A system and method for installing an aggregate pier in a soil matrix includes a pipe configured to interface with a torque driver for rotating the pipe. A helix is disposed on the pipe and configured to advance/withdraw the pipe based on direction of rotation. A compacting device is disposed between the distal end of the pipe and the helix. It extends radially outward and upward. In some embodiments, the compacting device is configured as a frustum. A lift in an aggregate pier is formed by rotating the pipe in a second direction to withdraw a portion of the pipe from the soil matrix thereby creating a void; (b) filling the void with aggregate; (c) rotating the pipe in the first direction to advance the pipe. The compacting device contacts the aggregate disposed in the void and imparts an axial and radial force.