DHS awards $316.7M contract for waterborne buoy systems, impacting border security operations in Texas

Contract Overview

Contract Amount: $316,700,000 ($316.7M)

Contractor: Fisher Sand & Gravel CO

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-16

End Date: 2028-08-31

Contract Duration: 989 days

Daily Burn Rate: $320.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WATERBORNE BUOY SYSTEM

Place of Performance

Location: ENCINAL, LA SALLE County, TEXAS, 78019

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $316.7 million to FISHER SAND & GRAVEL CO for work described as: WATERBORNE BUOY SYSTEM Key points: 1. Contract value represents a significant investment in border infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this large award. 3. Performance period extends over several years, indicating a long-term need. 4. The contract is positioned within the broader context of national security and border management. 5. Geographic focus on Texas highlights its critical role in border operations.

Value Assessment

Rating: good

The total contract value of $316.7 million over approximately 4 years appears reasonable for a large-scale infrastructure project of this nature. Benchmarking against similar large construction and systems integration contracts for border security would provide further insight. The firm-fixed-price structure helps manage cost certainty for the government, though it places cost risk on the contractor. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the scale suggests significant operational impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. The presence of 4 bidders suggests a healthy level of competition for this significant contract. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), enhancing their operational capabilities. The contract will deliver essential waterborne buoy systems crucial for monitoring and securing maritime borders. The geographic impact is concentrated in Texas (ST: TX), a key area for border security operations. The contract is likely to support jobs in the construction and technology sectors involved in manufacturing and deploying the buoy systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during deployment.
Dependence on contractor performance for timely delivery and system functionality.
Ensuring long-term maintenance and operational readiness of the deployed systems.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost predictability.
Significant investment indicates a high priority for border security infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, though its application is highly specialized for border security infrastructure. The market for such specialized surveillance and barrier systems is often dominated by a few key players with the technical expertise and security clearances required. The total contract value of $316.7 million is substantial and reflects the critical nature of border management technology.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (SB: false). Given the scale and specialized nature of waterborne buoy systems, it is likely that larger, established defense or construction contractors were the primary bidders. Subcontracting opportunities for small businesses may exist, particularly in areas like component manufacturing, logistics, or specialized labor, but this would depend on the prime contractor's strategy.

Oversight & Accountability

Oversight will likely be managed by the U.S. Customs and Border Protection (CBP) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, with performance milestones and delivery schedules. Transparency is generally maintained through federal contract databases, though specific operational details of the buoy system's deployment and function may be sensitive.

Related Government Programs

Border Security Technology
Maritime Surveillance Systems
Infrastructure Construction Contracts
Department of Homeland Security Procurement

Risk Flags

Potential for performance issues in harsh maritime environments.
Risk of delivery delays due to complex manufacturing or logistics.
Need for robust long-term maintenance and sustainment plan.
Contractor's specific experience with advanced surveillance technology requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $316.7 million to FISHER SAND & GRAVEL CO. WATERBORNE BUOY SYSTEM

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 $316.7 million.

What is the period of performance?

Start: 2025-12-16. End: 2028-08-31.

What is the specific technical capability of the waterborne buoy system being procured?

The provided data does not detail the specific technical capabilities of the waterborne buoy system. However, given its application for U.S. Customs and Border Protection (CBP), it is likely designed for maritime domain awareness, detection of unauthorized waterborne crossings, and potentially tracking vessels. Such systems often incorporate sensors (e.g., radar, acoustic, optical), communication modules, and data processing capabilities to provide real-time intelligence to border patrol agents. The contract's value suggests a comprehensive solution involving deployment, integration, and potentially ongoing support.

How does the $316.7 million contract value compare to historical spending on similar border security infrastructure?

Comparing the $316.7 million contract value requires context on historical spending for similar large-scale border infrastructure projects. While specific comparable figures are not provided, this award represents a significant investment. DHS and CBP have historically allocated substantial funds towards border security technology, including surveillance systems, sensors, and physical barriers. The scale of this contract suggests it is a major initiative, potentially part of a broader strategy to enhance maritime border control capabilities, and its value should be assessed against the scope and duration of previous large procurements in this domain.

What are the primary risks associated with the performance and delivery of these waterborne buoy systems?

Key risks include technical performance issues, where the deployed buoy systems may not meet specified detection or communication requirements in challenging maritime environments. Delivery risks involve potential delays due to manufacturing complexities, supply chain disruptions, or logistical hurdles in deploying systems to remote or sensitive border areas. Furthermore, operational risks include the system's vulnerability to environmental factors (weather, currents, marine life), potential for tampering or damage, and the need for effective maintenance and sustainment over the contract's duration. The firm-fixed-price nature places the financial risk of cost overruns on the contractor, but performance failures could still lead to program delays and reduced operational effectiveness.

What is the expected impact of these buoy systems on border patrol operational effectiveness?

The waterborne buoy systems are expected to significantly enhance border patrol operational effectiveness by providing persistent surveillance and early warning capabilities in maritime sectors. They can help detect, track, and identify unauthorized entries via water, complementing existing patrol methods. This improved situational awareness allows for more timely and targeted responses, optimizing resource allocation for patrol agents. By establishing a more robust detection network, these systems aim to deter illegal crossings and improve the overall security posture along the nation's maritime borders, particularly in critical areas like Texas.

What is the track record of Fisher Sand & Gravel Co. in delivering complex technology or infrastructure projects of this scale?

Fisher Sand & Gravel Co. is primarily known for heavy civil construction projects, including infrastructure development like roads, bridges, and military bases. While they have experience with large-scale projects, the specific expertise in advanced waterborne surveillance technology and systems integration for border security is less evident from their general profile. The award of this contract suggests they either possess or have partnered to acquire the necessary capabilities. A deeper dive into their past performance on similar government contracts, particularly those involving technology deployment and complex systems, would be necessary to fully assess their track record for this specific procurement.

How does the competition level (4 bidders) influence the pricing and innovation for this contract?

Having four bidders for this contract suggests a reasonably competitive environment. This level of competition typically encourages vendors to offer more competitive pricing to secure the award. It also incentivizes them to propose innovative solutions or unique approaches to meet the government's requirements, as they need to differentiate themselves from other offerors. While more bidders could potentially lead to even greater price reductions or a wider array of innovative ideas, four bidders generally provides a good balance, allowing for meaningful price discovery and a reasonable selection of technical approaches without becoming overly complex to manage.

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: 4

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: $316,700,000

Exercised Options: $316,700,000

Current Obligation: $316,700,000

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