Army awards $12.2M contract for Bonneville Dam spillway gate repair, highlighting infrastructure needs

Contract Overview

Contract Amount: $12,236,466 ($12.2M)

Contractor: Northbank Civil and Marine, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-12

End Date: 2027-10-28

Contract Duration: 1,172 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BONNEVILLE DAM - SPILLWAY GATE REPAIR PIT UPGRADES

Place of Performance

Location: NORTH BONNEVILLE, SKAMANIA County, WASHINGTON, 98639

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to NORTHBANK CIVIL AND MARINE, LLC for work described as: BONNEVILLE DAM - SPILLWAY GATE REPAIR PIT UPGRADES Key points: 1. Contract value of $12.2 million addresses critical infrastructure maintenance. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The definitive contract type indicates a need for flexibility in scope or execution. 4. Project duration of 1172 days points to a complex and lengthy repair process. 5. The award to NORTHBANK CIVIL AND MARINE, LLC requires assessment of their capacity for such a significant project. 6. Geographic focus on Washington state impacts regional infrastructure and workforce.

Value Assessment

Rating: fair

The contract value of $12.2 million for spillway gate repair at Bonneville Dam appears to be within a reasonable range for major civil engineering projects of this nature. However, without specific benchmarks for similar spillway gate repair projects across the Department of Defense or other federal agencies, a precise value-for-money assessment is challenging. The firm fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for cost control if the scope is well-defined. Further analysis would require comparing this contract's unit costs for specific repair elements (e.g., per gate, per linear foot of repair) to industry standards or historical data for comparable projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method suggests that while the competition was intended to be broad, certain sources were initially excluded, possibly due to specific technical requirements, past performance issues, or other pre-qualification criteria. The fact that it was still 'full and open' after exclusions implies that multiple capable bidders were still able to participate. The number of bidders (4) is moderate, indicating some level of competition, but the initial exclusion of sources might have limited the overall pool of potential offerors, potentially impacting the intensity of price competition.

Taxpayer Impact: The moderate competition level, despite initial source exclusions, suggests that taxpayers likely received a reasonably competitive price. However, the exclusion of certain sources could have potentially limited the downward pressure on pricing that a truly unrestricted full and open competition might have achieved.

Public Impact

The primary beneficiaries are the Department of the Army and the broader public relying on the operational integrity of the Bonneville Dam for power generation and navigation. The services delivered include critical repairs and upgrades to spillway gates, ensuring the dam's continued functionality and safety. The geographic impact is concentrated in Washington state, specifically around the Bonneville Dam, affecting local infrastructure and potentially regional water management. Workforce implications may include employment opportunities for skilled labor in civil engineering, construction, and specialized repair services in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to ensure it was justified and did not unduly restrict competition.
The definitive contract type, while offering flexibility, can sometimes lead to scope creep if not managed meticulously, potentially increasing final costs.
The long project duration (1172 days) increases the risk of unforeseen issues, material price fluctuations, or contractor performance challenges over time.

Positive Signals

The award was made under a 'full and open' competition framework, indicating that multiple bidders were considered.
The firm fixed-price contract type generally provides cost certainty for the government, assuming the scope is well-defined.
The moderate number of bidders (4) suggests that there were qualified contractors available for this specialized work.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on critical infrastructure maintenance for water management and power generation facilities. The market for such specialized repairs is often characterized by a limited number of highly qualified firms capable of undertaking large-scale, complex projects. Comparable spending benchmarks would typically involve analyzing other large dam maintenance contracts awarded by agencies like the Army Corps of Engineers, Bureau of Reclamation, or other energy infrastructure providers. The total federal spending in this sub-sector can fluctuate based on infrastructure investment cycles and the aging of existing facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and significant value of spillway gate repair, it is common for such contracts to be awarded to larger, established firms with the requisite expertise and bonding capacity. There is no explicit information on subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem would likely be indirect, potentially through opportunities with the prime contractor if they choose to subcontract, rather than direct set-aside awards.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the awarding agency, the Department of the Army, likely through contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified repairs within the agreed-upon price. Transparency is generally facilitated through contract award notices and public databases like SAM.gov. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Bonneville Dam Operations and Maintenance
Army Corps of Engineers Civil Works Projects
Federal Infrastructure Repair Programs
Dam Safety and Security Initiatives
Hydroelectric Power Generation Infrastructure

