The lead pipe looks old, possibly with previous users; it has rust (or bloodstains) on the business end and wrapping to provide a better grip on the handle. It is a widely available, inexpensive, starting melee weapon. Although not a highly damaging weapon, it has a rapid attack, so many blows can be landed quickly. It's a good choice for low-levels, because of its moderate damage and quick rapid attacks.
A nice stash of 17, which are grouped in a single collectible item in perfect conditions, can be found in the Mobile Base Crawler's Storage Room, close to one of the middle deck access hatches to the Entrance Bay.