DoD awards $5.3M contract for draft tube bulkhead replacement, impacting South Dakota infrastructure

Contract Overview

Contract Amount: $5,297,700 ($5.3M)

Contractor: AMS Industrial LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-11

End Date: 2027-08-03

Contract Duration: 600 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS PROJECT WILL REPLACE SIX DRAFT TUBE BULKHEADS, CONSISTING OF 12 SHEAFS, ARE REQUIRED. DEWATERING OF A UNIT IS REQUIRED FOR ANNUAL MAINTENANCE, CAVITATION REPAIR, CONTRACTED WORK, AND PERIODIC INSPECTIONS.

Place of Performance

Location: FORT THOMPSON, BUFFALO County, SOUTH DAKOTA, 57339

State: South Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to AMS INDUSTRIAL LLC for work described as: THIS PROJECT WILL REPLACE SIX DRAFT TUBE BULKHEADS, CONSISTING OF 12 SHEAFS, ARE REQUIRED. DEWATERING OF A UNIT IS REQUIRED FOR ANNUAL MAINTENANCE, CAVITATION REPAIR, CONTRACTED WORK, AND PERIODIC INSPECTIONS. Key points: 1. Contract addresses critical infrastructure maintenance for draft tube bulkheads. 2. Competition was open after exclusion of sources, suggesting potential for specialized capabilities. 3. The contract duration of 600 days indicates a significant, multi-year project. 4. The firm-fixed-price structure shifts risk to the contractor. 5. Project is located in South Dakota, potentially impacting local workforce and economy. 6. The North American Industry Classification System (NAICS) code 237990 points to heavy civil engineering construction.

Value Assessment

Rating: fair

The contract value of $5.3 million for replacing six draft tube bulkheads appears reasonable given the scope of heavy civil engineering construction. However, without specific details on the complexity of the bulkheads, the extent of dewatering required, or the specific materials, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale infrastructure repair projects would provide further context on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources may have been excluded based on specific criteria. With 7 bidders, there was a moderate level of competition, which should have contributed to price discovery. However, the exclusion of sources might limit the full spectrum of competitive pricing.

Taxpayer Impact: The moderate competition suggests that taxpayers likely received a fair price, but the exclusion of some potential bidders means the possibility of even lower prices from a wider pool of competitors was not fully realized.

Public Impact

The primary beneficiaries are the Department of Defense and the operational integrity of its facilities requiring draft tube maintenance. The services delivered include the replacement of critical infrastructure components (draft tube bulkheads) and necessary dewatering operations. The geographic impact is concentrated in South Dakota, where the project will be executed. The project will likely create or sustain jobs in the heavy civil engineering and construction sectors within the local South Dakota economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or dewatering challenges arise.
Risk of schedule delays impacting facility operational readiness if the contractor faces resource constraints.
Ensuring compliance with environmental regulations during dewatering and construction activities.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Multiple bidders indicate a competitive environment that should drive performance.
The project addresses essential infrastructure maintenance, ensuring long-term operational capability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure maintenance and repair. This sector is characterized by large-scale projects, significant capital investment, and often involves specialized equipment and expertise. Comparable spending benchmarks would typically involve other large federal or state infrastructure projects, such as bridge construction, dam repair, or utility system upgrades.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. Given the nature and scale of heavy civil engineering construction, it is possible that the prime contractor may engage small businesses as subcontractors. However, without explicit subcontracting plans or set-aside goals, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring adherence to contract terms, specifications, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Department of the Interior Bureau of Reclamation Infrastructure
Federal Highway Administration Construction Contracts
Department of Energy Facility Maintenance and Construction

Risk Flags

Potential for schedule delays due to dewatering complexity.
Risk of unforeseen site conditions impacting cost.
Environmental compliance during dewatering operations.
Contractor's past performance on similar large-scale infrastructure projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to AMS INDUSTRIAL LLC. THIS PROJECT WILL REPLACE SIX DRAFT TUBE BULKHEADS, CONSISTING OF 12 SHEAFS, ARE REQUIRED. DEWATERING OF A UNIT IS REQUIRED FOR ANNUAL MAINTENANCE, CAVITATION REPAIR, CONTRACTED WORK, AND PERIODIC INSPECTIONS.

Who is the contractor on this award?

The obligated recipient is AMS INDUSTRIAL 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 $5.3 million.

What is the period of performance?

Start: 2025-12-11. End: 2027-08-03.

What is the historical spending pattern for draft tube bulkhead replacements by the Department of Defense?

Analyzing historical spending for similar draft tube bulkhead replacements by the Department of Defense is crucial for contextualizing the current $5.3 million award. Without access to a comprehensive database of past contracts specifically for this type of repair, it's difficult to establish a precise trend. However, federal agencies like the DoD, particularly branches involved in water management or power generation (like the Army Corps of Engineers), frequently undertake infrastructure maintenance. The frequency and cost of such repairs are influenced by the age of facilities, material degradation, and evolving safety standards. A review of past solicitations and awards for dam, lock, and power plant maintenance could reveal patterns in contract values, durations, and the types of contractors engaged. This would help determine if $5.3 million represents a typical, high, or low cost for such a project.

How does the contractor, AMS INDUSTRIAL LLC, perform on similar federal contracts?

AMS INDUSTRIAL LLC's performance on similar federal contracts is a key indicator of their capability to execute this $5.3 million draft tube bulkhead replacement project. A thorough review of their contract history, particularly with the Department of Defense or other agencies involved in heavy civil engineering, would be necessary. This would involve examining past contract awards, their values, durations, and the scope of work performed. Performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data, would provide insights into their timeliness, quality of work, cost control, and overall customer satisfaction. Any history of contract disputes, terminations, or significant performance issues would raise red flags. Conversely, a track record of successful, on-time, and within-budget project completion would bolster confidence in their ability to deliver on this current contract.

What are the specific risks associated with dewatering operations for this project?

Dewatering operations for draft tube bulkheads present several specific risks that could impact project cost, schedule, and environmental compliance. These risks include potential groundwater inflow exceeding the capacity of pumping systems, leading to delays and increased operational costs. There's also the risk of sediment disturbance and release into waterways, necessitating stringent environmental controls and potentially costly mitigation measures. Structural integrity of the surrounding earth or concrete during dewatering is another concern, as hydrostatic pressure changes can affect stability. Furthermore, the presence of hazardous materials in the water or sediment could require specialized handling and disposal procedures. The effectiveness of temporary cofferdams or seals is critical; failure could lead to uncontrolled flooding. Finally, ensuring the safety of personnel working in dewatered areas, potentially below ambient water levels, requires robust safety protocols.

What is the expected impact of this contract on the South Dakota construction labor market?

This $5.3 million contract for draft tube bulkhead replacement is expected to have a positive, albeit localized, impact on the South Dakota construction labor market. Heavy civil engineering projects of this scale typically require a skilled workforce, including project managers, engineers, heavy equipment operators, ironworkers, concrete finishers, and general laborers. The duration of the contract (estimated 600 days) suggests sustained employment opportunities over a significant period. Depending on the availability of local skilled labor, the project may necessitate bringing in workers from outside the immediate area, potentially boosting local hospitality and service industries. It could also provide opportunities for local small businesses to act as subcontractors for specialized services or material supply. The demand generated by this contract could contribute to overall employment figures in the construction sector within the affected region of South Dakota.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method affect price and innovation?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced approach to procurement. It begins with the intent to compete broadly but allows for the exclusion of specific sources based on defined criteria, such as unique capabilities, past performance issues, or specific security requirements. This can potentially limit the number of bidders compared to a truly unrestricted full and open competition. While having multiple bidders (seven in this case) still fosters price competition, the exclusion of certain firms might mean that the lowest possible price achievable in a completely open market is not realized. Regarding innovation, the impact is mixed. If the exclusions are based on highly specialized requirements, it might encourage innovation among the eligible bidders who possess those specific technologies or methods. However, if the exclusions are arbitrary or overly restrictive, they could stifle innovation by preventing potentially more innovative solutions from firms that were excluded.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128F25RA058

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Mine Services LLC

Address: 130 MINERS DR, LAFAYETTE, CO, 80026

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,297,700

Exercised Options: $5,297,700

Current Obligation: $5,297,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline