State Department Awards $103M Contract for Building Construction to BL Harbert International LLC
Contract Overview
Contract Amount: $104,384,651 ($104.4M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2008-05-27
End Date: 2013-08-31
Contract Duration: 1,922 days
Daily Burn Rate: $54.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LUSAKA NEC 8051: CLIN 0001 = $103,042,405. CLIN 0002 = $0.00
Plain-Language Summary
Department of State obligated $104.4 million to BL HARBERT INTERNATIONAL LLC for work described as: LUSAKA NEC 8051: CLIN 0001 = $103,042,405. CLIN 0002 = $0.00 Key points: 1. The contract's value is significant at over $103 million, primarily for CLIN 0001. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract spans over 5 years, indicating a long-term commitment and potential for cost overruns. 4. The sector is Commercial and Institutional Building Construction, a critical area for infrastructure development.
Value Assessment
Rating: good
The contract value of $103,042,405 for CLIN 0001 appears reasonable for a large-scale construction project of this duration. Benchmarking against similar large institutional building projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The number of bids received and the final negotiated price would further illuminate the effectiveness of this price discovery.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bidders to offer competitive prices.
Public Impact
Taxpayers benefit from competitive bidding processes that aim to reduce costs. The construction project will likely create jobs and stimulate economic activity in the region. The successful completion of the building is crucial for the Department of State's operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1922 days) increases risk of cost escalation.
- No small business participation noted, potentially missing opportunities for economic inclusion.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type helps control costs.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is vital for government infrastructure. Spending in this sector can vary widely based on project scope and economic conditions.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award (ss=false, sb=false). Future opportunities could explore subcontracting requirements to ensure small business participation.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Robust oversight is necessary to ensure timely completion, quality standards, and adherence to budget throughout the contract's lifecycle.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long contract duration increases risk.
- Potential for cost escalation due to market fluctuations.
- Lack of small business participation.
- Performance risks over a multi-year project.
Tags
commercial-and-institutional-building-co, department-of-state, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $104.4 million to BL HARBERT INTERNATIONAL LLC. LUSAKA NEC 8051: CLIN 0001 = $103,042,405. CLIN 0002 = $0.00
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 $104.4 million.
What is the period of performance?
Start: 2008-05-27. End: 2013-08-31.
What specific construction services does CLIN 0001 encompass, and how does its cost align with industry benchmarks for similar projects?
CLIN 0001 represents the primary construction services for the Lusaka NEC project, valued at over $103 million. A detailed breakdown of services is needed for precise benchmarking. However, for large-scale institutional building construction, costs can range significantly based on location, materials, and complexity. Without specific service details, a definitive cost assessment against industry benchmarks is challenging, but the value suggests a substantial undertaking.
Given the long duration and firm fixed price, what are the primary risks associated with cost overruns or performance issues?
The primary risks with a long-duration, firm fixed-price contract include unforeseen material cost increases, labor shortages, or scope creep that could strain the contractor's ability to maintain the fixed price without compromising quality or schedule. Performance risks involve potential delays or defects that may require costly remediation, impacting the government's operational readiness and potentially leading to disputes.
How effectively did the 'full and open competition' process ensure the best value for the government and taxpayers?
Full and open competition is designed to maximize value by encouraging multiple bidders to compete, driving down prices and improving quality. The effectiveness is best assessed by the number of bids received, the competitiveness of the final price compared to initial estimates, and the contractor's subsequent performance. A transparent evaluation process and a competitive bid landscape are key indicators of success in achieving taxpayer value.
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: 4
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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $104,384,651
Exercised Options: $104,384,651
Current Obligation: $104,384,651
Timeline
Start Date: 2008-05-27
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2013-08-27
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