FBI Jefferson Dorm Renovation Project awarded at $92.5M to BL Harbert International, highlighting construction sector spending

Contract Overview

Contract Amount: $92,460,189 ($92.5M)

Contractor: BL Harbert International LLC

Awarding Agency: Department of Justice

Start Date: 2024-05-23

End Date: 2028-01-28

Contract Duration: 1,345 days

Daily Burn Rate: $68.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JEFFERSON DORM RENOVATION PROJECT.

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35209

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $92.5 million to BL HARBERT INTERNATIONAL LLC for work described as: JEFFERSON DORM RENOVATION PROJECT. Key points: 1. Contract value represents a significant investment in federal infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this construction project. 3. Project duration of over three years indicates a substantial undertaking. 4. The firm fixed-price contract type aims to control costs for the government. 5. Geographic focus on Alabama positions this project within a specific regional economic context.

Value Assessment

Rating: good

The contract value of $92.5 million for the Jefferson Dorm Renovation Project appears within a reasonable range for large-scale institutional construction. Benchmarking against similar dormitory or barracks renovation projects for federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to establish cost certainty, which is generally positive for government spending. However, without detailed cost breakdowns or comparisons to private sector construction of equivalent scope and quality, a definitive value assessment is challenging.

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 bids. This approach is generally favored for maximizing competition and achieving the best possible pricing and value for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust process designed to attract multiple proposals. This level of competition is expected to drive down costs and encourage innovation from potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing competitive pricing and prevents potential price gouging that can occur with less competitive procurement methods.

Public Impact

The primary beneficiaries are the Federal Bureau of Investigation (FBI) personnel who will utilize the renovated dormitory facilities. The project will deliver essential upgrades and modernization to living quarters, improving the quality of life for residents. The geographic impact is concentrated in Alabama, potentially creating local jobs and stimulating the regional construction economy. Workforce implications include employment opportunities for construction workers, project managers, and related trades in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price contract.
Schedule delays could impact the FBI's operational readiness if the renovation timeline is not met.
Quality control during a large-scale construction project requires diligent oversight to ensure standards are met.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to price increases.
Full and open competition suggests a strong market response and potential for competitive pricing.
The contractor, BL Harbert International LLC, likely has experience with large-scale construction projects, indicating a degree of capability.

Sector Analysis

The federal construction sector encompasses a wide range of projects, from infrastructure upgrades to specialized facility development. This contract falls under Commercial and Institutional Building Construction, a significant segment of the broader industry. Federal spending in this area is often driven by the need to maintain, modernize, or expand government facilities. Comparable spending benchmarks would involve analyzing other large dormitory, barracks, or administrative building construction contracts awarded by agencies like the Department of Defense or other law enforcement entities.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses within the provided data. This suggests that the primary award went to a large business. While large prime contractors often utilize small business subcontractors, the absence of explicit set-aside provisions or reported subcontracting plans means the direct impact on the small business ecosystem is not guaranteed and would require further investigation into the contractor's subcontracting practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the FBI's project management team. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified work within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal Building Construction
Military Barracks and Dormitory Construction
Law Enforcement Facility Modernization
General Services Administration (GSA) Construction Projects
Department of Defense Construction Contracts

Risk Flags

Potential for cost escalation due to unforeseen site conditions.
Risk of schedule delays impacting operational readiness.
Need for rigorous quality assurance throughout the construction process.
Contractor's ability to manage a project of this scale and duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $92.5 million to BL HARBERT INTERNATIONAL LLC. JEFFERSON DORM RENOVATION PROJECT.

Who is the contractor on this award?

The obligated recipient is BL HARBERT INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $92.5 million.

What is the period of performance?

Start: 2024-05-23. End: 2028-01-28.

What is the track record of BL Harbert International LLC on similar federal construction projects?

BL Harbert International LLC has a significant history of performing large-scale construction projects for various federal agencies. A review of their past performance, particularly on projects involving institutional or dormitory-style facilities, would be crucial. This includes examining contract completion records, any past performance evaluations, and the types of projects they have successfully delivered. Understanding their experience with firm fixed-price contracts and projects of similar magnitude (e.g., over $50 million) will provide insight into their capability to execute the Jefferson Dorm Renovation Project effectively and within budget. Data on past project delays, cost overruns, or disputes would also be relevant for assessing potential risks.

How does the awarded price compare to industry benchmarks for similar dormitory renovation projects?

To benchmark the $92.5 million award for the Jefferson Dorm Renovation Project, one would need to compare it against similar projects in terms of scope, size, location, and complexity. This involves researching data from the General Services Administration (GSA), the Department of Defense (DoD), and other agencies that undertake similar construction. Key metrics to consider include cost per square foot or cost per bed/occupant. Without access to a detailed cost breakdown or specific comparable project data, it's difficult to definitively state if this price represents excellent value. However, the 'full and open competition' suggests a competitive market was engaged, which typically drives prices toward market rates.

What are the primary risks associated with a multi-year, fixed-price construction contract of this magnitude?

The primary risks associated with a multi-year, fixed-price construction contract of this magnitude include potential cost overruns due to unforeseen site conditions (e.g., soil issues, hazardous materials), material price escalation beyond initial estimates (though less likely with fixed-price), and labor shortages or disputes. Schedule risks are also significant, as delays can arise from weather, permitting issues, or contractor performance problems. For the government, the risk is that the fixed price might not adequately cover all eventualities, leading to change orders that increase the total cost, or that the contractor may cut corners on quality to maintain profitability if issues arise. Diligent project oversight and robust contingency planning are essential to mitigate these risks.

What is the expected impact of this renovation on the FBI's operational capacity and personnel welfare?

The renovation of the Jefferson Dormitory is expected to significantly improve the living conditions and welfare of FBI personnel residing on-site. Modernized facilities can lead to increased morale, better retention rates, and a more comfortable environment for staff. Operationally, updated dormitories can support personnel who are critical to the FBI's mission, ensuring they are well-rested and housed appropriately. The project's completion by January 2028 suggests a long-term investment in the infrastructure supporting the Bureau's personnel, contributing to sustained operational readiness and capacity by providing adequate and modern housing.

How has federal spending on institutional building construction trended in recent years, and where does this contract fit?

Federal spending on institutional building construction has generally seen fluctuations based on infrastructure needs, agency priorities, and budget allocations. Projects like the Jefferson Dorm Renovation are part of this broader trend, reflecting the government's ongoing commitment to maintaining and upgrading its facilities. This $92.5 million contract represents a substantial single award within the Commercial and Institutional Building Construction category. Analyzing historical spending data for similar projects (e.g., dormitories, barracks, administrative buildings) across agencies like the FBI, GSA, or DoD would reveal whether this award is consistent with, higher than, or lower than typical spending levels for comparable projects in recent fiscal years.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 820 SHADES CREEK PKWY, BIRMINGHAM, AL, 35209

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $99,143,844

Exercised Options: $92,460,189

Current Obligation: $92,460,189

Actual Outlays: $23,958,714

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $50,477,884

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15F06719D0003690

IDV Type: IDC

Timeline