DHS awards $116M for Border Infrastructure Construction to Fisher Sand & Gravel Co
Contract Overview
Contract Amount: $116,379,078 ($116.4M)
Contractor: Fisher Sand & Gravel CO
Awarding Agency: Department of Homeland Security
Start Date: 2022-08-30
End Date: 2024-03-29
Contract Duration: 577 days
Daily Burn Rate: $201.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION-BORDER INFRASTRUCTURE
Place of Performance
Location: DONA ANA, DONA ANA County, NEW MEXICO, 88032
Plain-Language Summary
Department of Homeland Security obligated $116.4 million to FISHER SAND & GRAVEL CO for work described as: CONSTRUCTION-BORDER INFRASTRUCTURE Key points: 1. Significant contract value for border infrastructure. 2. Fisher Sand & Gravel Co. is the primary awardee. 3. Full and open competition was utilized. 4. Contract duration is substantial at 577 days.
Value Assessment
Rating: fair
The award amount of $116,379,078 is substantial. Benchmarking against similar large-scale construction projects is difficult without more specific details on the scope of work. The reported bid price of $201,697 seems disproportionately low compared to the total award, suggesting potential for change orders or a phased approach.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation process. This method generally promotes competitive pricing and allows for a wide range of potential contractors to bid. The impact on price discovery is likely positive, as multiple bids would have been evaluated.
Taxpayer Impact: Taxpayer funds are being utilized for critical border infrastructure. The competitive nature of the award aims to ensure value for money, but ongoing oversight is crucial to manage costs effectively.
Public Impact
Enhances border security infrastructure. Supports economic activity through construction. Potential for job creation in New Mexico.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Low reported bid price relative to award value.
- Lack of small business participation.
- Long contract duration could lead to cost overruns.
Positive Signals
- Awarded under full and open competition.
- Addresses critical national security needs.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on government needs, economic conditions, and specific project requirements. Benchmarks for border infrastructure projects are highly specific to location and scope.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the project's scale or requirements may have favored larger firms, or that outreach to small businesses was insufficient.
Oversight & Accountability
Oversight will be critical given the contract's value and duration. The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for ensuring performance and managing costs. Regular reporting and site inspections will be key accountability measures.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for cost overruns due to long duration.
- Lack of small business involvement.
- Discrepancy between bid and award value.
- Limited detail on specific infrastructure components.
Tags
commercial-and-institutional-building-co, department-of-homeland-security, nm, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $116.4 million to FISHER SAND & GRAVEL CO. CONSTRUCTION-BORDER INFRASTRUCTURE
Who is the contractor on this award?
The obligated recipient is FISHER SAND & GRAVEL CO.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $116.4 million.
What is the period of performance?
Start: 2022-08-30. End: 2024-03-29.
What specific types of border infrastructure are included in this contract, and how does the scope align with the awarded amount?
The contract specifies 'Commercial and Institutional Building Construction' for border infrastructure. Without a detailed breakdown of the project's components (e.g., new facilities, upgrades, specific technologies), it's challenging to definitively assess if the $116M award is appropriately aligned with the scope. Further clarification on the deliverables is needed to confirm value.
Given the significant difference between the reported bid price and the total award, what are the primary drivers for potential cost increases?
The discrepancy between the initial bid and the total award value suggests potential for significant change orders, material cost escalations over the contract's 577-day duration, or unforeseen site conditions. Robust contract management and justification for any modifications will be essential to mitigate taxpayer risk and ensure the final cost remains reasonable.
How will the effectiveness of the completed border infrastructure be measured, and what metrics will be used to assess the contractor's performance?
Effectiveness will likely be measured against predefined performance standards related to functionality, durability, and security capabilities of the constructed infrastructure. Key performance indicators (KPIs) should be established to track project milestones, quality of work, adherence to schedule, and compliance with all specifications. Regular performance reviews by U.S. Customs and Border Protection are crucial.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3020 ENERGY DR, DICKINSON, ND, 58601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $116,379,078
Exercised Options: $116,379,078
Current Obligation: $116,379,078
Actual Outlays: $110,042,482
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSBP1017D00019
IDV Type: IDC
Timeline
Start Date: 2022-08-30
Current End Date: 2024-03-29
Potential End Date: 2024-03-29 08:06:56
Last Modified: 2024-03-01
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