DoD awards $18.2M for steel sheet piling, with L.B. Foster Company securing the contract

Contract Overview

Contract Amount: $18,245,118 ($18.2M)

Contractor: L.B. Foster Company

Awarding Agency: Department of Defense

Start Date: 2009-12-22

End Date: 2011-06-01

Contract Duration: 526 days

Daily Burn Rate: $34.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FURNISH PILING, STEEL SHEET

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to L.B. FOSTER COMPANY for work described as: FURNISH PILING, STEEL SHEET Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates a defined cost for the services. 3. The contract duration of 526 days suggests a significant project timeline. 4. The North American Industry Classification System (NAICS) code 331111 points to iron and steel mills as the primary industry. 5. The award was made to L.B. Foster Company, a known entity in the construction materials sector. 6. The contract was awarded by the Department of the Army, a major component of the Department of Defense.

Value Assessment

Rating: fair

The total award amount of $18.2 million for steel sheet piling appears to be within a reasonable range for large-scale infrastructure projects. Benchmarking against similar contracts for steel piling would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government, but the final value is dependent on the scope and duration of the project. Without specific details on the quantity and specifications of the piling, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, but even three bidders can result in a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential materials for infrastructure or construction projects. Steel sheet piling is crucial for various construction applications, including retaining walls, cofferdams, and foundation support. The contract's execution in Louisiana (ST: LA) indicates a direct geographic impact on that state's economy and workforce. The project likely supports jobs within the steel manufacturing and construction industries, both directly and indirectly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial fixed-price agreement.
Dependence on a single supplier for a critical component could lead to supply chain risks.
Quality control of steel piling is paramount to ensure structural integrity and project longevity.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust market assessment and potential for competitive pricing.
Award to an established company like L.B. Foster Company may indicate reliability and experience.

Sector Analysis

The steel sheet piling market is a segment within the broader construction materials and heavy industry sectors. This contract falls under the manufacturing of iron and steel mill products (NAICS 331111). The demand for steel piling is driven by infrastructure development, construction projects, and environmental engineering needs. Comparable spending benchmarks would involve analyzing other large-scale government or private sector procurements for similar steel products used in civil engineering applications.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award was made to L.B. Foster Company, which is a large corporation. Subcontracting opportunities for small businesses may exist within the execution of this contract, particularly in logistics, transportation, or specialized construction services, but this is not explicitly detailed in the provided data. The overall impact on the small business ecosystem is likely indirect unless specific subcontracting plans are mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Construction Contracts
Army Corps of Engineers Projects
Infrastructure Materials Procurement
Steel Manufacturing Contracts

Risk Flags

Potential for material price volatility impacting contractor costs.
Ensuring timely delivery of specialized steel products.
Verification of steel quality and compliance with specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to L.B. FOSTER COMPANY. FURNISH PILING, STEEL SHEET

Who is the contractor on this award?

The obligated recipient is L.B. FOSTER COMPANY.

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: 2009-12-22. End: 2011-06-01.

What is the historical spending pattern of the Department of the Army on steel sheet piling over the last five years?

Analyzing the Department of the Army's historical spending on steel sheet piling requires accessing and processing federal procurement databases such as FPDS-NG or USASpending.gov. A review of these databases would reveal the total dollar amounts awarded annually for contracts with relevant Product Service Codes (PSCs) and NAICS codes related to steel piling. It would also identify the primary contractors, contract types, and competition levels for these past awards. This historical data would allow for the identification of trends, such as increasing or decreasing demand, average contract values, and the stability of key suppliers. For instance, if spending has been consistently high, it suggests a sustained need for these materials in ongoing military construction and infrastructure maintenance. Conversely, a sharp decline might indicate a shift in project priorities or the completion of major initiatives. Understanding these patterns provides context for the current $18.2 million award, helping to determine if it represents a typical, above-average, or below-average investment for the agency.

How does the per-unit cost of the steel sheet piling in this contract compare to market rates or similar government contracts?

Determining the per-unit cost requires breaking down the total contract value ($18.2 million) by the quantity of steel sheet piling procured. Unfortunately, the quantity is not provided in the available data. If the quantity were known, we could calculate a per-unit cost and benchmark it against industry price lists, construction cost indices, or data from similar government contracts awarded around the same time. For example, if the contract specified 10,000 tons of steel piling, the per-ton cost would be $1,820. This figure could then be compared to average market prices for steel sheet piling, which fluctuate based on raw material costs (iron ore, energy) and manufacturing capacity. Government contracts often have negotiated rates that may differ from commercial prices due to volume, specifications, and competitive bidding dynamics. A higher-than-market per-unit cost could indicate potential inefficiencies in the procurement process or unique project requirements, while a lower cost would suggest good value for the taxpayer.

What is L.B. Foster Company's track record with Department of Defense contracts, specifically for construction materials?

L.B. Foster Company has a significant history of supplying construction materials and services to various government agencies, including the Department of Defense (DoD). A review of federal procurement data would likely show numerous past awards to L.B. Foster for products such as steel piling, bridge decking, and other infrastructure components. Analyzing these past contracts would reveal their performance history, including on-time delivery, adherence to specifications, and any history of contract disputes or modifications. For DoD contracts, their experience might range from large-scale base construction projects to specific material needs for military installations. Assessing their track record involves looking at the total value of contracts held, the types of projects undertaken, and any performance evaluations or past performance questionnaires available. A strong track record with the DoD suggests reliability and capability in meeting the demanding requirements of military procurement, which can be a positive indicator for the current contract's successful execution.

What specific infrastructure or construction projects is this steel sheet piling intended for within the Department of the Army?

The provided data does not specify the exact infrastructure or construction projects for which this steel sheet piling is intended. However, steel sheet piling is a versatile construction material commonly used in applications requiring earth retention, excavation support, and waterfront structures. For the Department of the Army, potential uses could include the construction or repair of docks and piers at naval bases, foundation support for new barracks or administrative buildings, flood control measures around military installations, or retaining walls for roadways and earthworks within bases. The location of the award in Louisiana might suggest projects related to coastal defense, port infrastructure, or flood mitigation efforts in that region, given its susceptibility to hurricanes and rising sea levels. Further details would typically be found in the contract's statement of work (SOW) or associated project documentation, which are not included in this summary.

What are the potential risks associated with a firm-fixed-price contract for steel sheet piling, and how are they mitigated?

The primary risk with a firm-fixed-price (FFP) contract for steel sheet piling is that the contractor (L.B. Foster Company) bears the risk of cost overruns. If the cost of raw materials (steel) increases significantly after the contract is awarded, or if unforeseen site conditions increase installation complexity, the contractor might incur losses unless the contract includes specific escalation clauses or contingency provisions. Conversely, the government risks paying a premium if the contractor's initial estimate was overly conservative. Mitigation strategies employed by the government often include thorough market research to ensure the initial price is competitive, clearly defining the scope of work and specifications to minimize ambiguity, and potentially including clauses for equitable adjustments in cases of significant, unforeseen circumstances. For the contractor, mitigation involves accurate cost estimation, hedging against material price volatility, and efficient project management. The government's oversight ensures that the delivered product meets all quality standards, regardless of the contractor's internal cost fluctuations.

Industry Classification

NAICS: Manufacturing › Iron and Steel Mills and Ferroalloy Manufacturing › Iron and Steel Mills

Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912P810B0036

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 415 HOLIDAY DR, PITTSBURGH, PA, 15220

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

Financial Breakdown

Contract Ceiling: $18,245,118

Exercised Options: $18,245,118

Current Obligation: $18,245,118

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline