State Department Awards $268M for Honduras Embassy Construction to BL Harbert International

Contract Overview

Contract Amount: $268,215,569 ($268.2M)

Contractor: BL Harbert International LLC

Awarding Agency: Department of State

Start Date: 2018-09-23

End Date: 2023-08-01

Contract Duration: 1,773 days

Daily Burn Rate: $151.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC) IN TEGUCIGALPA, HONDURAS.

Plain-Language Summary

Department of State obligated $268.2 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC) IN TEGUCIGALPA, HONDURAS. Key points: 1. Significant investment in diplomatic infrastructure abroad. 2. BL Harbert International is a major player in large-scale construction. 3. Potential risks include geopolitical instability and construction cost overruns. 4. The construction sector is experiencing high demand and material costs.

Value Assessment

Rating: fair

The contract value of $268M is substantial for embassy construction. Benchmarking against similar projects is difficult without more granular cost data, but the scale suggests a complex undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which is ideal for price discovery. However, the long duration and fixed-price nature could lead to contractor risk if costs escalate beyond initial estimates.

Taxpayer Impact: Taxpayer funds are being used for critical diplomatic infrastructure, aiming for long-term value and security.

Public Impact

Enhances U.S. diplomatic presence and security in Honduras. Supports local employment and economic activity during construction. Represents a long-term commitment to international relations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Embassy construction falls under the broader commercial and institutional building sector. Spending benchmarks for such projects are highly variable due to location, security requirements, and scale.

Small Business Impact

The contract was awarded to BL Harbert International, a large prime contractor. There is no indication of small business subcontracting in the provided data, which could be an area for improvement.

Oversight & Accountability

The Department of State is responsible for oversight. The long duration and fixed-price nature necessitate diligent monitoring to ensure adherence to scope and budget.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-state, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $268.2 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC) IN TEGUCIGALPA, HONDURAS.

Who is the contractor on this award?

The obligated recipient is BL HARBERT INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $268.2 million.

What is the period of performance?

Start: 2018-09-23. End: 2023-08-01.

What specific cost controls and contingency plans are in place to manage potential overruns given the project's duration and fixed-price nature?

The contract's fixed-price structure implies the contractor bears the risk of cost overruns. However, effective oversight by the Department of State is crucial. This includes monitoring material price fluctuations, labor costs, and potential delays. Contingency plans might involve change order management processes and regular progress reviews to identify risks early.

How does the Department of State assess the long-term value and security benefits of this new embassy compound against its significant cost?

The value is assessed based on enhanced diplomatic capabilities, improved security for personnel and classified information, and the symbolic representation of U.S. commitment. The long-term benefits are expected to outweigh the initial investment through more efficient and secure diplomatic operations, reduced maintenance on older facilities, and fostering stronger bilateral relations.

What measures are in place to ensure the construction process minimizes disruption and maximizes positive economic impact in the local Honduran community?

Measures likely include adherence to local labor laws, sourcing local materials where feasible, and implementing environmental and safety standards. Positive economic impact is generated through direct job creation for local workers and indirect support for local businesses supplying goods and services. Minimizing disruption involves careful site management and community engagement.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 19AQMM18R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 820 SHADES CREEK PKWY STE 3000, 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: $268,215,569

Exercised Options: $268,215,569

Current Obligation: $268,215,569

Subaward Activity

Number of Subawards: 210

Total Subaward Amount: $72,122,759

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2018-09-23

Current End Date: 2023-08-01

Potential End Date: 2023-08-01 00:00:00

Last Modified: 2025-05-13

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