DHS awards $234.8M for border infrastructure construction, with 5 bids received

Contract Overview

Contract Amount: $234,840,000 ($234.8M)

Contractor: Barnard Spencer Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2023-07-18

End Date: 2025-02-01

Contract Duration: 564 days

Daily Burn Rate: $416.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 1ST TO BORDER INFRASTRUCTURE

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85701

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $234.8 million to BARNARD SPENCER JOINT VENTURE for work described as: 1ST TO BORDER INFRASTRUCTURE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs for the government. 3. Performance period spans over 1.5 years, indicating a significant project duration. 4. The contract is for commercial and institutional building construction, a key infrastructure need. 5. Awarded by U.S. Customs and Border Protection, highlighting its role in border security. 6. Geographic focus on Arizona suggests specific border region needs.

Value Assessment

Rating: good

The contract value of $234.8 million for border infrastructure construction appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This indicates a healthy level of market interest and suggests that multiple capable contractors were able to participate. The presence of five bidders generally supports price discovery and encourages competitive pricing.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it is more likely to result in a fair market price and prevent potential overcharging.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection and the Department of Homeland Security, enhancing border security infrastructure. The services delivered include the construction of essential border infrastructure. The geographic impact is concentrated in Arizona, a key border state. The contract will likely create or sustain jobs in the construction sector within Arizona and potentially surrounding regions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large infrastructure projects, requiring diligent oversight.
Construction timelines can be subject to delays due to unforeseen site conditions or regulatory hurdles.
Ensuring compliance with all environmental and labor regulations is critical for successful project execution.

Positive Signals

Firm-fixed-price contract helps manage budget predictability.
Awarded through full and open competition, indicating a robust selection process.
The project addresses a critical national security need for border infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure, including defense, transportation, and border security. The market for large federal construction projects is competitive, with established firms often bidding on significant opportunities.

Small Business Impact

The contract was awarded through full and open competition and does not indicate a specific small business set-aside. While the prime contractor is a joint venture, the extent of small business subcontracting opportunities is not detailed in the provided data. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the U.S. Customs and Border Protection contracting officer and project managers. Accountability measures are inherent in the firm-fixed-price contract, which penalizes cost overruns by the contractor. Transparency is generally maintained through federal contract databases, though specific project oversight details may vary.

Related Government Programs

Border Security Infrastructure Projects
Federal Construction Contracts
Department of Homeland Security Procurement
U.S. Customs and Border Protection Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite FFP.
Risk of project delays due to environmental or site-specific challenges in Arizona.
Dependence on contractor's past performance and capacity for a project of this magnitude.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $234.8 million to BARNARD SPENCER JOINT VENTURE. 1ST TO BORDER INFRASTRUCTURE

Who is the contractor on this award?

The obligated recipient is BARNARD SPENCER JOINT VENTURE.

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 $234.8 million.

What is the period of performance?

Start: 2023-07-18. End: 2025-02-01.

What is the track record of Barnard Spencer Joint Venture in executing large federal construction contracts?

Information regarding the specific track record of the Barnard Spencer Joint Venture in executing large federal construction contracts is not directly available in the provided data. As a joint venture, its performance would depend on the combined experience and capabilities of its constituent companies. A thorough review would require examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for the joint venture itself, or for its individual member companies on similar projects. Understanding their history with firm-fixed-price contracts, project scale, and adherence to schedules and budgets would be crucial for assessing their reliability on this $234.8 million award.

How does the awarded price compare to similar border infrastructure construction projects?

Direct comparison of the $234.8 million award to similar border infrastructure projects is challenging without access to a comprehensive database of comparable federal construction contracts, including their scope, location, and specific construction elements. However, the firm-fixed-price nature of the contract suggests an effort to lock in costs. The number of bidders (5) indicates market interest, which can contribute to competitive pricing. To benchmark effectively, one would need to analyze the cost per square foot, cost per linear foot of barrier, or cost per facility for similar CBP or Army Corps of Engineers projects in the region or with similar specifications.

What are the primary risks associated with this specific border infrastructure construction contract?

Key risks for this contract include potential delays due to unforeseen geological or environmental conditions at the construction sites in Arizona, which can be challenging terrain. Labor availability and cost fluctuations in the construction sector could also impact project timelines and final costs, despite the firm-fixed-price structure. Furthermore, security concerns inherent to border projects and potential changes in federal policy or funding priorities could pose risks. Ensuring robust project management, contingency planning, and strong communication channels between the contractor and CBP are vital to mitigate these risks.

How effective is the firm-fixed-price contract type in ensuring value for money for this border infrastructure project?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for projects where the scope of work is well-defined, such as infrastructure construction. It shifts the risk of cost overruns to the contractor, incentivizing them to manage expenses efficiently and complete the project within the agreed-upon price. For this $234.8 million award, the FFP structure provides budget certainty for the Department of Homeland Security. However, the government must ensure the initial price reflects a fair market value, as the contractor benefits from any cost savings achieved below that price. Robust initial cost estimation and negotiation are therefore critical for maximizing value.

What is the historical spending trend for border infrastructure construction by U.S. Customs and Border Protection?

Historical spending trends for border infrastructure construction by U.S. Customs and Border Protection (CBP) have generally shown significant and often increasing investment over the past decade, driven by evolving border security needs and policy directives. While specific annual figures fluctuate based on project cycles and appropriations, large-scale construction awards like this $234.8 million contract are not uncommon. Factors influencing spending include the number of active construction projects, the size and complexity of those projects, and the overall budget allocated to CBP for infrastructure and operational support. Analyzing multi-year spending data would reveal patterns and priorities in CBP's infrastructure development.

What are the implications of awarding this contract through full and open competition for future procurements?

Awarding this $234.8 million contract through full and open competition sets a positive precedent for future procurements by signaling CBP's commitment to maximizing market participation and achieving competitive pricing. It encourages a wider range of potential contractors, including new entrants and smaller firms (if they partner or qualify), to develop capabilities and bid on federal projects. This approach typically leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition methods. It also enhances transparency and public trust in the procurement process, demonstrating that taxpayer funds are being used efficiently.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 GOLD AVE, BOZEMAN, MT, 59715

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $234,840,000

Exercised Options: $234,840,000

Current Obligation: $234,840,000

Actual Outlays: $14,422,855

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B01C23D00000008

IDV Type: IDC

Timeline