DoD Awards $90.7M for 13 Miles of Texas Highway Construction to SLSCO, LTD

Contract Overview

Contract Amount: $90,713,671 ($90.7M)

Contractor: Slsco, Ltd.

Awarding Agency: Department of Defense

Start Date: 2020-01-17

End Date: 2021-09-02

Contract Duration: 594 days

Daily Burn Rate: $152.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION - 13 MILES OF PRIMARY BARRI

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79901

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $90.7 million to SLSCO, LTD. for work described as: CONSTRUCTION - 13 MILES OF PRIMARY BARRI Key points: 1. Significant contract value for infrastructure project. 2. Full and open competition was utilized. 3. Potential for cost overruns or delays exists. 4. Sector: Construction, specifically highway and bridge.

Value Assessment

Rating: good

The award amount of $90.7 million for 13 miles of highway construction appears reasonable given the scope. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure development, which can have long-term economic benefits.

Public Impact

Improved transportation infrastructure in Texas. Job creation through construction activities. Potential for increased economic activity in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 594 days.
Fixed price contract can lead to disputes if scope changes.
Geographic concentration in Texas.

Positive Signals

Full and open competition.
Clear project scope (13 miles of primary barri).
Experienced agency (Department of Defense).

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on transportation infrastructure. Spending in this sector is often driven by government investment in public works.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the prime contractor is SLSCO, LTD. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The Department of Defense, through the Department of the Army, is responsible for overseeing this contract. Standard oversight mechanisms for federal construction projects should be in place.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract duration.
Potential for scope creep.
Reliance on a single prime contractor.
Geographic concentration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.7 million to SLSCO, LTD.. CONSTRUCTION - 13 MILES OF PRIMARY BARRI

Who is the contractor on this award?

The obligated recipient is SLSCO, LTD..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $90.7 million.

What is the period of performance?

Start: 2020-01-17. End: 2021-09-02.

What is the projected economic impact of this highway construction on the local Texas economy?

The construction of 13 miles of primary highway is expected to generate employment opportunities for construction workers and related support services. It could also stimulate local businesses through increased demand for materials and services. Furthermore, improved transportation infrastructure can enhance long-term economic competitiveness by facilitating commerce and reducing transit times.

What are the primary risks associated with the firm fixed price contract for this large-scale construction project?

The primary risk with a firm fixed price contract for a large construction project is that unforeseen issues, such as material cost fluctuations, labor shortages, or unexpected site conditions, could lead to cost overruns for the contractor. If the contractor cannot absorb these costs, it may result in disputes, delays, or a reduction in quality to maintain profitability.

How effectively does this contract align with broader federal infrastructure spending goals?

This contract aligns with federal infrastructure spending goals by directly addressing the need for improved transportation networks. Projects like this are crucial for maintaining and upgrading the nation's highways, which supports economic growth and public safety. The use of full and open competition also suggests an efficient use of taxpayer funds in pursuit of these goals.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: 1

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: $92,713,671

Exercised Options: $90,713,671

Current Obligation: $90,713,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G19D0021

IDV Type: IDC

Timeline