DHS Awards $165M for YUM-2 Border Barrier Construction to Fisher Sand & Gravel

Contract Overview

Contract Amount: $1,650,754,000 ($1.7B)

Contractor: Fisher Sand & Gravel CO

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-23

End Date: 2028-12-31

Contract Duration: 1,104 days

Daily Burn Rate: $1.5M/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: YUM-2 VERTICAL BORDER AND WATERBORNE BARRIER CONSTRUCTION

Place of Performance

Location: TEMPE, MARICOPA County, ARIZONA, 85284

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.65 billion to FISHER SAND & GRAVEL CO for work described as: YUM-2 VERTICAL BORDER AND WATERBORNE BARRIER CONSTRUCTION Key points: 1. Contract awarded for a significant border infrastructure project in Arizona. 2. Fisher Sand & Gravel Co. is the contractor for this large-scale construction. 3. The contract type is Firm Fixed Price, indicating defined costs. 4. This project falls under the Department of Homeland Security's purview.

Value Assessment

Rating: fair

The total award amount is $165,075,400. Benchmarking per-unit costs for similar border barrier construction is difficult due to unique project specifications and varying terrain. Without more granular data on the scope of work (e.g., linear feet, height, materials), a precise comparison is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

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

Taxpayer Impact: Taxpayer funds are allocated for a substantial border security infrastructure project. The effectiveness of the spending will depend on the project's successful completion and its impact on border security operations.

Public Impact

Construction of border barriers can impact border communities and ecosystems. The project involves significant federal investment in national security infrastructure. The long-term effectiveness and maintenance costs of the barrier will be a public concern. Environmental impact assessments and mitigation efforts are crucial for public acceptance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Potential environmental impacts require careful management.
Long-term maintenance costs are not explicitly detailed.

Positive Signals

Addresses a stated national security priority.
Firm Fixed Price contract provides cost certainty.
Project is located in a key border region.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to infrastructure development for national security. Spending benchmarks for large-scale border barrier projects are highly variable, influenced by geography, materials, and security requirements.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as Fisher Sand & Gravel Co. is the prime contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight will be crucial to ensure the project adheres to specifications, stays within budget (as much as possible with FFP), and meets its intended security objectives. The U.S. Customs and Border Protection is responsible for managing this contract.

Related Government Programs

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

Risk Flags

Limited competition raises concerns about price optimization.
Potential for environmental disruption during construction.
Long-term maintenance and operational costs are not fully defined.
Dependence on a single prime contractor for a critical infrastructure project.
The 'exclusion of sources' clause warrants further scrutiny for fairness and necessity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.65 billion to FISHER SAND & GRAVEL CO. YUM-2 VERTICAL BORDER AND WATERBORNE BARRIER CONSTRUCTION

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 $1.65 billion.

What is the period of performance?

Start: 2025-12-23. End: 2028-12-31.

What specific criteria led to the exclusion of certain sources in the competition process, and how did this exclusion potentially affect the final price?

The exclusion of sources typically occurs due to specific technical requirements, past performance issues, or security clearances. Without detailed documentation from the solicitation, it's impossible to ascertain the exact reasons. This exclusion could limit the number of competitive bids, potentially leading to a higher price than if a broader range of qualified contractors had participated.

How will the effectiveness of the YUM-2 barrier be measured, and what are the key performance indicators (KPIs) to assess its impact on border security?

Effectiveness is likely measured by metrics such as reduced illegal crossings in the designated area, improved interdiction rates, and the barrier's physical integrity against breaches. KPIs might include the number of successful crossings prevented, the time taken for response teams to reach incidents, and the overall operational efficiency gains attributed to the barrier's presence.

What is the projected lifecycle cost of the YUM-2 barrier, including maintenance, repair, and potential upgrades over its intended service life?

The provided data focuses on the initial construction award. Lifecycle costs, encompassing ongoing maintenance, potential repairs due to environmental factors or damage, and future upgrades, are not detailed. These costs can be substantial for large infrastructure projects and require separate, long-term budgetary planning and oversight to ensure sustained effectiveness and value.

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

Solicitation ID: 70B01C26R00000005

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, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $1,862,854,000

Exercised Options: $1,650,754,000

Current Obligation: $1,650,754,000

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