DoD awards $19.8M contract for miter gate assemblies to G & G Steel Inc

Contract Overview

Contract Amount: $19,877,537 ($19.9M)

Contractor: G & G Steel Inc

Awarding Agency: Department of Defense

Start Date: 2022-03-10

End Date: 2026-09-30

Contract Duration: 1,665 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FABRICATION OF MITER GATE ASSEMBLIES

Place of Performance

Location: PLEASANT VALLEY, SCOTT County, IOWA, 52767

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to G & G STEEL INC for work described as: FABRICATION OF MITER GATE ASSEMBLIES Key points: 1. Contract awarded for fabricated structural metal manufacturing, specifically miter gate assemblies. 2. The contract has a duration of 1665 days, spanning from March 2022 to September 2026. 3. Awarded by the Department of the Army, a component of the Department of Defense. 4. The contract type is Firm Fixed Price, indicating predictable costs for the government. 5. This award represents a significant investment in infrastructure maintenance or upgrade for military facilities. 6. The North American Industry Classification System (NAICS) code is 332312, indicating a focus on fabricated structural metal manufacturing.

Value Assessment

Rating: fair

The contract value of $19.8 million for miter gate assemblies appears to be within a reasonable range for specialized fabricated structural metal components, especially considering the duration and potential complexity. However, without specific details on the quantity, specifications, and comparable projects, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale fabrication contracts for defense infrastructure would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was intended, certain sources were excluded, potentially limiting the bidder pool. The presence of 2 bids indicates some level of competition, but the exclusion of sources raises questions about the breadth of the competition and its impact on achieving the most competitive pricing.

Taxpayer Impact: The limited competition, due to the exclusion of sources, may have resulted in a higher price for taxpayers than if a broader range of qualified vendors had been allowed to bid.

Public Impact

The Department of Defense benefits from the acquisition of essential miter gate assemblies for its facilities. These assemblies are crucial for the operational integrity and maintenance of water control structures within military installations. The contract supports the fabricated structural metal manufacturing sector, contributing to the industrial base. The workforce involved in fabrication and assembly will be directly impacted by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources impacting price.
Lack of detailed specifications makes it difficult to assess the exact value proposition.
Firm Fixed Price contract type could lead to higher costs if initial estimates were inaccurate.

Positive Signals

Contract awarded to a specific company, G & G STEEL INC, indicating a clear vendor.
The contract duration provides a stable period for production and delivery.
Firm Fixed Price contract offers cost certainty for the government.

Sector Analysis

This contract falls within the fabricated structural metal manufacturing sector, a key component of the broader construction and defense industrial base. Companies in this sector produce metal frameworks, bridges, and similar structures. The market for such specialized components can be niche, with a limited number of firms possessing the necessary expertise and capacity. The value of this contract, approximately $19.8 million, is substantial for a single award within this specific sub-sector, suggesting a significant project or a large quantity of components.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms were likely the primary bidders. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided information. The impact on the small business ecosystem is likely minimal unless G & G Steel Inc. actively engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics and inspection reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Infrastructure Projects
Fabricated Metal Product Manufacturing Contracts
Army Corps of Engineers Construction Support
Naval Facilities Engineering Command Contracts

Risk Flags

Limited competition due to source exclusion.
Potential for price not being the lowest possible.
Contractor performance history not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to G & G STEEL INC. FABRICATION OF MITER GATE ASSEMBLIES

Who is the contractor on this award?

The obligated recipient is G & G STEEL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2022-03-10. End: 2026-09-30.

What is the specific purpose and technical requirement for these miter gate assemblies?

The specific purpose of the miter gate assemblies is not detailed in the provided data. However, miter gates are typically used in locks and dams to control water flow. In a Department of Defense context, they could be for naval facilities, flood control at bases, or other water management infrastructure critical to base operations or security. The technical requirements would involve precise fabrication to ensure watertight seals and structural integrity under pressure, likely adhering to stringent military or engineering standards for materials, dimensions, and performance under various environmental conditions.

How does the awarded price of $19.8 million compare to similar miter gate assembly contracts?

A direct comparison of the $19.8 million award for miter gate assemblies is difficult without more specific data on the quantity, size, material, and complexity of the assemblies. However, large-scale fabrication projects for infrastructure can range significantly. For instance, contracts for bridge components or large industrial fabrications can easily reach millions of dollars. Given the duration (1665 days) and the fact it's for the Department of Defense, suggesting potentially higher quality or security standards, the price appears plausible for a substantial procurement. A benchmark against other DoD or Army Corps of Engineers contracts for similar water control structures would be necessary for a definitive value assessment.

What are the key risks associated with this contract for the Department of Defense?

Key risks for the Department of Defense include potential delays in fabrication and delivery, which could impact facility operations or maintenance schedules. There's also a risk of quality defects, requiring rework or replacement, which could incur additional costs and delays. Given the 'limited' competition, there's a risk that the price may not be as competitive as it could have been under full and open competition. Furthermore, the long contract duration increases the risk of unforeseen cost escalations if the Firm Fixed Price contract doesn't adequately account for potential material price fluctuations or labor cost increases.

What is G & G Steel Inc.'s track record with government contracts, particularly with the Department of Defense?

The provided data does not include information on G & G Steel Inc.'s specific track record with government contracts. To assess their performance, one would need to examine their past contract history, including awards, performance ratings, and any past issues or disputes. Their experience with similar fabrication projects, especially for defense clients, would be a critical factor in evaluating their capability to successfully execute this miter gate assembly contract. A review of federal procurement databases and contractor performance systems would be necessary.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact cost-effectiveness?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies that the agency initially intended broad competition but later excluded certain potential offerors. This exclusion can limit the number of bidders, potentially reducing the competitive pressure on pricing. If the exclusion was based on specific, justifiable criteria (e.g., unique capabilities, security clearances), it might be necessary. However, if the exclusion was arbitrary or overly restrictive, it could lead to higher costs for taxpayers compared to a scenario with more bidders vying for the contract. The fact that only 2 bids were received further suggests a constrained competitive environment.

What are the implications of the 'FIRM FIXED PRICE' contract type for budget management?

The Firm Fixed Price (FFP) contract type is generally favorable for budget management as it establishes a ceiling price that the contractor must adhere to, regardless of their actual costs. This provides cost certainty for the government, making budgeting more predictable. However, it places the risk of cost overruns on the contractor. If the contractor significantly underestimates their costs, they may incur losses. Conversely, if the contractor is highly efficient, they retain the profit. For the government, the primary implication is that the price is set and unlikely to increase unless contract modifications are formally issued for changes in scope or unforeseen circumstances.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal Manufacturing

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912ES22B0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15825 HIGHWAY 243, RUSSELLVILLE, AL, 35654

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,953,137

Exercised Options: $19,877,537

Current Obligation: $19,877,537

Actual Outlays: $5,478,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline