DHS awards $157M contract for vertical barrier and power distribution in California

Contract Overview

Contract Amount: $156,779,591 ($156.8M)

Contractor: Bccg a Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-15

End Date: 2028-04-11

Contract Duration: 939 days

Daily Burn Rate: $167.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF NEW VERTICAL BARRIER AND POWER DISTRIBUTION

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $156.8 million to BCCG A JOINT VENTURE for work described as: DESIGN AND CONSTRUCTION OF NEW VERTICAL BARRIER AND POWER DISTRIBUTION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. The project involves significant construction for a vertical barrier and power distribution systems. 4. The duration of the contract is substantial, spanning over 900 days. 5. The contractor, BCCG A JOINT VENTURE, is responsible for delivering this complex project. 6. The project is located in California, a state with significant infrastructure needs.

Value Assessment

Rating: fair

The contract value of $157 million for design and construction of a vertical barrier and power distribution system appears substantial. Benchmarking this against similar large-scale construction projects for border infrastructure or critical facility upgrades is necessary for a precise value assessment. Given the firm-fixed-price nature, the government has a degree of cost certainty, but the overall value for money will depend on the final quality and timely completion of the work. Without specific cost breakdowns or comparable project data, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (4 noted) generally fosters price discovery and can lead to more competitive pricing. The specific number of bids received and the evaluation criteria would provide further insight into the effectiveness of the competition. A robust competitive process is expected to yield a fair market price.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of receiving the best value by encouraging multiple companies to bid and potentially drive down costs through competitive pressure.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), who will receive enhanced infrastructure. The services delivered include the design and construction of a new vertical barrier and associated power distribution systems. The geographic impact is concentrated in California, where the barrier and power infrastructure will be installed. The project will likely have implications for the construction workforce in the region, creating employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Delays in project completion could impact operational effectiveness for CBP.
Ensuring the long-term durability and effectiveness of the vertical barrier and power systems will require rigorous quality control.

Positive Signals

The firm-fixed-price contract structure provides cost predictability for the government.
Awarding to a joint venture may leverage specialized expertise from multiple firms.
The project addresses a stated need for infrastructure enhancement by DHS.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to infrastructure development for government agencies. The market for large-scale construction projects, particularly those involving security infrastructure, is significant. This project represents a substantial investment in physical security and operational capabilities for U.S. Customs and Border Protection. Comparable spending benchmarks would typically involve other large federal construction projects, border infrastructure initiatives, or significant facility upgrades.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, the direct impact on small business set-asides appears minimal for this specific award. However, the joint venture structure could potentially involve subcontracting opportunities for small businesses, depending on the internal structure and procurement practices of BCCG A JOINT VENTURE. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection (CBP) contracting officer and project managers. The firm-fixed-price nature of the contract implies a focus on adherence to scope, schedule, and quality. Transparency will be facilitated through contract award databases and potentially through public reporting on project milestones. The Department of Homeland Security's Office of Inspector General (OIG) 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 Facility Construction
Power Distribution System Upgrades

Risk Flags

Potential for cost overruns
Schedule delays
Performance risks
Environmental impact concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $156.8 million to BCCG A JOINT VENTURE. DESIGN AND CONSTRUCTION OF NEW VERTICAL BARRIER AND POWER DISTRIBUTION

Who is the contractor on this award?

The obligated recipient is BCCG A JOINT VENTURE.

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 $156.8 million.

What is the period of performance?

Start: 2025-09-15. End: 2028-04-11.

What is the track record of BCCG A JOINT VENTURE in delivering similar large-scale construction projects for federal agencies?

Assessing the track record of BCCG A JOINT VENTURE is crucial for understanding their capability to successfully execute this $157 million contract. A review of their past performance on federal contracts, particularly those involving vertical barriers, power distribution, or complex infrastructure development, would be informative. This includes examining contract completion rates, any history of disputes or performance issues, and client satisfaction feedback. Information from sources like the Federal Procurement Data System (FPDS) or agency performance evaluations could shed light on their experience and reliability. Without specific historical data on BCCG A JOINT VENTURE's performance on comparable projects, it is difficult to definitively assess their suitability and the associated risks.

How does the awarded price of $157 million compare to similar vertical barrier and power distribution projects?

Benchmarking the $157 million award against similar projects is essential for evaluating value for money. This comparison should consider the scope of work, geographic location, complexity, and contract type. For instance, comparing it to other vertical barrier construction projects along the U.S. borders or significant power infrastructure upgrades for federal facilities would provide context. Factors such as material costs, labor rates in California, and specific design requirements unique to this project need to be accounted for. If comparable projects have been completed at a significantly lower cost or with greater scope for the same price, it might indicate potential issues with the pricing of this contract. Conversely, if costs are in line with or lower than similar endeavors, it suggests a competitive outcome.

What are the primary risks associated with the construction of a new vertical barrier and power distribution system?

The primary risks associated with this project include construction-related challenges such as unforeseen site conditions (e.g., geological issues, existing utilities), potential environmental impacts requiring mitigation, and labor availability or disputes. For the vertical barrier, risks might involve design flaws, material defects, or integration issues with existing systems. For power distribution, risks include ensuring grid compatibility, cybersecurity vulnerabilities in control systems, and the reliability of the power supply. Schedule delays due to weather, permitting, or supply chain disruptions are also significant risks. Furthermore, the firm-fixed-price contract shifts some cost risk to the contractor, but significant overruns could still lead to contractor default or requests for change orders, impacting the government's final cost and timeline.

What is the expected effectiveness of the new vertical barrier and power distribution system in achieving DHS objectives?

The effectiveness of the new vertical barrier and power distribution system hinges on its design, implementation, and integration with existing security and operational frameworks. The vertical barrier is expected to enhance border security by impeding unauthorized crossings, thereby supporting the Department of Homeland Security's (DHS) mission. The power distribution component is likely intended to ensure reliable and potentially enhanced power for critical infrastructure, such as surveillance equipment, lighting, or operational facilities in the project area. The success will be measured by metrics related to border control efficacy, operational uptime of powered systems, and overall security posture improvement. The specific objectives and performance metrics defined in the contract statement of work will be key to evaluating its ultimate effectiveness.

How has federal spending on border infrastructure and related construction projects trended in recent years?

Federal spending on border infrastructure and related construction projects has seen significant fluctuations over recent years, often influenced by policy priorities and administration changes. Historically, funding for border security infrastructure, including barriers, technology, and facilities, has been a substantial component of the Department of Homeland Security's budget. Spending levels can increase during periods of heightened focus on border security and may decrease during times of fiscal constraint or shifting priorities. Analyzing trends requires examining appropriations for agencies like CBP and DHS, as well as specific line items for construction and infrastructure. This contract represents a portion of that ongoing investment, the scale of which is subject to broader budgetary and political considerations.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 445 DEXTER AVE, MONTGOMERY, AL, 36104

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

Financial Breakdown

Contract Ceiling: $156,779,591

Exercised Options: $156,779,591

Current Obligation: $156,779,591

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B01C23D00000009

IDV Type: IDC

Timeline