Department of Defense awards $26M for border fencing, highlighting highway construction needs in Arizona

Contract Overview

Contract Amount: $26,079,090 ($26.1M)

Contractor: Straub Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-28

End Date: 2013-02-03

Contract Duration: 1,589 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: T.O. CQ01 DV-3 VEHICLE BARRIER FENCING ALONG U.S./MEXICO BORDER, TOHONO O'ODHAM NATION INDIAN RESERVATION, PIMA COUNTY, AZ

Place of Performance

Location: SELLS, PIMA County, ARIZONA, 85634

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to STRAUB CONSTRUCTION, INC. for work described as: T.O. CQ01 DV-3 VEHICLE BARRIER FENCING ALONG U.S./MEXICO BORDER, TOHONO O'ODHAM NATION INDIAN RESERVATION, PIMA COUNTY, AZ Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly 4 years indicates a significant, long-term project. 3. The fixed-price contract type aims to control costs for the government. 4. The project is located in a sensitive border region, potentially involving complex logistical and security considerations. 5. The North American Industry Classification System (NAICS) code 237310 points to significant infrastructure development.

Value Assessment

Rating: fair

The total award amount of $26,079,090 for vehicle barrier fencing is substantial. Without specific benchmarks for similar border fencing projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the duration of the contract (over 4 years) suggests a significant investment in infrastructure. The fixed-price nature of the contract is a positive indicator for cost control, but the final value realized will depend on the contractor's efficiency and any potential change orders.

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. The presence of 14 bids suggests a healthy level of interest and competition for this project. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the overall cost of the project compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the Department of Homeland Security, through enhanced border security. The project delivers physical infrastructure in the form of vehicle barrier fencing. The geographic impact is concentrated along the U.S./Mexico border within the Tohono O'odham Nation Indian Reservation in Pima County, Arizona. The contract supports jobs within the construction sector, specifically in highway, street, and bridge construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or security requirements arise during the extended contract period.
Logistical challenges associated with construction in a remote border area could impact efficiency and cost.
The long duration may lead to material cost fluctuations impacting the fixed-price contract.

Positive Signals

Awarded through full and open competition, indicating a competitive market for this type of construction.
The fixed-price contract type provides cost certainty for the government.
The project addresses a critical national security and infrastructure need.

Sector Analysis

This contract falls within the construction sector, specifically highway, street, and bridge construction (NAICS 237310). The market for border infrastructure projects can be specialized, involving significant logistical planning and adherence to specific security and environmental regulations. Comparable spending benchmarks would typically be found within large-scale federal infrastructure projects, particularly those managed by the Army Corps of Engineers or other defense agencies involved in border security.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, as it was awarded under full and open competition. However, the prime contractor, Straub Construction, Inc., may engage small businesses as subcontractors to fulfill portions of the work. The scale of the project suggests that subcontracting opportunities could be significant, potentially benefiting smaller firms in specialized construction trades.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting agency (Department of the Army) and potentially the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Border Security Infrastructure Projects
Department of Defense Construction Contracts
Federal Highway and Bridge Construction
Arizona Infrastructure Development

Risk Flags

Potential for environmental impact in a sensitive ecological zone.
Logistical challenges in a remote border region.
Coordination with tribal authorities required.
Security risks inherent to border construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to STRAUB CONSTRUCTION, INC.. T.O. CQ01 DV-3 VEHICLE BARRIER FENCING ALONG U.S./MEXICO BORDER, TOHONO O'ODHAM NATION INDIAN RESERVATION, PIMA COUNTY, AZ

Who is the contractor on this award?

The obligated recipient is STRAUB 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 $26.1 million.

What is the period of performance?

Start: 2008-09-28. End: 2013-02-03.

What is the historical spending pattern for vehicle barrier fencing along the U.S./Mexico border by the Department of Defense?

Analyzing historical spending for border fencing by the Department of Defense requires a deep dive into contract databases, focusing on specific agencies like the Army Corps of Engineers and Customs and Border Protection (though CBP is DHS). This particular contract, awarded in 2008, falls within a period of increased focus on border infrastructure. Prior to and following this award, numerous contracts for various types of barriers (pedestrian, vehicle), surveillance technology, and related infrastructure were issued. The total federal investment in border security infrastructure has fluctuated significantly over the past two decades, influenced by policy changes and perceived threats. Without specific aggregated data for 'vehicle barrier fencing' alone, it's difficult to provide a precise historical spending figure, but it represents a segment of a multi-billion dollar overall federal expenditure on border management and security.

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

Determining the per-mile cost requires knowing the total length of fencing installed under this $26 million contract. Since the contract data does not specify the mileage, a direct comparison is not possible. However, historical data from various border barrier projects indicates a wide range in per-mile costs, often influenced by terrain, technology integrated (e.g., sensors, lighting), and the type of barrier (e.g., solid wall, vehicle fence, concertina wire). Projects have ranged from hundreds of thousands to several million dollars per mile. This contract's cost, spread over an unknown mileage, would need to be benchmarked against projects with similar specifications and geographical challenges to assess its value.

What is the track record of Straub Construction, Inc. with federal contracts, particularly those involving border infrastructure?

Straub Construction, Inc. has a history of securing federal contracts, primarily with the Department of Defense and other agencies involved in infrastructure projects. A review of federal procurement data indicates they have been awarded numerous contracts over the years, often in the realm of construction, repair, and maintenance of facilities and infrastructure. While this specific contract for vehicle barrier fencing is a notable award, their broader experience likely includes various types of construction. Assessing their specific track record on border infrastructure would involve examining past performance on similar projects, including adherence to schedule, budget, and quality standards. Their consistent ability to win federal bids suggests a generally positive performance history, though detailed project-specific reviews would be necessary for a comprehensive assessment.

What are the primary risks associated with constructing vehicle barrier fencing in the Tohono O'odham Nation Indian Reservation?

Constructing vehicle barrier fencing in the Tohono O'odham Nation Indian Reservation presents several unique risks. Firstly, the terrain can be challenging, involving remote areas, potentially sensitive environmental zones, and varied topography, which can increase construction complexity and costs. Secondly, working on tribal lands requires careful coordination and adherence to agreements with the Nation, potentially involving cultural resource protection and specific land use regulations. Thirdly, the border region itself carries inherent security risks, necessitating robust safety protocols for construction crews and equipment. Finally, logistical challenges related to transporting materials and personnel to remote sites, as well as ensuring adequate power and water, are significant considerations that could impact project timelines and budgets.

How does the fixed-price contract type mitigate risks for the Department of Defense in this project?

The Firm Fixed Price (FFP) contract type is designed to provide the greatest cost control for the government. Under an FFP contract, the contractor, Straub Construction, Inc., assumes the primary responsibility for all costs incurred to complete the work. This means that the agreed-upon price remains constant regardless of the contractor's actual costs. For the Department of Defense, this mitigates the risk of cost overruns due to contractor inefficiencies or unexpected increases in labor or material costs (unless specifically addressed by contract clauses like economic price adjustments, which are less common in FFP). The government's financial obligation is fixed at the outset, making budgeting and financial planning more predictable. The onus is on the contractor to manage their resources effectively to achieve profitability within the fixed price.

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

Address: 202 W COLLEGE STE 201, FALLBROOK, CA, 92028

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,079,090

Exercised Options: $26,079,090

Current Obligation: $26,079,090

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2025

IDV Type: IDC

Timeline