DOD Awards $963M for 42 Miles of Arizona Border Barrier to Fisher Sand & Gravel
Contract Overview
Contract Amount: $962,898,275 ($962.9M)
Contractor: Fisher Sand & Gravel CO
Awarding Agency: Department of Defense
Start Date: 2020-05-06
End Date: 2022-01-26
Contract Duration: 630 days
Daily Burn Rate: $1.5M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT 42 MILES PRIMARY BARRIER, FY20 284 TUCSON PROJECT 3
Place of Performance
Location: AJO, PIMA County, ARIZONA, 85321
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $962.9 million to FISHER SAND & GRAVEL CO for work described as: CONSTRUCT 42 MILES PRIMARY BARRIER, FY20 284 TUCSON PROJECT 3 Key points: 1. Significant investment in border infrastructure by the Department of Defense. 2. Fisher Sand & Gravel Co. secured a large contract, indicating potential market concentration. 3. The project's scale and cost raise questions about value for money and long-term effectiveness. 4. Construction sector spending is substantial, with this contract representing a notable portion.
Value Assessment
Rating: questionable
The contract value of $962.9 million for 42 miles of barrier construction appears high when compared to typical infrastructure projects. Benchmarking against similar border wall projects or large-scale civil engineering works is necessary to assess if the pricing is competitive.
Cost Per Unit: $22.9 million per mile
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the final award amount and the specific details of the winning bid relative to other proposals are crucial for evaluating the effectiveness of this competition.
Taxpayer Impact: Taxpayer funds are being allocated to a significant infrastructure project with potential long-term implications for border security and environmental impact.
Public Impact
Impacts local communities and ecosystems along the 42-mile stretch in Arizona. Raises questions about the long-term effectiveness and necessity of such a large physical barrier. Potential for environmental disruption and land use changes due to construction activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-mile cost
- Potential environmental impact
- Long-term effectiveness of barrier
Positive Signals
- Awarded through full and open competition
- Clear project scope and duration
Sector Analysis
This contract falls within the heavy civil construction sector, specifically related to infrastructure development. The Department of Defense's involvement in border barrier construction is a unique spending category, often subject to specific appropriations and policy directives, making direct sector benchmarks challenging.
Small Business Impact
The contract was awarded to Fisher Sand & Gravel Co. and does not explicitly mention subcontracting to small businesses. Further investigation is needed to determine the extent of small business participation in this large project.
Oversight & Accountability
Oversight will be critical to ensure the project adheres to specifications, budget, and timeline. The Department of the Army's contracting command is responsible, but transparency regarding progress, cost overruns, and environmental mitigation is essential for accountability.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High cost per mile
- Potential environmental impact
- Long-term effectiveness and maintenance concerns
- Limited transparency on cost breakdown
Tags
highway-street-and-bridge-construction, department-of-defense, az, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $962.9 million to FISHER SAND & GRAVEL CO. CONSTRUCT 42 MILES PRIMARY BARRIER, FY20 284 TUCSON PROJECT 3
Who is the contractor on this award?
The obligated recipient is FISHER SAND & GRAVEL CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $962.9 million.
What is the period of performance?
Start: 2020-05-06. End: 2022-01-26.
What is the breakdown of costs within the $963 million contract, and how do they compare to industry standards for materials, labor, and specialized construction techniques?
A detailed cost breakdown is essential to understand the allocation of funds. This includes examining costs for materials (concrete, steel), labor (skilled and unskilled), equipment rental, engineering, project management, and any specialized techniques required for the terrain. Benchmarking these against similar large-scale construction projects can reveal potential areas of overspending or efficiency.
What are the specific environmental impact assessments and mitigation plans associated with this 42-mile barrier construction, and how will they be monitored?
Given the scale and location, environmental impacts on wildlife, water resources, and land are significant concerns. Comprehensive assessments should detail potential disruptions and outline specific mitigation strategies. Robust monitoring plans are crucial to ensure these strategies are implemented effectively and to address any unforeseen environmental consequences during and after construction.
How will the effectiveness of the 42-mile primary barrier be measured in terms of border security outcomes, and what is the long-term maintenance plan?
Measuring the effectiveness requires defining clear metrics for border security, such as changes in illegal crossings or smuggling activity, and attributing these changes to the barrier. A long-term maintenance plan is also vital, considering the harsh environmental conditions and the potential for damage, to ensure the barrier remains functional and its intended purpose is sustained over time.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3020 ENERGY DR, DICKINSON, ND, 58601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $962,898,275
Exercised Options: $962,898,275
Current Obligation: $962,898,275
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G19D0027
IDV Type: IDC
Timeline
Start Date: 2020-05-06
Current End Date: 2022-01-26
Potential End Date: 2022-01-26 00:00:00
Last Modified: 2025-08-05
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