I used a Double Star 16" chrome lined pencil barrel. Since I was using a fake moderator I wasn't concerned about the barrel being the exact length because I could cut the thread as long as I wanted and hide the length inside the moderator. In fact, I left mine at 11 or 12 inches and it looks just fine. I cut and threaded the barrel myself. The barrel already had the front sight installed and unless you have a jig to index the front sight to the barrel, using a pre-drilled sight base is going to be next to impossible to mount properly. There are shops that can do it. I have a jig I use that I can mount to my drill press or a milling machine. With a pre-drilled sight base it's not just a matter of running a drill bit into the hole and drilling through. You start with an end mill because of the round contour of the barrel inside the hole. Then you need the proper taper reamer for the taper pins unless you use straight pins.
Don't drill the gas hole until you test fire the gun. If you need to open it up there should be enough room to move the sight base out of the way to do it even with the moderator welded on, depending on your overall barrel length. I left my gas hole alone and found it operated flawlessly the way it was.
Also remember that if you cut your barrel all the assembled parts need to have a finished overall length of 16" unless you're building an SBR. Cutting the barrel to 10" and using the fake moderators or long flash suppressors, which are usually 5" long, will leave you an inch short. That's the main reason I left my barrel longer than 10" as mine isn't an SBR. With the moderator pinned and welded I got the entire assembly right about 16.25" in length.