State Department awards $46.8M construction contract for NEC project to BL Harbert International LLC

Contract Overview

Contract Amount: $46,852,948 ($46.9M)

Contractor: BL Harbert International LLC

Awarding Agency: Department of State

Start Date: 2005-09-29

End Date: 2008-06-06

Contract Duration: 981 days

Daily Burn Rate: $47.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF NEC PROJECT

Plain-Language Summary

Department of State obligated $46.9 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION OF NEC PROJECT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 981 days indicates a significant, long-term construction project. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The project falls under commercial and institutional building construction, a common sector for federal spending. 5. The award amount of over $46 million signifies a substantial investment in infrastructure. 6. No small business set-aside was utilized, indicating the primary contractor is not a small business.

Value Assessment

Rating: good

The contract value of $46.8 million for a construction project of this scale appears reasonable. Benchmarking against similar large-scale government construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure generally offers good value by capping the government's financial exposure, provided the initial bid was competitive and realistic.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 8 bidders (no) suggests a healthy level of competition for this project, which typically leads to more favorable pricing for the government. The competitive nature of the bidding process likely drove down costs and ensured a wider pool of qualified contractors was considered.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a lower overall price than a sole-source or limited competition award. It also ensures that taxpayer funds are being used efficiently by selecting the most cost-effective and capable bidder.

Public Impact

The primary beneficiary is the Department of State, which will receive the completed NEC project infrastructure. The project delivers essential construction services, likely for a new or renovated facility critical to the agency's operations. The geographic impact is localized to the site of the NEC project, though the exact location is not specified. The workforce implications include employment opportunities for construction workers, project managers, and support staff during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects, even with fixed-price contracts, if not managed meticulously.
Reliance on a single primary contractor, BL Harbert International LLC, for project completion.
The long duration could introduce risks related to material price fluctuations or labor availability if not adequately addressed in the contract.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm fixed-price contract type helps control costs and provides budget certainty.
The contractor, BL Harbert International LLC, has a track record in large-scale construction, suggesting experience.
The project duration is clearly defined, allowing for structured planning and execution.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to facility upgrades. This contract for the NEC project fits within the commercial and institutional building construction sub-sector. Federal spending in this area is driven by the need to maintain, modernize, and expand government facilities and infrastructure across various agencies. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by agencies like the GSA, DoD, or other departments for similar facility types.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses explicitly stated in the provided data. This suggests that the primary focus was on selecting the most capable and cost-effective large contractor. The implications for the small business ecosystem are that opportunities may be limited to direct subcontracts awarded by BL Harbert International LLC, rather than direct prime contracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract structure, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements, though specific oversight reports or IG investigations related to this particular contract are not detailed here.

Related Government Programs

Department of State Facilities Management
Federal Building Construction
Government Infrastructure Projects
Large-Scale Construction Contracts

Risk Flags

Long project duration may increase risk of unforeseen issues.
Reliance on a single prime contractor for a large project.
Potential for cost escalation if contract terms are not robustly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $46.9 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION OF NEC PROJECT

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 $46.9 million.

What is the period of performance?

Start: 2005-09-29. End: 2008-06-06.

What is the track record of BL Harbert International LLC on similar federal construction projects?

BL Harbert International LLC has a significant history of undertaking large-scale construction projects, including those for federal agencies. Their portfolio often includes complex facilities, such as embassies, military installations, and other government buildings. Analyzing their past performance on similar firm-fixed-price contracts, particularly those with durations exceeding one year, would provide insight into their ability to manage scope, schedule, and budget effectively. Past performance reviews and any documented issues or successes on previous federal contracts would be crucial for a comprehensive assessment of their reliability and capability for this NEC project.

How does the awarded amount compare to similar NEC project constructions by the government?

Direct comparison of the $46.8 million award for this NEC project to 'similar' projects is challenging without more specific details on the project's scope, size (square footage), complexity, and location. However, the amount is substantial and falls within the range of major federal construction contracts for significant facilities. Benchmarking would involve identifying other Department of State or similar agency construction projects of comparable scale and complexity awarded within a similar timeframe. Factors like prevailing wage rates, material costs, and site-specific conditions heavily influence construction costs, making precise comparisons difficult without detailed project specifications.

What are the primary risks associated with a firm fixed-price contract for a project of this duration?

While firm fixed-price (FFP) contracts are designed to transfer risk to the contractor, long-duration projects (981 days) introduce specific challenges. Key risks include potential for contractor default or bankruptcy over the extended period, unforeseen site conditions that could lead to disputes over scope or cost adjustments (though FFP aims to minimize this), and the contractor's potential to cut corners on quality to maintain profitability if margins are tight. For the government, the primary risk is that the initial price might be inflated due to the contractor pricing in contingencies for these long-term risks, or that the contractor may struggle to maintain adequate resources and focus over such an extended period, potentially leading to delays or performance issues.

What is the expected effectiveness of the completed NEC project in supporting the Department of State's mission?

The effectiveness of the completed NEC project hinges on its intended purpose, which is not fully detailed in the provided data. Assuming 'NEC' refers to a critical operational facility (e.g., National Emergency Center, Network Engineering Center, or similar), its effectiveness would be measured by its ability to provide secure, reliable, and functional space for the agency's personnel and operations. This could include enhanced communication capabilities, improved workspace efficiency, increased security, or better disaster resilience. The project's success in meeting these specific functional requirements, as outlined in the original requirements and design specifications, will determine its overall effectiveness in supporting the Department of State's broader mission.

How has the Department of State's spending on construction projects evolved over the past five years?

Analyzing the Department of State's historical spending on construction projects over the past five years would require access to detailed budget and contract award data. Generally, federal agencies like the State Department undertake construction projects to maintain and upgrade their global facilities, including embassies, consulates, and domestic offices. Spending levels can fluctuate based on infrastructure needs, security requirements, geopolitical events, and budget appropriations. A trend analysis would reveal if spending has been increasing, decreasing, or remaining stable, and identify any major shifts in the types or scale of construction projects undertaken.

What are the implications of awarding a large construction contract to a single prime contractor like BL Harbert International LLC?

Awarding a large construction contract to a single prime contractor like BL Harbert International LLC centralizes responsibility and streamlines communication for the government. This approach allows for a clear point of accountability for project delivery. However, it also concentrates risk with that single entity. The government relies heavily on the prime contractor's management capabilities, financial stability, and subcontractor oversight. If the prime contractor underperforms or faces financial difficulties, the entire project could be jeopardized. Effective government oversight is therefore critical to monitor the prime contractor's performance and ensure compliance with contract terms.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: B.L. Harbert Holdings, L.L.C. (UEI: 147371236)

Address: 820 SHADES CREEK PKWY, BIRMINGHAM, AL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,201,880

Exercised Options: $46,852,948

Current Obligation: $46,852,948

Timeline