Army Awards $10.87M for Crane Replacement at McNary Lock and Dam, Completing Full and Open Competition

Contract Overview

Contract Amount: $10,870,791 ($10.9M)

Contractor: Garco Wemco a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2025-12-19

Contract Duration: 1,083 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MCNARY LOCK AND DAM NAVIGATION LOCK CRANE #2 REPLACEMENT

Place of Performance

Location: UMATILLA, UMATILLA County, OREGON, 97882

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to GARCO WEMCO A JOINT VENTURE for work described as: MCNARY LOCK AND DAM NAVIGATION LOCK CRANE #2 REPLACEMENT Key points: 1. The contract value of $10.87 million is for a critical infrastructure replacement. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project involves specialized equipment contractors, indicating a niche market. 4. The duration of over 1000 days suggests a complex and lengthy undertaking.

Value Assessment

Rating: good

The contract is a firm-fixed-price delivery order, which helps control costs. Benchmarking against similar large-scale equipment replacement projects would provide further insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, allowing all eligible contractors to bid. This method typically fosters price discovery and can lead to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required equipment.

Public Impact

Ensures continued navigation and operational capacity at McNary Lock and Dam. Supports critical infrastructure maintenance for the U.S. Army Corps of Engineers. The replacement of aging equipment enhances safety and reliability of operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for schedule delays given the long duration.
  • Reliance on a single joint venture for a critical component.

Positive Signals

  • Firm-fixed-price contract provides cost certainty.
  • Full and open competition promotes market efficiency.

Sector Analysis

This contract falls within the 'Other Building Equipment Contractors' sector, which involves specialized equipment for infrastructure projects. Spending in this area is often project-specific and driven by infrastructure needs.

Small Business Impact

The contract was awarded to a joint venture, and there is no specific indication of small business participation in this particular award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The award was made via a delivery order under a larger contract vehicle, suggesting existing oversight mechanisms. The duration and complexity warrant monitoring for performance and cost adherence.

Related Government Programs

  • Other Building Equipment Contractors
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long project duration increases risk of delays and cost escalation.
  • Potential for sole-source reliance if the joint venture faces issues.
  • Lack of specific detail on the urgency or necessity of the replacement.
  • No clear indication of small business subcontracting opportunities.

Tags

other-building-equipment-contractors, department-of-defense, or, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to GARCO WEMCO A JOINT VENTURE. MCNARY LOCK AND DAM NAVIGATION LOCK CRANE #2 REPLACEMENT

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 $10.9 million.

What is the period of performance?

Start: 2023-01-01. End: 2025-12-19.

What is the specific nature of the crane's failure or obsolescence that necessitated this replacement?

The provided data does not detail the specific reasons for the crane replacement, such as mechanical failure, obsolescence, or regulatory compliance. Understanding the 'why' behind the replacement is crucial for assessing the urgency and necessity of the expenditure, and whether proactive maintenance could have extended the life of the existing equipment.

How does the awarded price compare to independent cost estimates for similar crane replacement projects?

Without access to independent cost estimates or benchmarks for comparable crane replacement projects of this scale and complexity, it is difficult to definitively assess the value for money. The firm-fixed-price nature provides cost certainty, but the initial pricing's competitiveness relies on the effectiveness of the full and open competition process.

What are the potential risks associated with the long duration (1083 days) of this project?

A project duration exceeding 1000 days introduces risks such as potential cost overruns due to inflation, material price fluctuations, and unforeseen site conditions. Schedule delays are also a significant concern, which could impact the operational readiness of the lock and dam. Effective project management and contingency planning are vital.

Industry Classification

NAICS: ConstructionBuilding Equipment ContractorsOther Building Equipment Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912EF21R0012

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, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,870,791

Exercised Options: $10,870,791

Current Obligation: $10,870,791

Actual Outlays: $2,856,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EF21D0007

IDV Type: IDC

Timeline

Start Date: 2023-01-01

Current End Date: 2025-12-19

Potential End Date: 2025-12-19 00:00:00

Last Modified: 2026-01-06

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