DHS awards $1.225B for border barrier construction in California, with 3 bidders competing

Contract Overview

Contract Amount: $1,225,325,000 ($1.2B)

Contractor: Fisher Sand & Gravel CO

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-26

End Date: 2028-03-20

Contract Duration: 906 days

Daily Burn Rate: $1.4M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION BORDER BARRIER EL CENTRO, CA

Place of Performance

Location: EL CENTRO, IMPERIAL County, CALIFORNIA, 92244

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.23 billion to FISHER SAND & GRAVEL CO for work described as: CONSTRUCTION BORDER BARRIER EL CENTRO, CA Key points: 1. The contract value represents a significant investment in border infrastructure. 2. Full and open competition suggests a potentially competitive bidding environment. 3. The duration of the contract (906 days) indicates a long-term project. 4. The fixed-price contract type shifts cost risk to the contractor. 5. The project is geographically concentrated in California, impacting local resources. 6. The award to Fisher Sand & Gravel Co. warrants a review of their past performance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific project scope details. However, the sheer scale of $1.225 billion for border barrier construction in a single location suggests a substantial undertaking. Comparing it to similar large-scale construction projects, particularly those involving critical infrastructure or government contracts, would be necessary to assess if the pricing is within expected ranges. The fixed-price nature, while beneficial for budget certainty, can sometimes lead to higher initial bids to account for contractor risk.

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. With three bidders participating, the level of competition appears moderate. While more bidders could potentially drive prices lower, three bidders suggest that there were at least a few capable firms interested in undertaking this significant project. The agency's process for ensuring fair competition among these three will be crucial.

Taxpayer Impact: A competitive bidding process, even with three bidders, is generally favorable for taxpayers as it encourages firms to offer their best pricing to secure the contract. This reduces the likelihood of inflated costs compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection and the Department of Homeland Security, receiving enhanced border infrastructure. The contract will deliver construction services for a border barrier in El Centro, California. The geographic impact is concentrated in Southern California, potentially affecting local labor markets and economies. Workforce implications include job creation for construction workers, engineers, and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price contract.
Ensuring the long-term durability and effectiveness of the constructed barrier will require ongoing monitoring.
The significant investment could divert funds from other critical border security or immigration services.
Environmental impact assessments and mitigation strategies for the construction zone need thorough oversight.

Positive Signals

The use of full and open competition aims to secure competitive pricing and a qualified contractor.
The fixed-price contract type provides budget certainty for the agency.
The project duration allows for phased construction and potential learning curve improvements.
The award to a specific contractor suggests they met the technical and performance requirements.

Sector Analysis

This contract falls within the Construction sector, specifically commercial and institutional building construction. The market for large-scale government construction projects, particularly those related to national security and infrastructure, is substantial. Comparable spending benchmarks would involve analyzing other major federal construction awards for similar types of facilities or infrastructure, considering factors like project complexity, location, and duration. The scale of this award places it among significant federal construction investments.

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 requirements specifically mandated for small businesses within this award. The prime contractor, Fisher Sand & Gravel Co., will likely manage the majority of the work. Opportunities for small businesses would primarily arise if the prime contractor voluntarily chooses to subcontract portions of the work to them, or if they are part of the broader supply chain for materials and services.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Customs and Border Protection, a component of the Department of Homeland Security. Accountability measures will be embedded in the contract's performance clauses, delivery schedules, and quality control requirements. 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 would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Border Infrastructure Projects
Department of Homeland Security Construction Contracts
Federal Construction Awards
Large-Scale Infrastructure Development

Risk Flags

Potential for cost overruns despite fixed-price contract due to unforeseen conditions.
Ensuring long-term durability and effectiveness of the constructed barrier.
Environmental impact and mitigation during construction.
Contractor's past performance on similar large-scale projects.
Adequacy of competition with only three bidders for a project of this scale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.23 billion to FISHER SAND & GRAVEL CO. CONSTRUCTION BORDER BARRIER EL CENTRO, CA

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 $1.23 billion.

What is the period of performance?

Start: 2025-09-26. End: 2028-03-20.

What is the track record of Fisher Sand & Gravel Co. on similar large-scale federal construction projects, particularly those involving border infrastructure?

A thorough review of Fisher Sand & Gravel Co.'s past performance is crucial. This would involve examining their history with federal agencies, specifically the Department of Homeland Security or other entities involved in infrastructure projects. Key areas to investigate include their on-time and on-budget completion rates for comparable contracts, any history of disputes or contract terminations, and client satisfaction feedback. Understanding their experience with projects of similar scale and complexity, especially those with unique environmental or security considerations, will provide insight into their capability to successfully execute this border barrier construction.

How does the per-unit cost or cost per mile of this border barrier compare to other similar projects, both federal and state?

Directly comparing the per-unit cost of this border barrier is difficult without detailed specifications of the barrier type (e.g., material, height, foundation requirements) and the specific terrain in El Centro, CA. However, a benchmark analysis could be performed by researching publicly available data on other border wall or barrier construction projects. This would involve identifying the total cost, length constructed, and type of barrier for those projects. Factors such as labor costs, material availability, environmental regulations, and the complexity of the terrain significantly influence per-unit costs. A preliminary comparison might reveal if the $1.225 billion award for an unspecified duration and length falls within or deviates from typical cost ranges for such infrastructure.

What are the primary risk indicators associated with a fixed-price contract of this magnitude and duration for border barrier construction?

The primary risk indicator for a fixed-price contract of this magnitude ($1.225 billion) and duration (906 days) is the potential for the contractor to face unforeseen cost increases that erode their profit margin, potentially leading to quality compromises or project delays if not managed effectively. While the fixed price shifts cost risk to the contractor, significant scope creep, unexpected geological conditions, or substantial material price volatility could still pose challenges. For border barrier construction, risks also include environmental impact mitigation complexities, potential for vandalism or damage requiring repairs, and the long-term maintenance needs of the structure. The agency's oversight must focus on managing scope and ensuring quality throughout the project lifecycle.

What is the historical spending pattern for border barrier construction by the Department of Homeland Security, and how does this award fit within that trend?

Historical spending on border barrier construction by DHS has varied significantly over different administrations and has been subject to shifting priorities and funding allocations. Analyzing past appropriations and contract awards for border infrastructure projects would reveal trends in investment levels, types of construction undertaken, and the primary contractors involved. This $1.225 billion award represents a substantial single investment. Understanding whether this award is an acceleration of previous efforts, a new initiative, or a continuation of ongoing projects will provide context. It is important to compare this award not just in dollar terms but also in relation to the physical scope of the barrier being constructed and the specific security objectives it aims to achieve.

How will the performance of Fisher Sand & Gravel Co. be monitored to ensure the quality and longevity of the border barrier?

The performance of Fisher Sand & Gravel Co. will be monitored through a multi-faceted approach defined in the contract. This typically includes regular site inspections by contracting officers' representatives (CORs) and technical experts to ensure adherence to specifications and quality standards. Progress reports from the contractor, detailing work completed, materials used, and any encountered issues, will be reviewed. Key performance indicators (KPIs) related to schedule adherence, budget management, and quality control will be tracked. Independent testing of materials and construction methods may also be employed. The contract will likely include provisions for defect correction and warranty periods to ensure the long-term integrity of the barrier.

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: 3

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: $1,225,325,000

Exercised Options: $1,225,325,000

Current Obligation: $1,225,325,000

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