DoD's $1.86B Tucson Sector Barrier Wall Project Awarded to Southwest Valley Constructors Co

Contract Overview

Contract Amount: $1,857,177,427 ($1.9B)

Contractor: Southwest Valley Constructors CO

Awarding Agency: Department of Defense

Start Date: 2019-05-15

End Date: 2021-09-07

Contract Duration: 846 days

Daily Burn Rate: $2.2M/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD OF TUCSON SECTOR BARRIER WALL REPLACEMENT PROJECT, VARIOUS LOCATIONS, AZ

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85701

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $1.86 billion to SOUTHWEST VALLEY CONSTRUCTORS CO for work described as: DESIGN BUILD OF TUCSON SECTOR BARRIER WALL REPLACEMENT PROJECT, VARIOUS LOCATIONS, AZ Key points: 1. The contract's value represents a significant investment in border infrastructure. 2. The procurement method, 'Full and Open Competition After Exclusion of Sources,' suggests a complex bidding process. 3. The project duration of 846 days indicates a substantial, long-term undertaking. 4. The firm-fixed-price contract type aims to control costs for the government. 5. The project is geographically concentrated in Arizona, impacting a specific region. 6. The absence of small business set-aside flags suggests a focus on large-scale construction firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns for the barrier wall components and construction phases. However, the total award of over $1.8 billion for a 2.5-year project in a specific geographic area suggests a high per-unit cost, typical for large-scale, specialized infrastructure projects. Further analysis would require detailed cost data to compare against similar border infrastructure projects or large civil engineering undertakings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific qualifications, past performance, or security requirements. The number of bidders (4) indicates a degree of competition, but the exclusion of sources may have limited the overall pool of potential offerors, potentially impacting price discovery.

Taxpayer Impact: While competition was present, the exclusion of certain sources could have led to a less competitive pricing environment than a truly unrestricted full and open competition, potentially resulting in higher costs for taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the Department of Homeland Security, through enhanced border security infrastructure. The project delivers the construction of a barrier wall system in the Tucson Sector of Arizona. The geographic impact is concentrated within Arizona, specifically along the border region. Workforce implications include job creation for construction workers, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the scale and complexity of the project.
Environmental impact concerns associated with large-scale construction in a sensitive border region.
Security risks associated with the construction and final product in a high-traffic border area.
The exclusion of sources in the competition could limit long-term cost-effectiveness.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The project is awarded to a specific entity, consolidating responsibility for delivery.
The project addresses a stated national security and border management objective.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction (NAICS 237310) sector, which is a subset of the broader construction industry. This sector involves the building and repairing of infrastructure. The market for large-scale border infrastructure projects is specialized, often involving a limited number of large construction firms with the capacity and expertise to handle such extensive undertakings. Comparable spending benchmarks would typically be found in other major civil engineering or defense construction projects.

Small Business Impact

The data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This suggests that the primary contract was awarded to a large business. There is no explicit information on subcontracting plans for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though large federal construction projects often involve significant subcontracting opportunities.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve contract officers, program managers within the Army Corps of Engineers, and potentially the Department of Homeland Security given the nature of the project. Accountability measures are embedded in the firm-fixed-price contract terms. Transparency would be assessed through publicly available contract data and reporting, though specific project oversight details are not provided. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Border Infrastructure Projects
Department of Defense Construction Contracts
Civil Engineering Projects
National Security Infrastructure

Risk Flags

Potential for cost overruns
Environmental impact
Limited competition due to source exclusion
Long-term maintenance costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.86 billion to SOUTHWEST VALLEY CONSTRUCTORS CO. DESIGN BUILD OF TUCSON SECTOR BARRIER WALL REPLACEMENT PROJECT, VARIOUS LOCATIONS, AZ

Who is the contractor on this award?

The obligated recipient is SOUTHWEST VALLEY CONSTRUCTORS 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 $1.86 billion.

What is the period of performance?

Start: 2019-05-15. End: 2021-09-07.

What is the track record of Southwest Valley Constructors Co. on similar large-scale government construction projects?

Southwest Valley Constructors Co. has a history of undertaking significant civil engineering and construction projects. While specific details on past border wall projects are not immediately available in this dataset, their involvement in projects of this magnitude suggests they possess the necessary experience and capacity. A deeper dive into their contract history with federal agencies, particularly the Department of Defense and Department of Homeland Security, would be required to fully assess their performance on comparable projects. This would include examining past project timelines, budget adherence, and any reported issues or successes to gauge their reliability and expertise in executing complex, large-value infrastructure contracts.

How does the per-mile cost of this barrier wall compare to other border barrier projects?

Calculating a precise per-mile cost requires knowing the total length of the barrier wall constructed under this $1.86 billion contract. The provided data does not specify the linear mileage. However, given the substantial investment, it is likely to be in the millions of dollars per mile, which is consistent with or potentially higher than other border barrier projects. Factors influencing this cost include terrain, technology integrated into the wall (sensors, lighting), and the specific design (e.g., concrete, steel, mesh). Without the total mileage, a direct comparison is speculative, but the overall value suggests a significant per-unit expenditure.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this project?

The primary risk of 'Full and Open Competition After Exclusion of Sources' is the potential for reduced competition, which can lead to higher prices for taxpayers. While it allows for the exclusion of specific sources deemed unsuitable, it narrows the field of potential bidders. This can limit price discovery and innovation compared to a truly unrestricted open competition. Another risk is the perception of fairness and transparency if the criteria for exclusion are not clearly defined or justified. For this project, it suggests that certain companies were deemed ineligible, potentially due to specialized requirements or security concerns, but the exact reasons for exclusion are critical to understanding the full risk profile.

What is the expected effectiveness of this barrier wall in achieving its stated border security objectives?

The effectiveness of a barrier wall in achieving border security objectives is a complex and debated topic. While physical barriers can impede or channel illegal crossings, they are generally considered one component of a broader border security strategy that includes technology, personnel, and intelligence. The success of this specific wall will depend on factors such as its design, the terrain it covers, its integration with surveillance systems, and the resources dedicated to patrolling the area. Studies on border barriers have shown mixed results regarding their impact on overall illegal activity, with some indicating a shift in crossing methods rather than a complete cessation.

How has federal spending on border infrastructure evolved over the past decade, and where does this contract fit in?

Federal spending on border infrastructure has fluctuated significantly over the past decade, often influenced by political priorities and national security concerns. While specific figures vary year by year, there has been a notable increase in funding allocated to border security infrastructure, including wall construction, in recent years. This $1.86 billion contract represents a substantial single investment within this category. It is indicative of a trend towards large-scale, high-value projects aimed at enhancing physical barriers along the border, reflecting a significant portion of the total federal expenditure dedicated to such initiatives during its execution period.

What are the potential long-term maintenance and operational costs associated with this barrier wall project?

The long-term maintenance and operational costs for a barrier wall of this scale are likely to be substantial, though not explicitly detailed in the provided contract data. These costs would encompass regular inspections, repairs due to wear and tear, environmental damage (e.g., flooding, erosion), and potential upgrades to integrated technology. Furthermore, operational costs would include personnel required for monitoring and patrolling the area protected by the wall. Without specific projections from the awarding agency, estimating these ongoing expenses is difficult, but they represent a significant lifecycle cost beyond the initial construction investment.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: W912PL19R0063

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5130 MASTHEAD ST NE, ALBUQUERQUE, NM, 87109

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,870,679,349

Exercised Options: $1,857,177,427

Current Obligation: $1,857,177,427

Actual Outlays: $292,454,421

Subaward Activity

Number of Subawards: 75

Total Subaward Amount: $225,074,351

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline