DHS Awards $458M Border Barrier Contract to Fisher Sand & Gravel for Texas Construction

Contract Overview

Contract Amount: $458,090,440 ($458.1M)

Contractor: Fisher Sand & Gravel CO

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-13

End Date: 2028-08-31

Contract Duration: 961 days

Daily Burn Rate: $476.7K/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: VERTICAL BORDER BARRIER CONSTRUCTION

Place of Performance

Location: ENCINAL, LA SALLE County, TEXAS, 78019

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $458.1 million to FISHER SAND & GRAVEL CO for work described as: VERTICAL BORDER BARRIER CONSTRUCTION Key points: 1. Significant investment in border infrastructure with a substantial contract value. 2. Fisher Sand & Gravel is the sole awardee, raising questions about competition. 3. Long-term contract duration (961 days) suggests a complex and extensive project. 4. The project is located in Texas, a key border state.

Value Assessment

Rating: questionable

The contract value of $458 million is substantial for border barrier construction. Benchmarking against similar large-scale construction projects is difficult without more specific cost breakdowns, but the scale suggests significant taxpayer investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders and could impact price discovery, potentially leading to higher costs.

Taxpayer Impact: The large contract value directly impacts taxpayers, funding a significant infrastructure project with potential cost implications due to limited competition.

Public Impact

Impact on border security and immigration policy. Environmental and land use considerations in Texas. Economic impact on local communities and labor markets. Potential for construction-related disruptions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about cost-effectiveness.
Sole awardee may indicate a lack of robust market engagement.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Addresses a stated national security priority.
Potential for job creation in the construction sector.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, specifically for vertical border barriers. Spending in this sector can vary widely based on government priorities and economic conditions. The benchmark for such specialized construction is difficult to establish without comparable projects.

Small Business Impact

The contract data indicates that small businesses were not directly awarded this prime contract, as Fisher Sand & Gravel is the sole recipient. Further analysis would be needed to determine if subcontracting opportunities for small businesses are included or planned.

Oversight & Accountability

Oversight will be critical 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 cost control to ensure accountability and taxpayer value.

Related Government Programs

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

Risk Flags

Limited competition
Potential for cost overruns
Lack of small business prime awardee
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $458.1 million to FISHER SAND & GRAVEL CO. VERTICAL BORDER 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 $458.1 million.

What is the period of performance?

Start: 2026-01-13. End: 2028-08-31.

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

The exclusion of sources suggests specific technical requirements or prior performance considerations may have limited the initial pool of bidders. Understanding these criteria is crucial to assessing if the competition was appropriately managed. If the exclusion narrowed the field significantly, it could have reduced competitive pressure, potentially leading to a higher price than if a broader competition had been feasible.

What are the key performance indicators and risk mitigation strategies for this long-term construction project?

Key performance indicators should focus on timely completion, adherence to quality standards, and budget management. Risk mitigation strategies must address potential challenges such as material cost fluctuations, labor availability, unforeseen site conditions, and weather delays. Robust project management and regular progress reviews are essential to proactively identify and address risks throughout the contract's duration.

How does the cost of this vertical border barrier construction compare to similar projects, considering the specific terrain and security requirements?

A direct cost comparison is challenging without detailed project specifications and location-specific data for similar vertical barrier projects. Factors like terrain complexity, material costs in the award region, and the specific security features mandated will heavily influence the price. A thorough analysis would require benchmarking against projects with comparable scope, scale, and environmental challenges.

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: 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: $458,090,440

Exercised Options: $458,090,440

Current Obligation: $458,090,440

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