DoD Awards $163.6M for 3.1 Miles of Texas Highway Construction Under Full and Open Competition
Contract Overview
Contract Amount: $163,654,768 ($163.7M)
Contractor: Slsco, Ltd.
Awarding Agency: Department of Defense
Start Date: 2018-11-11
End Date: 2024-05-18
Contract Duration: 2,015 days
Daily Burn Rate: $81.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE- 3.1 MILES
Place of Performance
Location: WESLACO, HIDALGO County, TEXAS, 78596
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $163.7 million to SLSCO, LTD. for work described as: BASE- 3.1 MILES Key points: 1. Significant contract value for a specific infrastructure project. 2. Full and open competition suggests potential for competitive pricing. 3. Long contract duration (2018-2024) may introduce cost escalation risks. 4. Project is in the construction sector, with a focus on transportation infrastructure.
Value Assessment
Rating: good
The contract value of $163.6 million for 3.1 miles of highway construction appears reasonable given the scope and duration. Benchmarking against similar large-scale highway 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, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure development, with competition aiming to maximize the value received for the investment.
Public Impact
Improved transportation infrastructure in Texas, potentially boosting local economy and commerce. Job creation through construction activities. Long-term asset for public use and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to long contract duration.
- Scope creep could increase final cost.
- Reliance on a single contractor (SLSCO, LTD.) for the entire project.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type helps control costs.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector. Spending in this sector is often driven by government infrastructure initiatives and economic stimulus programs. Benchmarks vary widely based on project complexity and location.
Small Business Impact
The data provided does not indicate any specific involvement or set-aside for small businesses in this large-scale construction contract. Further analysis would be needed to determine if small business participation was encouraged or required.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight would typically involve project managers ensuring adherence to contract terms, quality standards, and timelines.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- Potential for scope creep over the project's extended timeline.
- High cost per mile warrants further scrutiny.
- Lack of explicit small business participation noted.
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 $163.7 million to SLSCO, LTD.. BASE- 3.1 MILES
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 $163.7 million.
What is the period of performance?
Start: 2018-11-11. End: 2024-05-18.
What is the cost per mile for this highway construction project, and how does it compare to industry averages?
The project covers 3.1 miles at a cost of $163.6 million, equating to approximately $52.8 million per mile. This figure is on the higher end for standard highway construction, suggesting potential complexity, specific engineering requirements, or regional cost factors. A detailed comparison would require analyzing similar projects in Texas with comparable geological and logistical challenges.
What are the primary risks associated with the long contract duration of nearly six years?
The extended duration (November 2018 to May 2024) presents risks of material cost inflation, labor shortages, and potential changes in project scope or environmental regulations. Unforeseen site conditions or design modifications over such a long period could also lead to cost increases and schedule delays, despite the firm fixed-price structure.
How effectively does the firm fixed-price contract type mitigate risks for this large infrastructure project?
A firm fixed-price contract is generally effective in controlling costs by shifting most of the risk to the contractor. However, for a project of this scale and duration, the contractor's initial bid must account for potential contingencies. Significant unforeseen issues could still lead to change orders or disputes, impacting the final cost and timeline.
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: W9126G18R0093
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: $163,654,768
Exercised Options: $163,654,768
Current Obligation: $163,654,768
Actual Outlays: $13,980,262
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-11-11
Current End Date: 2024-05-18
Potential End Date: 2024-05-18 00:00:00
Last Modified: 2025-07-03
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