State Department Awards $91.5M Embassy Construction Contract to BL Harbert International
Contract Overview
Contract Amount: $91,539,685 ($91.5M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2006-12-29
End Date: 2011-12-19
Contract Duration: 1,816 days
Daily Burn Rate: $50.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/CONSTRUCT NEW EMBASSY BUILDING.
Plain-Language Summary
Department of State obligated $91.5 million to BL HARBERT INTERNATIONAL LLC for work described as: DESIGN/CONSTRUCT NEW EMBASSY BUILDING. Key points: 1. The contract value of $91.5 million is substantial for a single embassy construction project. 2. BL Harbert International, a large private company, secured the contract. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. The firm fixed price contract type aims to control costs.
Value Assessment
Rating: good
The contract value of $91.5 million is significant for constructing a new embassy. Benchmarking against similar large-scale government construction projects would be necessary for a precise value assessment, but it appears within a reasonable range for such a complex undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, ensuring value for money in the construction of this important diplomatic facility.
Public Impact
Construction of a new embassy signifies a long-term U.S. diplomatic presence and investment in the host country. The project creates jobs in the construction sector and related industries. The final building will house diplomatic staff and operations, impacting U.S. foreign policy delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Delays in construction timelines can impact project completion.
- Geopolitical risks in the host country could affect the project.
Positive Signals
- Firm fixed price contract helps control costs.
- Full and open competition likely secured competitive pricing.
- Experienced contractor selected for a complex project.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which involves the erection of non-residential buildings. Government construction projects of this scale often represent a significant portion of spending within this sector.
Small Business Impact
The data indicates that the prime contractor is BL Harbert International LLC, a large business. There is no information provided on subcontracting to small businesses for this specific award.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Standard government oversight mechanisms for construction projects, including site inspections and progress reviews, would be in place to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost overruns.
- Risk of construction delays.
- Geopolitical instability in the host country.
- Complexity of international construction standards.
Tags
commercial-and-institutional-building-co, department-of-state, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $91.5 million to BL HARBERT INTERNATIONAL LLC. DESIGN/CONSTRUCT NEW EMBASSY BUILDING.
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 $91.5 million.
What is the period of performance?
Start: 2006-12-29. End: 2011-12-19.
What was the initial estimated cost versus the final award amount, and how does this compare to similar embassy construction projects?
The provided data shows the final award amount at $91,539,685. Without the initial estimate or data on comparable embassy projects, it's difficult to definitively assess value. However, the firm fixed price contract suggests an effort to lock in costs. Further analysis would require access to the contract's baseline estimate and a benchmark of similar diplomatic facility constructions.
What specific risks were identified during the bidding process, and what mitigation strategies are in place for construction delays or unforeseen site conditions?
The data does not detail specific risks identified during the bidding process. However, for large construction projects, common risks include weather, material availability, labor issues, and unforeseen site conditions. Mitigation typically involves detailed project planning, contingency funds, robust contract clauses for delays, and thorough site investigations prior to award.
How effectively does the firm fixed price contract ensure cost control given the long duration and complexity of embassy construction?
A firm fixed price contract is designed to provide maximum price certainty for the government. For complex, long-duration projects like embassy construction, its effectiveness hinges on the accuracy of the initial cost estimation and the contractor's ability to manage risks within the fixed price. While it shifts risk to the contractor, significant unforeseen issues could still lead to claims or disputes.
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: SALMEC06R0065
Offers Received: 2
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, STE-3000, BIRMINGHAM, AL, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $91,539,685
Exercised Options: $91,539,685
Current Obligation: $91,539,685
Timeline
Start Date: 2006-12-29
Current End Date: 2011-12-19
Potential End Date: 2011-12-19 00:00:00
Last Modified: 2011-12-17
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.)