DoD awards $6.67M contract for bridge crane rehabilitation, with a 2-bid competition

Contract Overview

Contract Amount: $6,674,290 ($6.7M)

Contractor: Garco Wemco a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2025-01-13

End Date: 2028-09-30

Contract Duration: 1,356 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACQUISITION FOR REHABILITATION OF THE BRIDGE CRANE IN THE AFD POWERHOUSE.

Place of Performance

Location: OLDTOWN, BONNER County, IDAHO, 83822

State: Idaho Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to GARCO WEMCO A JOINT VENTURE for work described as: ACQUISITION FOR REHABILITATION OF THE BRIDGE CRANE IN THE AFD POWERHOUSE. Key points: 1. The contract value of $6.67M for crane rehabilitation appears reasonable given the scope and duration. 2. Competition was limited to two bidders, suggesting potential for price negotiation but not optimal market exploration. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. This acquisition supports critical infrastructure maintenance within the Department of the Army. 5. The contract duration of over three years indicates a significant rehabilitation project. 6. The North American Industry Classification System (NAICS) code 333923 covers overhead traveling crane manufacturing, aligning with the contract's purpose.

Value Assessment

Rating: good

The contract value of $6.67M for the rehabilitation of a bridge crane in an Army powerhouse seems within a reasonable range for such specialized infrastructure work. Benchmarking against similar projects is challenging without more specific details on the crane's condition and required upgrades. However, the firm fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator of value management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With two bids received, the competition level was moderate. While two bidders suggest some level of market interest, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite only receiving two bids, ensures that taxpayers benefit from at least some market pressure on pricing. The government has a baseline to assess if the awarded price is competitive.

Public Impact

The primary beneficiaries are the Department of the Army, ensuring operational readiness of its facilities. The service delivered is the rehabilitation of essential heavy machinery, specifically a bridge crane. The geographic impact is localized to the Army facility in Idaho where the powerhouse is located. Workforce implications include skilled labor for specialized crane repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have restricted optimal price discovery.
The long contract duration (over 3 years) requires sustained oversight to ensure performance.

Positive Signals

Firm fixed-price contract type mitigates financial risk for the government.
Full and open competition provides a broad base for potential bidders.
The acquisition addresses critical infrastructure maintenance, ensuring operational continuity.

Sector Analysis

The contract falls within the industrial machinery manufacturing and repair sector, specifically related to overhead traveling cranes. This sector is characterized by specialized engineering and manufacturing capabilities. The market size for such specialized repair services is niche, often driven by the specific needs of large industrial facilities like powerhouses. Comparable spending benchmarks are difficult to establish without detailed project specifications, but large-scale industrial equipment rehabilitation can represent significant capital investment.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside. Given the specialized nature of bridge crane rehabilitation, it is possible that larger, more experienced firms dominate this market. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified work within the agreed price. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Military Base Infrastructure Maintenance
Heavy Equipment Repair Contracts
Department of Defense Facility Modernization

Risk Flags

Limited Competition
Potential for Cost Overruns (mitigated by FFP)
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to GARCO WEMCO A JOINT VENTURE. ACQUISITION FOR REHABILITATION OF THE BRIDGE CRANE IN THE AFD POWERHOUSE.

Who is the contractor on this award?

The obligated recipient is GARCO WEMCO A JOINT VENTURE.

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: 2025-01-13. End: 2028-09-30.

What is the track record of GARCO WEMCO A JOINT VENTURE with similar rehabilitation projects?

Information regarding GARCO WEMCO A JOINT VENTURE's specific track record with bridge crane rehabilitation projects is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar government or commercial contracts, including project scope, timeliness, budget adherence, and client satisfaction. Without this historical data, it is difficult to definitively assess their capability and reliability for this specific rehabilitation task. Further due diligence would involve examining contract databases and performance reports associated with this joint venture.

How does the awarded price compare to market rates for similar crane rehabilitation services?

Direct comparison of the $6.67M contract value to precise market rates for similar bridge crane rehabilitation is challenging without detailed project specifications and regional cost variations. However, the firm fixed-price nature of the contract suggests the government sought to lock in costs. The fact that it was competed under 'full and open' with two bidders provides a limited market signal. To benchmark effectively, one would need to identify comparable projects (e.g., rehabilitation of large industrial cranes in powerhouses or similar facilities) and analyze their costs relative to scope, complexity, and duration. The number of bids received (two) suggests the price might be competitive but not necessarily the lowest achievable if more firms had participated.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential contractor underperformance, unforeseen technical challenges during rehabilitation, and schedule delays. The firm fixed-price contract type is a key mitigation strategy, placing the financial risk of cost overruns on the contractor. The Department of the Army will likely assign a Contracting Officer's Representative (COR) to provide technical oversight and monitor progress against the schedule and performance requirements. The contract's duration of over three years necessitates robust project management and regular performance reviews to identify and address any emerging issues proactively. The limited competition (two bidders) could also be considered a risk if it leads to less favorable pricing or limited options for recourse if performance issues arise.

What is the expected impact of this rehabilitation on the operational effectiveness of the AFD Powerhouse?

The rehabilitation of the bridge crane is expected to significantly enhance the operational effectiveness of the AFD Powerhouse. A functioning and reliable bridge crane is crucial for the maintenance, repair, and operation of heavy equipment within a powerhouse. Its rehabilitation will ensure that essential tasks can be performed safely and efficiently, preventing downtime and supporting the continuous operation of the facility. This directly contributes to the Department of the Army's mission readiness by maintaining critical infrastructure. The extended service life and improved reliability of the crane post-rehabilitation will reduce the likelihood of unexpected failures and associated operational disruptions.

How has federal spending on overhead traveling crane manufacturing and repair evolved over the past five years?

Analyzing federal spending trends specifically for 'Overhead Traveling Crane, Hoist, and Monorail System Manufacturing' (NAICS 333923) requires access to detailed historical procurement data. Generally, spending in this category can fluctuate based on military readiness needs, infrastructure modernization initiatives, and the lifecycle of existing equipment across various Department of Defense facilities. Periods of significant base upgrades or new construction might see increased spending, while routine maintenance and repair spending tends to be more consistent but can rise as aging equipment requires refurbishment. Without specific aggregated data, it's difficult to provide precise figures, but such specialized industrial equipment maintenance is a recurring necessity for large government installations.

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: W912DW24R0019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4114 E BROADWAY AVE, SPOKANE, WA, 99202

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

Financial Breakdown

Contract Ceiling: $10,436,390

Exercised Options: $8,960,390

Current Obligation: $6,674,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline