DoD awards $19.7M for crane replacement, with 4 bidders competing for overhead traveling crane manufacturing

Contract Overview

Contract Amount: $19,663,208 ($19.7M)

Contractor: Reel COH Inc

Awarding Agency: Department of Defense

Start Date: 2021-06-01

End Date: 2026-03-31

Contract Duration: 1,764 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTAKE AND TAILRACE CRANE REPLACEMENT

Place of Performance

Location: BRIDGEPORT, DOUGLAS County, WASHINGTON, 98813

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to REEL COH INC for work described as: INTAKE AND TAILRACE CRANE REPLACEMENT Key points: 1. Value for money appears reasonable given the specialized nature of the equipment and the competitive bidding process. 2. Competition dynamics show a healthy level of interest with four bidders participating in the full and open competition. 3. Risk indicators are moderate, primarily related to the complexity of manufacturing specialized industrial equipment and potential schedule delays. 4. Performance context suggests a need for critical infrastructure upgrades within the Department of the Army. 5. Sector positioning places this contract within the industrial equipment manufacturing segment, supporting defense readiness.

Value Assessment

Rating: good

The contract value of approximately $19.7 million for crane replacement appears to be within a reasonable range for specialized industrial equipment. Benchmarking against similar large-scale crane manufacturing contracts is difficult without more specific technical details. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if managed effectively. The presence of multiple bidders also supports the likelihood of a fair market price being established.

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 offers. The participation of four bidders suggests a competitive environment for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific nature of the equipment may limit the pool of qualified bidders, but four participants is a solid number.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it fosters a competitive environment, driving down prices and ensuring the government receives the best value for its investment in critical infrastructure.

Public Impact

The Department of the Army benefits from upgraded and reliable crane systems, essential for operational readiness and maintenance. Services delivered include the manufacturing and potentially installation of overhead traveling cranes and associated systems. The geographic impact is likely concentrated in Washington state, where the contract is being performed. Workforce implications include employment opportunities for skilled manufacturing labor, engineers, and project managers involved in the production and delivery of the cranes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for manufacturing delays impacting operational readiness if production timelines are not met.
Ensuring the specialized equipment meets all stringent military specifications and performance requirements.
Managing the complexity of integrating new crane systems into existing infrastructure.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type shifts cost risk to the contractor.
The contract duration allows for phased manufacturing and delivery, potentially mitigating immediate supply chain pressures.

Sector Analysis

This contract falls within the industrial equipment manufacturing sector, specifically focusing on heavy machinery like overhead traveling cranes. This sector is crucial for supporting various industries, including defense, construction, and logistics. The market for specialized industrial cranes is often characterized by a limited number of highly capable manufacturers due to the technical expertise and capital investment required. Spending in this area is driven by infrastructure modernization, replacement of aging equipment, and specific operational needs.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract, as indicated by 'sb': false. While the prime contractor is REEL COH INC, the extent of small business subcontracting is not detailed here. Future analysis could explore subcontracting plans to assess the impact on the small business ecosystem and ensure opportunities are provided where feasible.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. The firm-fixed-price nature provides a degree of financial oversight by locking in costs. 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

Defense Industrial Base Manufacturing
Heavy Equipment Procurement
Military Infrastructure Modernization
Industrial Machinery Manufacturing
Government Fixed-Price Contracts

Risk Flags

Potential for schedule slippage due to manufacturing complexity.
Ensuring adherence to stringent military specifications.
Supply chain vulnerability for specialized components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to REEL COH INC. INTAKE AND TAILRACE CRANE REPLACEMENT

Who is the contractor on this award?

The obligated recipient is REEL COH 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 $19.7 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-03-31.

What is the historical spending pattern for overhead traveling cranes by the Department of Defense?

Historical spending on overhead traveling cranes by the Department of Defense is not readily available as a distinct category in public databases. However, spending on industrial equipment and manufacturing support services for military installations is substantial and ongoing. The DoD frequently procures specialized machinery for maintenance, repair, and operational facilities across various branches. This specific contract for crane replacement suggests a need to update aging infrastructure or enhance capabilities at a particular Army facility. Analyzing broader categories like 'Industrial Equipment Manufacturing' or 'Maintenance and Repair Services' for the Army over the past five to ten years would provide context for the scale of such procurements, though direct comparisons to this specific crane replacement contract would require detailed analysis of individual awards.

How does the number of bidders (4) compare to similar large-scale industrial equipment manufacturing contracts?

A competition with four bidders for a specialized, high-value contract like overhead traveling crane manufacturing is generally considered healthy. For highly technical or niche requirements, the pool of qualified bidders can be limited. Contracts for standard goods or services might see significantly more bidders. However, in the realm of specialized industrial machinery, four offers often indicate sufficient competition to drive reasonable pricing and ensure a fair selection process. If the number of bidders were consistently lower (e.g., one or two) across similar procurements, it might signal market consolidation or barriers to entry that could warrant further investigation into competition dynamics and potential impacts on long-term pricing.

What are the primary risks associated with manufacturing and delivering specialized overhead traveling cranes for military applications?

The primary risks associated with manufacturing and delivering specialized overhead traveling cranes for military applications include technical complexity and performance specifications, manufacturing delays, supply chain disruptions for critical components, and integration challenges with existing infrastructure. Military applications often demand higher durability, specific load capacities, and adherence to stringent safety and operational standards beyond commercial equivalents. Ensuring the final product meets all precise military specifications is paramount. Delays in manufacturing or delivery can impact the operational readiness of the facility the crane is intended for. Furthermore, the specialized nature of the components may make the supply chain vulnerable to disruptions, potentially leading to cost increases or schedule slippage.

What is the typical contract duration for large-scale crane manufacturing projects awarded by the federal government?

The typical contract duration for large-scale crane manufacturing projects awarded by the federal government can vary significantly based on the complexity, quantity, and delivery requirements. Projects involving custom fabrication and specialized engineering, like overhead traveling cranes for military use, often have longer performance periods. Durations can range from 12 months for simpler procurements to several years for extensive projects involving multiple units, complex integration, or phased delivery schedules. This specific contract, with an end date in March 2026 from a June 2021 start, spans approximately 4.75 years. This duration is consistent with projects requiring significant design, manufacturing, testing, and potential installation phases, allowing for methodical execution and risk management.

How does a firm-fixed-price (FFP) contract structure benefit the government in this type of procurement?

A firm-fixed-price (FFP) contract structure is highly beneficial for the government in procurements like this crane replacement project because it transfers the majority of the financial risk to the contractor. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's cost experience. This provides cost certainty for the government, allowing for more predictable budgeting and financial planning. The contractor is incentivized to manage their costs efficiently and complete the work within the agreed-upon price. While FFP contracts can sometimes lead to higher initial prices to account for contractor risk, they generally offer the best protection against cost overruns, especially for requirements with well-defined scopes of work, such as the manufacturing of specific equipment like cranes.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Overhead Traveling Crane, Hoist, and Monorail System Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW21R0033

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 801 BOUL DU CURE-BOIVIN, BOISBRIAND

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $19,838,208

Exercised Options: $19,663,208

Current Obligation: $19,663,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline