DoD's $28M New Orleans Naval Base construction contract awarded to BL Harbert International
Contract Overview
Contract Amount: $28,186,996 ($28.2M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2021-03-11
End Date: 2024-10-01
Contract Duration: 1,300 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE - ALERT FACILITY & ALERT APRON, NAS JRB NEW ORLEANS, LA
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70143
Plain-Language Summary
Department of Defense obligated $28.2 million to BL HARBERT INTERNATIONAL LLC for work described as: BASE - ALERT FACILITY & ALERT APRON, NAS JRB NEW ORLEANS, LA Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of over three years indicates a significant undertaking. 5. Geographic focus on Louisiana may have implications for local economic impact. 6. No small business set-aside was applied, potentially limiting direct small business participation.
Value Assessment
Rating: good
The contract value of $28.2 million for facility and apron construction at NAS JRB New Orleans is within a typical range for major military infrastructure projects. Benchmarking against similar large-scale construction contracts for naval facilities suggests this price is competitive, especially considering the fixed-price nature which transfers risk to the contractor. The scope includes alert facilities and aprons, which are critical operational assets.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this significant construction project. While two bidders participated, further analysis would be needed to determine if this level adequately drove down costs compared to a scenario with more bidders.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better value. The fact that the contract was competed openly suggests that the government sought the best possible offer.
Public Impact
The Department of the Navy benefits from improved and modernized alert facilities and aprons, enhancing operational readiness. The project delivers essential construction services for military infrastructure at the Naval Air Station Joint Reserve Base in New Orleans. The geographic impact is concentrated in Louisiana, potentially creating local jobs and economic activity during the construction phase. The construction workforce, likely including skilled trades and laborers, will be directly impacted by this project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
- Dependence on a single contractor for a multi-year, critical infrastructure project.
- Limited direct small business participation due to the absence of set-aside provisions.
Positive Signals
- Fixed-price contract structure provides cost certainty for the government.
- Full and open competition suggests a robust bidding process.
- Award to an established contractor like BL Harbert International may indicate a track record of successful project completion.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure for defense, transportation, and other government functions. Comparable spending benchmarks for military base construction can vary widely based on location, scope, and specific facility requirements, but projects of this scale typically involve millions of dollars.
Small Business Impact
The contract was not awarded as a small business set-aside, and the data indicates no specific small business subcontracting goals were mandated. This means that while BL Harbert International may choose to subcontract portions of the work to small businesses, there is no direct requirement for them to do so. The absence of a set-aside could limit direct opportunities for small businesses to compete for the prime contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Navy, ensuring compliance with contract terms and quality standards. The fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through contract award databases, though specific project progress reports may not be publicly available.
Related Government Programs
- Naval Facilities Engineering Command (NAVFAC) Construction Projects
- Military Base Infrastructure Modernization
- Department of Defense Construction Contracts
- Airfield and Apron Construction
Risk Flags
- Long project duration increases exposure to market fluctuations.
- Potential for unforeseen site conditions impacting cost and schedule.
- Limited direct small business participation opportunities.
Tags
defense, department-of-defense, department-of-the-navy, construction, facility-construction, alert-facility, apron-construction, full-and-open-competition, firm-fixed-price, louisiana, new-orleans, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.2 million to BL HARBERT INTERNATIONAL LLC. BASE - ALERT FACILITY & ALERT APRON, NAS JRB NEW ORLEANS, LA
Who is the contractor on this award?
The obligated recipient is BL HARBERT INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $28.2 million.
What is the period of performance?
Start: 2021-03-11. End: 2024-10-01.
What is the track record of BL Harbert International with the Department of Defense?
BL Harbert International has a significant history of contracting with the Department of Defense and other federal agencies. They have been awarded numerous contracts for construction projects, including military facilities, barracks, and infrastructure upgrades. Their experience often includes working in challenging environments and adhering to strict military specifications. A review of federal procurement data would reveal the volume and types of contracts they have secured, providing insight into their performance and reliability as a government contractor. Their past performance is a key factor considered during the source selection process for new awards.
How does the $28.2 million contract value compare to similar naval base construction projects?
The $28.2 million contract value for alert facilities and apron construction at NAS JRB New Orleans is substantial, reflecting the complexity and scale of military infrastructure development. To benchmark effectively, one would compare this figure against recently awarded contracts for similar projects at other naval installations. Factors such as geographic location (labor and material costs), specific technical requirements (e.g., specialized apron surfacing, lighting systems), and the overall scope of work (e.g., new construction vs. renovation) influence pricing. While precise comparisons require detailed project specifications, this value appears consistent with major construction efforts on military bases.
What are the primary risks associated with this fixed-price construction contract?
Despite the fixed-price nature, which aims to control costs, risks remain. The primary risk is unforeseen site conditions (e.g., subsurface contamination, unexpected geological issues) that could lead to change orders and increased costs, although the contractor bears more of this risk than in a cost-plus contract. Contractor performance risk is also present; delays or quality issues could impact operational readiness. Furthermore, the long duration (over three years) increases exposure to market fluctuations in material costs and labor availability, which could strain the contractor's ability to maintain profitability without impacting quality or schedule.
How effective is full and open competition in ensuring value for this type of construction contract?
Full and open competition is generally considered the most effective method for ensuring value in federal contracting, including large construction projects. It allows a wide range of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. For this $28.2 million contract, the fact that it was competed openly suggests the Department of the Navy sought the best possible offer from the market. The presence of two bidders indicates some level of competition, though a higher number of bidders could potentially yield even greater cost savings or better technical solutions.
What is the historical spending pattern for construction at NAS JRB New Orleans?
Analyzing historical spending patterns at NAS JRB New Orleans for construction would provide context for this $28.2 million award. This involves examining past contracts awarded for similar types of work (e.g., facility upgrades, apron construction, infrastructure maintenance) at the base over several fiscal years. Understanding the frequency and average cost of such projects can reveal trends in investment and identify any significant deviations from historical norms. This specific contract's value can then be assessed against these historical benchmarks to determine if it represents a typical expenditure or an outlier, potentially due to specific modernization initiatives or deferred maintenance.
What are the implications of the contract duration (1300 days) for project management and oversight?
A contract duration of approximately 1300 days (over three years) for a construction project of this magnitude necessitates robust project management and sustained oversight. The extended timeline increases the complexity of coordinating various construction phases, managing resources, and monitoring progress against milestones. For the government, it requires consistent engagement from contracting officers and CORs to ensure the contractor adheres to the schedule, maintains quality standards, and manages risks effectively throughout the project lifecycle. The long duration also heightens the importance of proactive risk mitigation strategies to address potential issues like material price volatility or labor shortages.
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: N6945020R0129
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: B.L. Harbert Holdings, L.L.C.
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: $28,662,825
Exercised Options: $28,186,996
Current Obligation: $28,186,996
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-03-11
Current End Date: 2024-10-01
Potential End Date: 2024-10-01 00:00:00
Last Modified: 2024-01-08
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