Department of Defense awards $150.9M for Border Fence RGV, highlighting highway construction needs
Contract Overview
Contract Amount: $150,875,292 ($150.9M)
Contractor: Slsco, Ltd.
Awarding Agency: Department of Defense
Start Date: 2018-10-31
End Date: 2024-04-30
Contract Duration: 2,008 days
Daily Burn Rate: $75.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BORDER FENCE RGV - 03
Place of Performance
Location: MISSION, HIDALGO County, TEXAS, 78572
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $150.9 million to SLSCO, LTD. for work described as: BORDER FENCE RGV - 03 Key points: 1. The contract value of $150.9M is significant for highway and bridge construction. 2. SLSCo, LTD. is the sole awardee, raising questions about competition. 3. The project duration spans over 5 years, indicating a substantial undertaking. 4. The firm fixed price contract type aims to control costs.
Value Assessment
Rating: fair
The contract value of $150.9M for highway and bridge construction appears substantial. Benchmarking against similar large-scale infrastructure projects would be necessary to fully assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, only one awardee is listed, which warrants further investigation into the bidding landscape and potential reasons for limited participation.
Taxpayer Impact: The significant investment in border infrastructure represents a substantial allocation of taxpayer funds towards national security and border management objectives.
Public Impact
Impacts border security infrastructure development in Texas. Supports construction jobs and related industries. Contributes to the physical barrier along the U.S.-Mexico border.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of awardees despite full and open competition.
- Long project duration could lead to cost overruns if not managed effectively.
Positive Signals
- Firm fixed price contract helps manage cost certainty.
- Project addresses a stated national security priority.
Sector Analysis
This contract falls under the Highway, Street, and Bridge Construction sector. Spending in this sector is often driven by infrastructure needs, government projects, and economic development initiatives. The $150.9M award is a significant figure within this category.
Small Business Impact
Analysis of small business participation is not available from the provided data. Further investigation would be needed to determine if small businesses were involved as subcontractors or prime contractors.
Oversight & Accountability
The long duration of the contract (over 5 years) necessitates robust oversight from the Department of the Army to ensure adherence to timelines, budget, and quality standards. Regular performance reviews and audits are crucial.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential lack of robust competition despite 'full and open' designation.
- Long contract duration increases risk of cost escalation and scope creep.
- Limited data on small business participation.
- Need for detailed cost benchmarking to ensure value for money.
Tags
highway-street-and-bridge-construction, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $150.9 million to SLSCO, LTD.. BORDER FENCE RGV - 03
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 $150.9 million.
What is the period of performance?
Start: 2018-10-31. End: 2024-04-30.
What was the competitive landscape during the bidding process, and why did only one contractor receive the award despite full and open competition?
While the contract was advertised as full and open, the limited number of awardees suggests potential barriers to entry, specialized requirements, or a lack of sufficient bids from qualified contractors. Further analysis of the solicitation and bidding data is needed to understand the specific factors that led to this outcome and whether it represents a missed opportunity for greater competition and potentially better pricing.
How does the $150.9M contract value compare to similar large-scale border infrastructure projects, and what is the projected cost per mile or unit?
Benchmarking this $150.9M contract against similar border infrastructure projects is essential for a comprehensive value assessment. Without specific cost-per-mile or unit cost data, it's difficult to determine if the pricing is competitive. A detailed cost breakdown and comparison with industry standards for fence construction and associated infrastructure would reveal potential cost efficiencies or overruns.
What are the key performance indicators and oversight mechanisms in place to ensure the effective and timely completion of this long-term border fence project?
Given the project's duration and significant investment, robust oversight is critical. Key performance indicators should focus on construction milestones, quality control, safety compliance, and budget adherence. The Department of the Army must implement regular progress reviews, site inspections, and performance evaluations to ensure accountability and mitigate risks associated with long-term projects.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9126G18R0099
Offers Received: 3
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: $150,875,292
Exercised Options: $150,875,292
Current Obligation: $150,875,292
Actual Outlays: $10,644,517
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-10-31
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2025-07-03
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