DHS Awards $572.6M for Border Barrier Construction in Texas

Contract Overview

Contract Amount: $572,654,700 ($572.7M)

Contractor: Bccg a Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-26

End Date: 2028-03-30

Contract Duration: 916 days

Daily Burn Rate: $625.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION BORDER BARRIER

Place of Performance

Location: WESLACO, HIDALGO County, TEXAS, 78596

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $572.7 million to BCCG A JOINT VENTURE for work described as: CONSTRUCTION BORDER BARRIER Key points: 1. Significant investment in border infrastructure with a substantial contract value. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger program, indicating potential for follow-on work. 4. Fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The contract value of $572.6 million is substantial for a construction project of this nature. Benchmarking against similar large-scale infrastructure projects is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing and allows a wide range of contractors to bid. The impact on price discovery is likely positive, driving down costs through market forces.

Taxpayer Impact: Taxpayers are impacted by the significant expenditure on border security infrastructure, with the expectation of value derived from enhanced border control.

Public Impact

Enhances border security infrastructure in a key region. Supports economic activity through construction jobs and related industries. Represents a long-term federal investment in national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Large contract value could be subject to cost overruns.
Long duration of the contract (over 4 years) increases risk exposure.
Construction projects are inherently susceptible to unforeseen site conditions and material cost fluctuations.

Positive Signals

Full and open competition can lead to better pricing.
Firm fixed price contract provides cost certainty.
Delivery order structure allows for phased execution and payment.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Large federal construction projects often involve significant capital outlays and can be influenced by economic conditions and material availability.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation or set-asides in the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for overseeing this contract. Oversight will be critical to ensure project completion, adherence to specifications, and cost control throughout the contract duration.

Related Government Programs

Commercial and Institutional Building Construction
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Potential for cost overruns due to project scale and duration.
Unforeseen site conditions or environmental challenges.
Fluctuations in material and labor costs.
Logistical challenges in a remote border region.
Long-term maintenance and operational costs not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $572.7 million to BCCG A JOINT VENTURE. CONSTRUCTION BORDER BARRIER

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 $572.7 million.

What is the period of performance?

Start: 2025-09-26. End: 2028-03-30.

What is the historical cost performance of similar border barrier construction projects awarded by DHS?

Analyzing historical cost performance of similar projects is crucial. Past projects can reveal trends in cost overruns, efficiency, and the effectiveness of different contract types in managing expenses. Benchmarking against these historical data points will help determine if the current $572.6 million award represents a fair price and if the project is on track for successful financial completion.

What are the specific risks associated with the Texas border region that could impact construction timelines and costs?

The Texas border region presents unique risks including challenging terrain, potential environmental concerns, and logistical complexities for material delivery and workforce access. Extreme weather events, land acquisition issues, and community relations can also impact project timelines and escalate costs. A thorough risk assessment should detail mitigation strategies for these region-specific challenges.

How will the effectiveness of the completed border barrier be measured and evaluated by U.S. Customs and Border Protection?

Effectiveness will likely be measured through key performance indicators related to border security, such as reduced illegal crossings, improved interdiction rates, and enhanced surveillance capabilities. CBP will need to establish clear metrics and a robust monitoring framework to assess the barrier's contribution to overall border control objectives and its return on investment.

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: 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: $572,654,700

Exercised Options: $572,654,700

Current Obligation: $572,654,700

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