DHS Awards $388.7M Border Infrastructure Contract to SLSCO, LTD. Under Full and Open Competition

Contract Overview

Contract Amount: $388,668,847 ($388.7M)

Contractor: Slsco, Ltd.

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-28

End Date: 2027-09-30

Contract Duration: 1,463 days

Daily Burn Rate: $265.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BORDER INFRASTRUCTURE CONSTRUCTION

Place of Performance

Location: RIO GRANDE CITY, STARR County, TEXAS, 78582

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $388.7 million to SLSCO, LTD. for work described as: BORDER INFRASTRUCTURE CONSTRUCTION Key points: 1. Significant investment in border infrastructure totaling $388.7 million. 2. SLSCO, LTD. is the sole awardee, highlighting potential concentration. 3. Contract duration extends to September 2027, indicating long-term needs. 4. The award falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $388.7 million is substantial for border infrastructure. Benchmarking against similar large-scale construction projects is necessary to fully assess value, but the fixed-price nature provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process for soliciting bids. This method generally promotes competitive pricing and allows for a wide range of potential contractors to participate.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary border infrastructure.

Public Impact

Enhances border security infrastructure, potentially impacting national security. Supports economic activity through construction jobs and material procurement. Long-term project may lead to sustained presence and operations in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues over a long duration.
Geographic concentration in Texas may limit broader economic impact.

Positive Signals

Awarded through full and open competition.
Firm fixed-price contract provides cost predictability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is broad. Specific benchmarks for border infrastructure construction are not readily available, but the scale suggests significant project management and execution capabilities are required.

Small Business Impact

The data indicates no specific set-aside for small businesses in this award. While the prime contractor is SLSCO, LTD., opportunities for small businesses may exist through subcontracting, which is not detailed here.

Oversight & Accountability

The Department of Homeland Security and U.S. Customs and Border Protection are responsible for oversight. The long duration necessitates continuous monitoring of performance, cost, and adherence to contract terms to ensure accountability.

Related Government Programs

Commercial and Institutional Building Construction
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Contract duration of over 3 years.
Single awardee for a large value contract.
Potential for scope creep or change orders over the contract life.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $388.7 million to SLSCO, LTD.. BORDER INFRASTRUCTURE CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is SLSCO, LTD..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $388.7 million.

What is the period of performance?

Start: 2023-09-28. End: 2027-09-30.

What specific types of border infrastructure are being constructed or improved under this contract, and how do they align with current security needs?

The contract is for border infrastructure construction, likely encompassing facilities, barriers, and related systems. The specific types of infrastructure are not detailed in the provided data. A thorough review would involve examining the Statement of Work (SOW) to understand how these constructions directly address evolving border security challenges and operational requirements.

What is the historical performance record of SLSCO, LTD. on similar large-scale government construction contracts, particularly concerning timeliness and budget adherence?

Assessing SLSCO, LTD.'s historical performance is crucial for risk mitigation. Information on past project delivery, adherence to schedules, budget management, and any disputes or claims on similar contracts would provide insight into their capability to execute this significant border infrastructure project effectively and without cost overruns.

How will the effectiveness of the completed border infrastructure be measured and evaluated to ensure it meets the intended security and operational objectives?

Measuring effectiveness requires defined metrics tied to the project's objectives. This could include improved surveillance capabilities, enhanced physical security, or increased operational efficiency for border patrol agents. Establishing clear Key Performance Indicators (KPIs) and a robust evaluation framework post-construction is vital to determine the return on investment and the actual impact on border security.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6702 BROADWAY ST, GALVESTON, TX, 77554

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

Financial Breakdown

Contract Ceiling: $388,668,847

Exercised Options: $388,668,847

Current Obligation: $388,668,847

Actual Outlays: $138,420,586

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B01C23D00000012

IDV Type: IDC

Timeline