DHS Awards $683.5M for Vertical Barrier Construction to SLS Federal Services LLC

Contract Overview

Contract Amount: $683,548,800 ($683.5M)

Contractor: SLS Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-16

End Date: 2028-08-31

Contract Duration: 989 days

Daily Burn Rate: $691.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VERTICAL BARRIER CONSTRUCTION

Place of Performance

Location: ENCINAL, LA SALLE County, TEXAS, 78019

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $683.5 million to SLS FEDERAL SERVICES LLC for work described as: VERTICAL BARRIER CONSTRUCTION Key points: 1. Significant contract value of $683.5 million for barrier construction. 2. Competition method indicates a focus on open bidding, potentially driving value. 3. Risk associated with large-scale infrastructure projects and long durations. 4. Construction sector spending is substantial, with this contract representing a notable portion.

Value Assessment

Rating: good

The contract value of $683.5 million for barrier construction appears substantial. Benchmarking against similar large-scale construction projects would be necessary for a precise assessment, but the firm-fixed-price structure suggests cost certainty.

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 a competitive process was used. This method aims to ensure fair pricing and access for qualified contractors.

Taxpayer Impact: The competitive award process is intended to secure the best value for taxpayers on this significant infrastructure project.

Public Impact

Impacts border security infrastructure and operations. Potential economic impact through job creation and material sourcing. Long-term implications for land use and environmental considerations in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Long contract duration (989 days) increases risk of cost overruns or scope creep.
Large contract value requires robust oversight to ensure performance and prevent fraud.
Specific details on the 'exclusion of sources' could reveal potential limitations in competition.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition generally leads to better pricing.
Award to a single entity may streamline project execution.

Sector Analysis

This contract falls within the commercial and institutional building construction sector. Large infrastructure projects like this often involve significant government spending, with benchmarks varying widely based on project scope and location.

Small Business Impact

The data indicates the primary awardee is SLS FEDERAL SERVICES LLC, and there is no explicit mention of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The contract's long duration and substantial value necessitate diligent oversight from the Department of Homeland Security to ensure timely completion, adherence to specifications, and responsible use of funds.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to long project duration.
Risk of scope creep impacting budget and timeline.
Dependence on a single contractor for a critical infrastructure project.
Environmental and land use concerns associated with barrier construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $683.5 million to SLS FEDERAL SERVICES LLC. VERTICAL BARRIER CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is SLS FEDERAL SERVICES LLC.

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 $683.5 million.

What is the period of performance?

Start: 2025-12-16. End: 2028-08-31.

What specific criteria led to the exclusion of certain sources in the full and open competition?

The exclusion of sources in a 'full and open competition after exclusion of sources' typically relates to specific technical requirements, security clearances, or unique capabilities deemed essential for the project's success. Understanding these criteria is crucial to assess if the exclusion was justified and did not unduly limit competition, potentially impacting the final price and overall value achieved for the government.

How does the per-unit cost of this barrier construction compare to similar projects in Texas or other border regions?

A detailed per-unit cost comparison is not available from the provided data. However, the firm-fixed-price nature of the contract suggests that the contractor has factored in all anticipated costs, including materials, labor, and overhead, into their bid. Benchmarking against publicly available data for similar border barrier projects, considering material costs and labor rates in Texas, would be necessary to evaluate cost-effectiveness.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the effectiveness and timely completion of this project?

The provided data does not specify the key performance indicators (KPIs) or detailed oversight mechanisms. However, given the project's scale and duration, the U.S. Customs and Border Protection likely has established protocols for monitoring progress, quality control, and adherence to the contract schedule. Regular progress reports, site inspections, and milestone reviews are standard practices for such large federal construction contracts.

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 AFTER EXCLUSION OF SOURCES

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

Financial Breakdown

Contract Ceiling: $683,548,800

Exercised Options: $683,548,800

Current Obligation: $683,548,800

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 70B01C26D00000003

IDV Type: IDC

Timeline