DHS awards $352M for Arizona border wall construction, with competition impacting price

Contract Overview

Contract Amount: $352,421,800 ($352.4M)

Contractor: Fisher Sand & Gravel CO

Awarding Agency: Department of Homeland Security

Start Date: 2025-06-12

End Date: 2027-12-28

Contract Duration: 929 days

Daily Burn Rate: $379.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW VERTICAL BARRIER BORDER WALL BORDER WITHIN THE TUCSON, ARIZONA SECTOR (TCA), THESE INCLUDE TCA 10-4, SONOITA AND TCA 10-6.

Place of Performance

Location: SONOITA, SANTA CRUZ County, ARIZONA, 85637

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $352.4 million to FISHER SAND & GRAVEL CO for work described as: NEW VERTICAL BARRIER BORDER WALL BORDER WITHIN THE TUCSON, ARIZONA SECTOR (TCA), THESE INCLUDE TCA 10-4, SONOITA AND TCA 10-6. Key points: 1. Contract awarded via full and open competition, suggesting potential for competitive pricing. 2. Firm fixed-price contract type limits risk for the government regarding cost overruns. 3. Project duration of over two years indicates a significant, long-term construction effort. 4. The contract is for a specific sector within Arizona, implying localized impact. 5. The awardee, Fisher Sand & Gravel Co., will be responsible for delivering critical infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns for materials, labor, and overhead. The firm fixed-price nature provides cost certainty for the government, but the total award amount of $352.4 million for approximately 929 days of work suggests a substantial investment. Further analysis would require comparing unit costs for similar barrier construction projects in comparable terrains and regions, considering the specific technical requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of five bidders suggests a reasonably competitive environment, which typically helps in achieving better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios. The specific details of the bidding process and the number of responsive bids would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing to win the contract. This process aims to ensure that the government is not overpaying for goods or services.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), receiving enhanced border infrastructure. The services delivered include the construction of new vertical barrier and border wall sections in specific areas of the Tucson, Arizona sector. The geographic impact is concentrated within the Tucson, Arizona sector, specifically impacting areas like TCA 10-4 and Sonoita. Workforce implications may include job creation for construction workers, engineers, and support staff in the Arizona region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions significantly increase construction complexity.
Environmental impact assessments and mitigation strategies need to be robustly managed.
Coordination with local communities and stakeholders is crucial for project success and minimizing disruption.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive pricing environment.
Clear definition of project scope and deliverables for the Tucson sector.

Sector Analysis

The construction of border infrastructure falls within the broader Commercial and Institutional Building Construction sector. This sector is characterized by large-scale projects requiring significant capital investment, specialized labor, and adherence to strict regulatory and environmental standards. The market for border security construction is influenced by government policy, national security priorities, and geopolitical factors. Comparable spending benchmarks would involve analyzing other large federal construction contracts for infrastructure projects, particularly those related to national defense or border management.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-scale construction project, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, Fisher Sand & Gravel Co. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and any contractual requirements for small business participation, which are not detailed here. This could impact the distribution of economic benefits within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection (CBP), a component of DHS. Accountability measures will be embedded in the contract's performance clauses, delivery schedules, and quality control requirements. Transparency may be enhanced through contract award databases and public reporting requirements, though specific project details might be sensitive. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Border Infrastructure Projects
Department of Homeland Security Construction Contracts
Federal Building and Infrastructure Construction
Customs and Border Protection Procurement

Risk Flags

Environmental Impact Concerns
Potential for Unforeseen Site Conditions
Long-Term Project Duration Risks
Community Relations and Land Use Issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $352.4 million to FISHER SAND & GRAVEL CO. NEW VERTICAL BARRIER BORDER WALL BORDER WITHIN THE TUCSON, ARIZONA SECTOR (TCA), THESE INCLUDE TCA 10-4, SONOITA AND TCA 10-6.

Who is the contractor on this award?

The obligated recipient is FISHER SAND & GRAVEL CO.

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 $352.4 million.

What is the period of performance?

Start: 2025-06-12. End: 2027-12-28.

What is the historical track record of Fisher Sand & Gravel Co. with federal contracts, particularly with DHS or CBP?

Fisher Sand & Gravel Co. has a history of federal contracting, including work on border infrastructure projects. For instance, the company was previously awarded contracts related to border wall construction. Analyzing their past performance, including any issues related to project delays, cost overruns, or quality disputes, is crucial for assessing their capability to execute this current $352.4 million contract successfully. A review of their contract history with DHS and CBP specifically would reveal their experience level and reliability in delivering similar projects under federal oversight.

How does the per-unit cost of this border wall construction compare to similar projects in comparable terrains and regions?

Determining the precise per-unit cost requires a detailed breakdown of the contract's components (e.g., linear foot of wall, square foot of barrier, associated infrastructure). Without this granular data, a direct comparison is difficult. However, the total award of $352.4 million for an unspecified length of new vertical barrier and border wall within the Tucson sector suggests a significant investment. Benchmarking against publicly available data for similar border infrastructure projects, adjusted for inflation, terrain complexity (e.g., mountainous vs. flat), and material costs in Arizona, would be necessary to assess value for money. The firm fixed-price nature aims to control costs, but the initial award amount sets the baseline for comparison.

What are the primary risk indicators associated with this specific border wall construction contract?

Key risk indicators include the challenging terrain of the Tucson sector, which can lead to unforeseen construction difficulties and increased costs. Environmental concerns, such as impact on wildlife habitats and water resources, present regulatory and execution risks. The long duration of the contract (nearly three years) increases the exposure to potential changes in material costs, labor availability, and political priorities. Furthermore, the potential for community opposition or legal challenges related to land use or environmental impact could pose risks to timely completion and budget adherence. Managing these risks requires robust planning, environmental compliance, and stakeholder engagement.

How effective has previous spending on border wall construction in the Tucson sector been in achieving stated security objectives?

The effectiveness of previous spending on border wall construction in the Tucson sector is a complex and often debated topic. While physical barriers can channel or impede unauthorized crossings, their overall impact on security objectives is multifaceted. Factors such as the type of barrier, its placement, integration with technology (surveillance, sensors), and the number of personnel available for interdiction all play a role. Studies and reports from government agencies, think tanks, and academic institutions offer varying perspectives on the efficacy of border walls in deterring illegal immigration and smuggling. A comprehensive assessment would require analyzing data on crossing attempts, interdiction rates, and smuggling activities before and after the installation of previous barriers in this specific sector.

What are the historical spending patterns for border infrastructure projects under DHS and CBP, and how does this award fit within that trend?

Historical spending on border infrastructure projects by DHS and CBP has fluctuated significantly, often driven by policy shifts and funding appropriations. Large-scale initiatives, particularly those focused on wall construction, have seen substantial investment in certain fiscal years. This $352.4 million award for the Tucson sector represents a significant allocation for a single project within the broader context of border security spending. Analyzing historical data would reveal whether this award aligns with recent trends in infrastructure investment or represents a notable increase or decrease in spending for similar types of construction projects within the agency's budget.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1302 W DRIVERS WAY, TEMPE, AZ, 85284

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

Financial Breakdown

Contract Ceiling: $352,421,800

Exercised Options: $352,421,800

Current Obligation: $352,421,800

Actual Outlays: $14,371,154

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B01C23D00000010

IDV Type: IDC

Timeline