Risk Flags

Potential for scope creep due to long project duration.
Risk of material price escalation over the contract term.
Justification for initial source exclusion requires review.
Contractor performance monitoring is critical given the project's length.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to NORTHBANK CIVIL AND MARINE, LLC. BONNEVILLE DAM - SPILLWAY GATE REPAIR PIT UPGRADES

Who is the contractor on this award?

The obligated recipient is NORTHBANK CIVIL AND MARINE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2024-08-12. End: 2027-10-28.

What is the track record of NORTHBANK CIVIL AND MARINE, LLC with similar large-scale civil engineering and dam repair projects?

Assessing the track record of NORTHBANK CIVIL AND MARINE, LLC is crucial for understanding their capability to execute this $12.2 million contract. A review of their past performance, particularly on projects involving dam infrastructure, spillway gates, or heavy civil construction, would be necessary. This would include examining the size and complexity of previous contracts, their on-time and on-budget delivery history, and any documented performance issues or disputes. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable. Without this specific data, it's difficult to definitively gauge their suitability beyond the fact that they were selected through a competitive process.

How does the awarded price compare to industry benchmarks for spillway gate repair services?

Determining the value for money requires benchmarking this $12.2 million contract against similar projects. This involves identifying comparable contracts for spillway gate repairs at other federal or state-owned dams, considering factors like the number and type of gates, the extent of the required repairs (e.g., structural, mechanical, electrical), and the geographic location which can influence labor and material costs. Analyzing the unit costs for specific repair elements (e.g., cost per gate repaired, cost per linear foot of weld) would provide a more granular comparison. The firm fixed-price nature of the contract suggests the government sought cost certainty, but the initial bid prices from the four competitors would offer the best insight into market rates.

What are the specific risks associated with a 1172-day duration for this repair project?

A project duration of 1172 days (approximately 3.2 years) for spillway gate repairs introduces several significant risks. Firstly, there is an increased likelihood of encountering unforeseen site conditions or technical challenges that were not apparent during the initial assessment, potentially leading to scope changes and cost increases, despite the firm fixed-price contract. Secondly, extended timelines elevate the risk of material price escalation, especially for specialized components, which could strain the contractor's budget if not adequately accounted for. Thirdly, prolonged construction periods can impact the dam's operational flexibility and may require more complex phasing plans. Finally, contractor performance can degrade over such a long period due to personnel turnover or shifts in company priorities, necessitating robust oversight.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a nuanced approach to competition. It suggests that the agency initially identified a need but then excluded certain potential sources before opening the competition to all remaining responsible sources. This exclusion could be based on specific technical capabilities, security requirements, or past performance concerns. While it aims to ensure that only qualified entities participate, it inherently narrows the competitive pool compared to unrestricted full and open competition. The fact that four bidders ultimately participated suggests that a sufficient number of capable firms remained, but the rationale behind the initial exclusions is key to understanding if the competition was as robust as possible.

How does this contract fit into the broader context of federal spending on dam infrastructure maintenance?

This $12.2 million contract for Bonneville Dam spillway gate repair is part of a larger federal commitment to maintaining critical infrastructure, particularly within the Army Corps of Engineers' civil works mission. Federal spending on dam maintenance is often driven by aging infrastructure, regulatory requirements for safety, and the need to ensure reliable power generation and navigation. Such contracts are essential for addressing deferred maintenance backlogs and ensuring the long-term viability of these vital assets. Analyzing this award in conjunction with other similar contracts awarded across different agencies (e.g., Bureau of Reclamation, Department of Energy) can provide insights into overall federal investment trends in water infrastructure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: W9127N23R0032

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4180 NW FRUIT VALLEY RD, VANCOUVER, WA, 98660

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

Financial Breakdown

Contract Ceiling: $13,310,935

Exercised Options: $13,310,935

Current Obligation: $12,236,466

Actual Outlays: $88,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline