State Department's $114.6M Guangzhou Consulate Construction Awarded to BL Harbert International LLC
Contract Overview
Contract Amount: $114,577,018 ($114.6M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2009-08-26
End Date: 2015-07-17
Contract Duration: 2,151 days
Daily Burn Rate: $53.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF A NEW CONSULATE COMPOUND (NCC) IN GUANGZHOU, CHINA (INCLUDES BUILDINGS AND ALL SITE WORK).
Plain-Language Summary
Department of State obligated $114.6 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION OF A NEW CONSULATE COMPOUND (NCC) IN GUANGZHOU, CHINA (INCLUDES BUILDINGS AND ALL SITE WORK). Key points: 1. The contract value of $114.6 million for the Guangzhou Consulate Compound construction is substantial, reflecting a significant investment in diplomatic infrastructure. 2. Awarded under full and open competition, the contract suggests a competitive bidding process, though specific benchmark data is needed for a full assessment. 3. The project's duration of 2151 days (approx. 6 years) indicates a complex, long-term undertaking with inherent risks related to schedule and cost overruns. 4. The sector is Commercial and Institutional Building Construction, a field with established industry standards and potential for cost variations based on location and complexity.
Value Assessment
Rating: fair
The contract value of $114.6 million for a new consulate compound is significant. Without specific per-unit cost data or comparable project benchmarks, it's difficult to definitively assess its pricing relative to similar international construction projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically promotes competitive pricing. However, the final price is a firm fixed price, meaning the contractor bears the risk of cost overruns, which can sometimes lead to higher initial bids.
Taxpayer Impact: The substantial investment in diplomatic infrastructure aims to enhance U.S. presence abroad, with the cost being borne by taxpayers through federal appropriations.
Public Impact
Enhances U.S. diplomatic presence and security in China. Supports local employment and economic activity during the construction phase. Represents a long-term U.S. government investment in international relations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2151 days) increases risk of cost escalation and unforeseen issues.
- Construction in a foreign country presents unique logistical and regulatory challenges.
- Firm Fixed Price contract may lead to higher initial bids to cover contractor risk.
- No indication of small business participation.
Positive Signals
- Awarded via full and open competition, suggesting a competitive process.
- Significant investment in critical diplomatic infrastructure.
- Long-term asset for U.S. foreign policy.
Sector Analysis
The construction of a new consulate compound falls under Commercial and Institutional Building Construction. Spending in this sector can vary widely based on project scale, location, and specific requirements. International projects often incur higher costs due to logistics, security, and specialized labor.
Small Business Impact
The data indicates that small businesses were not involved in this contract (sb: false). This suggests the prime contractor did not subcontract to small businesses or that the contract was structured in a way that did not facilitate small business participation.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Given the project's scale and duration, robust oversight mechanisms are crucial to ensure quality, adherence to schedule, and fiscal responsibility, mitigating risks associated with large construction projects.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Significant contract value ($114.6M).
- Long project duration (2151 days).
- Construction in a foreign country (China).
- Firm Fixed Price contract can inflate initial bids.
- No reported small business participation.
- Lack of specific cost benchmarks for comparison.
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 $114.6 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION OF A NEW CONSULATE COMPOUND (NCC) IN GUANGZHOU, CHINA (INCLUDES BUILDINGS AND ALL SITE WORK).
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 $114.6 million.
What is the period of performance?
Start: 2009-08-26. End: 2015-07-17.
What is the cost per square foot for the new consulate compound, and how does it compare to similar diplomatic facilities built internationally?
The provided data does not include the square footage of the consulate compound, making a per-square-foot cost analysis impossible. To assess value, this metric would need to be obtained and compared against benchmarks for similar international government construction projects, considering factors like location, security requirements, and material costs.
What specific risks were identified during the bidding process for this project, and what mitigation strategies are in place?
The data does not detail specific risks identified during the bidding process. However, common risks for such large, long-term international construction projects include geopolitical instability, currency fluctuations, supply chain disruptions, and unforeseen site conditions. Mitigation strategies would typically involve detailed risk assessments, contingency planning, robust contract clauses, and active project management by the State Department.
How effectively has the Department of State managed similar large-scale international construction projects in the past to ensure cost and schedule adherence?
Information on the Department of State's past performance managing similar projects is not provided. Evaluating their effectiveness would require analyzing historical data on cost overruns, schedule delays, and dispute resolution for previous international construction contracts. A review of their project management methodologies and oversight capabilities would also be necessary.
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: 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, BIRMINGHAM, AL, 35209
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $114,577,018
Exercised Options: $114,577,018
Current Obligation: $114,577,018
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2009-08-26
Current End Date: 2015-07-17
Potential End Date: 2015-07-17 00:00:00
Last Modified: 2015-07-17
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