Libby Dam Unit 6 Installation Contract Awarded for $25.2M to Olsson Industrial Electric
Contract Overview
Contract Amount: $25,212,859 ($25.2M)
Contractor: Olsson Industrial Electric, Inc
Awarding Agency: Department of Defense
Start Date: 2024-06-10
End Date: 2027-05-27
Contract Duration: 1,081 days
Daily Burn Rate: $23.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LIBBY DAM UNIT 6 INSTALLATION
Place of Performance
Location: LIBBY, LINCOLN County, MONTANA, 59923
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $25.2 million to OLSSON INDUSTRIAL ELECTRIC, INC for work described as: LIBBY DAM UNIT 6 INSTALLATION Key points: 1. Contract awarded to Olsson Industrial Electric, Inc. for $25.2M. 2. Project falls under 'Other Heavy and Civil Engineering Construction' sector. 3. Full and open competition was utilized for this award. 4. The contract duration is 1081 days, ending May 27, 2027.
Value Assessment
Rating: good
The contract value of $25.2M appears reasonable for a large-scale construction project of this nature. Benchmarking against similar heavy civil engineering projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified vendors to bid.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this critical infrastructure project.
Public Impact
Ensures continued operation and maintenance of critical dam infrastructure. Supports regional economic activity through construction jobs and material procurement. Enhances the reliability of power generation and water management capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to project complexity and duration.
- Risk of schedule delays impacting critical infrastructure availability.
Positive Signals
- Awarded through full and open competition, indicating potential for good value.
- Clear contract type (Firm Fixed Price) limits contractor risk and potential for cost escalation.
Sector Analysis
This contract is within the heavy and civil engineering construction sector, which often involves large-scale, complex projects. Spending benchmarks for similar dam infrastructure projects would be relevant for comparison.
Small Business Impact
The data does not indicate specific participation or subcontracting by small businesses. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The firm fixed price contract and defined scope should aid in accountability.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting critical infrastructure.
- Unforeseen site conditions could lead to cost increases.
- Dependency on specialized labor or equipment.
- Integration challenges with existing dam systems.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, mt, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.2 million to OLSSON INDUSTRIAL ELECTRIC, INC. LIBBY DAM UNIT 6 INSTALLATION
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 $25.2 million.
What is the period of performance?
Start: 2024-06-10. End: 2027-05-27.
What is the historical cost performance of similar dam unit installation projects?
Historical cost performance for similar dam unit installation projects can vary significantly based on project complexity, location, and specific equipment involved. Analyzing past projects with similar scope and scale can reveal common cost drivers and potential areas for overruns or savings. Benchmarking against these historical trends is crucial for assessing the current contract's value and identifying potential risks early on.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators for this contract should focus on timely completion of milestones, adherence to quality standards for the Unit 6 installation, and successful integration with existing dam systems. Performance metrics related to safety incident rates and environmental compliance are also critical. Regular progress reviews against these KPIs will help ensure the project's effectiveness and identify any deviations from the plan.
Are there any identified risks associated with the specific technology or site conditions for Libby Dam Unit 6?
Potential risks associated with the specific technology or site conditions for Libby Dam Unit 6 could include unforeseen geological challenges, compatibility issues with aging infrastructure, or specialized labor requirements. A thorough risk assessment should have been conducted prior to award, identifying mitigation strategies for any identified technical or environmental hazards. Understanding these specific risks is vital for effective project management and cost control.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DW23R0006
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: IPC Industries, Inc.
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: $34,868,419
Exercised Options: $33,217,229
Current Obligation: $25,212,859
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $13,401,156
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-10
Current End Date: 2027-05-27
Potential End Date: 2027-05-27 00:00:00
Last Modified: 2025-12-12
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