Army awards $6.7M contract for dam infrastructure upgrades at Chief Joseph Dam

Contract Overview

Contract Amount: $6,743,505 ($6.7M)

Contractor: Olsson Industrial Electric, Inc

Awarding Agency: Department of Defense

Start Date: 2024-12-10

End Date: 2028-05-03

Contract Duration: 1,240 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT, DEMOLITION, INSTALLATION, AND/OR REFURBISHMENT OF ISOLATED PHASE BUS SECTIONS AT CHIEF JOSEPH DAM, BRIDGEPORT, WA.

Place of Performance

Location: BRIDGEPORT, DOUGLAS County, WASHINGTON, 98813

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to OLSSON INDUSTRIAL ELECTRIC, INC for work described as: REPLACEMENT, DEMOLITION, INSTALLATION, AND/OR REFURBISHMENT OF ISOLATED PHASE BUS SECTIONS AT CHIEF JOSEPH DAM, BRIDGEPORT, WA. Key points: 1. Contract focuses on essential maintenance and refurbishment of critical dam components. 2. Competition was robust, suggesting a competitive market for specialized heavy civil engineering services. 3. The contract type (Firm Fixed Price) shifts cost risk to the contractor. 4. Performance period spans over four years, indicating a significant project scope. 5. The work is geographically concentrated in Washington state. 6. This contract supports the maintenance of vital national infrastructure.

Value Assessment

Rating: good

The contract value of $6.7 million for the refurbishment of isolated phase bus sections at Chief Joseph Dam appears reasonable given the scope and duration. While direct comparisons are difficult without more specific project details, similar large-scale civil engineering projects involving specialized electrical infrastructure can range from several million to tens of millions of dollars. The firm-fixed-price structure suggests that the contractor has assessed the risks and costs, and the awarded price reflects this assessment. Benchmarking against similar dam maintenance contracts would provide further insight into value for money.

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 fact that it was competed suggests a healthy market for these specialized services. The number of bidders is not specified, but full and open competition generally leads to better price discovery and potentially more favorable pricing for the government compared to limited or sole-source procurements.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and the continued reliable operation of Chief Joseph Dam. Services delivered include the replacement, demolition, installation, and refurbishment of isolated phase bus sections. The geographic impact is localized to Bridgeport, Washington, where the dam is located. The contract supports skilled labor in the heavy civil engineering and electrical construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions at the dam requiring scope adjustments.
Dependency on specialized equipment and materials that could face supply chain disruptions.
Ensuring contractor compliance with stringent safety and environmental regulations at a critical infrastructure site.

Positive Signals

Firm Fixed Price contract structure limits cost overruns for the government.
Long performance period allows for phased execution and potentially better resource allocation.
Award to a single contractor streamlines management and accountability.
Focus on essential infrastructure maintenance ensures operational continuity.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on electrical infrastructure upgrades at a major hydroelectric dam. The market for such specialized services is often characterized by a limited number of highly qualified firms capable of undertaking complex, large-scale projects. Spending in this sector is driven by the need to maintain and modernize aging infrastructure, including dams, bridges, and power generation facilities. Comparable spending benchmarks would typically involve other large federal or state-level infrastructure projects requiring similar technical expertise and project management.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Given the specialized nature and scale of the work, it is likely that the prime contractor will utilize its own resources or subcontract to other specialized firms, which may or may not be small businesses. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, which is responsible for the operation and maintenance of Chief Joseph Dam. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details are often internal. The Inspector General's office may have jurisdiction if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Corps of Engineers Dam Maintenance Programs
Federal Hydroelectric Facility Upgrades
Critical Infrastructure Modernization Projects
Electrical Systems Refurbishment Contracts

Risk Flags

Potential for schedule delays due to unforeseen site conditions.
Risk of disruption to power generation during critical work phases.
Dependency on specialized materials and skilled labor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to OLSSON INDUSTRIAL ELECTRIC, INC. REPLACEMENT, DEMOLITION, INSTALLATION, AND/OR REFURBISHMENT OF ISOLATED PHASE BUS SECTIONS AT CHIEF JOSEPH DAM, BRIDGEPORT, WA.

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 $6.7 million.

What is the period of performance?

Start: 2024-12-10. End: 2028-05-03.

What is the track record of Olsson Industrial Electric, Inc. with similar federal contracts, particularly those involving dam infrastructure or large electrical systems?

Olsson Industrial Electric, Inc. has a history of performing electrical construction and industrial services. While specific details on their past performance with federal dam infrastructure projects are not immediately available in this summary, their award on this contract suggests they possess the necessary qualifications and experience. A deeper dive into their contract history with agencies like the Army Corps of Engineers or the Bureau of Reclamation would reveal their success rates, past performance evaluations, and experience with similar project complexities. Examining their portfolio for projects involving large-scale power systems, substations, or heavy industrial electrical work would provide further context on their capabilities relevant to this Chief Joseph Dam contract.

How does the awarded price of $6.7 million compare to the estimated cost or budget for this project?

The provided data does not include the government's estimated cost or budget for this project, making a direct comparison impossible. The awarded price of $6.7 million represents the amount the government has agreed to pay Olsson Industrial Electric, Inc. for the specified work. To assess value for money, this figure would ideally be compared against the government's independent cost estimate, bids from other competitors, and historical data for similar refurbishment projects at other dams. Without this comparative data, it is difficult to definitively state whether the price represents excellent, fair, or questionable value.

What are the primary risks associated with the refurbishment of isolated phase bus sections at a hydroelectric dam?

Refurbishing isolated phase bus sections at a hydroelectric dam presents several significant risks. Firstly, there's the risk of unforeseen site conditions, such as discovering hidden structural damage, asbestos, or hazardous materials during demolition, which could lead to delays and cost increases. Secondly, the critical nature of dam operations means that any disruption to power generation or water management systems during the work could have severe economic and operational consequences; thus, careful scheduling and contingency planning are paramount. Thirdly, working with high-voltage electrical systems inherently carries safety risks for personnel. Finally, the availability of specialized parts and skilled labor for such niche equipment can be a risk, potentially leading to supply chain delays or increased material costs.

What is the expected impact of this contract on the operational reliability and efficiency of Chief Joseph Dam?

The refurbishment of isolated phase bus sections is expected to significantly enhance the operational reliability and efficiency of Chief Joseph Dam. Phase bus systems are critical components for transmitting power generated by the dam's turbines. By replacing or refurbishing these sections, the contract aims to mitigate the risk of equipment failure, reduce maintenance downtime, and ensure the stable and efficient flow of electricity. This upgrade is crucial for maintaining the dam's power output, supporting the regional grid, and preventing costly outages that could arise from aging or malfunctioning components.

How has federal spending on dam maintenance and infrastructure upgrades trended in recent years, and does this contract align with those trends?

Federal spending on dam maintenance and infrastructure upgrades has generally been increasing in recent years, driven by the aging nature of much of the nation's critical infrastructure and a growing recognition of the need for modernization and resilience. Programs administered by agencies like the Army Corps of Engineers and the Bureau of Reclamation often see consistent, substantial investment. This $6.7 million contract for Chief Joseph Dam aligns with these broader trends, reflecting the ongoing federal commitment to ensuring the safety, reliability, and efficiency of vital hydroelectric facilities across the country. The specific allocation reflects a targeted investment in a key component of the dam's power transmission system.

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: W912DW24R0027

Offers Received: 1

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,993,490

Exercised Options: $18,993,490

Current Obligation: $6,743,505

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline