Army awards $38.2M Yuma Barrier Project to SLSCO, LTD. under firm fixed price contract
Contract Overview
Contract Amount: $38,171,975 ($38.2M)
Contractor: Slsco, Ltd.
Awarding Agency: Department of Defense
Start Date: 2019-12-12
End Date: 2021-08-29
Contract Duration: 626 days
Daily Burn Rate: $61.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION YUMA 6 BARRIER PROJECT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92108
Plain-Language Summary
Department of Defense obligated $38.2 million to SLSCO, LTD. for work described as: DESIGN AND CONSTRUCTION YUMA 6 BARRIER PROJECT Key points: 1. The contract value of $38.2 million for the Yuma Barrier Project is a significant investment in border infrastructure. 2. SLSCO, LTD. secured this award, indicating their competitive standing in large-scale construction projects. 3. The project's duration of 626 days suggests a complex undertaking with potential for schedule-related risks. 4. This expenditure falls within the broader context of Department of Defense infrastructure and border security spending.
Value Assessment
Rating: good
The $38.2 million award appears reasonable for a project of this scale and complexity, especially given the firm fixed price structure which shifts risk to the contractor. Benchmarking against similar large-scale construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive bidding process.
Public Impact
Enhances border security infrastructure in a critical region. Supports economic activity through construction jobs and material procurement. Potential impact on local communities and environmental considerations in the Yuma area. Contributes to the Department of Defense's broader mission objectives.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite fixed price.
- Schedule delays could impact effectiveness and increase overall project cost.
- Environmental impact assessments and mitigation strategies are crucial.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Firm fixed price contract transfers significant risk to the contractor.
- Project addresses a stated national security priority.
Sector Analysis
This project falls under the Highway, Street, and Bridge Construction sector, a significant area of federal spending for infrastructure development and maintenance. Benchmarks for similar large-scale construction contracts within the DoD are typically in the tens to hundreds of millions of dollars.
Small Business Impact
While this specific contract was awarded to SLSCO, LTD., the overall federal construction spending landscape often includes opportunities for small businesses as subcontractors. Further analysis would be needed to determine the extent of small business participation in this particular project.
Oversight & Accountability
The Department of the Army's oversight of this contract is critical to ensure adherence to specifications, timelines, and budget. Regular progress reviews and performance monitoring are standard oversight mechanisms for such projects.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting national security objectives.
- Unforeseen environmental or geological challenges.
- Contractor performance risk, despite competitive bidding.
- Scope creep or change orders could increase costs.
- Long-term maintenance and operational costs not included in initial award.
Tags
highway-street-and-bridge-construction, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.2 million to SLSCO, LTD.. DESIGN AND CONSTRUCTION YUMA 6 BARRIER PROJECT
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 $38.2 million.
What is the period of performance?
Start: 2019-12-12. End: 2021-08-29.
What specific construction challenges were anticipated or encountered that justified the $38.2 million price tag and 626-day duration?
The significant cost and duration likely stem from the scale of the barrier, the challenging desert terrain of Yuma, potential environmental mitigation requirements, and the need for robust, long-lasting construction materials. Specific anticipated challenges might include extreme weather, difficult soil conditions, and logistical complexities of operating in a remote border area.
How does the performance of SLSCO, LTD. on similar past projects inform the risk assessment for this contract?
Assessing SLSCO, LTD.'s past performance on comparable large-scale construction projects is crucial for understanding their reliability, quality of work, and adherence to schedules and budgets. A review of their track record, including any past disputes or performance issues, would provide insight into potential risks associated with this contract and the effectiveness of the chosen oversight.
What are the long-term maintenance and operational costs associated with the Yuma Barrier Project beyond the initial construction?
The initial $38.2 million construction cost does not encompass the full lifecycle expense. Long-term maintenance, repairs due to wear and tear or environmental factors, and operational costs (e.g., monitoring, security personnel) represent a separate, ongoing financial commitment for the government. Understanding these future costs is vital for a complete value assessment.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
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: $41,932,975
Exercised Options: $38,171,975
Current Obligation: $38,171,975
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G19D0021
IDV Type: IDC
Timeline
Start Date: 2019-12-12
Current End Date: 2021-08-29
Potential End Date: 2021-08-29 00:00:00
Last Modified: 2025-08-19
More Contracts from Slsco, Ltd.
- EL Paso Sector Wall Replacement, EL Paso Sector, NM — $601.8M (Department of Defense)
- Border Infrastructure Construction — $388.7M (Department of Homeland Security)
- FY23 Mcon P-923 Aircraft Parking Apron, Royal Australian AIR Force Base, Darwin, Australia — $327.3M (Department of Defense)
- California Primary and Secondary Pedestrian Fence Replacements, 30 Foot High SDC Secondary Fence, Department of Homeland Security Customs and Border Protection — $260.2M (Department of Defense)
- EL Paso C/D (34.97 Miles) Primary and Secondary Barrier Wall Replacement Project — $232.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)