DoD Awards $18.2M Contract for Lock Gate Fabrication to G & G Steel Inc
Contract Overview
Contract Amount: $18,196,338 ($18.2M)
Contractor: G & G Steel Inc
Awarding Agency: Department of Defense
Start Date: 2024-09-19
End Date: 2029-09-01
Contract Duration: 1,808 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LOCK 3 AND 4 MITER GATE FABRICATION
Place of Performance
Location: RUSSELLVILLE, FRANKLIN County, ALABAMA, 35654
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $18.2 million to G & G STEEL INC for work described as: LOCK 3 AND 4 MITER GATE FABRICATION Key points: 1. The contract value of $18.2 million is significant for fabricated structural metal manufacturing. 2. G & G Steel Inc. secured this award through full and open competition. 3. The firm-fixed-price contract type aims to control costs for the Department of Defense. 4. This award falls within the fabricated structural metal manufacturing sector.
Value Assessment
Rating: good
The contract value of $18.2 million for fabricated structural metal manufacturing appears reasonable given the scope of work for lock gates. Benchmarking against similar large-scale fabrication projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive award process is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for this critical infrastructure component.
Public Impact
Ensures critical infrastructure maintenance for the Army Corps of Engineers. Supports domestic manufacturing capabilities in the structural metal sector. Provides long-term employment opportunities within G & G Steel Inc. and its supply chain. The fabrication of lock gates is essential for waterway transportation and commerce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen fabrication challenges arise.
- Dependence on G & G Steel Inc. for timely delivery and quality.
- Risk of supply chain disruptions affecting material availability.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type.
- Long contract duration allows for phased execution.
- Located in Alabama, potentially supporting regional economic development.
Sector Analysis
This contract falls under the fabricated structural metal manufacturing sector, which is crucial for infrastructure projects. Spending in this sector can fluctuate based on government infrastructure initiatives and defense needs.
Small Business Impact
The contract was awarded to G & G Steel Inc., a company that does not appear to be a small business based on the provided data (sb: false). There is no indication of subcontracting goals for small businesses in this award.
Oversight & Accountability
The award is managed by the Department of the Army, which has established oversight mechanisms for large fabrication contracts. The long duration of the contract will require ongoing monitoring of performance and adherence to specifications.
Related Government Programs
- Fabricated Structural Metal Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays due to complexity.
- Reliance on a single contractor for critical components.
- Risk of material cost fluctuations impacting firm fixed price.
- Long-term contract requires sustained oversight.
Tags
fabricated-structural-metal-manufacturin, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.2 million to G & G STEEL INC. LOCK 3 AND 4 MITER GATE FABRICATION
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 $18.2 million.
What is the period of performance?
Start: 2024-09-19. End: 2029-09-01.
What is the specific impact of the 'exclusion of sources' clause on the competitive landscape and final pricing?
The 'exclusion of sources' clause, while still allowing for full and open competition, suggests that certain pre-existing conditions or specific capabilities were required, potentially narrowing the pool of eligible bidders. This could influence the level of competition and, consequently, the final negotiated price. Further details on the excluded sources and the rationale would clarify the precise impact on price discovery and overall value.
How does the $18.2 million cost compare to industry benchmarks for similar lock and dam fabrication projects?
Without specific project details like size, complexity, and material requirements, a direct cost comparison is challenging. However, $18.2 million for fabricating two miter gates for a lock system appears to be within a reasonable range for substantial infrastructure components. Benchmarking against publicly available data for similar Army Corps of Engineers projects or large-scale industrial fabrication contracts would provide a more precise assessment of cost-effectiveness.
What are the key performance indicators (KPIs) and oversight procedures in place to ensure the quality and timely delivery of the lock gates?
The Department of the Army likely employs a robust quality assurance program and project management oversight for this contract. Key performance indicators would typically include adherence to technical specifications, material quality, fabrication tolerances, and on-time delivery milestones. Regular inspections, progress reports, and potential site visits by government representatives are standard procedures to ensure contract compliance and mitigate risks.
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: W912ES22B0009
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: $18,216,838
Exercised Options: $18,196,338
Current Obligation: $18,196,338
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-19
Current End Date: 2029-09-01
Potential End Date: 2029-09-01 00:00:00
Last Modified: 2025-03-24
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