technical challenges, delays caused by environmental permitting issues or contractor performance, and scope creep where additional requirements are added over time. Technological obsolescence of the chosen pump systems or analysis tools before project completion is also a risk. Furthermore, changes in regulatory requirements or environmental conditions could necessitate design modifications. Effective project management, contingency planning, and robust contract oversight are critical to mitigating these risks.

What is the track record of OLSSON INDUSTRIAL ELECTRIC, INC. in performing similar large-scale infrastructure or environmental engineering contracts?

Information regarding OLSSON INDUSTRIAL ELECTRIC, INC.'s specific track record on large-scale infrastructure or environmental engineering contracts of this magnitude is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar projects, including their history with the Department of the Army or other federal agencies, their on-time and on-budget completion rates, and any documented performance issues or commendations. Their specialization in 'Pump and Pumping Equipment Manufacturing' (NAICS 333911) suggests relevant expertise, but the scale and complexity of this particular project warrant further due diligence on their capabilities.

What are the expected long-term benefits of this pump replacement for fish passage and the local ecosystem?

The long-term benefits are expected to be significant improvements in fish passage efficiency and survival rates at the John Day Dam. Modernized pumps, designed through detailed hydraulic analysis, should reduce stress and mortality for migrating fish species by optimizing water flow and minimizing turbulence or barriers. This contributes to the health and sustainability of fish populations, supports regional fisheries, and helps meet environmental mitigation goals mandated by regulations. The project also ensures the continued reliable operation of the dam's infrastructure while enhancing its ecological function.

How does this contract fit into the broader context of federal spending on environmental infrastructure and fish passage projects?

This contract represents a specific investment within the larger federal commitment to environmental infrastructure and ecological restoration. Federal agencies, particularly the Army Corps of Engineers and the Department of the Interior, allocate substantial funds annually towards maintaining and improving infrastructure like dams and waterways to balance energy production, navigation, and environmental protection. Projects focused on fish passage are critical components of this spending, aimed at mitigating the impact of historical infrastructure development on migratory species and complying with environmental laws such as the Endangered Species Act. This award reflects a targeted effort to address a specific environmental bottleneck.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Pump and Pumping Equipment Manufacturing

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT OF RESTORATION ACTIVITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9127N10R0026

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Itochu Corporation (UEI: 690535638)

Address: 1919 LAURA ST, SPRINGFIELD, OR, 97477

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,393,682

Exercised Options: $16,393,682

Current Obligation: $16,393,682

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline