DoD's $76M Santa Teresa Fence Replacement contract awarded to Barnard Construction Company, Inc

Contract Overview

Contract Amount: $75,875,350 ($75.9M)

Contractor: Barnard Construction Company, Incorporated

Awarding Agency: Department of Defense

Start Date: 2018-01-22

End Date: 2019-03-18

Contract Duration: 420 days

Daily Burn Rate: $180.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SANTA TERESA FENCE REPLACEMENT 20 MILES

Place of Performance

Location: SANTA TERESA, DONA ANA County, NEW MEXICO, 88008

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $75.9 million to BARNARD CONSTRUCTION COMPANY, INCORPORATED for work described as: SANTA TERESA FENCE REPLACEMENT 20 MILES Key points: 1. The contract value of approximately $76 million for 20 miles of fence replacement represents a significant investment in border infrastructure. 2. Awarded under full and open competition, the contract suggests a competitive bidding process that could lead to favorable pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from cost overruns. 4. The project duration of 420 days indicates a substantial construction timeline, requiring careful project management and oversight. 5. The absence of small business set-aside or subcontracting requirements warrants further investigation into potential impacts on smaller firms. 6. The contract's focus on highway, street, and bridge construction aligns with broader infrastructure development needs.

Value Assessment

Rating: fair

The contract value of $75.9 million for 20 miles of fence replacement equates to approximately $3.8 million per mile. Benchmarking this against similar large-scale border infrastructure projects is challenging due to the unique nature of fence construction and varying terrain. However, the firm-fixed-price nature of the contract provides a degree of cost certainty for the government. Without detailed cost breakdowns or comparisons to other fence projects of similar scale and complexity, a definitive value-for-money assessment is difficult.

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. The presence of 3 bidders suggests a moderate level of competition for this project. While multiple bidders are positive, the specific number (3) does not necessarily guarantee the most competitive pricing without further analysis of bid amounts and the contractor's past performance.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that the government likely received a range of proposals, potentially leading to a more cost-effective outcome compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and potentially border security agencies, receiving enhanced physical infrastructure. The service delivered is the construction of 20 miles of replacement fencing, improving border control capabilities. The geographic impact is localized to Santa Teresa, New Mexico, a specific border region. Workforce implications include employment opportunities for construction workers and related trades during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific small business participation goals or subcontracting requirements could limit opportunities for small businesses in the region.
The large contract value may concentrate economic benefits among larger construction firms, potentially excluding smaller, local contractors.
The fixed-price nature, while beneficial for cost control, could incentivize cost-cutting measures that might impact long-term durability if not rigorously overseen.

Positive Signals

Awarded through full and open competition, indicating a fair process and potential for competitive pricing.
The firm-fixed-price contract type provides cost certainty for the government, mitigating risks of budget overruns.
The project addresses a specific infrastructure need for the Department of Defense, contributing to national security objectives.

Sector Analysis

This contract falls within the construction sector, specifically focusing on infrastructure development. The North American Industry Classification System (NAICS) code 237310, Highway, Street, and Bridge Construction, is a broad category that includes various civil engineering projects. The market for large-scale infrastructure projects, particularly those related to border security, can be specialized, often involving a mix of large general contractors and specialized subcontractors. Benchmarking this specific fence replacement project against broader construction spending requires isolating projects with similar scope, materials, and security requirements.

Small Business Impact

The contract details indicate that small business participation was not a specific requirement, as 'sb' is false. This suggests that small businesses may not have been explicitly targeted for this particular award or for subcontracting opportunities. Without specific set-aside provisions or subcontracting goals, the primary contractor, Barnard Construction Company, Inc., has discretion over subcontracting. This could lead to opportunities for small businesses if the prime contractor chooses to engage them, but it also presents a risk that they may be overlooked in favor of larger, established partners.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, a component of the Department of Defense. Specific oversight mechanisms would likely include contract administration, quality assurance surveillance plans (QASPs), and regular progress reporting from the contractor. Transparency is typically managed through contract award databases like FPDS. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Border Infrastructure Projects
Department of Defense Construction Contracts
Federal Highway and Bridge Construction
Large-Scale Civil Engineering Projects

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of reduced quality if contractor prioritizes cost-cutting.
Limited visibility into small business participation.
Long-term maintenance costs not explicitly detailed in contract scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.9 million to BARNARD CONSTRUCTION COMPANY, INCORPORATED. SANTA TERESA FENCE REPLACEMENT 20 MILES

Who is the contractor on this award?

The obligated recipient is BARNARD CONSTRUCTION COMPANY, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $75.9 million.

What is the period of performance?

Start: 2018-01-22. End: 2019-03-18.

What is the track record of Barnard Construction Company, Inc. with Department of Defense contracts?

Barnard Construction Company, Inc. has a history of securing contracts with the Department of Defense, as indicated by this award. To fully assess their track record, a deeper dive into their past performance on similar projects would be necessary. This would involve reviewing contract completion timeliness, adherence to quality standards, and any history of disputes or contract modifications. Examining their financial stability and capacity to handle large-scale projects like the Santa Teresa fence replacement is also crucial. Information on their past performance can often be found in government databases and through industry-specific reporting, providing insights into their reliability and effectiveness as a government contractor.

How does the per-mile cost of this fence project compare to similar border infrastructure initiatives?

The Santa Teresa Fence Replacement project's cost of approximately $3.8 million per mile is a significant figure. However, direct comparisons to other border infrastructure projects can be complex due to variations in terrain, materials, technology integrated (e.g., sensors, lighting), and the specific type of barrier being constructed (e.g., vehicle barriers, pedestrian fencing, anti-climb fencing). Projects in different geographical locations or with different security requirements may have vastly different cost structures. Without a standardized benchmark for 'fence replacement per mile' across diverse border regions and project scopes, it is difficult to definitively state whether this cost is high or low. Further analysis would require identifying comparable projects with similar specifications and environmental conditions.

What are the primary risks associated with a firm-fixed-price contract for a large construction project?

The primary risk associated with a firm-fixed-price (FFP) contract for a large construction project like the Santa Teresa fence replacement lies in the potential for the contractor to cut corners to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. While FFP shifts cost overrun risk to the contractor, it can incentivize them to reduce quality or scope if not managed diligently. Conversely, the government benefits from cost certainty. Risks for the government include potential disputes over scope changes or unforeseen site conditions that may necessitate contract modifications, which can still increase the overall cost. Effective oversight and clear contract specifications are crucial to mitigate these risks and ensure the project's quality and timely completion.

What is the historical spending pattern for fence construction or border infrastructure by the Department of Defense?

Historical spending by the Department of Defense (DoD) on fence construction and border infrastructure can fluctuate significantly based on national security priorities, policy directives, and the specific needs of border agencies. While specific aggregate data for 'fence construction' might be difficult to isolate, the DoD does allocate substantial funds towards border security initiatives, which often include physical barriers. Analyzing past budgets and contract awards related to border patrol support, infrastructure upgrades at ports of entry, and physical security enhancements would provide context. Trends might show increased spending during periods of heightened border activity or specific policy pushes for enhanced physical security measures. Understanding these patterns requires reviewing annual defense budgets, appropriations bills, and contract databases over several fiscal years.

How does the competition level (3 bidders) impact the potential for cost savings for taxpayers?

A competition level of three bidders for the Santa Teresa Fence Replacement project suggests a moderate degree of market interest. Generally, more bidders lead to increased competition and potentially lower prices as contractors vie for the award. With three bidders, there is a reasonable chance that the government received competitive proposals. However, the actual cost savings depend on the nature of the bids submitted – were they closely clustered, or was there a significant spread? If the bids were highly competitive and the winning bid was substantially lower than others, taxpayers likely benefited. Conversely, if the bids were high and closely aligned, the savings might be less pronounced. Further analysis of the bid amounts, if available, would provide a clearer picture of the cost-saving impact.

What are the potential long-term maintenance implications of this fence replacement project?

The long-term maintenance implications of the Santa Teresa fence replacement project will depend heavily on the materials used, the quality of construction, and the environmental conditions in New Mexico. A firm-fixed-price contract, while securing the initial construction cost, may not explicitly detail long-term maintenance responsibilities or warranties beyond a standard period. The Department of the Army will likely be responsible for ongoing upkeep, which could include repairs due to weather, vandalism, or wear and tear. The durability of the chosen fencing materials and installation methods will directly influence the frequency and cost of future maintenance. A thorough review of the contract's warranty clauses and specifications regarding material lifespan would be necessary to fully assess these long-term costs.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9126G17R0110

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 GOLD AVE, BOZEMAN, MT, 59715

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,875,350

Exercised Options: $75,875,350

Current Obligation: $75,875,350

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline