Department of the Army awards $5.8M contract for sector gate fabrication to Steward Machine Co. Inc

Contract Overview

Contract Amount: $5,810,599 ($5.8M)

Contractor: Steward Machine CO Inc

Awarding Agency: Department of Defense

Start Date: 2021-01-08

End Date: 2025-07-26

Contract Duration: 1,660 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECTOR GATE FABRICATION

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to STEWARD MACHINE CO INC for work described as: SECTOR GATE FABRICATION Key points: 1. Contract value of $5.8 million for fabricated structural metal manufacturing. 2. Awarded under full and open competition after exclusion of sources. 3. Contract duration of 1660 days, ending July 2025. 4. Firm Fixed Price contract type suggests predictable costs. 5. Steward Machine Co. Inc. is the sole awardee. 6. The contract falls under the manufacturing sector, specifically fabricated structural metal.

Value Assessment

Rating: fair

The contract value of $5.8 million for sector gate fabrication appears to be within a reasonable range for specialized structural metal manufacturing. Benchmarking against similar large-scale fabrication projects would provide a clearer picture of value for money. The firm fixed price structure helps mitigate cost overrun risks for the government, but the absence of multiple bids in the final award stage warrants scrutiny regarding potential price inflation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was initially sought, specific sources were later excluded. With only 2 bids received, the level of competition was limited. This suggests that the market for this specific type of fabricated structural metal may be concentrated, or that the solicitation requirements were highly specialized, potentially leading to fewer interested bidders and impacting price discovery.

Taxpayer Impact: Limited competition can sometimes result in higher prices for taxpayers if the chosen contractor does not face significant pressure to offer the most competitive bid.

Public Impact

The primary beneficiaries are likely Department of Defense facilities requiring secure sector gates. The contract delivers fabricated structural metal components essential for infrastructure security. The geographic impact is centered in Louisiana, where the contractor is located. Workforce implications include employment for skilled metal fabricators and manufacturing personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
The exclusion of sources in the competition process raises questions about market access.
Contract duration is long, potentially leading to obsolescence if technology changes rapidly.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Steward Machine Co. Inc. is a single awardee, potentially indicating specialized capability.
The contract supports critical defense infrastructure needs.

Sector Analysis

The fabricated structural metal manufacturing sector (NAICS 332312) is a key component of the broader manufacturing industry, providing essential components for construction and infrastructure projects. This contract for sector gates fits within the defense sub-sector, where specialized fabrication is often required for security and durability. Market size for such specialized defense fabrication can be substantial, driven by ongoing modernization and security requirements. Comparable spending benchmarks would typically involve other large-scale metal fabrication contracts for government facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As Steward Machine Co. Inc. is the sole awardee and the contract value is significant, there are no direct subcontracting implications for small businesses mentioned in this data. The focus appears to be on a prime contractor with the capacity to fulfill a large, specialized fabrication requirement.

Oversight & Accountability

Oversight for this contract would typically 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 generally maintained through contract award databases, though specific details of the 'exclusion of sources' process may not be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Infrastructure Projects
Structural Metal Fabrication
Government Security Systems
Manufacturing Contracts
Department of the Army Procurement

Risk Flags

Limited Competition
Potential for Higher Costs
Lack of Small Business Participation
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to STEWARD MACHINE CO INC. SECTOR GATE FABRICATION

Who is the contractor on this award?

The obligated recipient is STEWARD MACHINE CO 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 $5.8 million.

What is the period of performance?

Start: 2021-01-08. End: 2025-07-26.

What is the track record of Steward Machine Co. Inc. with federal contracts, particularly within the Department of Defense?

Information regarding Steward Machine Co. Inc.'s specific track record with federal contracts, especially within the Department of Defense, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like FPDS or SAM.gov) to review past awards, performance reviews, and any history of contract disputes or terminations. Understanding their past performance, especially on similar fabrication projects, is crucial for assessing the reliability and potential risks associated with this current award. Without this historical data, it's difficult to definitively gauge their experience and capability beyond what is implied by winning this specific contract.

How does the awarded price of $5.8 million compare to similar sector gate fabrication contracts awarded by the Department of Defense or other federal agencies?

Direct comparison of the $5.8 million award for sector gate fabrication requires access to a broader dataset of similar contracts. Factors such as gate size, material specifications, security features, and complexity significantly influence pricing. The provided data indicates a firm fixed price contract with a duration of 1660 days, suggesting a substantial project. To benchmark effectively, one would need to identify contracts for comparable fabricated structural metal components for defense installations, analyze their total values, contract durations, and the number of bidders. The limited competition (2 bids) in this instance might suggest the price is not as competitive as it could be under broader market conditions, but without comparative data, it's difficult to make a definitive statement on value for money.

What are the specific risks associated with a 'Full and Open Competition After Exclusion of Sources' award, and how were they mitigated?

The primary risk with 'Full and Open Competition After Exclusion of Sources' is that it can limit the pool of potential bidders, potentially leading to higher prices and reduced innovation compared to truly open competition. It suggests that after an initial broad solicitation, certain sources were deemed ineligible or unsuitable for reasons that may or may not be transparent. Mitigation strategies would typically involve a clear justification for the exclusion, ensuring that the remaining sources still provide adequate competition, and rigorous price analysis to ensure the final award represents fair value. The government's contracting officers are responsible for documenting the rationale for exclusion and ensuring the process remains fair and compliant with procurement regulations.

What is the expected effectiveness of these sector gates in enhancing security at Department of Defense facilities?

The effectiveness of the sector gates in enhancing security is contingent upon their design, materials, installation, and integration into the overall security infrastructure of the Department of Defense facilities. As fabricated structural metal, these gates are expected to provide a physical barrier against unauthorized access, vehicle intrusion, and potentially other threats. The contract specifies 'Fabricated Structural Metal Manufacturing,' implying robust construction. However, the provided data does not detail the specific security features, performance standards, or testing protocols required for these gates. Therefore, while they are intended to improve physical security, their precise level of effectiveness cannot be determined solely from the contract information.

How has historical spending on fabricated structural metal manufacturing by the Department of Defense trended over the past five years?

Analyzing historical spending trends for fabricated structural metal manufacturing by the Department of Defense over the past five years would require access to comprehensive federal procurement data. This would involve querying databases like the Federal Procurement Data System (FPDS) for relevant NAICS codes (e.g., 332312) and filtering by the Department of Defense as the procuring agency. Such an analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable, potentially influenced by factors like infrastructure upgrades, new construction projects, or shifts in defense priorities. Without this specific historical data, it's impossible to provide a trend analysis for this contract's category.

Industry Classification

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

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912P821B0019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3911 13TH AVE N, BIRMINGHAM, AL, 35234

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

Financial Breakdown

Contract Ceiling: $5,810,599

Exercised Options: $5,810,599

Current Obligation: $5,810,599

Actual Outlays: $821,680

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline