Border Patrol Station Construction in El Paso, TX Awarded for $16.8M to Banes General Contractors

Contract Overview

Contract Amount: $16,784,453 ($16.8M)

Contractor: Banes General Contractors Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2011-01-31

Contract Duration: 1,585 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW BORDER PATROL STATION, EL PASO, TX

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79901

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to BANES GENERAL CONTRACTORS INC for work described as: NEW BORDER PATROL STATION, EL PASO, TX Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The contract duration of 1585 days (approximately 4.3 years) suggests a significant construction project. 4. The awarding agency is the Department of Defense, with the Department of the Army as the specific service. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded as a definitive contract, typically used for services or supplies over a period of time.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns or comparable project data. The total award amount of $16.8 million for a new border patrol station in El Paso, Texas, appears substantial. However, without details on the scope of work, square footage, or specific amenities included, a direct comparison to similar construction projects is difficult. The firm-fixed-price nature of the contract suggests that the price was determined upfront, but the value for money depends heavily on the execution and final quality of the construction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a reasonable level of competition for this project. A competitive bidding process generally helps ensure that the government receives fair pricing and that the contract is awarded to the most capable and cost-effective bidder. The number of bidders provides some assurance that the market was adequately engaged.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring that public funds are used efficiently and that the government secures the best possible value for its investments.

Public Impact

The primary beneficiaries of this contract are the U.S. Customs and Border Protection (CBP) and its agents, who will gain a new, modern facility for operations in El Paso, Texas. The services delivered include the construction of a new border patrol station, which will likely enhance operational capabilities and infrastructure. The geographic impact is localized to El Paso, Texas, a key area for border security operations. The contract implies potential workforce implications, including employment opportunities for construction workers and, upon completion, for border patrol personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Delays in construction could impact operational readiness for border patrol.
Ensuring the quality of construction meets long-term durability and security standards.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Awarded by the Department of Defense, implying adherence to stringent procurement standards.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant area of federal spending. This contract falls under the broader category of infrastructure development and government facility construction. The market for such projects is often competitive, with various firms vying for government contracts. Federal spending in this sector can be influenced by national security priorities, infrastructure needs, and economic stimulus programs. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar government facilities in similar geographic regions.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, Banes General Contractors Inc., is not explicitly identified as a small business in the provided data, the contract's size and nature may offer subcontracting opportunities for small businesses in various trades and material supply. The absence of a small business set-aside means that larger firms were eligible to compete, and the extent of small business participation will depend on the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Border Security Infrastructure Projects
Federal Building Construction Contracts
Department of Homeland Security Facilities
Department of Defense Construction Programs

Risk Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of construction delays impacting operational readiness.
Ensuring long-term quality and durability of the facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to BANES GENERAL CONTRACTORS INC. NEW BORDER PATROL STATION, EL PASO, TX

Who is the contractor on this award?

The obligated recipient is BANES GENERAL CONTRACTORS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2006-09-29. End: 2011-01-31.

What was the specific scope of work for the new Border Patrol Station in El Paso, TX?

The provided data does not detail the specific scope of work for the new Border Patrol Station in El Paso, TX. However, based on the NAICS code 236220 (Commercial and Institutional Building Construction) and the nature of a border patrol station, the scope likely included the construction of administrative offices, operational support facilities, vehicle maintenance areas, detention or processing areas, and potentially housing or barracks for personnel. The total award amount of $16.8 million suggests a comprehensive facility designed to support significant border security operations in the region. Further details would typically be found in the contract's statement of work or performance work statement.

How does the $16.8 million award compare to the average cost of similar federal construction projects?

Comparing the $16.8 million award for the El Paso Border Patrol Station to average costs of similar federal construction projects requires more specific data points, such as the square footage of the facility, the types of amenities included, and the prevailing construction costs in the region at the time of award (2006). Without these details, a direct comparison is difficult. Generally, federal building construction costs can vary widely based on complexity, security requirements, and location. However, for a significant operational facility, $16.8 million is a substantial investment. To provide a precise benchmark, one would need to analyze the cost per square foot against other recently awarded federal law enforcement or border facilities.

What are the key risks associated with a firm-fixed-price contract for a large construction project like this?

While a firm-fixed-price (FFP) contract shifts the primary cost risk to the contractor, several risks remain for both the government and the contractor. For the government, the main risk is that the contractor may cut corners on quality or materials to maintain profitability if unforeseen issues arise, potentially leading to long-term maintenance problems or reduced durability. There's also a risk that the initial price, while fixed, might have been inflated due to the contractor's anticipation of potential problems. For the contractor, the risk is significant if actual costs exceed the fixed price due to unexpected site conditions, material price escalations, labor shortages, or design changes. In such cases, the contractor absorbs the losses, which could impact their financial stability or lead to disputes.

What does the duration of 1585 days imply about the complexity of the Border Patrol Station construction?

A contract duration of 1585 days, which is approximately 4.3 years, suggests a project of considerable complexity and scale. This extended timeline indicates that the construction likely involved more than just basic building; it could encompass extensive site preparation, intricate foundation work, specialized security features, integration of advanced technology systems, and potentially multiple phases of construction. Such durations are common for large institutional or government facilities that require meticulous planning, adherence to strict building codes and security standards, and coordination among various subcontractors and regulatory bodies. It also implies a significant commitment of resources and a long-term need for the facility.

How does the Department of the Army's involvement in awarding a Border Patrol Station contract align with its typical mission?

The Department of the Army's involvement in awarding a Border Patrol Station contract, even though the facility is for U.S. Customs and Border Protection (part of the Department of Homeland Security), aligns with its role in providing support services and construction capabilities for other government agencies. The Army Corps of Engineers, for instance, has extensive expertise in managing large-scale construction projects, including federal buildings and infrastructure. Agencies like CBP may leverage the Department of Defense's procurement and construction management infrastructure, especially for projects requiring specialized engineering, security clearances, or large-scale logistical support. This inter-agency collaboration is common when one agency possesses unique capabilities that can efficiently fulfill the needs of another.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912PP06R0016

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6001 DONIPHAN DR, EL PASO, TX, 79932

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

Financial Breakdown

Contract Ceiling: $16,784,453

Exercised Options: $16,784,453

Current Obligation: $16,784,453

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline