Army awards $4.1M for McNary Lock Elevator No. 2 Replacement to Northbank Civil and Marine, LLC

Contract Overview

Contract Amount: $4,117,000 ($4.1M)

Contractor: Northbank Civil and Marine, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-12

End Date: 2027-09-25

Contract Duration: 743 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MCNARY LOCK ELEVATOR NO. 2 REPLACEMENT

Place of Performance

Location: UMATILLA, UMATILLA County, OREGON, 97882

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $4.1 million to NORTHBANK CIVIL AND MARINE, LLC for work described as: MCNARY LOCK ELEVATOR NO. 2 REPLACEMENT Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially limited but justified bidding process. 2. The fixed-price contract type suggests that cost risks are primarily borne by the contractor. 3. The duration of 743 days for the project implies a significant construction timeline. 4. The contract falls under the 'Other Heavy and Civil Engineering Construction' NAICS code, placing it within a specialized sector. 5. The award amount of $4.1M is a key data point for understanding the scale of this infrastructure project.

Value Assessment

Rating: fair

The contract value of $4.1M for elevator replacement at McNary Lock is difficult to benchmark without specific project scope details. However, given the nature of heavy civil engineering construction and specialized equipment replacement, the price appears within a reasonable range for such projects. Further analysis would require comparing it to similar lock and dam infrastructure upgrades or elevator replacement projects of comparable complexity and scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, certain sources may have been excluded for specific reasons, potentially related to specialized capabilities or prior performance. The number of bidders is not explicitly stated, but the 'limited' competition level might imply fewer than a typical full and open competition, potentially impacting price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process, even if limited, as it aims to secure the best value. However, the exclusion of sources warrants scrutiny to ensure it did not unduly restrict competition and lead to higher costs.

Public Impact

The primary beneficiaries are likely the U.S. Army Corps of Engineers and users of the McNary Lock and Dam, ensuring continued operational efficiency. The project delivers essential infrastructure maintenance and upgrades, specifically replacing Elevator No. 2. The geographic impact is localized to the McNary Lock and Dam facility in Oregon. Workforce implications include employment opportunities for skilled construction labor and specialized technicians involved in heavy civil engineering and elevator installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price contract.
Risk of schedule delays due to the complexity of heavy civil engineering projects and specialized equipment installation.
Dependence on the contractor's specialized expertise and supply chain for critical components.

Positive Signals

Firm fixed-price contract structure shifts cost risk to the contractor.
Awarded by the Department of the Army, suggesting adherence to established procurement processes.
Project duration is clearly defined, providing a timeline for expected completion.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which includes the construction of infrastructure such as dams, bridges, and waterways. The market for such specialized construction is often characterized by a limited number of highly qualified firms capable of undertaking large-scale, complex projects. Spending in this sector is driven by government investment in public works and infrastructure maintenance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. The prime contractor, Northbank Civil and Marine, LLC, may engage small businesses as subcontractors, but this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Corps of Engineers, responsible for the McNary Lock and Dam. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific project oversight details are not provided.

Related Government Programs

McNary Lock and Dam Operations and Maintenance
Army Corps of Engineers Civil Works Projects
Infrastructure Rehabilitation and Replacement Contracts
Heavy and Civil Engineering Construction Services

Risk Flags

Limited competition may impact price.
Potential for schedule delays in heavy construction.
Need for specialized contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.1 million to NORTHBANK CIVIL AND MARINE, LLC. MCNARY LOCK ELEVATOR NO. 2 REPLACEMENT

Who is the contractor on this award?

The obligated recipient is NORTHBANK CIVIL AND MARINE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2025-09-12. End: 2027-09-25.

What is the track record of Northbank Civil and Marine, LLC in completing similar heavy civil engineering projects for the federal government?

Assessing the track record of Northbank Civil and Marine, LLC requires a review of their past performance on federal contracts, particularly those involving lock and dam infrastructure or complex elevator systems. Information on contract completion rates, adherence to schedule and budget, and quality of work would be crucial. While the award itself indicates they met initial qualification criteria, a deeper dive into their history with agencies like the Army Corps of Engineers would provide a clearer picture of their reliability and expertise for this specific project. Without access to detailed past performance reviews or contract databases, it's difficult to definitively assess their track record beyond the fact of this award.

How does the awarded amount of $4.1 million compare to the estimated cost or budget for the McNary Lock Elevator No. 2 Replacement project?

The awarded amount of $4.1 million represents the final negotiated price for the McNary Lock Elevator No. 2 Replacement. To assess value, this figure needs to be compared against the government's initial cost estimates or budget allocated for this project. If the award is significantly lower than estimates, it could indicate successful negotiation or competitive pricing. Conversely, if it's higher, it might suggest unforeseen complexities or a less competitive bidding environment. Without access to the government's pre-award estimates or internal budget, a direct comparison to determine if $4.1 million represents good or fair value is challenging.

What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies that while the competition was intended to be broad, specific potential bidders were excluded. The primary risks associated with this approach include a potentially reduced pool of qualified contractors, which could limit price competition and potentially lead to higher costs for the government. There's also a risk that legitimate, highly capable contractors were excluded without sufficient justification, potentially impacting the best-value determination. Transparency in the reasons for exclusion is key to mitigating these risks and ensuring fairness in the procurement process.

What is the expected impact of this elevator replacement on the operational efficiency and capacity of the McNary Lock and Dam?

The replacement of Elevator No. 2 at McNary Lock is expected to significantly improve operational efficiency and reliability. Aging elevator systems can lead to frequent breakdowns, increased maintenance costs, and operational delays for vessels transiting the lock. A new, modern elevator system should reduce downtime, enhance safety, and ensure smoother, more predictable operations. This upgrade is crucial for maintaining the overall capacity and functionality of the lock, which is vital for navigation and commerce on the Columbia River system.

How does the $4.1 million contract value for this elevator replacement compare to other similar infrastructure projects undertaken by the Army Corps of Engineers?

Benchmarking the $4.1 million contract value requires comparing it to similar projects undertaken by the Army Corps of Engineers or other agencies involved in waterway infrastructure. Factors such as the size and complexity of the lock, the specific type and capacity of the elevator being replaced, and the geographic location (which influences labor and material costs) are critical for a fair comparison. Without specific data on comparable projects, it's difficult to definitively state whether $4.1 million is high or low. However, for a major component replacement at a significant lock and dam facility, this figure appears to be within a plausible range for specialized heavy civil engineering work.

What are the potential long-term cost implications for the government beyond the initial $4.1 million award, considering maintenance and operational costs?

Beyond the initial $4.1 million award for the replacement, the government will incur long-term costs related to the maintenance and operation of the new elevator system. A new system is generally expected to have lower maintenance costs and higher reliability compared to an aging one, potentially leading to cost savings over its lifecycle. However, ongoing maintenance contracts, spare parts, and energy consumption will represent recurring expenses. The specific long-term cost implications will depend on the chosen technology, manufacturer warranties, and the maintenance schedule established by the Army Corps of Engineers.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4180 NW FRUIT VALLEY RD, VANCOUVER, WA, 98660

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

Financial Breakdown

Contract Ceiling: $4,117,000

Exercised Options: $4,117,000

Current Obligation: $4,117,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EF23D0012

IDV Type: IDC

Timeline