DHS Awards $1.26 Billion for Customs Facility Construction and Furnishing Across Texas and California

Contract Overview

Contract Amount: $1,260,570,511 ($1.3B)

Contractor: Deployed Resources LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-15

End Date: 2025-03-29

Contract Duration: 835 days

Daily Burn Rate: $1.5M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ERECT/FURNISH CPC FACILITY AT EL PASO, TX AND SAN DIEGO, CA. OPTION FOR EL CENTRO, CA

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79934

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.26 billion to DEPLOYED RESOURCES LLC for work described as: ERECT/FURNISH CPC FACILITY AT EL PASO, TX AND SAN DIEGO, CA. OPTION FOR EL CENTRO, CA Key points: 1. Significant investment in critical infrastructure for U.S. Customs and Border Protection. 2. Contract awarded to DEPLOYED RESOURCES LLC, a company with a substantial award value. 3. The contract covers facility work in El Paso, TX, and San Diego, CA, with an option for El Centro, CA. 4. This spending falls under the 'Process, Physical Distribution, and Logistics Consulting Services' NAICS code.

Value Assessment

Rating: fair

The total award value of $1.26 billion over approximately 2.75 years is substantial. Benchmarking is difficult without specific details on the scope of services and materials for each facility, but the duration suggests significant project complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. The award type is a BPA Call, suggesting it was made against an existing Blanket Purchase Agreement, which can streamline procurement but may not always yield the lowest price compared to a standalone competitive bid.

Taxpayer Impact: Taxpayer funds are being utilized for essential border infrastructure, aiming to improve operational efficiency and security. The long-term benefits of enhanced facilities are expected to outweigh the initial investment.

Public Impact

Enhances border security infrastructure at key entry points. Supports operational needs of U.S. Customs and Border Protection. Potential for job creation in construction and related services in Texas and California. Improves efficiency of customs and border operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Large contract value could be subject to cost overruns.
Long contract duration increases risk of scope creep or changing requirements.
Reliance on a single awardee for a large project.

Positive Signals

Addresses critical infrastructure needs.
Awarded through full and open competition.
Clear project scope with defined locations.

Sector Analysis

This contract falls within the construction and facilities management sector, specifically related to government infrastructure projects. The value is significant, reflecting the scale and importance of border facilities. Benchmarks for similar large-scale federal construction projects vary widely based on scope and location.

Small Business Impact

While the contract was awarded under full and open competition, there is no explicit indication of small business participation in the provided data. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized.

Oversight & Accountability

The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for overseeing this contract. Oversight will be crucial to ensure timely completion, adherence to specifications, and responsible use of taxpayer funds throughout the contract's duration.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Large contract value
Long contract duration
Potential for scope creep
Reliance on a single awardee for a major project

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.26 billion to DEPLOYED RESOURCES LLC. ERECT/FURNISH CPC FACILITY AT EL PASO, TX AND SAN DIEGO, CA. OPTION FOR EL CENTRO, CA

Who is the contractor on this award?

The obligated recipient is DEPLOYED RESOURCES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $1.26 billion.

What is the period of performance?

Start: 2022-12-15. End: 2025-03-29.

What specific construction and furnishing services are included in the $1.26 billion award, and how were these costs estimated to ensure value for money?

The award covers the erection and furnishing of CPC facilities in El Paso, TX, and San Diego, CA, with an option for El Centro, CA. Detailed cost breakdowns are not provided, but the firm fixed price structure suggests the contractor bears the risk of cost overruns. Value for money would be assessed against the competitive bids received and the criticality of the infrastructure to CBP operations.

What are the primary risks associated with a contract of this magnitude and duration, and what mitigation strategies are in place?

Key risks include potential cost overruns due to unforeseen construction challenges, material price fluctuations, or scope creep over the 835-day duration. Mitigation strategies likely involve robust project management, clear change order processes, and performance monitoring by CBP. The firm fixed price contract shifts some cost risk to the contractor.

How will the successful completion of these facilities impact the operational effectiveness and efficiency of U.S. Customs and Border Protection?

The new and improved facilities are expected to enhance CBP's operational effectiveness by providing modern, functional spaces for processing, inspection, and personnel. This can lead to increased efficiency, better resource utilization, and improved working conditions, ultimately supporting the agency's mission of securing U.S. borders.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B01C23Q00000023

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 164 MCPIKE RD, ROME, NY, 13441

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

Financial Breakdown

Contract Ceiling: $3,004,719,886

Exercised Options: $1,260,570,511

Current Obligation: $1,260,570,511

Actual Outlays: $1,260,570,511

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70RDAD21A00000012

IDV Type: BPA

Timeline