State Department Awards $442M Design-Build Contract for Bangkok Office Annex and Renovation
Contract Overview
Contract Amount: $442,260,484 ($442.3M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2020-03-17
End Date: 2026-09-15
Contract Duration: 2,373 days
Daily Burn Rate: $186.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND BUILD CONSTRUCTION OF NEW OFFICE ANNEX&CHANCERY RENOVATION IN BANGKOK, THAILAND
Plain-Language Summary
Department of State obligated $442.3 million to BL HARBERT INTERNATIONAL LLC for work described as: DESIGN AND BUILD CONSTRUCTION OF NEW OFFICE ANNEX&CHANCERY RENOVATION IN BANGKOK, THAILAND Key points: 1. Significant investment in overseas infrastructure, impacting diplomatic operations. 2. BL Harbert International LLC, a large contractor, secured the award. 3. Potential risks include project delays, cost overruns, and geopolitical factors in Thailand. 4. The construction sector is highly competitive, but this project's scale may limit bidders.
Value Assessment
Rating: fair
The contract value of $442.3M is substantial for a design-build project of this nature. Benchmarking against similar overseas construction projects is difficult due to unique location and scope, but the price appears within a reasonable range for a large-scale diplomatic facility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method aims to ensure the best value is obtained by soliciting bids from all qualified sources.
Taxpayer Impact: Taxpayer funds are being used for essential diplomatic infrastructure. The competitive award process aims to maximize value for money, but the large sum necessitates careful oversight.
Public Impact
Enhances U.S. diplomatic presence and operational capacity in Bangkok. Supports local economy through construction jobs and material sourcing. Potential for improved security and functionality of the U.S. Embassy. Long-term asset for U.S. foreign policy and engagement in Southeast Asia.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Large contract value increases financial risk.
- International project introduces geopolitical and logistical complexities.
- Long duration increases exposure to market fluctuations and unforeseen issues.
Positive Signals
- Full and open competition promotes value.
- Firm fixed price contract shifts cost risk to contractor.
- Definitive contract provides clear scope and terms.
Sector Analysis
This project falls under commercial and institutional building construction, a sector often characterized by significant capital investment and complex project management. Benchmarks for similar large-scale government construction projects abroad are scarce, making direct comparison challenging.
Small Business Impact
The contract was awarded to BL Harbert International LLC, a large business. There is no indication of small business participation in this specific award, which is common for large, complex construction projects requiring specialized capabilities.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Given the significant value and international scope, robust oversight mechanisms are crucial to ensure adherence to timelines, budget, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost overruns due to international location.
- Risk of project delays impacting diplomatic operations.
- Geopolitical instability in Thailand could affect construction.
- Long project duration increases exposure to economic fluctuations.
- Complexity of design-build in a foreign environment.
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 $442.3 million to BL HARBERT INTERNATIONAL LLC. DESIGN AND BUILD CONSTRUCTION OF NEW OFFICE ANNEX&CHANCERY RENOVATION IN BANGKOK, THAILAND
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 $442.3 million.
What is the period of performance?
Start: 2020-03-17. End: 2026-09-15.
What is the projected return on investment for this infrastructure upgrade in terms of enhanced diplomatic efficiency and security?
The return on investment is primarily measured by improved operational efficiency, enhanced security for personnel and sensitive information, and a strengthened U.S. diplomatic presence. Quantifying this in direct financial terms is challenging, but the long-term strategic benefits for foreign policy and national security are considered substantial by the agency.
What specific risk mitigation strategies are in place to address potential cost overruns or delays in a foreign country?
Mitigation strategies likely include detailed contract clauses for delays and cost changes, performance bonds, regular progress reviews, and contingency planning for geopolitical or logistical disruptions. The firm fixed price nature of the contract also incentivizes the contractor to manage costs effectively, though unforeseen circumstances can still arise.
How will the effectiveness of the new annex and renovated space be measured post-completion?
Effectiveness will be measured through post-occupancy evaluations focusing on functionality, space utilization, energy efficiency, and security compliance. Feedback from embassy staff on improved workflows and working conditions will also be key indicators of success, alongside adherence to the original design specifications and operational requirements.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19AQMM19R0073
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: $442,441,114
Exercised Options: $442,441,114
Current Obligation: $442,260,484
Subaward Activity
Number of Subawards: 68
Total Subaward Amount: $10,334,589
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-17
Current End Date: 2026-09-15
Potential End Date: 2026-09-15 00:00:00
Last Modified: 2026-01-29
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