DHS Awards $1.55 Billion for Arizona Border Barrier Construction to Fisher Sand & Gravel Co

Contract Overview

Contract Amount: $1,550,800,000 ($1.6B)

Contractor: Fisher Sand & Gravel CO

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-17

End Date: 2028-08-31

Contract Duration: 988 days

Daily Burn Rate: $1.6M/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT VERTICAL BORDER BARRIER

Place of Performance

Location: ELGIN, SANTA CRUZ County, ARIZONA, 85611

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.55 billion to FISHER SAND & GRAVEL CO for work described as: CONSTRUCT VERTICAL BORDER BARRIER Key points: 1. Significant investment in border infrastructure with a substantial price tag. 2. Competition method suggests potential for better pricing, but source exclusion raises questions. 3. Long-term contract duration (988 days) implies sustained resource allocation. 4. Focus on a specific geographic region (Arizona) highlights localized security priorities.

Value Assessment

Rating: fair

The contract value of $1.55 billion is substantial for a construction project of this nature. Benchmarking against similar large-scale infrastructure projects is difficult without more specific cost breakdowns, but the scale suggests a significant expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while competition was sought, certain sources were initially excluded, potentially limiting the breadth of competition and impacting price discovery.

Taxpayer Impact: The large contract value means a significant portion of taxpayer funds will be allocated to this project, impacting the federal budget.

Public Impact

Impacts border security operations and infrastructure in Arizona. Potential environmental and community impacts in the construction zone. Allocates substantial federal funds towards a specific national security objective.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion
Large contract value
Long contract duration

Positive Signals

Clear objective for border security
Defined delivery timeline

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Large-scale construction projects, especially those with national security implications, often involve significant federal investment and can be subject to complex procurement processes and oversight.

Small Business Impact

The data indicates that Fisher Sand & Gravel Co. is the awardee. There is no explicit mention of small business participation or subcontracting goals in the provided data, suggesting potential limited involvement of small businesses in this specific award.

Oversight & Accountability

Oversight will be crucial given the contract's value and duration. The Department of Homeland Security and U.S. Customs and Border Protection will need robust mechanisms to monitor progress, quality, and adherence to terms, especially with the initial exclusion of sources.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
High contract value raises concerns about cost-effectiveness.
Long duration increases exposure to market volatility and potential delays.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.55 billion to FISHER SAND & GRAVEL CO. CONSTRUCT VERTICAL BORDER BARRIER

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 $1.55 billion.

What is the period of performance?

Start: 2025-12-17. End: 2028-08-31.

What was the justification for excluding specific sources prior to the full and open competition, and did this exclusion impact the final price?

The justification for excluding sources prior to the 'full and open competition after exclusion of sources' is critical. If the exclusion was based on specific technical requirements or past performance issues, it might be justifiable. However, if it was arbitrary, it could have limited competitive offers, potentially leading to a higher price than if all qualified vendors had participated. Further investigation into the rationale behind the exclusion is needed to assess its impact on value for money.

What are the key performance indicators and risk mitigation strategies for this long-term construction project to ensure taxpayer funds are used effectively?

Effective use of taxpayer funds for this $1.55 billion project hinges on robust performance metrics and proactive risk management. Key indicators should include adherence to schedule, quality of construction, cost control, and environmental compliance. Mitigation strategies must address potential construction delays, material cost fluctuations, unforeseen site conditions, and security risks. Regular progress reviews, independent quality assurance, and contingency planning are essential to safeguard the investment.

How does the $1.55 billion allocation for this border barrier compare to historical spending on similar infrastructure projects, and what is the projected return on investment in terms of border secur

Comparing this $1.55 billion allocation requires context on the scope and specific requirements of similar past projects. Without detailed cost breakdowns and project specifics, a direct comparison is challenging. The projected return on investment in border security effectiveness is also difficult to quantify directly, as it involves complex metrics beyond physical barriers, such as operational efficiency and deterrence. A thorough analysis would need to consider the project's contribution to overall border control strategy and its long-term impact.

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: 2

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, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $1,550,800,000

Exercised Options: $1,550,800,000

Current Obligation: $1,550,800,000

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: 70B01C26D00000012

IDV Type: IDC

Timeline