Border Patrol Station Construction Awarded for $27.5M to VEMAC, LLC by Department of the Army

Contract Overview

Contract Amount: $27,504,346 ($27.5M)

Contractor: Vemac, LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-23

End Date: 2014-02-20

Contract Duration: 1,246 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LORDSBURG BORDER PATROL STATION: THIS CONSTRUCTION PROJECT, ENTITLED LORDSBURG BORDER PATROL STATION, CONSISTS OF CONSTRUCTION OF A NEW BORDER PATROL STATION FOR APPROXIMATELY 375 AGENTS IN LORDSBURG, NEW MEXICO

Place of Performance

Location: LORDSBURG, HIDALGO County, NEW MEXICO, 88045

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to VEMAC, LLC for work described as: LORDSBURG BORDER PATROL STATION: THIS CONSTRUCTION PROJECT, ENTITLED LORDSBURG BORDER PATROL STATION, CONSISTS OF CONSTRUCTION OF A NEW BORDER PATROL STATION FOR APPROXIMATELY 375 AGENTS IN LORDSBURG, NEW MEXICO Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The project involves the construction of a new Border Patrol station to house approximately 375 agents. 3. The contract type is a definitive contract with a firm fixed price, indicating cost certainty. 4. The duration of the contract was substantial, spanning over 1200 days. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. The awarding agency was the Department of Defense, specifically the Department of the Army. 7. The project is located in Lordsburg, New Mexico.

Value Assessment

Rating: fair

Benchmarking the value of this construction project is challenging without detailed cost breakdowns and comparable project data. However, a firm fixed-price contract suggests an attempt to control costs. The total award amount of $27.5 million for a facility intended for 375 agents implies a significant investment per agent. Further analysis would require comparing the cost per square foot or per agent to similar government or commercial construction projects in the region and time period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 19 bids suggests a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: The robust competition for this construction project likely resulted in more favorable pricing for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection agents who will utilize the new facility. The project delivers essential infrastructure for border security operations in Lordsburg, New Mexico. The geographic impact is localized to Lordsburg, New Mexico, and surrounding border regions. The construction phase likely created temporary employment opportunities in the local construction workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Delays in construction could impact operational readiness for the Border Patrol.
Long-term maintenance and operational costs of the new facility are not detailed in this award data.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition with 19 bidders suggests a competitive pricing environment.
Construction of new, modern facilities can improve agent efficiency and morale.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Government construction projects, particularly for critical infrastructure like border security facilities, represent a substantial portion of federal spending in this sector. Benchmarking would involve comparing the cost per square foot or per agent capacity to similar federal building projects awarded around the same time.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the nature and scale of a border patrol station construction, it is possible that the prime contractor, VEMAC, LLC, may engage subcontractors, which could include small businesses. However, without subcontracting plan details, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

The Department of the Army, as the awarding agency, would typically have oversight mechanisms in place for construction projects of this magnitude. This would likely include project management, quality assurance inspections, and contract administration. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of construction delays impacting operational readiness.
Long-term maintenance and operational costs not specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to VEMAC, LLC. LORDSBURG BORDER PATROL STATION: THIS CONSTRUCTION PROJECT, ENTITLED LORDSBURG BORDER PATROL STATION, CONSISTS OF CONSTRUCTION OF A NEW BORDER PATROL STATION FOR APPROXIMATELY 375 AGENTS IN LORDSBURG, NEW MEXICO

Who is the contractor on this award?

The obligated recipient is VEMAC, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2010-09-23. End: 2014-02-20.

What was the track record of VEMAC, LLC with federal construction contracts prior to this award?

Information regarding VEMAC, LLC's specific track record prior to the Lordsburg Border Patrol Station award is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on other federal contracts, including project types, values, timeliness, and any documented performance issues or commendations. Examining their history with the Department of the Army or other agencies involved in construction would provide further insight into their capabilities and reliability as a contractor for projects of this scale and complexity.

How does the cost per agent capacity compare to similar border patrol station constructions?

The Lordsburg Border Patrol Station project, costing approximately $27.5 million for 375 agents, translates to roughly $73,333 per agent capacity. To benchmark this value, one would need to compare this figure against similar border patrol or law enforcement facility construction projects awarded by federal agencies around the same period (2010-2014). Factors such as geographic location, specific facility requirements (e.g., specialized equipment, security features), and prevailing construction costs in different regions would need to be considered for a fair comparison. Without such comparative data, it is difficult to definitively assess whether this cost represents excellent, fair, or questionable value.

What were the primary risks identified for this construction project, and how were they mitigated?

While specific risk mitigation strategies are not detailed in the award data, typical risks for large-scale construction projects include unforeseen site conditions (e.g., soil issues, environmental hazards), weather delays, material cost fluctuations, labor shortages, and design changes. Given the firm fixed-price nature of the contract, the primary risk of cost overruns would largely fall on the contractor, VEMAC, LLC. Mitigation efforts by the government would likely involve thorough site investigations prior to award, robust contract terms, clear communication channels, and diligent project oversight to ensure adherence to specifications and timelines.

What is the historical spending trend for border patrol station construction by the Department of Homeland Security or Department of Defense?

Analyzing historical spending trends for border patrol station construction requires access to broader federal procurement data beyond this single contract. Generally, spending in this category can fluctuate based on national security priorities, funding appropriations, and the lifecycle of existing facilities. Periods of increased border activity or policy shifts towards enhanced border security often correlate with increased investment in related infrastructure. Examining multi-year spending patterns for agencies like CBP (under DHS) and relevant DoD components would reveal trends, identify peak spending years, and highlight any significant increases or decreases in construction investments.

Were there any performance issues or disputes during the execution of this contract?

The provided data for the Lordsburg Border Patrol Station contract does not contain information regarding performance issues, disputes, or contract modifications. A thorough review of contract performance history would necessitate accessing contract administration files, performance reports, and any official records of claims or disputes filed by either the contractor or the government. Such records are typically maintained by the contracting agency and may be available through specific government contract databases or Freedom of Information Act requests.

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: SEALED BID

Solicitation ID: W912PP10B0058

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 1919 E RIO GRANDE AVE, EL PASO, TX, 79902

Business Categories: Category Business, Hispanic American Owned Business, HUBZone Firm, Labor Surplus Area Firm, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,504,346

Exercised Options: $27,504,346

Current Obligation: $27,504,346

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline