DHS CBP Spends $260M on Pedestrian Fence Replacements in California
Contract Overview
Contract Amount: $260,161,222 ($260.2M)
Contractor: Slsco, Ltd.
Awarding Agency: Department of Defense
Start Date: 2018-12-20
End Date: 2022-12-20
Contract Duration: 1,461 days
Daily Burn Rate: $178.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CALIFORNIA PRIMARY AND SECONDARY PEDESTRIAN FENCE REPLACEMENTS, 30 FOOT HIGH SDC SECONDARY FENCE, DEPARTMENT OF HOMELAND SECURITY CUSTOMS AND BORDER PROTECTION
Place of Performance
Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92173
Plain-Language Summary
Department of Defense obligated $260.2 million to SLSCO, LTD. for work described as: CALIFORNIA PRIMARY AND SECONDARY PEDESTRIAN FENCE REPLACEMENTS, 30 FOOT HIGH SDC SECONDARY FENCE, DEPARTMENT OF HOMELAND SECURITY CUSTOMS AND BORDER PROTECTION Key points: 1. Significant investment in border infrastructure security. 2. Competition method appears robust, potentially driving value. 3. Long-term contract duration may pose execution risks. 4. Construction sector is highly competitive, impacting pricing. 5. Focus on physical security infrastructure.
Value Assessment
Rating: fair
The contract value of $260M over four years suggests a substantial project. Benchmarking against similar large-scale construction projects is difficult without more granular cost data, but the price appears high, warranting scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which theoretically allows for the best price discovery. However, the long duration and specific nature of the project might limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are allocated to enhance border security infrastructure, a key government function. The effectiveness of this spending in achieving security goals is a primary concern.
Public Impact
Enhances border security infrastructure. Supports national security objectives. Potential impact on local communities and environment. Long-term commitment of federal resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration
- High total contract value
- Potential for cost overruns
Positive Signals
- Full and open competition
- Firm fixed price contract
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector. Spending in this sector is often project-specific and influenced by material costs, labor availability, and regulatory requirements.
Small Business Impact
The data indicates no specific set-asides for small businesses. Large infrastructure projects like this often involve prime contractors who may subcontract, but direct small business participation is not evident.
Oversight & Accountability
Oversight would focus on contract performance, adherence to specifications, and budget management throughout the contract's lifecycle. The Department of the Army's role suggests internal oversight mechanisms are in place.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (4 years)
- High total contract value ($260M)
- Potential for scope creep or change orders
- Dependency on specific contractor performance
- Environmental impact considerations
Tags
highway-street-and-bridge-construction, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $260.2 million to SLSCO, LTD.. CALIFORNIA PRIMARY AND SECONDARY PEDESTRIAN FENCE REPLACEMENTS, 30 FOOT HIGH SDC SECONDARY FENCE, DEPARTMENT OF HOMELAND SECURITY CUSTOMS AND BORDER PROTECTION
Who is the contractor on this award?
The obligated recipient is SLSCO, LTD..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $260.2 million.
What is the period of performance?
Start: 2018-12-20. End: 2022-12-20.
What is the cost per linear foot of the pedestrian fence, and how does it compare to industry benchmarks for similar high-security fencing projects?
Calculating the cost per linear foot requires knowing the total length of fence replaced. Assuming the 30-foot height is consistent across the project, the total length is needed to derive a meaningful per-foot cost. This metric is crucial for comparing the contract's value against industry standards and identifying potential inefficiencies or premium pricing.
What are the specific risks associated with a four-year contract duration for fence replacement, and what mitigation strategies are in place?
A four-year duration introduces risks such as material price escalation, changes in technology or security requirements, and potential contractor performance degradation over time. Mitigation strategies could include price adjustment clauses for materials, regular performance reviews, and clear termination clauses for non-performance or obsolescence.
How will the effectiveness of the new pedestrian fence in enhancing border security be measured and evaluated throughout and after the contract period?
Effectiveness measurement should involve key performance indicators (KPIs) related to breach attempts, detection rates, and overall border control improvements. Post-contract evaluation would assess long-term durability, maintenance costs, and the fence's contribution to achieving stated security objectives.
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: TWO STEP
Solicitation ID: W9126G18R0098
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6702 BROADWAY ST, GALVESTON, TX, 77554
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $290,283,522
Exercised Options: $260,161,222
Current Obligation: $260,161,222
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-20
Current End Date: 2022-12-20
Potential End Date: 2022-12-20 00:00:00
Last Modified: 2022-04-11
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