Army awards $16.3M for Arizona border fencing construction, highlighting highway and bridge infrastructure needs

Contract Overview

Contract Amount: $16,336,750 ($16.3M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-29

End Date: 2009-06-30

Contract Duration: 640 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TASK ORDER CQ01-FOR DESIGN AND CONSTRUCT OF APPROX 4.4 MILES OF PRIMARY FENCING EAST OF NACO, ARIZONA

Place of Performance

Location: NACO, COCHISE County, ARIZONA, 85620

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to SUNDT CONSTRUCTION, INC. for work described as: TASK ORDER CQ01-FOR DESIGN AND CONSTRUCT OF APPROX 4.4 MILES OF PRIMARY FENCING EAST OF NACO, ARIZONA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The project involves significant infrastructure work, aligning with broader national security and border management efforts. 3. Fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of the contract (640 days) indicates a substantial construction timeline. 5. The North American Industry Classification System (NAICS) code 237310 points to a focus on heavy civil construction. 6. The award value of $16.3 million represents a significant investment in border infrastructure.

Value Assessment

Rating: fair

Benchmarking the value for this specific task order is challenging without comparable border fencing projects. However, the firm fixed-price structure suggests an attempt to manage costs upfront. The number of bids received (14) provides some indication of market interest, but without knowing the scope and complexity of the design and construction, a definitive value-for-money assessment is difficult. Further analysis would require comparing the per-mile cost to similar infrastructure projects in the region or for border security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. Fourteen bids were received, suggesting a healthy level of interest from the construction industry for this type of project. A competitive process like this generally leads to better price discovery and potentially more favorable pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition likely resulted in a more competitive bid environment, potentially saving taxpayer dollars through lower pricing and encouraging efficient project execution.

Public Impact

The primary beneficiaries are the Department of Defense and potentially other federal agencies involved in border security. The project delivers approximately 4.4 miles of primary fencing, enhancing border control capabilities. The geographic impact is localized to the area east of Naco, Arizona. The construction work will likely create temporary employment opportunities for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Delays in project completion could impact border security operations.
Ensuring the long-term durability and effectiveness of the fencing material in the desert environment.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a robust selection process.
The project addresses a clear national security requirement.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically related to infrastructure development and security. The NAICS code 237310 covers highway, street, and bridge construction, indicating the type of heavy equipment and engineering expertise required. Spending in this sector is often driven by government initiatives for infrastructure improvement, transportation, and national security. Comparable spending benchmarks would typically involve other large-scale construction projects for federal agencies, particularly those related to border infrastructure or military installations.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Sundt Construction, Inc., is a large construction firm. There is no explicit information regarding subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether Sundt Construction engages small businesses as subcontractors for specialized services or materials, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to complete the work within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Border Infrastructure Projects
Department of Homeland Security Contracts
Military Construction Projects
Federal Highway Administration Projects

Risk Flags

Potential for environmental challenges impacting construction timeline and cost.
Geographic remoteness may affect logistics and labor availability.
Effectiveness dependent on integration with broader border security strategy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to SUNDT CONSTRUCTION, INC.. TASK ORDER CQ01-FOR DESIGN AND CONSTRUCT OF APPROX 4.4 MILES OF PRIMARY FENCING EAST OF NACO, ARIZONA

Who is the contractor on this award?

The obligated recipient is SUNDT CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2007-09-29. End: 2009-06-30.

What is the track record of Sundt Construction, Inc. with federal contracts, particularly in construction and infrastructure?

Sundt Construction, Inc. has a significant history of federal contracting, particularly with the Department of Defense and other agencies involved in infrastructure projects. Their portfolio often includes large-scale construction, design-build, and renovation projects for military bases, federal buildings, and transportation infrastructure. Analyzing their past performance on similar fixed-price contracts would be crucial to assess their reliability in delivering projects on time and within budget. A review of their contract history might reveal any patterns of cost overruns, delays, or quality issues on previous federal awards, which could inform the risk assessment for this specific task order.

How does the per-mile cost of this fencing project compare to other border infrastructure projects?

To compare the per-mile cost, we first calculate it for this project: $16,336,750 / 4.4 miles = approximately $3,712,900 per mile. Benchmarking this figure requires access to data on similar border fencing or barrier construction projects, ideally those awarded under comparable conditions (e.g., fixed-price, full and open competition) and in similar geographic or environmental conditions. Without specific comparable data points readily available, it's difficult to definitively state if this cost is high or low. However, factors such as terrain, material costs, labor rates in Arizona, and the specific design requirements (e.g., type of fencing, foundation needs) would influence this cost. A comprehensive comparison would involve analyzing multiple projects over several years.

What are the primary risks associated with constructing border fencing in the Naco, Arizona region?

Constructing border fencing in the Naco, Arizona region presents several risks. Environmental factors are significant; the desert climate involves extreme temperatures, potential for flash floods, and challenging terrain that can complicate construction and affect material durability. Land acquisition and right-of-way issues can lead to delays if not fully resolved prior to construction commencement. Security risks related to the border environment, including potential disruptions or the need for enhanced site security measures, could also impact project timelines and costs. Furthermore, the availability of skilled labor and specialized construction equipment in a relatively remote area might pose logistical challenges. Finally, unforeseen subsurface conditions, such as rock formations or unstable soil, could necessitate design changes and increase costs.

What is the expected effectiveness of 4.4 miles of primary fencing in enhancing border security in this specific area?

The effectiveness of 4.4 miles of primary fencing in enhancing border security is multifaceted and depends on several factors beyond the physical barrier itself. While a physical barrier can deter and channel unauthorized crossings, its overall impact is amplified when integrated with other border security measures, such as surveillance technology (sensors, cameras), aerial and ground patrols, and intelligence gathering. The specific terrain and known patterns of illegal activity in the Naco, Arizona area would influence how effectively this segment of fencing disrupts smuggling routes or illegal entries. A 4.4-mile segment represents a localized improvement; its strategic value is maximized when part of a larger, coordinated border security strategy. Without this context, it's difficult to quantify its precise effectiveness in isolation.

How has federal spending on border infrastructure evolved over the years, and where does this contract fit in?

Federal spending on border infrastructure, particularly fencing and related security measures, has seen significant fluctuations over the years, often driven by political priorities and perceived security needs. Major increases in spending occurred during administrations prioritizing border security enhancements. This specific $16.3 million contract, awarded in 2007, falls within a period where such investments were substantial. It represents a component of a larger, ongoing effort to secure the nation's borders. Analyzing historical spending data would reveal trends in the types of projects funded (e.g., new fencing, upgrades, technology integration) and the geographic focus of these investments. This contract is one of many task orders contributing to the overall federal expenditure on border infrastructure.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Sundt Companies Inc (UEI: 073354982)

Address: 1501 W FOUNTAINHEAD PKWY, TEMPE, AZ, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,336,750

Exercised Options: $16,336,750

Current Obligation: $16,336,750

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2023

IDV Type: IDC

Timeline