DHS awards $3.7M for construction monitoring services in Arizona, with a 4-year duration

Contract Overview

Contract Amount: $3,742,983 ($3.7M)

Contractor: Vernadero Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-20

End Date: 2028-01-30

Contract Duration: 740 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MONITORS ON THE SW BORDER

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85022

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.7 million to VERNADERO GROUP INC for work described as: CONSTRUCTION MONITORS ON THE SW BORDER Key points: 1. Contract awarded to Vernadero Group Inc. for environmental consulting services. 2. The contract is for construction monitoring on the Southwest Border. 3. This is a firm-fixed-price contract, indicating predictable costs for the government. 4. The contract duration is approximately two years, with a potential for extension. 5. The award was made under full and open competition. 6. The North American Industry Classification System (NAICS) code is 541620 (Environmental Consulting Services).

Value Assessment

Rating: good

The contract value of $3.7 million for a two-year period appears reasonable for specialized environmental consulting and construction monitoring services. Benchmarking against similar contracts for border infrastructure projects or environmental consulting services would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost uncertainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 4 bidders indicates a competitive environment, which generally leads to better pricing and service options for the government. This approach ensures that the contract is awarded to the most capable and cost-effective provider.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value for its investment.

Public Impact

Benefits U.S. Customs and Border Protection by ensuring proper oversight of construction projects. Services include environmental consulting and monitoring related to border infrastructure. Geographic impact is concentrated in Arizona (AZ), along the Southwest Border. Supports specialized environmental consulting and construction management workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if monitoring requirements expand beyond initial estimates.
Reliance on a single contractor for critical monitoring could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Contract duration allows for sustained monitoring of construction activities.

Sector Analysis

This contract falls within the Environmental Consulting Services sector, specifically related to government contracting for infrastructure projects. The market for environmental consulting is diverse, with significant government spending on projects requiring environmental impact assessments, monitoring, and compliance. This contract represents a small portion of overall federal spending on border security and infrastructure.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight is likely managed by U.S. Customs and Border Protection contracting officers and program managers. Transparency is facilitated through contract award databases. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations related to contract performance or compliance.

Related Government Programs

Department of Homeland Security Contracts
U.S. Customs and Border Protection Contracts
Environmental Consulting Services Contracts
Construction Monitoring Contracts
Southwest Border Security Contracts

Risk Flags

Potential for performance issues impacting construction timelines.
Risk of unforeseen environmental challenges requiring scope adjustments.
Dependence on a single contractor for critical monitoring functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.7 million to VERNADERO GROUP INC. CONSTRUCTION MONITORS ON THE SW BORDER

Who is the contractor on this award?

The obligated recipient is VERNADERO GROUP INC.

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 $3.7 million.

What is the period of performance?

Start: 2026-01-20. End: 2028-01-30.

What is the track record of Vernadero Group Inc. with federal contracts, particularly with DHS?

Vernadero Group Inc. has a history of receiving federal contracts, including those with the Department of Homeland Security (DHS). A detailed review of their contract history would reveal the types of services provided, past performance ratings, and any significant issues or successes. Analyzing their performance on similar environmental consulting or construction monitoring contracts would provide insight into their capability to fulfill the current award. Understanding their past adherence to schedules, budgets, and quality standards is crucial for assessing their reliability on this $3.7 million contract.

How does the awarded price compare to market rates for similar environmental consulting and construction monitoring services?

Benchmarking the $3.7 million contract value against market rates for similar environmental consulting and construction monitoring services is essential for assessing value for money. This would involve researching average hourly rates, project management fees, and overhead costs for firms of comparable size and expertise operating in the Arizona region or on similar border infrastructure projects. If the awarded price is significantly higher or lower than market benchmarks, it could indicate either an exceptional deal for the government or potential issues with pricing accuracy or contractor capability. The firm-fixed-price nature of the contract suggests that the government has negotiated a set price, but understanding the underlying cost structure relative to the market is still important.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential delays in construction timelines impacting monitoring schedules, unforeseen environmental conditions requiring additional consulting, and contractor performance issues. Mitigation strategies likely involve clear performance work statements, defined milestones, regular progress reporting, and robust oversight by U.S. Customs and Border Protection. The firm-fixed-price structure helps mitigate cost overruns, but risks related to schedule and quality remain. The contract's two-year duration allows for sustained oversight, but contingency plans for contractor default or underperformance should be in place.

How effective has DHS been in leveraging competition for environmental consulting services in the past?

The effectiveness of DHS in leveraging competition for environmental consulting services can be assessed by examining historical contract awards. Analyzing the number of bidders on similar contracts, the frequency of sole-source awards versus full and open competition, and the resulting price variations would provide insight. If DHS consistently achieves competitive pricing and selects highly qualified vendors through robust competition for these services, it indicates effective procurement practices. Conversely, a trend towards limited competition or consistently high prices might suggest areas for improvement in their acquisition strategies for this sector.

What is the historical spending pattern for construction monitoring services by U.S. Customs and Border Protection?

Analyzing historical spending patterns for construction monitoring services by U.S. Customs and Border Protection (CBP) would reveal trends in investment in border infrastructure oversight. This includes examining the total annual expenditure on such services, the average contract value, the duration of typical contracts, and the primary contractors utilized. Understanding these patterns can help identify periods of increased or decreased activity, potential budget fluctuations, and the overall strategic importance CBP places on construction monitoring. This context is vital for evaluating the current $3.7 million award within a broader financial and operational framework.

What are the implications of the firm-fixed-price contract type for cost control and contractor incentive?

A firm-fixed-price (FFP) contract type, like the one awarded to Vernadero Group Inc., establishes a ceiling price that the contractor must not exceed. This offers significant cost certainty for the government, as the total cost is known upfront, assuming no contract modifications. For the contractor, it creates a strong incentive to manage costs efficiently and perform the work within the agreed-upon budget to maximize profit. However, it can also incentivize contractors to cut corners on quality or scope if not carefully monitored. The success of an FFP contract hinges on a well-defined scope of work and diligent government oversight to ensure all requirements are met.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 706 E BELL RD STE 113, PHOENIX, AZ, 85022

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,742,983

Exercised Options: $3,742,983

Current Obligation: $3,742,983

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0033T

IDV Type: FSS

Timeline