Department of the Army awards $261M design/build contract for 33 miles of pedestrian fencing in Arizona

Contract Overview

Contract Amount: $261,032,494 ($261.0M)

Contractor: Barnard Construction Company, Incorporated

Awarding Agency: Department of Defense

Start Date: 2018-11-13

End Date: 2020-03-14

Contract Duration: 487 days

Daily Burn Rate: $536.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD FOR ARIZONA FY18 PRIME PEDESTRIAN FENCE REPLACEMENT PROJECT (33 MILES).

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85367

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $261.0 million to BARNARD CONSTRUCTION COMPANY, INCORPORATED for work described as: DESIGN/BUILD FOR ARIZONA FY18 PRIME PEDESTRIAN FENCE REPLACEMENT PROJECT (33 MILES). Key points: 1. Contract value represents a significant investment in border infrastructure. 2. The project was awarded using full and open competition, suggesting a competitive bidding process. 3. The definitive contract type with a firm fixed price indicates clear cost expectations. 4. The duration of 487 days suggests a substantial construction timeline. 5. The project falls under the Highway, Street, and Bridge Construction NAICS code. 6. The award to Barnard Construction Company, Inc. signifies a major contractor engagement.

Value Assessment

Rating: good

The contract value of $261 million for 33 miles of pedestrian fencing is substantial. Benchmarking this against similar border infrastructure projects is challenging due to the specific nature of 'pedestrian fencing' and the 'design/build' component. However, the firm fixed-price structure provides cost certainty for the government. The award amount appears to be within a reasonable range for large-scale construction projects of this magnitude, considering design, materials, labor, and project management over an extended period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this significant project. While not an exceptionally high number of bidders, it demonstrates that multiple firms were interested and capable of undertaking the work, which generally supports price discovery and a more competitive outcome.

Taxpayer Impact: Full and open competition, even with a moderate number of bidders, is beneficial for taxpayers as it encourages competitive pricing and ensures the government receives proposals from qualified contractors, potentially leading to better value.

Public Impact

The primary beneficiaries are the Department of Defense and potentially border security agencies, receiving enhanced infrastructure. The project delivers 33 miles of pedestrian fencing, a critical component of border management. The geographic impact is concentrated in Arizona, a key border state. The project will likely create numerous jobs in the construction sector, including skilled labor, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the design/build phase.
Long project duration increases exposure to potential material price fluctuations.
Dependence on a single prime contractor for both design and construction could limit flexibility.

Positive Signals

Firm fixed-price contract mitigates significant cost escalation risk for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The definitive contract structure provides a clear framework for execution and payment.

Sector Analysis

This contract falls within the construction sector, specifically highway, street, and bridge construction, though its primary purpose is border infrastructure. The market for large-scale federal construction projects, particularly those related to national security or border management, is often characterized by a few large, specialized firms capable of handling complex design-build requirements. Spending benchmarks for similar border fencing projects are not readily available in the public domain, but the scale of this award suggests it is a significant undertaking within this niche.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. However, the prime contractor, Barnard Construction Company, Inc., may engage small businesses as subcontractors for specialized services or materials, which would be determined during the subcontracting plan negotiation phase, if applicable.

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 embedded in the firm fixed-price definitive contract, requiring adherence to specifications and timelines. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Border Security Infrastructure Projects
Department of Homeland Security Contracts
Army Corps of Engineers Construction Contracts
Federal Highway Administration Projects

Risk Flags

Potential for environmental impact due to large-scale construction in sensitive border regions.
Risk of design flaws or unforeseen site conditions impacting cost and schedule.
Long project duration increases exposure to economic and material cost volatility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $261.0 million to BARNARD CONSTRUCTION COMPANY, INCORPORATED. DESIGN/BUILD FOR ARIZONA FY18 PRIME PEDESTRIAN FENCE REPLACEMENT PROJECT (33 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 $261.0 million.

What is the period of performance?

Start: 2018-11-13. End: 2020-03-14.

What is the track record of Barnard Construction Company, Inc. on similar federal projects?

Barnard Construction Company, Inc. has a history of performing large-scale civil engineering and construction projects for federal agencies. While specific details on prior pedestrian fencing projects of this exact nature are not immediately available from the provided data, their experience typically includes infrastructure development, heavy civil construction, and projects requiring significant engineering and logistical capabilities. A deeper dive into their contract history with the Department of Defense and other federal entities would reveal their performance metrics, past project scopes, and client satisfaction levels. This would provide a more comprehensive understanding of their suitability and past performance relevant to this specific award.

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

The provided data indicates a contract value of $261,032,494 for 33 miles of pedestrian fencing, equating to approximately $7.91 million per mile. Direct cost comparisons to other federal border barrier projects are complex due to variations in terrain, materials, design (e.g., pedestrian vs. vehicle, solid vs. mesh), technology integration (sensors, lighting), and the 'design/build' nature of this contract, which includes design costs. Historically, different segments of border barriers have had widely varying costs per mile, influenced by these factors. Without specific details on the design and construction challenges of this particular 33-mile segment in Arizona, a precise benchmark is difficult. However, this figure represents a significant investment per mile, reflecting the complexities of modern infrastructure development in challenging environments.

What are the primary risks associated with a design/build contract of this magnitude?

The primary risks associated with a design/build contract of this magnitude include potential scope creep if the design is not meticulously defined upfront, integration challenges between the design and construction phases, and the contractor's ability to manage both aspects effectively. For the government, a key risk is ensuring the final design meets all requirements and performance standards while staying within budget. The contractor bears the risk of design errors or omissions impacting construction costs and schedule. Given the firm fixed-price nature, the contractor assumes significant financial risk if design or construction proves more costly than anticipated. Effective project oversight and clear communication channels are crucial to mitigate these risks.

What is the expected effectiveness of this 33-mile pedestrian fence in enhancing border security?

The effectiveness of this 33-mile pedestrian fence in enhancing border security is multifaceted. As a physical barrier, it is intended to deter and impede unauthorized pedestrian crossings, channeling movement towards designated ports of entry. Its success also depends on integration with other security measures, such as surveillance technology, sensor systems, and human patrols. The specific design and construction quality will influence its durability and resistance to breaches. While physical barriers can be a component of border security strategy, their overall effectiveness is often debated and depends on a comprehensive approach that includes technology, intelligence, and personnel.

How has federal spending on border infrastructure evolved over recent fiscal years?

Federal spending on border infrastructure, including fencing, walls, and related technology, has seen significant fluctuations over recent fiscal years, often driven by policy priorities and administration changes. While this specific contract is from FY18, broader trends show substantial investments in border security infrastructure, particularly in the years leading up to and following FY18. Funding allocations for agencies like Customs and Border Protection (CBP) and the Department of Defense (when involved in construction support) reflect these priorities. Analyzing historical spending patterns requires examining appropriations bills and contract award data across multiple agencies and fiscal years to identify trends in investment levels and project types.

What are the potential environmental impacts of constructing 33 miles of fencing in Arizona?

Constructing 33 miles of fencing in Arizona can have several potential environmental impacts. These may include habitat fragmentation for wildlife, disruption of natural migration corridors, soil erosion during construction, and potential impacts on water resources. The specific environmental footprint will depend on the chosen location, the type of fencing installed, and the mitigation measures employed during the design and construction phases. Federal projects typically require environmental assessments (EAs) or environmental impact statements (EISs) to identify and address potential negative effects, ensuring compliance with environmental regulations and striving to minimize ecological disruption.

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: TWO STEP

Solicitation ID: W9126G18R0084

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: $413,297,776

Exercised Options: $261,032,494

Current Obligation: $261,032,494

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline