DHS Awards $292.7M Design-Build for Laredo Joint Processing Center Under Full and Open Competition

Contract Overview

Contract Amount: $292,668,843 ($292.7M)

Contractor: Bccg a Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2024-04-05

End Date: 2027-03-29

Contract Duration: 1,088 days

Daily Burn Rate: $269.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD ONE 1,000-PERSON JOINT PROCESSING CENTER (JPC) IN LAREDO, TX

Place of Performance

Location: LAREDO, WEBB County, TEXAS, 78040

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $292.7 million to BCCG A JOINT VENTURE for work described as: DESIGN-BUILD ONE 1,000-PERSON JOINT PROCESSING CENTER (JPC) IN LAREDO, TX Key points: 1. The contract is for a significant infrastructure project to support border operations. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project involves construction, a sector with potential for cost overruns and delays. 4. The award value is substantial, requiring careful monitoring of project execution.

Value Assessment

Rating: fair

The contract value of $292.7 million for a 1,000-person facility appears within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar government or private sector projects would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers by leveraging market forces.

Public Impact

Enhances border processing capabilities in Laredo, Texas. Supports Department of Homeland Security operations and personnel. Potential for job creation in the Laredo region during construction. Addresses infrastructure needs for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Construction project complexity and potential for delays.
Large contract value requires diligent oversight.
No small business participation noted.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type.
Supports critical national security mission.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Large-scale government construction projects often face challenges related to scope creep, material costs, and labor availability, which can impact final costs and timelines.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for small businesses may be limited to subcontracting roles.

Oversight & Accountability

Given the significant value and complexity of a design-build project, robust oversight from U.S. Customs and Border Protection will be crucial to ensure adherence to schedule, budget, and quality standards throughout the project lifecycle.

Related Government Programs

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

Risk Flags

Potential for construction cost overruns.
Risk of project delays impacting operational readiness.
Lack of explicit small business subcontracting goals.
Complexity of integrating design and build phases.
Dependence on timely permitting and regulatory approvals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $292.7 million to BCCG A JOINT VENTURE. DESIGN-BUILD ONE 1,000-PERSON JOINT PROCESSING CENTER (JPC) IN LAREDO, TX

Who is the contractor on this award?

The obligated recipient is BCCG A 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 $292.7 million.

What is the period of performance?

Start: 2024-04-05. End: 2027-03-29.

What are the key performance indicators (KPIs) for this design-build project, and how will their achievement be measured to ensure value for money?

Key performance indicators would likely include adherence to the construction schedule, meeting specified quality standards for the facility, and staying within the firm fixed price budget. Measurement would involve regular site inspections, progress reports, milestone completion verification, and financial audits. Ensuring these KPIs are clearly defined and rigorously monitored is essential for realizing the intended value and preventing cost overruns.

What specific risks are associated with the design-build delivery method for this large-scale processing center, and what mitigation strategies are in place?

Risks include potential design flaws leading to costly rework, coordination challenges between design and construction phases, and unforeseen site conditions impacting schedule and budget. Mitigation strategies typically involve thorough design reviews, robust project management plans, contingency planning for site issues, and clear contractual clauses addressing responsibility for design errors and omissions.

How will the effectiveness of the new Joint Processing Center be evaluated post-completion in terms of operational efficiency and impact on border security?

Effectiveness will be evaluated through metrics such as increased processing capacity, reduced wait times for individuals and goods, improved data integration capabilities, and enhanced officer safety and working conditions. Post-occupancy evaluations, operational data analysis, and feedback from border patrol agents and stakeholders will inform the assessment of its overall effectiveness.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 445 DEXTER AVE, MONTGOMERY, AL, 36104

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

Financial Breakdown

Contract Ceiling: $292,668,843

Exercised Options: $292,668,843

Current Obligation: $292,668,843

Actual Outlays: $45,609,333

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B01C23D00000009

IDV Type: IDC

Timeline