State Department Awards $534M Construction Contract to BL Harbert International in DRC
Contract Overview
Contract Amount: $534,371,687 ($534.4M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2022-09-28
End Date: 2029-02-19
Contract Duration: 2,336 days
Daily Burn Rate: $228.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Construction
Official Description: NEC - KINSHASA REPUBLIC OF CONGO
Plain-Language Summary
Department of State obligated $534.4 million to BL HARBERT INTERNATIONAL LLC for work described as: NEC - KINSHASA REPUBLIC OF CONGO Key points: 1. Significant investment in infrastructure development in the Republic of Congo. 2. BL Harbert International, a large contractor, secured the award. 3. Potential risks include geopolitical instability and logistical challenges in the region. 4. Construction sector spending is substantial, with this contract representing a notable portion.
Value Assessment
Rating: fair
The contract value of $534M is substantial for construction in the region. Benchmarking against similar large-scale international construction projects is difficult due to unique location-specific factors and the nature of government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific price discovery mechanisms and their effectiveness in ensuring optimal value for this remote location are not detailed.
Taxpayer Impact: Taxpayer funds are being utilized for critical infrastructure development abroad, with the aim of supporting diplomatic and operational needs. The long duration and fixed-price nature suggest cost controls, but economic adjustments introduce variability.
Public Impact
Enhances U.S. diplomatic presence and operational capabilities in the Democratic Republic of Congo. Supports local employment and economic activity during the construction phase. Addresses critical infrastructure needs, potentially improving security and functionality of U.S. facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical risks in DRC
- Logistical challenges for materials and personnel
- Potential for cost overruns due to economic price adjustments
Positive Signals
- Full and open competition utilized
- Long-term contract provides stability
- Addresses critical infrastructure needs
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Large-scale international construction projects of this magnitude are often awarded to established firms with extensive experience in challenging environments. Benchmarks are highly variable based on location and project scope.
Small Business Impact
The data indicates that small businesses were not directly awarded this prime contract, as BL Harbert International is a large business. Subcontracting opportunities for small businesses may exist, but are not specified in this award data.
Oversight & Accountability
The Department of State is responsible for oversight of this contract. Given the significant value and duration, robust oversight mechanisms will be crucial to manage risks and ensure successful project completion and adherence to contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Geopolitical instability in the Democratic Republic of Congo.
- Logistical challenges associated with operating in a remote and developing region.
- Potential for cost escalation due to economic price adjustments.
- Long contract duration increases exposure to unforeseen risks.
- Lack of direct small business participation in prime contract.
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 $534.4 million to BL HARBERT INTERNATIONAL LLC. NEC - KINSHASA REPUBLIC OF CONGO
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 $534.4 million.
What is the period of performance?
Start: 2022-09-28. End: 2029-02-19.
What specific mechanisms are in place to ensure cost control given the fixed-price with economic price adjustment structure in a potentially volatile economic environment?
The contract's fixed-price with economic price adjustment (EPA) structure aims to balance cost certainty with flexibility for fluctuating market conditions. Specific mechanisms likely involve pre-defined indices for material and labor cost changes, caps on adjustment percentages, and rigorous reporting requirements from the contractor to justify any requested adjustments. The Department of State's oversight team would monitor these claims closely against established benchmarks and contract clauses.
How will the geopolitical risks and logistical complexities in the Democratic Republic of Congo be mitigated to ensure project continuity and safety?
Mitigation strategies typically involve comprehensive risk assessments, security protocols for personnel and assets, and robust logistical planning. This includes securing reliable supply chains, potentially utilizing local resources where feasible, and establishing contingency plans for disruptions. The contractor and the Department of State would collaborate on security arrangements and emergency response procedures tailored to the specific risks present in Kinshasa.
What is the long-term strategic value of this infrastructure investment beyond immediate operational needs?
Beyond immediate operational needs, this infrastructure investment signifies a long-term commitment to U.S. presence and influence in the region. It can foster stability, enhance diplomatic engagement, and potentially serve as a model for future development projects. The improved facilities could also facilitate increased collaboration with Congolese authorities and contribute to regional security objectives.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $534,371,687
Exercised Options: $534,371,687
Current Obligation: $534,371,687
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $6,468,042
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-28
Current End Date: 2029-02-19
Potential End Date: 2029-02-19 00:00:00
Last Modified: 2026-02-09
More Contracts from BL Harbert International LLC
- TAS::19 0535 000::TAS NEW Embassey Compound and Housing, Islamabad, Pakistan — $871.5M (Department of State)
- Base Award for Construction Manager AS Constructor Clin-001 for Design-Phase Services for Hanoi NEC — $815.9M (Department of State)
- Beirut, Lebanon NEW Embassy Constructionigf::cl::igf — $731.6M (Department of State)
- Construction Services for the NEW Embassy Compound in NEW Delhi, India — $685.1M (Department of State)
- Construction Services for NEW Emabssy Compound in London, England. Igf::ot::igf — $636.0M (Department of State)
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)