Interior Department awards $62,000 for two custom railroad flat cars to The Railroad Yard Inc

Contract Overview

Contract Amount: $62,000 ($62.0K)

Contractor: THE Railroad Yard Inc

Awarding Agency: Department of the Interior

Start Date: 2026-04-02

End Date: 2027-03-30

Contract Duration: 362 days

Daily Burn Rate: $171/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LA-FWS GRAND COTE- TWO CUSTOM FABRICATED RAILROAD FLAT CARS

Place of Performance

Location: RHINEHART, CATAHOULA County, LOUISIANA, 71363

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $62,000 to THE RAILROAD YARD INC for work described as: LA-FWS GRAND COTE- TWO CUSTOM FABRICATED RAILROAD FLAT CARS Key points: 1. The contract value appears reasonable for specialized fabricated structural metal products. 2. Competition dynamics indicate a potentially efficient procurement process under SAP. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration aligns with the delivery of custom fabricated items. 5. This procurement supports essential infrastructure for the U.S. Fish and Wildlife Service. 6. The award to a single supplier warrants scrutiny for potential future competition.

Value Assessment

Rating: good

The award of $62,000 for two custom fabricated railroad flat cars seems within a reasonable range for specialized manufacturing. Benchmarking against similar custom fabrication contracts is challenging due to the unique nature of railroad flat cars. However, the price appears to reflect the custom specifications and materials required. The fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While the specific number of bidders is not detailed, SAP is typically used for procurements below a certain threshold, often resulting in fewer than three bidders. The limited competition may have implications for price discovery, potentially leading to less aggressive bidding compared to full and open competition.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes mean slightly higher prices than what might be achieved through a broader bidding process, though SAP is designed for efficiency in smaller procurements.

Public Impact

The U.S. Fish and Wildlife Service benefits from the acquisition of specialized rail equipment. These custom flat cars will likely be used for transporting equipment, materials, or wildlife within specific operational areas. The geographic impact is centered in Louisiana, where the contractor is located. The contract supports manufacturing jobs within the fabricated structural metal sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could potentially lead to higher costs than a fully competed contract.
Lack of detailed public information on the bidding process makes it difficult to fully assess value for money.
The specialized nature of the product might limit future competition if only a few manufacturers can produce it.

Positive Signals

The fixed-price contract type protects the government from cost overruns.
The award is to a domestic manufacturer, supporting U.S. industry.
The contract duration appears reasonable for custom fabrication and delivery.

Sector Analysis

This contract falls within the Fabricated Structural Metal Manufacturing sector (NAICS 332312). This sector involves the production of metal components for buildings, bridges, and other structures, including specialized items like railroad cars. The market for custom fabricated railroad equipment is niche, often driven by specific industrial or governmental needs. Comparable spending benchmarks are difficult to establish due to the custom nature of the product.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SS=false, SB=false). The prime contractor, The Railroad Yard Inc., is likely a small business given the contract value, but this is not explicitly stated. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is not directly discernible from this award alone.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Fish and Wildlife Service, a division of the Department of the Interior. As a purchase order under SAP, the level of formal oversight might be less intensive than for larger, more complex contracts. Accountability is managed through the terms of the fixed-price purchase order and delivery schedule. Transparency is limited by the nature of SAP procurements, which do not always involve extensive public documentation.

Related Government Programs

Federal Fleet Management
Government Equipment Procurement
Transportation Infrastructure
Specialty Manufacturing Contracts

Risk Flags

Limited competition may impact price.
Custom fabrication requires careful oversight of quality and specifications.
Reliance on a single supplier for specialized equipment could pose future supply chain risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $62,000 to THE RAILROAD YARD INC. LA-FWS GRAND COTE- TWO CUSTOM FABRICATED RAILROAD FLAT CARS

Who is the contractor on this award?

The obligated recipient is THE RAILROAD YARD INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $62,000.

What is the period of performance?

Start: 2026-04-02. End: 2027-03-30.

What is the track record of The Railroad Yard Inc. with federal contracts?

Information regarding The Railroad Yard Inc.'s specific track record with federal contracts is not provided in the given data. To assess their performance, one would typically look at past federal awards, contract completion history, any past performance evaluations, and any instances of contract disputes or terminations. Without this historical data, it's difficult to gauge their reliability and experience in fulfilling government requirements. Further research into federal procurement databases like SAM.gov or FPDS would be necessary to build a comprehensive profile of the contractor's federal performance history.

How does the price of $62,000 for two custom flat cars compare to market rates for similar fabricated items?

Benchmarking the price of $62,000 for two custom fabricated railroad flat cars against market rates is challenging due to the highly specialized and custom nature of the product. Standard, mass-produced flat cars would have different pricing structures. The cost is likely influenced by specific design requirements, materials used (e.g., type of steel, load capacity), fabrication complexity, and any unique features needed for the U.S. Fish and Wildlife Service's intended use. Without detailed specifications and access to quotes from other potential fabricators for similar custom builds, a precise market comparison is not feasible. However, for custom-engineered industrial equipment, this price point for two units suggests a significant investment in design and manufacturing.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential delays in fabrication and delivery, quality control issues with the custom manufacturing, and the possibility of the final product not meeting the specific operational needs of the U.S. Fish and Wildlife Service. Mitigation strategies are primarily embedded in the contract terms. The fixed-price nature of the award (PT: FIRM FIXED PRICE) helps mitigate financial risks for the government by capping the total cost. The defined delivery period (SD: 2026-04-02 to ED: 2027-03-30) sets clear expectations for timeliness. The government's acceptance process upon delivery will serve as a key quality control checkpoint. However, risks related to the contractor's capacity or unforeseen production challenges remain.

How effective is the competition level (limited under SAP) in ensuring value for money for this specific procurement?

The competition level, described as 'Competed under SAP' (CT: COMPETED UNDER SAP) and with 3 bidders (NO: 3), indicates a limited competition scenario. While three bidders are present, SAP procurements are generally not subject to the same breadth of competition as full and open solicitations. This level of competition is often considered adequate for procurements within the simplified acquisition threshold, balancing the need for efficiency with some degree of price discovery. For a specialized item like custom railroad flat cars, three bidders might represent a significant portion of the available qualified suppliers. The effectiveness in ensuring value for money depends on the specific market dynamics for these custom fabrications; if the market is inherently limited, three bidders could yield competitive pricing. However, it's less likely to achieve the aggressive pricing potentially seen in larger, more widely competed contracts.

What are the historical spending patterns for similar fabricated structural metal manufacturing contracts by the Department of the Interior?

Historical spending patterns for similar fabricated structural metal manufacturing contracts by the Department of the Interior are not detailed in the provided data. To analyze this, one would need to examine past contracts within NAICS code 332312 (Fabricated Structural Metal Manufacturing) awarded by the DOI. This would involve looking at the volume, value, and types of fabricated metal products procured over several fiscal years. Understanding these patterns could reveal if the current $62,000 award for two flat cars is typical, an outlier, or part of a larger trend in infrastructure or equipment acquisition for the agency. Without access to historical spending data, it's impossible to provide specific insights into past patterns.

Industry Classification

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

Product/Service Code: RAILWAY EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5915 S PERKINS RD, STILLWATER, OK, 74074

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

Financial Breakdown

Contract Ceiling: $62,000

Exercised Options: $62,000

Current Obligation: $62,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline