John Day Turbine Rehabilitation

1. General.  This is a SPECIAL NOTICE and is for informational/market research purposes only. THIS IS NOT A REQUEST FOR PROPOSAL, QUOTATION OR BID, NOR A SYNOPSIS OF A PROPOSED CONTRACT ACTION UNDER FAR SUBPART 5.2.

Notice Details.  The U.S. Army Corps of Engineers (USACE), Northwestern Division, Portland District (NWP) is seeking industry input as it evaluates project risks, industry capabilities, and the potential acquisition strategy for a major rehab at John Day Dam on the Columbia River. The project is titled, “John Day Dam Turbine Replacement and Generator Rewind”.

The North American Industrial Classification Code (NAICS) for this potential requirement would be 237990, “Other Heavy and Civil Engineering Construction”.  The related size standard is $39.5M.

Project Site Background/Scope.  The purpose of this requirement is to provide a hybrid design, manufacturing, and construction type contract with an estimated magnitude of over $500,000,000 for the turbine runner replacement and generator rehabilitation of up to sixteen turbines and generators and John Day Dam, spanning the Columbia River between Washington and Oregon. 

The goals of the project are to address decreasing reliability and efficiency of the hydroelectric generating units and to maximize the net economic benefits over the next several decades, while maintaining an acceptable level of operational flexibility, all within the hydraulic and environmental constraints imposed on the project. Economic benefits will be realized through increasing reliability and efficiency of the hydroelectric generating units after replacing existing turbines with improved fish passage turbines that provide improved power generating efficiency, rewinding the generators, and replacing and refurbishing other powertrain equipment. The design of the state-of-the-art turbines will be an iterative and collaborative process that focuses on improved fish passage design features and criteria to improve survival of turbine-passed fish. Finally, this project will decrease the risk of oil entering the water passageway and river through improved sealing technologies, design considerations for new adjustable-blade turbine runners, and the introduction of some fixed-blade turbine runners.

Anticipated period of performance:  Portland District anticipates soliciting the requirement in 02/2023 for a contract award in 12/2023. The contract will include three main stages of performance: design, manufacture/fabrication, installation/on-site work. These stages will begin in approximately 2024 for a period which could exceed fifteen years.

Acquisition Strategy Methods and Considerations.  A similar requirement (McNary Turbine Replacement) was awarded by USACE as a Fixed-Price “C” type contract with economic price adjustment. Portland District is considering the use of a Single Award Task Order Contract (SATOC). The following is a limited description of how each strategy would be utilized and considerations the Government is evaluating:

Fixed-Price Contract w/ EPA – The Government, at time of contract award, would have a defined requirement with optional CLINs which may or may not be exercised dependent upon final design elements. Each CLIN would include a schedule and scope, each which may require modification should there be changes in either.

SATOC – The Government, at time of award, would include the defined work on the base SATOC. Through performance it would issue task orders for particular functions defined on the base SATOC. At award, it would issue a task order for a, “minimum guarantee,” simultaneous with a task order for the design phase. Additional task orders would be issued by the Government as it determined appropriate based on the schedule. As the majority of work would not be issued at the time of contract award, changes in schedule or the requirement may not require modification; they would be defined by the task order at time of task order issuance. Provisions for economic price adjustment dependent on when task orders were issued would be included in the SATOC.

Communications for Industry.  Portland District is interested in feedback from interested firms capable of performing as a prime contractor on the requirement, particularly in relation to the following questions. Firms must follow the submission instructions below to coordinate a date and time for a one-on-one, which Portland District will host via teleconference or Webex meeting, to discuss concerns that that firm sees for the requirement, the firm’s capabilities, and any recommendations.

Portland District Questions:

• In developing the requirement, what information can the Government provide to industry to assist in developing the best possible pricing?  Specifically, is there a minimum number of turbine refurbishments required to address economies of scale?

• With a contract of this length, the Government anticipates using an Equitable Price Adjustment clause to accommodate any potential increased prices.

1. With a SATOC method, the Government would request offerors to provide pricing in “today’s dollars” in a price book for future task orders to include a breakout of percentage labor and percentage material.  Using the Bureau of Labor Statistics industry standard WPU101707 for Steel and WPU102403 for Secondary Copper, alloyed and unalloyed, the Government would consider escalating those prices based on changes to those market indexes.  To accommodate labor changes, the Government would use the Wage Rate Requirements (Construction), formerly known as the Davis-Bacon Act. A specific labor category would be selected as a “yardstick” and, should that wage rate increase, the Government would consider escalating prices accordingly.
2. With a stand-alone “C” type contract, the Government would only consider escalation on materials and would only consider escalating prices if the Bureau of Labor Statistics industry standard WPU101707 for Steel and WPU102403 for Secondary Copper, alloyed and unalloyed increased by such an amount that the total contract value would increase by 3% or more. 

What concerns, if any, does industry see with escalation and not knowing specific construction dates at contract award?

• The final weights and sizes for some components of the installation will be unknown at time of contract award. Final weights and sizes will be determined through the iterative design process between the Contractor and the Government. For the items in question, the Government is considering calling out specific component weights to be assumed by the bidder at solicitation to ensure an apples-to-apples comparison across bids. Should the final weights upon completion of design vary, the prices will be adjusted accordingly. What issues does industry foresee with this approach?

• Knowing the scope as provided, how much time does industry anticipate between finalization of design and delivering all new components onsite? Are there any financial implications associated with long-lead items and early coordination with foundries?  If so, how significant are they?

• The Government is considering advertising for 90 days. Is this enough time to develop a proposal for a project of this magnitude?

• Would your firm consider not submitting a proposal should the Government select a single award task order type acquisition plan?  Would your firm consider not submitting a proposal should the Government select a “C” type acquisition plan?

Portland District will schedule one-on-ones on a rolling basis as it receives responses to this announcement. This announcement closes March 29th, 2021 at 10 AM PST. Portland District hopes to conclude all one-on-ones by close of business March 31st, 2021.

Submission Instructions. To be offered a one-on-one, interested parties must contact both POCs listed on this announcement via email, in the following format:

SUBJECT:  “JD TRGR – One-on-one Request”

CONTENT:  Firm name and CAGE code, responses to the questions included in section 5 (recognizing further detail may be discussed during a one-on-one), and any questions, recommendations, or concerns the firm has which may influence the acquisition strategy.

*PLEASE NOTE:  The Government will use responses to the questions in section 5 and information discussed in one-on-ones for it’s own purposes and in making decisions concerning the acquisition strategy, but no responses will be released publicly. The Government will use the responses to the questions to determine if a contractor is capable of performing as a prime contractor on the requirement and should be offered a one-on-one

Disclaimer.  This notice does not obligate the Government to award a contract. No reimbursement will be made for any costs associated with providing information in response to this Special Notice or any follow up information. The Government reserves the right to use information provided by respondents for any purpose deemed necessary and legally appropriate. Any organization responding to this notice should ensure that its response is complete and sufficiently detailed to allow the Government to determine the organization's capabilities to perform the work. Respondents are advised that the Government is under no obligation to acknowledge receipt of the information received or to provide feedback to respondents with respect to any information submitted.