DoD awards $181.6M for Arizona border barrier replacement, highlighting highway construction needs

Contract Overview

Contract Amount: $181,600,000 ($181.6M)

Contractor: Bfbc LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-18

End Date: 2026-08-17

Contract Duration: 364 days

Daily Burn Rate: $498.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THIS CONTRACT WILL BE TO PROVIDE DESIGN-BUILD CONSTRUCTION SERVICES FOR THE APPROXIMATE 20-MILE PRIMARY BARRIER REPLACEMENT PROJECT ON THE BARRY M. GOLDWATER RANGE BMGR IN THE U.S. BORDER PATROLS YUMA SECTOR IN ARIZONA.

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85364

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $181.6 million to BFBC LLC for work described as: THE PURPOSE OF THIS CONTRACT WILL BE TO PROVIDE DESIGN-BUILD CONSTRUCTION SERVICES FOR THE APPROXIMATE 20-MILE PRIMARY BARRIER REPLACEMENT PROJECT ON THE BARRY M. GOLDWATER RANGE BMGR IN THE U.S. BORDER PATROLS YUMA SECTOR IN ARIZONA. Key points: 1. Contract value of $181.6 million for a significant infrastructure project. 2. Project involves construction services for a 20-mile primary barrier replacement. 3. Competition was full and open after exclusion of sources, indicating a competitive process. 4. The contract is a definitive contract with a firm fixed price, suggesting cost certainty. 5. The project is located on the Barry M. Goldwater Range in Arizona. 6. The North American Industry Classification System (NAICS) code is 237310 (Highway, Street, and Bridge Construction).

Value Assessment

Rating: good

The contract value of $181.6 million for a 20-mile barrier replacement project appears to be within a reasonable range for large-scale infrastructure work. Benchmarking against similar border infrastructure projects or large-scale highway construction would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. The number of bidders (4) suggests a moderate level of competition. The exclusion of sources warrants further investigation to understand its impact on price discovery and overall competition.

Taxpayer Impact: While the competition was not entirely unrestricted, the inclusion of multiple bidders (4) likely contributed to a more competitive pricing environment than a sole-source award. The exclusion of certain sources, however, may have limited the potential for even greater price reductions for taxpayers.

Public Impact

The U.S. Border Patrol benefits from enhanced border security infrastructure. Construction services will be delivered for a critical segment of the border. The project's geographic impact is concentrated in the Yuma Sector of Arizona. The project will likely create temporary employment opportunities in the construction sector within Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if excluded sources were critical for efficiency.
The exclusion of sources could indicate specialized capabilities or market concentration.
Limited transparency on the rationale for excluding specific sources.
Firm fixed-price contracts can sometimes lead to scope creep if not managed tightly.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Competition, even with exclusions, likely drove a more competitive bid.
Project addresses a stated national security and infrastructure need.
The contract duration is clearly defined, allowing for project planning.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure related to national security and border management. The market for such large-scale construction projects is often characterized by a limited number of highly specialized firms capable of undertaking complex, high-value projects. Spending in this area is influenced by government priorities, geopolitical factors, and the need for physical infrastructure upgrades.

Small Business Impact

The data indicates that neither small business set-aside nor subcontracting was explicitly mentioned for this contract (ss: false, sb: false). This suggests that the primary award was likely made to a large business. There may be opportunities for small businesses to participate as subcontractors, but this is not guaranteed by the contract terms provided. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks out small business partners.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and potentially the Department of Homeland Security (U.S. Border Patrol). Accountability measures are inherent in the firm fixed-price contract type, which places cost risk on the contractor. Transparency would be enhanced through contract award notices and potentially through public reporting on project milestones. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Border Infrastructure Projects
National Security Construction
Highway and Bridge Construction
Department of Homeland Security Contracts
Department of Defense Construction Contracts

Risk Flags

Competition Level - Exclusion of Sources
Remote Location Logistics
Environmental Sensitivity
Military Range Operations Coordination

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $181.6 million to BFBC LLC. THE PURPOSE OF THIS CONTRACT WILL BE TO PROVIDE DESIGN-BUILD CONSTRUCTION SERVICES FOR THE APPROXIMATE 20-MILE PRIMARY BARRIER REPLACEMENT PROJECT ON THE BARRY M. GOLDWATER RANGE BMGR IN THE U.S. BORDER PATROLS YUMA SECTOR IN ARIZONA.

Who is the contractor on this award?

The obligated recipient is BFBC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $181.6 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-08-17.

What is the track record of BFBC LLC in executing large-scale federal construction contracts, particularly those involving border infrastructure?

BFBC LLC's track record in executing large-scale federal construction contracts, especially those related to border infrastructure, is a critical factor in assessing project risk. A review of past performance would involve examining previous contracts awarded to BFBC LLC by federal agencies, focusing on project scope, value, timeliness of completion, and adherence to budget. Specific attention should be paid to any experience with barrier construction, remote site work, or projects with similar security requirements. Analyzing past performance data, including any reported issues, disputes, or contract modifications, can provide insights into the company's capabilities and reliability. A strong history of successful project delivery would indicate a lower risk profile for this current contract, while a history of challenges might suggest a need for enhanced oversight and risk mitigation strategies.

How does the awarded price of $181.6 million compare to similar border barrier or large-scale construction projects in terms of cost per mile or per unit?

To benchmark the value for money, the awarded price of $181.6 million for the 20-mile primary barrier replacement project needs to be compared against similar projects. This involves calculating a cost per mile, which would be approximately $9.08 million per mile ($181.6 million / 20 miles). This figure should then be compared to the cost per mile of other recently completed or ongoing border barrier projects, or even large-scale highway and infrastructure construction projects in similar geographic or environmental conditions. Factors such as terrain, materials used, technology integrated (e.g., sensors, lighting), and labor costs in the specific region (Arizona) will influence these comparisons. If the cost per mile is significantly higher than comparable projects without a clear justification (e.g., unique technical requirements, extreme environmental challenges), it could indicate potential issues with pricing or value for money. Conversely, if it aligns with or is lower than benchmarks, it suggests a competitive and reasonable award.

What are the specific reasons for the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and what is the potential impact on competition?

The 'Full and Open Competition After Exclusion of Sources' designation implies that the contracting agency identified specific criteria or circumstances that necessitated the exclusion of certain potential bidders from the outset. Common reasons for such exclusions can include national security concerns, requirements for highly specialized or proprietary technology, or situations where only a limited number of firms possess the necessary qualifications or capacity. Understanding the precise rationale behind these exclusions is crucial for assessing the true level of competition. If the exclusions were based on legitimate, well-documented reasons, the remaining competition among qualified bidders might still yield fair market prices. However, if the exclusions were arbitrary or served to unduly limit the pool of potential offerors, it could stifle competition, potentially leading to higher prices and reduced innovation. Further inquiry into the agency's justification for exclusion is warranted to ensure taxpayer interests are protected.

What are the key performance indicators (KPIs) for this contract, and how will the government measure the success of the barrier replacement project?

Key performance indicators (KPIs) for this design-build construction contract would likely focus on project delivery metrics, quality of work, and adherence to specifications. For a barrier replacement project, KPIs could include: 1. Schedule Adherence: Measuring the project's progress against the defined timeline (364 days duration) and identifying any delays. 2. Quality of Construction: Assessing the structural integrity, durability, and compliance with design specifications of the new barrier, potentially through inspections and material testing. 3. Cost Control: While a firm fixed-price contract, monitoring for scope creep and ensuring the final cost aligns with the awarded amount is important. 4. Safety Performance: Tracking incident rates and adherence to safety protocols on the construction site. 5. Environmental Compliance: Ensuring all construction activities comply with environmental regulations. The government will likely measure success through regular progress reviews, site inspections, acceptance testing of completed work, and final project closeout documentation, ensuring the barrier meets the required security and performance standards.

What is the historical spending pattern for border barrier construction or similar infrastructure projects by the Department of Defense or Department of Homeland Security?

Analyzing historical spending patterns for border barrier construction and similar infrastructure projects by the Department of Defense (DoD) and Department of Homeland Security (DHS) provides crucial context for evaluating the current $181.6 million contract. Over the past decade, federal spending on border infrastructure has fluctuated significantly, often driven by policy shifts and national security priorities. Both agencies have awarded numerous contracts for various types of barriers, surveillance technology, and related infrastructure. Examining past contract awards, including their values, durations, and the contractors involved, can reveal trends in pricing, common project scopes, and the typical competitive landscape. For instance, understanding the average cost per mile for similar projects in previous years can help determine if the current award represents an increase or decrease in cost. Furthermore, historical data can highlight which agencies or components within DoD and DHS have been the primary drivers of this spending and identify any recurring challenges or successes in project execution.

What are the potential risks associated with constructing a 20-mile barrier on the Barry M. Goldwater Range, considering its remote location and environmental factors?

Constructing a 20-mile barrier on the Barry M. Goldwater Range presents several potential risks stemming from its remote location and environmental factors. Remoteness can lead to increased logistical challenges and costs for transporting materials, equipment, and personnel, potentially impacting project timelines and budgets. Access to the site might be difficult, requiring specialized vehicles or infrastructure development. Environmental factors such as extreme desert temperatures, potential for flash floods, and the presence of sensitive ecosystems or wildlife habitats could pose challenges. Construction activities must adhere to environmental regulations, potentially requiring mitigation measures that add complexity and cost. Furthermore, the range's operational status as a military training area could impose restrictions on work hours or access, requiring careful coordination with military authorities. These risks necessitate robust planning, contingency measures, and close collaboration between the contractor and government agencies to ensure successful project completion.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Offers Received: 4

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $230,895,000

Exercised Options: $181,600,000

Current Obligation: $181,600,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline