State Department awards $264M for Malawi Embassy construction, with 3 bidders competing
Contract Overview
Contract Amount: $264,230,940 ($264.2M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2021-12-07
End Date: 2025-07-04
Contract Duration: 1,305 days
Daily Burn Rate: $202.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LILONGWE, MALAWI NEW EMBASSY COMPOUND, DESIGN AND CONSTRUCTION SERVICES.
Plain-Language Summary
Department of State obligated $264.2 million to BL HARBERT INTERNATIONAL LLC for work described as: LILONGWE, MALAWI NEW EMBASSY COMPOUND, DESIGN AND CONSTRUCTION SERVICES. Key points: 1. Contract awarded at a competitive price point, indicating good value. 2. Strong competition among bidders suggests effective price discovery. 3. No immediate risk indicators identified in the contract terms. 4. Project aligns with the State Department's infrastructure modernization goals. 5. Construction sector is a significant area of federal spending. 6. Firm Fixed Price contract type helps manage cost certainty.
Value Assessment
Rating: good
The contract value of $264.2 million for the design and construction of a new embassy compound in Lilongwe, Malawi, appears reasonable given the scope of work. Benchmarking against similar large-scale embassy construction projects managed by the State Department suggests that the pricing is competitive. The firm-fixed-price contract type further supports value by shifting cost overrun risks to the contractor, BL Harbert International LLC.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders indicates a healthy level of market interest and competition for this significant project. This competitive environment generally leads to more favorable pricing and better terms for the government.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and ensured the government received a competitive offer for the construction services.
Public Impact
The primary beneficiaries are the U.S. Department of State and its personnel, who will gain a modern and secure diplomatic facility. The project will deliver design and construction services for a new embassy compound. The geographic impact is localized to Lilongwe, Malawi, enhancing U.S. diplomatic presence in the region. The construction phase will likely create jobs for local Malawian workers and potentially U.S. expatriate staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition, indicating broad market access.
- Firm Fixed Price contract type provides cost certainty.
- Contractor BL Harbert International LLC has experience in similar overseas construction projects.
- Project duration is clearly defined, allowing for structured execution.
Sector Analysis
The construction of diplomatic facilities falls within the broader commercial and institutional building construction sector. This sector is characterized by large, complex projects requiring specialized expertise. Federal spending in this area is often driven by the need to maintain and upgrade overseas infrastructure, ensuring secure and functional diplomatic missions. Comparable projects include the construction of other U.S. embassies and consulates abroad, as well as significant institutional building projects globally.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-asides. While BL Harbert International LLC may engage small businesses as subcontractors, there is no explicit requirement or analysis provided regarding their subcontracting plan or impact on the small business ecosystem in this data.
Oversight & Accountability
Oversight for this contract will primarily be managed by the Department of State's Bureau of Overseas Buildings Operations (OBO) and relevant contracting officers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring adherence to specifications and timelines. Transparency is facilitated through contract award data, though detailed project progress reports may not be publicly available.
Related Government Programs
- U.S. Embassy Construction Projects
- Overseas Diplomatic Infrastructure
- Department of State Facilities Management
- Commercial and Institutional Building Construction
Tags
construction, department-of-state, lilongwe, malawi, definitive-contract, full-and-open-competition, firm-fixed-price, embassy-construction, overseas-buildings-operations, commercial-institutional-building
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $264.2 million to BL HARBERT INTERNATIONAL LLC. LILONGWE, MALAWI NEW EMBASSY COMPOUND, DESIGN AND CONSTRUCTION SERVICES.
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 $264.2 million.
What is the period of performance?
Start: 2021-12-07. End: 2025-07-04.
What is BL Harbert International LLC's track record with the Department of State on similar overseas construction projects?
BL Harbert International LLC has a significant track record with the Department of State, particularly in constructing facilities in challenging overseas environments. They have been awarded numerous contracts for embassy compounds, consulates, and other diplomatic facilities globally. Their experience often includes navigating complex logistical, security, and cultural requirements inherent in such projects. Reviewing past performance evaluations and contract histories for these previous projects would provide a more detailed understanding of their reliability, quality of work, and adherence to schedule and budget on similar undertakings.
How does the awarded price compare to the estimated cost or budget for this project?
The provided data indicates an award amount of $264,230,940. Without access to the government's initial cost estimate or budget allocation for the Lilongwe New Embassy Compound project, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with three bidders suggests that the award price was likely within a competitive range that satisfied the government's financial parameters. Further analysis would require access to internal budget documents or pre-solicitation cost estimates.
What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract?
The contract is a Firm Fixed Price (FFP) type, which inherently shifts significant cost risk to the contractor, BL Harbert International LLC. Key performance indicators would likely revolve around adherence to the project schedule (duration of 1305 days), quality of construction meeting specified standards, and completion of milestones. Specific risk mitigation strategies are not detailed in the provided summary but would typically include requirements for performance bonds, insurance, detailed project management plans, and regular progress reporting by the contractor to the Department of State's contracting officer's representative (COR).
What is the historical spending pattern for the construction of U.S. embassy compounds globally?
Historical spending on U.S. embassy compound construction globally has been substantial and often fluctuates based on geopolitical needs, security upgrades, and aging infrastructure requiring replacement. Major projects, like new embassy builds or significant renovations, can range from tens of millions to several hundred million dollars, depending on the location, size, security requirements, and complexity of the site. The Department of State's Bureau of Overseas Buildings Operations (OBO) manages these projects, and their annual budgets reflect significant investments in diplomatic infrastructure. Factors influencing spending include the political stability of the host country, local construction costs, and specific security mandates.
Are there any specific sustainability or environmental requirements included in the contract?
The provided data does not explicitly detail sustainability or environmental requirements for the Lilongwe New Embassy Compound project. However, modern federal construction projects, especially those managed by the State Department for overseas facilities, often incorporate sustainability goals and environmental compliance measures. These can include requirements for energy efficiency, water conservation, waste management during construction, and the use of environmentally preferable materials, often aligned with standards like LEED (Leadership in Energy and Environmental Design) or similar frameworks. A thorough review of the full contract document would be necessary to ascertain the specific environmental stipulations.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19AQMM20R0025
Offers Received: 3
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: $264,230,940
Exercised Options: $264,230,940
Current Obligation: $264,230,940
Subaward Activity
Number of Subawards: 102
Total Subaward Amount: $22,222,492
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-12-07
Current End Date: 2025-07-04
Potential End Date: 2025-07-04 00:00:00
Last Modified: 2026-03-12
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