DHS Awards $382M Design-Build Contract for Texas Border Barriers to SLS Federal Services

Contract Overview

Contract Amount: $382,324,930 ($382.3M)

Contractor: SLS Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-11-21

End Date: 2028-08-30

Contract Duration: 1,013 days

Daily Burn Rate: $377.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DEL RIO TEXAS-3 CARRIZO SPRINGS WATERBORNE & VERTICAL BARRIERS AND ATTRIBUTES DESIGN BUILD CONSTRUCTION PROJECT

Place of Performance

Location: DEL RIO, VAL VERDE County, TEXAS, 78840

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $382.3 million to SLS FEDERAL SERVICES LLC for work described as: DEL RIO TEXAS-3 CARRIZO SPRINGS WATERBORNE & VERTICAL BARRIERS AND ATTRIBUTES DESIGN BUILD CONSTRUCTION PROJECT Key points: 1. The contract focuses on constructing waterborne and vertical barriers, along with associated attributes, in South Texas. 2. SLS Federal Services LLC, the awardee, will handle the design and construction phases. 3. The project is a delivery order under a larger contract, indicating potential for future task orders. 4. The fixed-price contract aims to control costs for this significant infrastructure project.

Value Assessment

Rating: good

The contract value of $382.3 million appears substantial for a design-build project of this nature. Benchmarking against similar large-scale border infrastructure projects would be necessary for a precise assessment, but the firm-fixed-price structure suggests an effort to establish a clear cost ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method is 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while the initial pool might have been broad, specific sources were excluded, potentially limiting the competitive landscape. This could impact price discovery if the excluded sources were strong contenders.

Taxpayer Impact: The significant investment of over $382 million represents a substantial allocation of taxpayer funds towards border security infrastructure.

Public Impact

Enhances border security infrastructure in a critical region. Supports federal efforts to manage border crossings. Potential for local economic impact through construction jobs and material sourcing. Addresses long-standing needs for border barrier improvements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Long project duration (over 3 years) increases risk of cost overruns or scope creep.
Potential environmental impacts of large-scale construction in sensitive border areas.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Design-build approach can streamline project delivery.
Addresses a stated national security priority.

Sector Analysis

This project falls under the Commercial and Institutional Building Construction sector, specifically related to government infrastructure. The value is high for a single construction award, reflecting the scale and complexity of border security projects.

Small Business Impact

The data does not indicate specific provisions or set-asides for small businesses in this award. Further analysis would be needed to determine if small businesses are participating as subcontractors.

Oversight & Accountability

As a delivery order under a larger contract, oversight likely resides with U.S. Customs and Border Protection. The firm-fixed-price nature provides some cost control, but monitoring progress, quality, and adherence to scope will be crucial.

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 long duration.
Environmental impact concerns.
Limited competition may inflate price.
Dependence on contractor performance for successful delivery.
Scope creep risk over the project lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $382.3 million to SLS FEDERAL SERVICES LLC. DEL RIO TEXAS-3 CARRIZO SPRINGS WATERBORNE & VERTICAL BARRIERS AND ATTRIBUTES DESIGN BUILD CONSTRUCTION PROJECT

Who is the contractor on this award?

The obligated recipient is SLS FEDERAL SERVICES 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 $382.3 million.

What is the period of performance?

Start: 2025-11-21. End: 2028-08-30.

What specific criteria led to the exclusion of certain sources, and how did this impact the final price?

The exclusion of sources suggests a pre-qualification or specific capability requirement that not all potential bidders met. Understanding these criteria is key to assessing if the competition, though advertised as full and open, was effectively narrowed down. This narrowing could influence the final price by reducing the number of competitive bids received, potentially leading to a higher cost than if a broader range of firms had competed.

What are the key performance indicators (KPIs) for this project, and how will success be measured?

Success metrics likely revolve around timely completion within budget, adherence to design specifications, and the physical integrity and effectiveness of the constructed barriers. KPIs might include milestones for design approval, construction phases, and final handover. Performance will be monitored by CBP officials, with potential penalties for delays or substandard work, ensuring accountability for the significant taxpayer investment.

How does the cost of this project compare to similar border infrastructure projects in terms of cost per mile or per unit of barrier?

A direct cost comparison is difficult without detailed project specifications and location context. However, $382 million for design and construction of barriers and attributes suggests a significant per-unit cost. Benchmarking against other large-scale border projects, considering terrain, technology, and specific barrier types, is essential to determine if this represents efficient use of funds or a potential area for cost savings in future procurements.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6702 BROADWAY ST, GALVESTON, TX, 77554

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

Financial Breakdown

Contract Ceiling: $382,324,930

Exercised Options: $382,324,930

Current Obligation: $382,324,930

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 70B01C26D00000003

IDV Type: IDC

Timeline