Over $19.7M for Mississippi River waterway infrastructure upgrades, awarded to Johnson Machine Works, Inc

Contract Overview

Contract Amount: $19,715,166 ($19.7M)

Contractor: Johnson Machine Works, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-09-03

End Date: 2018-04-30

Contract Duration: 1,335 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ILLINOIS WATERWAY MISSISSIPPI RIVER AND ILLINOIS WATERWAY L&D 11, 14, DRESDEN ISLAND, PEORIA, AND LAGRANGE MITER GATES AND TAINTER GATES REPLACEMENT DRESDEN ISLAND L&D TAINTER GATES BASE BID FOR TAINTER GATES, MITER GATES, FABRICATION DRAWINGS AND CATHODIC PROTECTION FOR DRESDEN, LAGRAN, AND LD 11

Place of Performance

Location: CHARITON, LUCAS County, IOWA, 50049

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to JOHNSON MACHINE WORKS, INC. for work described as: ILLINOIS WATERWAY MISSISSIPPI RIVER AND ILLINOIS WATERWAY L&D 11, 14, DRESDEN ISLAND, PEORIA, AND LAGRANGE MITER GATES AND TAINTER GATES REPLACEMENT DRESDEN ISLAND L&D TAINTER GATES BASE BID FOR TAINTER GATES, MITER GATES, FABRICATION DRAWINGS AND CATHODIC PROTECTION FOR DRESDEN… Key points: 1. The contract focused on replacing critical miter and tainter gates at multiple lock and dam facilities, ensuring continued navigation and operational efficiency. 2. Awarded under a full and open competition, this suggests a competitive bidding process that likely drove value. 3. The firm-fixed-price contract type shifts performance risk to the contractor, providing cost certainty for the government. 4. The project duration of 1335 days indicates a significant, multi-year undertaking for infrastructure modernization. 5. The contract's scope included fabrication, drawings, and cathodic protection, covering essential aspects of gate replacement. 6. The specific North American Industry Classification System (NAICS) code 332312 points to the fabricated structural metal manufacturing sector.

Value Assessment

Rating: good

The contract value of $19.7 million for replacing miter and tainter gates across several key waterway locations appears reasonable given the scope of work. While direct comparisons are difficult without more granular data on similar gate replacement projects, the firm-fixed-price nature of the award suggests that the contractor assumed significant cost risk. Benchmarking against industry standards for large-scale structural metal fabrication and installation for critical infrastructure would be necessary for a more precise value assessment. However, the competitive award process implies that pricing was scrutinized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The presence of multiple bidders (implied by 'full and open') suggests a degree of market interest and potential for competitive pricing. The exact number of bidders is not specified, but the designation implies that the government sought proposals from qualified contractors.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services or goods. This approach maximizes the pool of potential offerors, increasing the likelihood of obtaining the best value.

Public Impact

The primary beneficiaries are the users of the Mississippi River and Illinois Waterway, including commercial shipping companies and industries relying on efficient waterborne transportation. The services delivered include the fabrication and installation of new miter and tainter gates, crucial for the operational integrity of Lock and Dam facilities. The geographic impact is concentrated along the Mississippi River and Illinois Waterway, specifically at Lock and Dam 11, 14, Dresden Island, Peoria, and Lagrange. The project supports jobs in the fabricated structural metal manufacturing sector, requiring skilled labor for fabrication, engineering, and installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if fabrication or installation encounters unforeseen site-specific challenges.
Ensuring long-term durability and performance of the new gates under demanding operational conditions.
Coordination complexity across multiple lock and dam sites.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting market validation of price and capability.
Focus on critical infrastructure replacement enhances long-term system reliability.

Sector Analysis

This contract falls within the heavy industrial manufacturing and infrastructure construction sector, specifically focusing on fabricated structural metal for civil engineering projects. The market for such specialized components is often dominated by a few key manufacturers with the expertise and capacity to handle large-scale, critical infrastructure. Spending in this area is driven by the need to maintain and upgrade aging federal waterways, which are vital for national transportation and commerce. Comparable spending benchmarks would typically involve other large lock and dam modernization projects or major bridge construction contracts.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'ss' (small business set-aside) field is false and 'sb' (small business) is also false. This suggests the contract was not specifically set aside for small businesses. However, the prime contractor, Johnson Machine Works, Inc., may engage small businesses as subcontractors for specialized services or materials, though this is not explicitly detailed in the provided data. The impact on the broader small business ecosystem would depend on the subcontracting opportunities generated.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Corps of Engineers, which oversees waterway infrastructure projects. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver the specified gates within the agreed-upon price. Transparency is generally maintained through public contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Mississippi River Navigation Projects
Inland Waterways System
Lock and Dam Modernization Programs
Army Corps of Engineers Civil Works Projects

