DoD Awards $53.8M for McNary Intake Gates and ISOPHSE Bus Systems to Knight Const. & Supply

Contract Overview

Contract Amount: $53,854,378 ($53.9M)

Contractor: Knight Const. & Supply, Inc

Awarding Agency: Department of Defense

Start Date: 2022-04-18

End Date: 2031-04-30

Contract Duration: 3,299 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MCNARY INTAKE GATES AND ISOPHSE BUS SYSTEMS

Place of Performance

Location: UMATILLA, UMATILLA County, OREGON, 97882

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $53.9 million to KNIGHT CONST. & SUPPLY, INC for work described as: MCNARY INTAKE GATES AND ISOPHSE BUS SYSTEMS Key points: 1. The contract value of $53.8M is significant for heavy civil engineering construction. 2. Knight Const. & Supply, Inc. secured this award under full and open competition. 3. The long duration (through 2031) suggests a complex, multi-year project. 4. The project falls under 'Other Heavy and Civil Engineering Construction', a broad sector.

Value Assessment

Rating: fair

The contract value of $53.8M for a definitive contract with a long duration appears within a reasonable range for large-scale civil engineering projects. Benchmarking against similar large infrastructure contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating a robust process for soliciting bids. This method generally promotes competitive pricing and allows for a wide range of contractors to participate, potentially leading to better price discovery.

Taxpayer Impact: The competitive nature of the procurement is positive for taxpayers, as it aims to secure the best possible price for the government. However, the long-term nature and potential for modifications warrant ongoing scrutiny.

Public Impact

Impacts critical infrastructure at McNary Dam, ensuring operational reliability. Supports regional economic activity through construction jobs and material procurement. Long-term commitment may affect future budget allocations for similar projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (over 10 years) increases risk of cost overruns and scope creep.
  • Lack of specific small business participation noted.
  • Potential for unforeseen site conditions in heavy civil engineering.

Positive Signals

  • Awarded under full and open competition, suggesting a fair process.
  • Firm fixed price contract provides cost certainty for the base scope.
  • Project addresses critical infrastructure needs.

Sector Analysis

This contract falls under 'Other Heavy and Civil Engineering Construction', a sector characterized by large-scale projects like dams, bridges, and infrastructure. Spending in this sector can be highly variable, influenced by government infrastructure initiatives and economic conditions.

Small Business Impact

The data indicates that small business participation was not a specific set-aside or requirement for this contract. While full and open competition allows for broad participation, it does not guarantee opportunities for small businesses unless specifically included.

Oversight & Accountability

The long duration of this definitive contract necessitates robust oversight from the Department of the Army to manage performance, control costs, and ensure adherence to the contract terms. Regular reviews and milestone tracking are crucial for accountability.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long contract duration increases risk.
  • Potential for technological obsolescence.
  • Lack of explicit small business goals.
  • Firm Fixed Price may not cover unforeseen site conditions.
  • Dependency on specific supplier for ISOPHSE Bus Systems (potential single point of failure).

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, or, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.9 million to KNIGHT CONST. & SUPPLY, INC. MCNARY INTAKE GATES AND ISOPHSE BUS SYSTEMS

Who is the contractor on this award?

The obligated recipient is KNIGHT CONST. & SUPPLY, 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 $53.9 million.

What is the period of performance?

Start: 2022-04-18. End: 2031-04-30.

What specific components constitute the 'ISOPHSE Bus Systems' and what is their criticality to the intake gate operations?

The 'ISOPHSE Bus Systems' likely refer to specialized electrical or communication bus systems integral to the control and operation of the McNary intake gates. Their criticality would depend on their role in power distribution, data transmission, or system monitoring. Understanding these specifics is key to assessing the overall project risk and the necessity of the chosen technology.

Given the 2031 completion date, what are the primary risks associated with technological obsolescence or changing regulatory requirements for these systems?

The primary risks include the potential for the specified bus systems to become outdated before project completion, requiring costly upgrades or replacements. Additionally, evolving environmental or safety regulations could necessitate design modifications, impacting the firm fixed price and potentially leading to change orders. Proactive technology assessment and flexible contract clauses are vital.

How does the $53.8M contract value compare to similar large-scale intake gate and associated system upgrade projects in the civil engineering sector?

Benchmarking this $53.8M contract against similar projects is essential for a comprehensive value assessment. Factors like project scope complexity, geographical location, specific system requirements, and the duration of the contract significantly influence costs. Without comparative data on similar intake gate projects, it's difficult to definitively ascertain if this represents optimal value for taxpayers.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EF21R0015

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Knight Const. & Supply Inc

Address: 2601 E 6TH ST, DEER PARK, WA, 99006

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $136,161,438

Exercised Options: $134,971,338

Current Obligation: $53,854,378

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $15,413,138

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2022-04-18

Current End Date: 2031-04-30

Potential End Date: 2031-04-30 00:00:00

Last Modified: 2025-10-02

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