Sundt Construction awarded $15.5M contract for primary border barrier fence in Arizona

Contract Overview

Contract Amount: $15,477,850 ($15.5M)

Contractor: Sundt Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-30

End Date: 2008-12-31

Contract Duration: 458 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRIMARY BORDER BARRIER FENCE FOR D-5A, 1 MILE WEST TO 3 MILKES WEST OF MARIPOSA PORT OF ENTRY, NOGALES, AZ. REPORT NO. 07-1077 T.O. CQ02

Place of Performance

Location: NOGALES, SANTA CRUZ County, ARIZONA, 85621

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to SUNDT CONSTRUCTION, INC. for work described as: PRIMARY BORDER BARRIER FENCE FOR D-5A, 1 MILE WEST TO 3 MILKES WEST OF MARIPOSA PORT OF ENTRY, NOGALES, AZ. REPORT NO. 07-1077 T.O. CQ02 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 458 days indicates a significant construction timeline. 3. The firm-fixed-price contract type shifts risk to the contractor. 4. The project is located in Nogales, Arizona, near a port of entry. 5. The North American Industry Classification System (NAICS) code 237310 points to highway, street, and bridge construction. 6. The award was made by the Department of the Army, a component of the Department of Defense.

Value Assessment

Rating: fair

The contract value of $15.5 million for approximately 1 mile of primary border barrier fence appears to be within a reasonable range for specialized construction projects of this nature. However, without more granular data on the specific materials, labor costs, and site conditions, a precise value-for-money assessment is challenging. Benchmarking against similar border infrastructure projects would provide a clearer picture of its cost-effectiveness. The firm-fixed-price structure suggests the government sought cost certainty, but the final cost is dependent on the contractor's efficiency.

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 14 bids received, the competition level appears robust. This suggests that the government likely received a range of pricing and technical proposals, allowing for selection of the best value. A higher number of bidders generally correlates with more competitive pricing and a greater likelihood of achieving a fair market price.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the price and ensured the government received competitive offers for the construction services.

Public Impact

The primary beneficiaries are federal agencies responsible for border security, receiving enhanced infrastructure. The service delivered is the construction of a primary border barrier fence. The geographic impact is localized to Nogales, Arizona, specifically between 1 mile west to 3 miles west of the Mariposa Port of Entry. Workforce implications include employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Delays in construction could impact border security operations.
Quality of construction needs to be rigorously monitored to ensure long-term durability.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive pricing environment.
Experienced contractor likely selected through a competitive process.

Sector Analysis

The construction sector, particularly heavy civil engineering and infrastructure projects, is characterized by large contract values and specialized expertise. This contract falls within the segment of infrastructure development focused on national security and border management. Comparable spending benchmarks for border wall construction vary significantly based on terrain, materials, and design, but projects of this scale are common within the Department of Defense's broader construction portfolio.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, it's possible that small businesses could have participated as prime contractors or subcontractors. However, without subcontracting plans or set-aside information, the direct impact on the small business ecosystem is unclear. Larger prime contractors often utilize small businesses for specialized services, but this cannot be confirmed from the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified fence within the agreed-upon cost and timeline. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.

Related Government Programs

Border Security Infrastructure Projects
Department of Defense Construction Contracts
Federal Highway, Street, and Bridge Construction

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of construction delays impacting operational readiness.
Need for stringent quality control to ensure durability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to SUNDT CONSTRUCTION, INC.. PRIMARY BORDER BARRIER FENCE FOR D-5A, 1 MILE WEST TO 3 MILKES WEST OF MARIPOSA PORT OF ENTRY, NOGALES, AZ. REPORT NO. 07-1077 T.O. CQ02

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 $15.5 million.

What is the period of performance?

Start: 2007-09-30. End: 2008-12-31.

What was the specific rationale for selecting Sundt Construction, Inc. for this project?

The provided data indicates that Sundt Construction, Inc. was awarded the contract following a full and open competition with 14 bids submitted. While the specific evaluation criteria and scoring are not detailed, the selection process likely involved assessing factors such as technical capability, past performance, and price. Sundt Construction, as a large, established construction firm with a history of government contracts, would have been evaluated against these criteria. The lowest price technically acceptable or best value trade-off approach are common methods for such procurements, suggesting Sundt either offered the best price or a superior balance of price and technical merit.

How does the cost per mile of this fence compare to other border barrier projects?

The contract value of $15,477,850 for approximately 1 mile of primary border barrier fence translates to roughly $15.5 million per mile. This figure is highly variable and depends on numerous factors including terrain, design complexity, materials used, and labor costs. Historical data on border wall construction shows significant cost fluctuations, with some segments costing upwards of $40 million per mile due to challenging environments or specialized requirements, while others might be lower. Without detailed specifications for this particular fence (e.g., height, material, foundation requirements), direct comparison is difficult. However, $15.5 million per mile falls within the broader range observed for such projects, suggesting it is not an outlier without further context.

What are the potential risks associated with the firm-fixed-price contract type for this project?

The primary risk associated with a firm-fixed-price (FFP) contract for a project like border barrier construction lies in the potential for the contractor to cut corners on quality or materials to maintain profitability if unforeseen cost increases arise. While the FFP shifts the cost risk to the contractor, it necessitates robust government oversight to ensure the contracted scope and quality are delivered. If the contractor encounters significant, unanticipatable issues (e.g., unexpected geological conditions), they may face financial strain, potentially leading to disputes or project delays. However, for well-defined projects with predictable conditions, FFP is often preferred for cost certainty.

What was the historical spending trend for similar border infrastructure projects by the Department of the Army?

Historical spending on border infrastructure by the Department of the Army, particularly for barrier construction, has seen significant increases in certain fiscal years, often driven by national security priorities and specific funding allocations. While this specific contract was awarded in 2007, broader trends show substantial investments in border security infrastructure over the past two decades. Analyzing spending patterns requires looking at aggregated data for NAICS codes related to heavy civil construction and specific program elements within the Army Corps of Engineers or other relevant commands. Without access to detailed historical budget documents and contract award databases beyond this single data point, a precise trend analysis for 'similar' projects is not feasible. However, it's understood that such projects represent a consistent, albeit fluctuating, area of federal expenditure.

What performance metrics were likely used to evaluate the success of this contract?

Performance metrics for a construction contract like this typically focus on adherence to schedule, budget, and quality standards. Key performance indicators (KPIs) would likely include: on-time completion of milestones and the final project delivery date (scheduled for December 31, 2008); adherence to the firm-fixed-price budget of $15.5 million; and compliance with technical specifications outlined in the contract documents, such as fence height, material strength, and installation integrity. Quality assurance inspections, material testing, and site reviews by government representatives would be crucial for monitoring performance. Meeting these criteria would signify successful contract performance.

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

Solicitation ID: W912BV07R2026

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: $15,477,850

Exercised Options: $15,477,850

Current Obligation: $15,477,850

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BV07D2023

IDV Type: IDC

Timeline