Washington’s border-security deal provides $1.375 billion to build about 55 miles of border barriers, setting up government contractors to compete for their piece of that money.

While the level of funding falls short of what President Donald Trump has demanded for his long-promised wall, it’s still a sizable amount that Democrats and Republicans have agreed to spend in two areas of the Rio Grande Valley in Texas.

The bipartisan deal allows for the use of any barrier materials previously used, such as steel slats or levee wall systems. It bars the use of new designs, such as the concrete prototypes commissioned by the Trump administration, which continues to push for an extensive border wall but faces legal and congressional challenges after the president declared a national emergency to build it.

Related:Trump ready for first veto if Congress votes to disapprove of emergency

And see:How Trump wants to pay for the border wall after invoking a national emergency

The new 55 miles of barriers in Hidalgo and Starr counties likely will get built by companies with previous experience in this type of work, and these companies range from a privately held Texas firm to publicly traded Israeli contractors, according to experts. The firms have a history of giving money mostly to Republican politicians.

“Galveston contractor SLSCO is building some of the current sections in the RGV. If I had to guess, they would be likely to get future contracts as well,” said Reece Jones, author of the book “Violent Borders” and a professor of geography and environment at the University of Hawai‘i.

SLSCO, founded by brothers Todd, Billy and Johnny Sullivan, scored a $166.8 million contract for a border-security project in December, as well as a $145 million deal in November.

Montana-based Barnard Construction Co., given its past experience, also could get a chance to build some of the 55 miles of barriers, according to James R. Phelps, a consultant, author and professor who teaches courses on homeland security at universities such as Nova Southeastern in Florida. Barnard in November won a $172 million contract to build 32 miles of replacement wall in Arizona.

Firms such as SLSCO and Barnard could be “go-to companies” for Customs and Border Protection, the agency that will award contracts for the work, Phelps said. “They know what they’re doing. They can get it done relatively quickly,” he said. CBP is expected to have companies compete for contracts for the 55 miles of barriers, as happened for past border projects. The agency declined to comment, and SLSCO and Barnard didn’t respond to requests for comment.

SLSCO’s three founders contributed significant amounts to individual Republican candidates’ committees or groups tied to the GOP during the 2018 election cycle, giving about $68,000 in total, according to Federal Election Commission filings. One of the founders, Johnny Sullivan, also donated $2,700 to longtime Texas Democratic Rep. Sheila Jackson Lee’s campaign committee.

Meanwhile, Barnard Construction founder Tim Barnard contributed about $82,000 to individual Republican candidates’ committees or groups tied to the GOP during the last cycle, according to FEC filings. He also gave $6,000 to three trade groups’ political action committees.

Roles for tech companies and concrete

Companies focused on high-tech border security look particularly well positioned, said Henrietta Treyz, director of economic policy research at investment adviser Veda Partners.

“That’s probably the only place where money is going to actually be rolling out the door, and that’s a huge boon to the companies who are concentrating there,” she said. Democrats appear inclined to keep funding investment in video surveillance, drones and other “smart” tools, and the Trump administration has been promoting high tech, Treyz added.

Such companies include Elbit Systems of America, which has built high-tech border towers in Arizona. The U.S. subsidiary of Israel-based Elbit Systems Ltd. ESLT, +1.00% last month said it’s eager to construct towers in Texas and other border states, according to a Fort Worth Star-Telegram report. In the 2018 cycle, Elbit Systems of America CEO Raanan Horowitz contributed about $12,000 to individual Republican candidates’ committees or groups tied to the GOP, along with $1,000 to Illinois Democratic Rep. Brad Schneider’s committee.

Israel-based Magal Security Systems MAGS, +1.11% , which provides “perimeter intrusion detection systems,” also might get involved. “Magal Security has built much of Israel’s Gaza wall and has been mentioned as a possible contractor for the U.S. wall,” the University of Hawai‘i’s Jones said. The company, listed in Israel and the U.S., has talked up building a “smart” fence along the U.S.-Mexico border, and its shares rallied after Trump’s election but have since pulled back.

The six companies that constructed wall prototypes in 2017 still might end up involved in upcoming border projects given they’ve gone through a traditional bid process and have the feel of “vetted, secure builders,” said Treyz of Veda Partners. They probably would propose “different barriers than we’ve seen thus far,” in part because their designs all reportedly failed key tests, she added. Those six companies were Texas Sterling Construction Co., Fischer Sand & Gravel Co., KWR Construction Inc., Caddell Construction Co., W.G. Yates & Sons Construction Co. and ELTA North America, whose parent company, Israel Aerospace Industries, is on track to have its stock floated on the Tel Aviv Stock Exchange.

Concrete companies such as Texas-based U.S. Concrete Inc. USCR, +2.20% , Alabama-based Vulcan Materials Co. VMC, +1.38% and North Carolina’s Martin Marietta Materials MLM, +1.44% also might get business from the 55 miles of barriers, even if the barriers are largely made of steel slats or pipes, said Phelps, the professor of homeland security.

“The pipes are actually set in concrete,” he told MarketWatch. “While we may not put a concrete wall above ground, you can’t just stick pipes in the ground and tamp the dirt in around them.”

U.S. Concrete, Vulcan and Martin Marietta didn’t respond to requests for comment. In 2017, U.S. Concrete CEO Bill Sandbrook signaled that his company was interested in bidding for wall-related work.

Related:How the ‘Trump Wall’ gets built — U.S. Concrete’s CEO explains

Bernstein Research in 2016 predicted that Cemex CX, +0.54% , a big seller of cement, concrete and other materials, was best positioned to benefit from Trump’s proposed wall. Phelps, however, was downbeat on the Mexican heavyweight’s prospects when it comes to the $1.375 billion promised for new barriers.

“Trump has been adamant about keeping money in the United States,” he said. “Even though Cemex has a huge U.S. component to their business, the fact is they’re a Mexican company.”

The U.S. provides 25% of Cemex’s annual revenue, above Mexico’s 22% and more than any other country.

The National Ready Mixed Concrete Association, a trade group whose leadership includes executives from U.S. Concrete, Vulcan, Martin Marietta and Cemex, contributed about $433,000 to federal candidates or party committees during the 2018 election cycle, with Republicans receiving 89% of the money.

That’s according to data from OpenSecrets.org, a website tracking money in politics that’s run by a nonpartisan research group, the Center for Responsive Politics. Vulcan and its affiliates contributed about $390,000 to candidates or party groups, with 58% of that going to the GOP and 42% to Democrats, while OpenSecrets.org’s figures show zero or minimal donations by the other two U.S. concrete companies. Cemex’s PAC gave $289,000 to federal candidates, with 83% of that going to Republicans and 17% to Democrats.

This report was first published on Feb. 22, 2019.