DHS Awards $183M Border Infrastructure Contract to Fisher Sand & Gravel Co. for New Mexico Projects

Contract Overview

Contract Amount: $183,009,415 ($183.0M)

Contractor: Fisher Sand & Gravel CO

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-28

End Date: 2025-03-30

Contract Duration: 549 days

Daily Burn Rate: $333.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BORDER INFRASTRUCTURE CONSTRUCTION

Place of Performance

Location: SUNLAND PARK, DONA ANA County, NEW MEXICO, 88063

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $183.0 million to FISHER SAND & GRAVEL CO for work described as: BORDER INFRASTRUCTURE CONSTRUCTION Key points: 1. Significant investment in border infrastructure, focusing on construction in New Mexico. 2. Fisher Sand & Gravel Co. secured a large contract, indicating potential market concentration. 3. The contract's duration and value warrant scrutiny for cost-effectiveness and project management. 4. Construction sector spending is substantial, requiring careful oversight to ensure value for taxpayer money.

Value Assessment

Rating: fair

The contract value of $183 million over 549 days suggests a substantial project. Benchmarking against similar large-scale infrastructure projects is necessary to determine if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific details of the bidding process and the number of bids received are crucial to fully assess the competitive landscape and its impact on the final price.

Taxpayer Impact: The substantial award of $183 million directly impacts taxpayers. Ensuring efficient use of these funds through effective project execution and cost control is paramount to maximizing the value for public investment.

Public Impact

Enhances border security infrastructure, potentially improving operational capabilities. Supports economic activity through construction jobs and material procurement in New Mexico. Long-term implications for border management and national security. Potential for community impact, both positive (jobs) and negative (environmental, land use).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration and value may lead to scope creep or cost overruns.
Limited information on specific project deliverables and performance metrics.
Potential for single-contractor dependency if Fisher Sand & Gravel is the sole provider for critical components.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Fixed-price contract type can help control costs if well-defined.
Focus on critical border infrastructure aligns with national security priorities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be highly variable, influenced by government priorities, economic conditions, and specific project needs. Benchmarks for similar large-scale infrastructure projects are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates this is a large contract awarded to a single entity, Fisher Sand & Gravel Co. There is no explicit mention of small business participation or subcontracting requirements. Further analysis is needed to determine if opportunities for small businesses were included or missed in this award.

Oversight & Accountability

The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for oversight. Robust oversight mechanisms, including regular progress reviews, performance monitoring, and independent audits, are critical to ensure the project stays on schedule, within budget, and meets its objectives.

Related Government Programs

Commercial and Institutional Building Construction
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Large contract value may indicate limited competition despite 'full and open' designation.
Long contract duration increases risk of cost escalation and scope creep.
Lack of detail on specific deliverables and performance metrics.
Potential for contractor dependency if specialized skills are required.
No explicit mention of small business participation goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $183.0 million to FISHER SAND & GRAVEL CO. BORDER INFRASTRUCTURE CONSTRUCTION

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 $183.0 million.

What is the period of performance?

Start: 2023-09-28. End: 2025-03-30.

What specific border infrastructure components are included in this contract, and how do they align with current security needs?

The contract is broadly categorized under 'BORDER INFRASTRUCTURE CONSTRUCTION' and 'Commercial and Institutional Building Construction'. Specific components are not detailed in the provided data. A thorough review would require access to the contract's statement of work to understand the exact nature of the construction, such as new facilities, upgrades to existing structures, or specific security enhancements, and how these directly address evolving border security requirements.

Given the $183 million value and 549-day duration, what are the primary risks associated with project execution and cost control?

Key risks include potential cost overruns due to unforeseen site conditions, material price fluctuations, or scope creep, especially given the long duration. Ineffective project management, contractor performance issues, or delays in permitting and approvals could also impact the schedule and budget. Ensuring robust change control processes and performance monitoring is crucial to mitigate these risks.

How effectively does the 'full and open competition' method ensure optimal value for taxpayer money in this large-scale construction project?

Full and open competition is designed to maximize the number of potential bidders, fostering a competitive environment that should theoretically lead to better pricing and quality. However, the effectiveness hinges on the clarity of the solicitation, the responsiveness of the market, and the evaluation criteria used. Without knowing the number of bids received and the evaluation process, it's difficult to definitively assess if the chosen method yielded the best possible value for this specific $183 million contract.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1302 W DRIVERS WAY, TEMPE, AZ, 85284

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $183,009,415

Exercised Options: $183,009,415

Current Obligation: $183,009,415

Actual Outlays: $4,385,793

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B01C23D00000010

IDV Type: IDC

Timeline