Risk Flags

Potential for schedule delays due to complex installation requirements.
Risk of unforeseen site conditions impacting cost and timeline.
Ensuring long-term material durability and corrosion resistance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to JOHNSON MACHINE WORKS, INC.. ILLINOIS WATERWAY MISSISSIPPI RIVER AND ILLINOIS WATERWAY L&D 11, 14, DRESDEN ISLAND, PEORIA, AND LAGRANGE MITER GATES AND TAINTER GATES REPLACEMENT DRESDEN ISLAND L&D TAINTER GATES BASE BID FOR TAINTER GATES, MITER GATES, FABRICATION DRAWINGS AND CATHODIC PROTECTION FOR DRESDEN, LAGRAN, AND LD 11

Who is the contractor on this award?

The obligated recipient is JOHNSON MACHINE WORKS, 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 $19.7 million.

What is the period of performance?

Start: 2014-09-03. End: 2018-04-30.

What is the track record of Johnson Machine Works, Inc. in performing similar large-scale infrastructure projects for the federal government?

Johnson Machine Works, Inc. has a history of engaging in fabrication and manufacturing for various industrial and governmental clients. While specific details on past projects of identical scale and complexity are not provided in this dataset, their award for the Dresden Island L&D Tainter Gates and other waterway infrastructure suggests they possess the necessary capabilities and experience. A deeper dive into their contract history with agencies like the Army Corps of Engineers would reveal the extent and success of their prior performance on similar civil works or heavy industrial fabrication contracts. Reviewing past performance evaluations and any documented issues would provide further insight into their reliability and quality of work.

How does the awarded price of $19.7 million compare to the estimated cost or budget for this gate replacement project?

The provided data indicates the base bid for the Tainter Gates, Miter Gates, fabrication drawings, and cathodic protection was $19,715,165.60. Without access to the government's independent cost estimate or the initial budget allocated for this specific project, a direct comparison is not possible. However, the fact that it was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that the bids received were evaluated against government estimates. If the award price was significantly below the estimate, it could indicate strong competition or efficient contractor proposals. Conversely, if it was at or above the estimate, it might suggest the government's estimate was accurate or that market conditions influenced pricing.

What are the primary risks associated with the fabrication and installation of miter and tainter gates for federal waterway infrastructure?

Key risks include technical challenges during fabrication, such as meeting stringent material specifications and dimensional tolerances for heavy-duty components. Installation risks are significant, involving complex logistics, potential impacts on ongoing navigation operations, and the need for specialized heavy-lift equipment. Environmental factors, like river currents and water levels, can cause delays or complicate installation. Furthermore, unforeseen site conditions at the lock and dam facilities could necessitate design modifications or additional work. Ensuring the long-term durability and resistance to corrosion (addressed by cathodic protection) is also a critical performance risk that impacts the asset's lifecycle value.

How effective has the Army Corps of Engineers been in managing similar large-scale infrastructure replacement contracts on inland waterways?

The Army Corps of Engineers (USACE) has extensive experience managing large-scale infrastructure projects, including the replacement and rehabilitation of locks and dams across the nation's inland waterways. Their effectiveness is generally considered high, given their long history and specialized expertise in civil works. However, like any large public works program, projects can face challenges such as budget constraints, schedule delays due to weather or unforeseen conditions, and complex stakeholder coordination. Performance metrics and Inspector General reports related to USACE civil works projects would offer a more detailed assessment of their management effectiveness, highlighting both successes and areas for improvement in contract execution and oversight.

What has been the historical spending trend for the replacement and maintenance of lock and dam gates by the Army Corps of Engineers?

Historical spending on lock and dam gate replacement and maintenance by the Army Corps of Engineers has been substantial and cyclical, driven by the aging infrastructure of the Inland Waterways System. Significant investments are often made during periods of increased federal infrastructure funding or when critical components reach the end of their service life. The total annual budget allocated by Congress for USACE civil works, which includes navigation infrastructure, fluctuates based on appropriations. Tracking specific line items for gate replacements over the past decade would reveal trends, potentially showing increased spending in recent years as the need for modernization becomes more urgent across the system.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal Manufacturing

Product/Service Code: METAL BARS, SHEETS, SHAPES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EK14R0027

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 318 N 11TH ST, CHARITON, IA, 50049

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,715,166

Exercised Options: $19,715,166

Current Obligation: $19,715,166

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline