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GAO-09-244R: 

January 29, 2009: 

Congressional Committees: 

Subject: Secure Border Initiative Fence Construction Costs: 

Much of the United States' 6,000 miles of international borders with 
Canada and Mexico remains vulnerable to illegal entry of aliens, 
criminals, and cargo. The Department of Homeland Security (DHS) 
apprehends hundreds of thousands of people and seizes large volumes of 
cargo entering the country illegally each year; however, several 
hundreds of thousands of individuals and an unknown volume of 
contraband also enter the United States illegally and undetected. DHS's 
U.S. Customs and Border Protection (CBP) is the agency responsible for 
securing the nation's borders along and between ports of entry. 
[Footnote 1] In November 2005, DHS announced the launch of the Secure 
Border Initiative (SBI), a multiyear, multibillion-dollar program aimed 
at securing U.S. borders and reducing illegal immigration. CBP's SBI 
program office is responsible for managing the SBI program and for 
developing a comprehensive border protection system. This system has 
two main components: SBInet, which employs radars, sensors, and cameras 
to detect, identify, and classify the threat level associated with an 
illegal entry into the United States between the ports of entry, and 
SBI tactical infrastructure (TI), fencing, roads, and lighting intended 
to enhance U.S. Border Patrol agents' ability to respond to the area of 
the illegal entry and bring the situation to a law enforcement 
resolution (i.e., arrest). The current focus of the SBI program is on 
the southwest border areas between ports of entry that CBP has 
designated as having the highest need for enhanced border security 
because of serious vulnerabilities. 

The Consolidated Appropriations Act, 2008, required DHS to complete 
construction by December 31, 2008, of either 370 miles or other mileage 
determined by the Secretary, of reinforced fencing along the southwest 
border wherever the Secretary determines it would be most practical and 
effective in deterring smugglers and aliens attempting illegal entry. 
[Footnote 2]DHS set a goal to complete approximately 670 miles of 
fencing by December 31, 2008. Of these miles, DHS planned about 370 
miles of pedestrian fencing--fencing that prevents people on foot from 
crossing the border, and about 300 miles of vehicle fencing--barriers 
used primarily in remote areas to prohibit vehicles engaged in drug 
trafficking and alien smuggling operations from crossing the border. 
Most of the pedestrian fencing under construction is single layer 
fencing--referred to as primary fencing. However, in some areas a 
second layer of fencing--referred to as secondary fencing--is being 
constructed parallel to existing primary fencing for additional 
operational advantage to deter illegal cross-border activities. In 
September 2008, we testified that SBI fencing project costs were 
increasing and land acquisition issues posed a challenge to DHS in 
meeting its goal to have about 670 miles of fencing completed by 
December 31, 2008.[Footnote 3] Also in September 2008, DHS revised its 
goal such that it planned to have these miles either built, under 
construction, or under contract by December 31, 2008. In December 2008, 
DHS reported that it planned to complete all but one of the fence 
projects by March 2009. 

As directed by the Explanatory Statement accompanying the fiscal year 
2008 Consolidated Appropriations Act,[Footnote 4] we examined the costs 
of constructing fencing along the southern border of the United States. 
This report addresses the following questions: 

* What were the construction costs of primary pedestrian and vehicle 
fencing miles completed under the SBI program as of September 30, 2007, 
and October 31, 2008?[Footnote 5] 

* What were the construction costs of secondary pedestrian fencing 
completed along existing primary fencing as of October 31, 2008? 

* If appropriated SBI funds from fiscal years 2007 and 2008 that were 
allocated for SBInet had been used to construct fencing, how many 
additional miles of pedestrian or vehicle fencing could have been 
constructed? 

To determine the construction costs of fencing miles completed under 
the SBI program and costs of existing completed secondary fencing and 
to estimate the total number of miles of fencing that could be 
constructed if appropriated funds from fiscal years 2007 and 2008 that 
were allocated for SBInet were used to construct fencing, we obtained 
agency documents regarding SBI fence construction costs, including 
construction estimates, contract awards, overhead expenditures, and 
real estate acquisition costs. To report on costs of fencing miles 
completed, we relied on CBP's estimates for total contract awards for 
various fencing segments as of September 30, 2007, and October 31, 
2008, however, total contract amounts will not be known until closeout 
of the contracts. According to CBP, these data include costs for 
planning and oversight, environmental compliance, design, real estate 
acquisition, labor, and materials. To estimate the total number of 
miles of additional fencing that could have been constructed in fiscal 
years 2007 and 2008, we used average cost per mile estimates developed 
by CBP in response to our information needs for this review. CBP 
officials said that these cost estimates were based on averages of 
commercial contracts awarded in fiscal years 2007 and 2008 and assumed 
the construction industry had access to needed resources--steel, 
cement, and labor--to complete fence construction. CBP officials said 
the cost estimates also assume that the fencing miles would have been 
completed by commercial contractors in both fiscal years because Border 
Patrol and Department of Defense (DOD) labor--which was used to 
complete previous fencing--would not have been available. CBP officials 
said that the average cost estimates include all construction and 
related costs, including costs for planning and oversight, 
environmental compliance, design, real estate acquisition, labor, and 
materials.[Footnote 6] However, they noted that the estimates do not 
include contingency funding for increased costs caused by delays and 
construction risk. We also interviewed CBP's SBI TI program officials 
and officials from CBP's contractor, the U.S. Army Corps of Engineers 
(USACE), about costs, fencing locations, and construction schedule. We 
reviewed data, such as fence miles completed and fencing construction 
costs provided by CBP and inquired about the source of these data, the 
systems used to record and maintain the data and the policies and 
procedures used to maintain the integrity of these data. CBP officials 
said they believe their data and their cost estimates are complete, 
accurate and sufficient for the purposes of our work. However, we did 
not independently verify, validate, or test the data underlying the CBP 
cost estimates.[Footnote 7] We conducted our work from September 2008 
through January 2009. 

Results in Brief: 

CBP had completed about 73 miles of primary SBI fencing costing 
approximately $198 million as of September 30, 2007, and about 215 
miles of fencing costing about $625 million as of October 31, 2008. 
Seventy-one of the miles completed as of September 30, 2007, were 
pedestrian fencing completed at costs ranging from $400,000 to $4.8 
million per mile and averaging $2.8 million per mile. CBP had also 
finished about 2 miles of vehicle fencing at a cost of $2.8 million. 
Pedestrian fencing accounted for 140 of the miles that CBP had 
completed as of October 31, 2008, with costs ranging from $400,000 to 
$15.1 million per mile for an average of $3.9 million per mile. Seventy-
five of the miles were vehicle fencing and costs ranged from $200,000 
to $1.8 million per mile, averaging $1.0 million per mile. The per mile 
costs to build the fencing varied considerably because of the type of 
fencing, topography, materials used, land acquisition costs, and labor 
costs, among other things. 

As of October 31, 2008, CBP reported that approximately 32 miles of 
secondary fence existed along the southwest border and about 18 of 
those miles had an average construction cost of $2 million per mile. 
CBP officials said that they do not have cost information for the 
remaining miles because they were constructed by the International 
Boundary and Water Commission.[Footnote 8] In addition, CBP had 
obligated $58 million of fiscal year 2008 funding on a 3.5-mile 
secondary fencing project in the San Diego sector[Footnote 9] that is 
scheduled to be completed in calendar year 2009. 

If the approximately $393 million in appropriated SBI funds from fiscal 
years 2007 and 2008 that were allocated for SBInet had been used to 
construct fencing, depending on the operational needs of the Border 
Patrol and a number of assumptions that were discussed above, we 
estimate that CBP could have built about 73 miles of additional 
pedestrian fencing or about 232 miles of additional vehicle fencing. 
Alternatively, depending on the operational needs of the Border Patrol, 
CBP could have constructed a mix of additional pedestrian and vehicle 
fencing. For example, if the additional funding had been divided 
equally between pedestrian and vehicle fencing in fiscal years 2007 and 
2008, CBP could have constructed 36 miles of pedestrian and 116 miles 
of vehicle fencing. However, these estimates are approximate, and 
depending on actual costs at the time, more or less fencing could have 
been built, particularly taking into account the complexities of fence 
construction, specifically, increased material costs, a short supply of 
labor, and a compressed schedule to complete fence construction 
projects. 

Background: 

For fiscal years 2006 through 2009, the SBI program received about $3.6 
billion in appropriated funds. Of this amount, about $2.4 billion has 
been allocated to complete approximately 670 miles of vehicle and 
pedestrian fencing along the roughly 2,000 miles of border between the 
United States and Mexico. The SBI TI program office is using USACE to 
contract for ongoing fencing construction projects and supporting 
infrastructure (such as lights and roads), complete required 
environmental assessments, and acquire necessary real estate.[Footnote 
10] Segments of pedestrian and vehicle fencing projects have been built 
across portions of the southwest border, extending from the San Diego 
sector through the Rio Grande Valley sector, and include fencing 
segments in urban, rural and remote areas along the southwest border. 
As of January 2009, the majority of the fencing has been constructed in 
Border Patrol sectors in California, Arizona, and New Mexico (see 
figure 1). 

Figure 1: Map of Border Patrol Sectors Along the Southwest Border: 

[Refer to PDF for image] 

This figure is a map of the Southwestern United States. Indicated on 
the map are state boundaries as well as the following Border Patrol 
Sector boundaries: 
San Diego; 
El Centro; 
Yuma; 
Tucson; 
El Paso; 
Marfa; 
Del Rio; 
Laredo; 
Rio Grande Valley. 

Source: GAO analysis of CBP data. 

[End of figure] 

Prior to initiating the SBI program, DHS constructed approximately 78 
miles of pedestrian fencing and 57 miles of vehicle fencing along the 
southwest border using primarily Border Patrol and DOD labor. SBI TI 
program office officials refer to fencing in place before the SBI 
program as legacy fencing. Much of the legacy fencing was built along 
the border in more populated urban areas because urban areas require a 
greater number of enforcement personnel to effectively confront the 
illegal activity. In this environment, pedestrian fencing slows the 
progress of illegal entrants in areas where they can be across the 
border and into the community in a matter of minutes or seconds. For 
example, in 1990, the Border Patrol began erecting a 10-foot-high 
welded steel primary fence in the San Diego sector to deter illegal 
entries and drug smuggling. 

In addition to the legacy fencing, the SBI TI program office has 
completed or plans to complete projects known as Pedestrian Fence 70 
(PF 70), Pedestrian Fence 225 (PF 225), and Vehicle Fence 300 (VF 300) 
to reach the DHS goal of constructing about 670 miles of fencing along 
the southwest border. PF 70 was the initial SBI project under which 81 
miles of fencing were constructed. PF 225 is the second pedestrian 
fencing project and is expected to result in approximately 210 miles of 
fence construction. The VF 300 project is expected to construct 
approximately 227 miles of vehicle fencing barriers along the southwest 
border. SBI program officials explained that the total fencing miles 
completed or planned under these projects total 661 because several 
fencing segments that were scheduled to be built in calendar year 2008 
will now be constructed through a different project in calendar year 
2009 (see table 1). 

Table 1: Fence Projects along the Southwest Border: 

Fence projects: PF 70; 
Pedestrian fence miles: 81; 
Vehicle fence miles: N/A; 
Total miles: 81. 

Fence projects: PF 225; 
Pedestrian fence miles: 210; 
Vehicle fence miles: N/A; 
Total miles: 210. 

Fence projects: VF 300; 
Pedestrian fence miles: N/A; 
Vehicle fence miles: 227; 
Total miles: 227. 

Fence projects: Legacy pedestrian fence; 
Pedestrian fence miles: 67[A]; 
Vehicle fence miles: N/A; 
Total miles: 67. 

Fence projects: Legacy vehicle fence; 
Pedestrian fence miles: N/A; 
Vehicle fence miles: 76[A]; 
Total miles: 76. 

Fence projects: Total; 
Pedestrian fence miles: 358; 
Vehicle fence miles: 303; 
Total miles: 661. 

Source: SBI. 

Note: N/A = not applicable. 

[A] Seventy-eight miles of pedestrian fencing and 57 miles of vehicle 
fencing were in place before the SBI program began. However, since SBI 
began construction, some miles of fencing have been removed, replaced 
or retrofitted resulting in mileage totals that are different from 
those we have previously reported. 

[End of table] 

In an effort to identify lower-cost and easily deployable fencing 
solutions, CBP funded a project called Fence Lab in February 2007. 
Fence Lab tested fence/barrier prototypes and evaluated them based on 
performance criteria such as their ability to disable a vehicle 
traveling at 40 miles per hour, allowing animals to migrate through 
them, and cost-effectiveness. SBI TI program office officials told us 
these performance standards apply only to primary fencing, and SBI 
currently does not have performance standards for secondary fencing. 
Each style of fencing has different costs associated with construction, 
and the Border Patrol determines which fencing style is appropriate 
based on the operational need of a specific geographic area along the 
southwest border. Figure 2 shows examples of approved SBI Fence Lab 
fencing. 

Figure 2: Examples of SBI Fence Lab Fencing Styles: 

[Refer to PDF for image] 

This figure contains four photographs: 
Picket fence (pedestrian fence); 
Post and rail with wire mesh (pedestrian fence); 
Bollard fence (pedestrian fence); 
Normandy vehicle barrier (vehicle fence). 

Source: CBP and GAO. 

[End of figure] 

In October 2007, we reported that fencing costs vary based on the type 
of terrain, materials used, land acquisition, who performs the 
construction, and the need to meet an expedited schedule.[Footnote 11] 
To minimize one of the many factors that add to cost, in the past, DHS 
used Border Patrol agents and DOD personnel to construct the fencing. 
At that time, CBP officials also reported that they planned to use 
commercial labor for future infrastructure projects because using 
Border Patrol agents took them away from their other duties and the 
Department of Defense had notified DHS that military personnel would no 
longer be available to build fencing. 

Costs of Fencing Completed: 

As of September 30, 2007, about 73 miles of SBI fencing had been 
completed by CBP at a cost of approximately $198 million. Of the 73 
miles of fencing, the SBI program had completed about 70 miles of 
pedestrian fencing through the PF 70 project at a cost of approximately 
$192 million, with per mile costs ranging from $400,000 to $4.8 million 
and about 1 mile of pedestrian fencing through the PF 225 project at a 
cost of about $3.0 million. In addition, approximately 2 miles of 
vehicle fencing were constructed at a cost of $2.8 million. Table 2 
summarizes SBI fencing miles, costs, and cost ranges and average costs 
as of September 30, 2007. 

Table 2: Completed Miles and Cost of SBI Fencing as of September 30, 
2007 (Dollars in millions): 

Project: PF 70; 
Miles completed: 70[A]; 
Project cost: $192.3 million; 
Cost range per mile: $0.4 to $4.8 million; 
Average cost per mile: $2.7 million. 

Project: PF 225; 
Miles completed: 1[B]; 
Project cost: $3.0 million; 
Cost range per mile: $4.2 million; 
Average cost per mile: $4.2 million. 

Project: VF 300; 
Miles completed: 2[C]; 
Project cost: $2.8 million; 
Cost range per mile: $1.8 million; 
Average cost per mile: $1.8 million. 

Project: Total; 
Miles completed: 73; 
Project cost: $198.1; 
Cost range per mile: N/A; 
Average cost per mile: N/A. 

Source: SBI. 

Note: N/A = not applicable. 

[A] This excludes approximately 5 miles that were completed under PF 
70, but were not funded by SBI. 

[B] Actual fence completed was 0.72 miles. 

[C] Actual fence completed was 1.6 miles. 

[End of table] 

As of October 31, 2008, CBP had completed a total of about 215 miles of 
SBI fencing at a cost of approximately $625 million. Of the 215 miles 
of fencing, 75 miles were completed under PF 70 at a cost of 
approximately $214 million, 65 miles were completed under PF 225 at a 
cost of about $334 million, and 75 miles were completed under VF 300 at 
a cost of approximately $78 million. Table 3 summarizes SBI fencing 
miles, costs, and cost ranges and average costs as of October 31, 2008. 

Table 3: Completed Miles and Cost of SBI Fencing as of October 31, 2008 
(Dollars in millions): 

Project: PF 70; 
Miles completed: 75[A]; 
Project cost: $213.6 million; 
Cost range per mile: $0.4 to 4.8 million; 
Average cost per mile: $2.8 million. 

Project: PF 225; 
Miles completed: 65; 
Project cost: $333.7 million; 
Cost range per mile: $2.8 to $15.1 million; 
Average cost per mile: $5.1 million. 

Project: VF 300; 
Miles completed: 75; 
Project cost: $78.1 million; 
Cost range per mile: $0.2 to $1.8 million; 
Average cost per mile: $1.0 million. 

Project: Total; 
Miles completed: 215; 
Project cost: $625.4 million; 
Cost range per mile: N/A; 
Average cost per mile: N/A. 

Source: SBI. 

Note: N/A = not applicable. 

[A] This excludes approximately 5 miles that were completed under PF 
70, but were not funded by SBI. 

[End of table] 

The per mile cost ranges can be attributed to several factors. For 
example, by design, it is less expensive to construct vehicle fencing 
than pedestrian fencing. Also, as discussed previously, costs for 
fencing completed by commercial contractors are higher than for fencing 
built by the Border Patrol or the military. In addition, differences in 
terrain and other factors, such as whether the fencing is built on 
public or private land, can drive cost differences. More specifically, 
the increase in costs between the PF 70 and PF 225 projects occurred, 
in part, because there were minimal land acquisition costs in fiscal 
year 2007 when most of PF 70 was being built, while costs for real 
estate, labor, and materials increased in fiscal year 2008 when PF 225 
was being built. In addition, about 40 percent of PF 70 was built by 
Border Patrol and DOD personnel, while PF 225 was built solely by 
commercial contractors. We reported in September 2008, that beginning 
in July 2008, as SBI TI officials were in the process of finalizing 
construction contracts, cost estimates for pedestrian fencing in Texas 
began to increase.[Footnote 12] For example, the officials said that as 
a result of a construction boom in Texas, labor was in short supply and 
contractors reported that they needed to provide premium pay and 
overtime to attract workers. In terms of materials, USACE officials 
stated that the price of cement and steel had increased and in some 
areas within Texas obtaining cement near the fence construction site 
was difficult. 

Costs of Secondary Fencing Completed: 

As of October 31, 2008, CBP reported that approximately 32 miles of 
secondary fencing existed along the southwest border and about 18 of 
those miles had an average construction cost of $2 million per mile, 
but CBP was not able to provide cost information for the remaining 
miles. CBP reported that 9.1 miles were constructed using military 
labor at a total cost of about $20 million, and 9.2 miles were 
constructed using commercial contracts at a total cost of about $19 
million.Construction of the 18.3 miles initially began in the 1990s 
under the management of CBP legacy agencies.[Footnote 13] Construction 
on these miles was intermittent and continued through 2008, during 
which time legacy agencies were merged into DHS and fence construction 
fell under the management of CBP's SBI program. CBP does not have the 
cost information for remaining secondary fencing miles because those 
were funded and constructed by the International Boundary and Water 
Commission. 

In 2009, CBP has obligated $58 million of fiscal year 2008 SBI funds to 
construct approximately 3.5 miles of secondary fencing in the San Diego 
sector at an average cost of about $16 million per mile. This per mile 
cost is substantially higher than the cost for existing secondary 
fencing because of the difficult terrain where the secondary fencing is 
to be built. In addition to the 3.5 fencing miles being constructed, 
CBP officials said that SBI would need to undertake significant earth 
and drainage work, construct all-weather access roads, and deploy 
additional lighting. 

Estimates of Additional Pedestrian and Vehicle Fencing That Could Have 
Been Constructed with Fiscal Year 2007 and Fiscal Year 2008 
Appropriated Funds Allocated to SBInet: 

If the SBI funding from fiscal years 2007 and 2008 that was allocated 
for SBInet had been used to construct fencing, we estimate that CBP 
could have built about 73 additional miles of pedestrian fencing or 
about 232 additional miles of vehicle fencing. For fiscal years 2007 
and 2008, once program management funds, operations and maintenance 
funds, and funds already obligated to the TI program are accounted for, 
about $227 million and $166 million, respectively, that was allocated 
for SBInet, would have been potentially available for fence 
construction projects (see table 4). 

Table 4: Appropriated Funds Allocated to SBInet That Could Have Been 
Potentially Available to Construct Fencing, Fiscal Years 2007 and 2008 
(Dollars in millions): 

Funds: Appropriated funds; 
FY 2007: $1,188; 
FY 2008: $1,225[A]; 
Total: $2,413. 

Funds: SBI program management funds; 
FY 2007: $68; 
FY 2008: $39; 
Total: $107. 

Funds: Operations and maintenance funds; 
FY 2007: $43; 
FY 2008: $38; 
Total: $81. 

Funds: Funds allocated to SBInet and TI programs; 
FY 2007: $1,077; 
FY 2008: $1,148; 
Total: $2,225. 

Funds: Funds allocated to the TI program; 
FY 2007: $850; 
FY 2008: $982; 
Total: $1,832. 

Funds: Funds allocated to the SBInet program; 
FY 2007: $227; 
FY 2008: $166; 
Total: $393. 

Source: SBI. 

[A] The SBI program also received an additional $77.6 million in 
reprogrammed funds in fiscal year 2008 that were not included in this 
total. All of these funds were obligated to TI projects. 

[End of table] 

To estimate how much fencing could have been built with the funds 
allocated to SBInet, we used estimated average cost per mile figures 
supplied by CBP. CBP based the cost estimates on averages of commercial 
contracts awarded in fiscal years 2007 and 2008. CBP assumed that the 
fencing miles would have been completed by commercial contractors in 
both fiscal years because, as previously discussed, Border Patrol 
agents and DOD labor would not have been available. The average cost 
estimates include all construction and related costs, including costs 
for planning and oversight, environmental compliance, design, real 
estate acquisition, labor, and materials.[Footnote 14] However, they do 
not include contingency funding for increased costs because of delays 
and construction risk. Using these estimates, pedestrian fencing would 
have cost approximately $4.8 million per mile in fiscal year 2007 and 
$6.5 million per mile in fiscal year 2008. Based on these averages, 
about 47 and 26 additional miles of pedestrian fencing could have been 
built in fiscal years 2007 and 2008, respectively. Furthermore, using 
the CBP estimates, vehicle fencing would have cost $1.7 million per 
mile in both fiscal years 2007 and 2008. If vehicle fencing had been 
built instead of pedestrian fencing, about 134 and 98 additional miles 
could have been built in fiscal years 2007 and 2008, respectively. 
Alternatively, depending on the operational needs of the Border Patrol, 
a mixture of additional pedestrian fencing and vehicle fencing could 
have been built. For example, if the additional funding had been 
divided equally between pedestrian and vehicle fencing in fiscal years 
2007 and 2008, 36 miles of pedestrian and 116 miles of vehicle fencing 
could have been built. 

Taking into account the complexities of fence construction, 
specifically, uncertain land acquisition costs, increased material 
costs, a short supply of labor, and a compressed schedule to complete 
fence construction projects, the estimates of additional miles of 
pedestrian fencing or vehicle fencing that could have been constructed 
are approximate, and depending on actual costs at the time, more or 
less fencing could have been built. Finally, based on the environmental 
features and natural terrain along the southwest border, the actual 
mixture of pedestrian and vehicle fencing that would be deployed would 
be based on the operational needs of the Border Patrol. 

Agency Comments: 

On January 9, 2009, we provided a draft of this report to the Secretary 
of Homeland Security for comment. We received written comments on 
January 22, 2009. In its written comments, which appear in Enclosure I, 
DHS agreed with our findings. In addition, the department provided 
technical clarifications that we considered and incorporated as 
appropriate. 

We are sending copies of this report to the Chairmen and Ranking 
Members of other Senate and House committees that have authorization 
and oversight responsibilities for homeland security. We are also 
sending copies to the Secretary of Homeland Security, the Commissioner 
of U.S. Customs and Border Protection, and the Director of the Office 
of Management and Budget. This report is also available at no charge on 
the GAO Web site at [hyperlink, http://www.gao.gov]. 

If you or your staff have any further questions about this report, 
please contact Richard Stana at (202) 512-8777 or stanar@gao.gov. 
Contact points for our Offices of Congressional Relations and Public 
Affairs may be found on the last page of this report. Key contributors 
to this report are listed in Enclosure II. 

Signed by: 

Richard M. Stana, Director:
Homeland Security and Justice Issues: 

List of Committees:
The Honorable Robert C. Byrd:
Chairman:
The Honorable Thad Cochran:
Ranking Member:
Subcommittee on Homeland Security:
Committee on Appropriations:
United States Senate: 

The Honorable Patrick Leahy:
Chairman:
The Honorable Arlen Specter:
Ranking Member:
Committee on the Judiciary:
United States Senate: 

The Honorable David E. Price:
Chairman:
The Honorable Harold Rogers:
Ranking Member:
Subcommittee on Homeland Security:
Committee on Appropriations:
House of Representatives: 

The Honorable John Conyers Jr.
Chairman:
The Honorable Lamar Smith:
Ranking Member:
Committee on the Judiciary:
House of Representatives: 

[End of section] 

Enclosure I: Comments from the Department of Homeland Security: 

Department of Homeland Security: 
Washington, DC 20528: 
[hyperlink, http://www.dhs.gov] 

January 22, 2009: 

Mr. Richard M. Stana: 
Director, Homeland Security and Justice Issues: 
U.S. Government Accountability Office: 
441 G Street, NW: 
Washington, DC 20548: 

Dear Mr. Stana: 

RE: Draft Report 09-244R, Secure Border Initiative Fence Construction 
Costs (GAO Job Code 440722): 

The Department of Homeland Security, particularly U.S. Customs and 
Border Protection (CBP), appreciates the opportunity to review and 
comment on the draft report referenced above. As directed by the House 
Committee on Appropriations, the U.S. Government Accounting Office 
(GAO) examined the costs of constructing fencing along the southern 
border. The report does not include any recommendations. 

The CBP Secure Border Initiative (SBI) program worked closely with the 
GAO to develop the appropriate assumptions for this report. CBP 
believes that the draft report properly reflects the Tactical 
Infrastructure program operational costs and resulting estimates of 
additional pedestrian and vehicle fencing that could have been 
constructed with FY 2007 and FY 2008 appropriated funds to the SBInet 
program. 

Technical comments have been provided under separate cover and should 
help clarify statements in the draft report before issuance of the 
final report. With regard to the classification of the report, CBP did 
not identify any sensitive information that would require a "For 
Official Use Only" designation or warrant protection under the Freedom 
of Information Act. 

Sincerely, 

Signed by: 
Jerald E. Levine: 
Director: 
Departmental GAO/OIG Liaison Office: 

[End of section] 

Enclosure II: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Richard M. Stana (202) 512-8777 or stanar@gao.gov: 

Acknowledgments: 

In addition to the contact named above, Susan Quinlan, Assistant 
Director, and Jeanette Espinola, Analyst-in-Charge, managed this 
assignment. Frances Cook, Katherine Davis, Jeremy Rothgerber, and Erin 
Smith made significant contributions to the work. 

[End of section] 

Related GAO Products: 

Department of Homeland Security: Billions Invested in Major Programs 
Lack Appropriate Oversight. [hyperlink, 
http://www.gao.gov/products/GAO-09-29]. Washington, D.C.: November 18, 
2008. 

Secure Border Initiative: Observations on Deployment Challenges. 
[hyperlink, http://www.gao.gov/products/GAO-08-1141T]. Washington, 
D.C.: September 10, 2008. 

Secure Border Initiative: DHS Needs to Address Significant Risks in 
Delivering Key Technology Investment. [hyperlink, 
http://www.gao.gov/products/GAO-08-1148T]. Washington, D.C.: September 
10, 2008. 

Secure Border Initiative: Fiscal Year 2008 Expenditure Plan Shows 
Improvement, but Deficiencies Limit Congressional Oversight and DHS 
Accountability. [hyperlink, http://www.gao.gov/products/GAO-08-739R]. 
Washington, D.C.: June 26, 2008. 

Department of Homeland Security: Better Planning and Assessment Needed 
to Improve Outcomes for Complex Service Acquisitions. [hyperlink, 
http://www.gao.gov/products/GAO-08-263]. Washington, D.C.: April 22, 
2008. 

Secure Border Initiative: Observations on the Importance of Applying 
Lessons Learned to Future Projects. [hyperlink, 
http://www.gao.gov/products/GAO-08-508T]. Washington, D.C.: February 
27, 2008. 

Secure Border Initiative: Observations on Selected Aspects of SBInet 
Program Implementation. [hyperlink, 
http://www.gao.gov/products/GAO-08-131T]. Washington, D.C.: October 24, 
2007. 

Secure Border Initiative: SBInet Planning and Management Improvements 
Needed to Control Risks. [hyperlink, 
http://www.gao.gov/products/GAO-07-504T]. Washington, D.C.: February 
27, 2007. 

Secure Border Initiative: SBInet Expenditure Plan Needs to Better 
Support Oversight and Accountability. [hyperlink, 
http://www.gao.gov/products/GAO-07-309]. Washington, D.C.: February 15, 
2007. 

[End of section] 

Footnotes: 

[1] At a port of entry location, CBP officers are to secure the flow of 
people and cargo into and out of the country, while facilitating 
legitimate travel and trade. 

[2] Pub. L. No. 110-161, div. E, § 564(a)(2)(B)(ii), 121 Stat. 1844, 
2090-91 (2007) (amending section 102(b)(1) of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996, Pub. L. No. 104-208, 
div. C, 110 Stat. 3009-546, 3009-554, as amended by section 3(2) of the 
Secure Fence Act of 2006, Pub. L. No. 109-367, 120 Stat. 2638, 2639). 
This provision also required the construction of reinforced fencing 
along a total of not less than 700 miles of the southwest border where 
fencing would be most practical and effective, but it did not establish 
a deadline for completion of the full 700 miles. 

[3] See GAO, Secure Border Initiative: Observations on Deployment 
Challenges, [hyperlink, http://www.gao.gov/products/GAO-08-1141T] 
(Washington, D.C.: Sept. 10, 2008). 

[4] [4] H. Comm. on Appropriations, 110th Cong., Committee Print on 
H.R. 2764/Public Law 110-161, at 1036-37 (2008) (referring to H.R. 
2638, 110th Cong. § 560 (as passed by Senate, July 26, 2007)). 

[5] We used data as of October 31, 2008 because they were the most 
recently available data at the time of our review. 

[6] Because fiscal year 2007 projects were primarily constructed on 
government land, there were no real estate acquisition costs and few 
environmental costs. However, CBP officials said that had they built 
more fencing in fiscal year 2007, they would have encountered these 
costs because they were constructing on private land. Therefore, based 
on its estimates, CBP added a factor of $0.8 million per mile to 
account for these additional costs. 

[7] An Independent Auditor's Report on DHS's Fiscal Year 2008 Financial 
Statements found that CBP did not have adequate policies and procedures 
in place to properly account for steel purchases and construction of 
the U.S. border fence in an accurate and timely manner. As a result, 
for several months throughout the year, CBP's financial statements did 
not accurately reflect the construction activity. The report noted that 
the error made as a result of the improper accounting was corrected in 
September 2008. The report also stated that since the SBI initiative is 
not part of CBP's normal course of business, CBP did not implement 
processes to record these transactions properly. Accordingly, for 
several months throughout the year, CBP's financial statements did not 
accurately reflect the construction activity. It is unclear whether or 
to what extent this audit finding was material to the cost estimates 
provided to us by CBP. 

[8] The International Boundary and Water Commission is an international 
organization that operates bilateral projects related to the borders 
and rivers shared by the United States and Mexico. 

[9] The Border Patrol has 20 sectors and is responsible for detecting, 
interdicting, and apprehending those who attempt to illegally enter or 
to smuggle people, including terrorists, or contraband, including 
weapons of mass destruction, across U.S. borders between official ports 
of entry. 

[10] The SBI program office contracted with Boeing Company to construct 
32 miles of fencing in the Barry M. Goldwater Range. Deployment of this 
fencing has been completed, and the SBI program office plans to use 
USACE to contract for most of the remaining pedestrian fencing and 
vehicle barriers to be deployed. 

[11] See GAO, Secure Border Initiative: Observations on Selected 
Aspects of SBInet Program Implementation, [hyperlink, 
http://www.gao.gov/products/GAO-08-131T] (Washington, D.C.: Oct. 24, 
2007). 

[12] [hyperlink, http://www.gao.gov/products/GAO-08-1141T]. 

[13] Legacy agencies are the entities (i.e., Immigration and 
Naturalization Service and U.S. Customs Service) that existed before 
the creation of DHS; they have since been merged into CBP and other DHS 
components. 

[14] Because fiscal year 2007 projects were primarily constructed on 
government land there were no real estate acquisition costs and few 
environmental costs. However, CBP officials said that had they built 
more fencing in fiscal year 2007, they would have encountered these 
costs because they were constructing on private land. Therefore, CBP 
added a factor of $0.8 million per mile, to account for these 
additional costs. 

[End of section] 

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