DHS awards $217M contract for Arizona border infrastructure construction to Fisher Sand & Gravel Co

Contract Overview

Contract Amount: $217,129,989 ($217.1M)

Contractor: Fisher Sand & Gravel CO

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-28

End Date: 2027-09-30

Contract Duration: 1,097 days

Daily Burn Rate: $197.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BORDER INFRASTRUCTURE CONSTRUCTION

Place of Performance

Location: YOUNGTOWN, MARICOPA County, ARIZONA, 85363

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $217.1 million to FISHER SAND & GRAVEL CO for work described as: BORDER INFRASTRUCTURE CONSTRUCTION Key points: 1. Contract value represents a significant investment in border security infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of nearly three years indicates a substantial, long-term project. 4. Fixed-price contract type shifts cost risk to the contractor. 5. Geographic focus on Arizona highlights a key area of border activity. 6. The award is for delivery orders, implying a phased approach to construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific project details and comparable construction costs in the region. However, the $217 million figure for border infrastructure construction over approximately three years suggests a substantial commitment. The firm fixed-price nature of the contract provides cost certainty for the government, but the ultimate value for money will depend on the quality of construction and adherence to schedule. Further analysis would require comparing unit costs for specific construction elements against industry standards and similar government projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders identified, the level of competition appears moderate. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of this competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down costs and improving the quality of services offered.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection and the Department of Homeland Security, receiving enhanced infrastructure for border operations. The contract will result in the construction of various border infrastructure elements, though specific types are not detailed. The geographic impact is concentrated in Arizona, a state with significant border activity. The project is likely to create jobs in the construction sector within Arizona and potentially surrounding regions. Improved infrastructure could lead to more efficient border management and security operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Ensuring timely completion within the nearly three-year timeframe may present logistical challenges.
Quality control and oversight will be critical to ensure the durability and effectiveness of the constructed infrastructure.
Dependence on a single contractor for a large-scale project introduces risk if performance issues arise.

Positive Signals

Firm fixed-price contract structure provides budget certainty for the government.
Full and open competition suggests a potentially competitive pricing environment.
The contractor, Fisher Sand & Gravel Co., has experience in large-scale construction projects.
The contract duration allows for phased construction and potential learning curve efficiencies.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for border infrastructure is specialized, often involving significant government investment and specific regulatory requirements. The $217 million award is substantial within this niche. Comparable spending benchmarks would typically involve other large-scale federal construction projects, particularly those related to infrastructure and security, which can range from tens of millions to billions of dollars depending on scope and complexity.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the large dollar value and specialized nature of border infrastructure construction, it is unlikely that significant portions would be subcontracted to small businesses unless specifically mandated. The primary impact on the small business ecosystem would be indirect, through potential competition for materials or specialized services, or if the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and quality requirements. Transparency is typically facilitated through contract award databases and public reporting, though specific project details may be limited due to security considerations. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Border Security Technology Modernization
Federal Building and Facilities Construction
Department of Homeland Security Capital Investments
Infrastructure Improvement Projects

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting operational readiness.
Ensuring long-term durability and effectiveness of constructed infrastructure.
Environmental impact considerations during construction.
Security risks associated with construction in a border region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $217.1 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 $217.1 million.

What is the period of performance?

Start: 2024-09-28. End: 2027-09-30.

What is the track record of Fisher Sand & Gravel Co. on similar federal construction contracts?

Fisher Sand & Gravel Co. has a history of undertaking large-scale construction projects, including significant work for federal agencies. While specific details on past border infrastructure projects are not immediately available in this summary, their experience in civil engineering and construction suggests a capacity for handling complex projects. A deeper dive into their contract history, including past performance reviews, any disputes, and the types of projects completed, would be necessary to fully assess their suitability and track record for this specific border infrastructure award. Examining their performance on similar-sized or geographically relevant projects would provide valuable context.

How does the per-square-foot construction cost compare to similar border infrastructure projects?

Determining a precise per-square-foot construction cost benchmark is not feasible with the provided data, as the specific scope of 'border infrastructure construction' is not detailed. This could encompass a wide range of facilities, barriers, roads, or support structures, each with vastly different cost profiles. To perform such a comparison, detailed architectural plans, material specifications, and labor estimates for the awarded project would be required. These would then need to be benchmarked against publicly available data for similar construction projects undertaken by federal agencies or in comparable regions, considering factors like terrain, material availability, and security requirements.

What are the primary risks associated with constructing border infrastructure in Arizona?

Constructing border infrastructure in Arizona presents several risks, including challenging desert terrain, extreme weather conditions (heat, flash floods), and potential environmental considerations. Logistical challenges related to remote work sites, material transport, and workforce availability are also significant. Furthermore, the sensitive nature of border operations may introduce security risks and require specialized protocols. Unforeseen subsurface conditions, such as rock formations or unstable soil, could impact construction timelines and costs. Finally, the political and regulatory landscape surrounding border projects can introduce complexities and potential delays.

How has federal spending on border infrastructure evolved over the past five years?

Federal spending on border infrastructure has generally seen fluctuations and increases over the past five years, driven by evolving policy priorities and security concerns. While specific aggregate figures for 'border infrastructure construction' are not readily available in this context, broader spending by agencies like the Department of Homeland Security (DHS) and Customs and Border Protection (CBP) on infrastructure, technology, and personnel has been substantial. Trends indicate a continued focus on enhancing physical barriers, improving ports of entry, and developing related support facilities. Budgetary allocations are often subject to annual appropriations processes and can be influenced by administration priorities and congressional action.

What are the potential long-term maintenance and operational costs associated with this infrastructure?

The long-term maintenance and operational costs associated with this border infrastructure are not detailed in the contract award. However, such costs are typically significant and ongoing. They would include regular inspections, repairs due to wear and tear, environmental factors (e.g., erosion, extreme temperatures), and potential upgrades or modifications over the lifespan of the structures. The specific type of infrastructure built will dictate the maintenance needs; for example, electronic surveillance systems require continuous power, software updates, and technical support, while physical barriers may need structural repairs. These costs are usually budgeted separately by the operating agency (CBP) and are critical for ensuring the sustained effectiveness of the investment.

What specific performance metrics will be used to evaluate the success of this contract?

While the specific performance metrics are not detailed in this award summary, federal construction contracts typically include a range of performance standards. These often encompass adherence to the project schedule, quality of workmanship and materials used, compliance with safety regulations, and completion of defined construction milestones. For border infrastructure, metrics might also relate to the functionality and durability of the completed structures in their intended operational environment. The contract likely specifies inspection protocols and acceptance criteria, with penalties or incentives tied to meeting or exceeding these benchmarks. The contracting officer's representative (COR) would be responsible for monitoring performance against these metrics.

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: 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: $217,129,989

Exercised Options: $217,129,989

Current Obligation: $217,129,989

Actual Outlays: $60,671,753

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