State Department Awards $81M Construction Contract to BL Harbert International for Ouagadougou Facility
Contract Overview
Contract Amount: $81,059,339 ($81.1M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2007-09-25
End Date: 2012-03-30
Contract Duration: 1,648 days
Daily Burn Rate: $49.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NEC FOR OUAGADOUGOU
Plain-Language Summary
Department of State obligated $81.1 million to BL HARBERT INTERNATIONAL LLC for work described as: NEC FOR OUAGADOUGOU Key points: 1. The contract value of $81.1 million for construction is significant. 2. BL Harbert International is a large, established contractor, suggesting strong competition was likely. 3. The project duration of over 4 years indicates a complex undertaking. 4. Construction sector spending can be volatile, influenced by global economic factors.
Value Assessment
Rating: fair
The contract value of $81.1 million for a 5-year duration appears reasonable for a large-scale construction project. Benchmarking against similar embassy or large institutional building projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The number of bids received (5) suggests a healthy level of interest and price discovery.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness in constructing a significant overseas facility.
Public Impact
Enhances diplomatic presence and operational capacity in Ouagadougou. Supports local employment and economic activity during construction. Represents a long-term investment in U.S. foreign policy infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term international construction projects.
- Geopolitical risks associated with operating in Ouagadougou.
- Contract duration may exceed initial needs or face unforeseen delays.
Positive Signals
- Awarded through full and open competition.
- Experienced contractor selected.
- Firm fixed price contract mitigates cost escalation risk.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often project-specific and influenced by government infrastructure needs and global economic conditions. Benchmarks vary widely based on project scale and location.
Small Business Impact
The contract was awarded to BL Harbert International LLC, a large business. There is no indication of specific small business subcontracting goals or participation in this award.
Oversight & Accountability
The Department of State, as the awarding agency, is responsible for oversight. The contract's duration and international location necessitate robust monitoring to ensure quality, cost control, and adherence to security standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long project duration increases risk of unforeseen issues.
- International location presents unique security and logistical challenges.
- Potential for scope creep if not tightly managed.
- Reliance on a single large contractor may limit future flexibility.
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 $81.1 million to BL HARBERT INTERNATIONAL LLC. NEC FOR OUAGADOUGOU
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 $81.1 million.
What is the period of performance?
Start: 2007-09-25. End: 2012-03-30.
What was the specific scope of work for this construction project, and how did it align with the awarded price?
The scope involved the construction of a new U.S. Embassy facility in Ouagadougou. The $81 million price reflects the comprehensive nature of building a secure, modern diplomatic compound, including administrative buildings, housing, and support infrastructure, over a multi-year period.
What specific risks were identified and mitigated for a project of this scale and international location?
Key risks likely included security threats, logistical challenges in a foreign country, currency fluctuations, and potential labor disputes. Mitigation strategies would involve stringent security protocols, detailed logistical planning, currency hedging, and adherence to local labor laws and international standards.
How effectively did the competitive bidding process ensure value for taxpayer money on this project?
The 'full and open competition' award with five bids suggests a robust process that likely fostered competitive pricing. The firm fixed price contract further protects taxpayers from cost overruns, indicating a strong mechanism for ensuring value, assuming the initial bid accurately reflected project requirements.
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: 5
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, BIRMINGHAM, AL, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $81,059,339
Exercised Options: $81,059,339
Current Obligation: $81,059,339
Timeline
Start Date: 2007-09-25
Current End Date: 2012-03-30
Potential End Date: 2012-03-30 00:00:00
Last Modified: 2012-03-26
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