State Department Awards $135.8M for Liberia Embassy Construction, Full and Open Competition

Contract Overview

Contract Amount: $135,764,704 ($135.8M)

Contractor: BL Harbert International LLC

Awarding Agency: Department of State

Start Date: 2009-02-02

End Date: 2014-01-07

Contract Duration: 1,800 days

Daily Burn Rate: $75.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INITIAL AWARD FOR DESIGN/BUILD CONSTRUCTION SERVICES FOR A NEW EMBASSY COMPOUND (NEC) IN MONROVIA, LIBERIA. SIZE IS APPROXIMATELY 15,763 GROSS SQUARE METERS.

Plain-Language Summary

Department of State obligated $135.8 million to BL HARBERT INTERNATIONAL LLC for work described as: INITIAL AWARD FOR DESIGN/BUILD CONSTRUCTION SERVICES FOR A NEW EMBASSY COMPOUND (NEC) IN MONROVIA, LIBERIA. SIZE IS APPROXIMATELY 15,763 GROSS SQUARE METERS. Key points: 1. The award represents a significant investment in diplomatic infrastructure. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project's scale and location present logistical and security risks. 4. Construction sector spending benchmarks will be key to evaluating value.

Value Assessment

Rating: fair

The contract value of $135.8 million for a 15,763 gross square meter embassy compound is substantial. Benchmarking against similar international construction projects of this scale and complexity is necessary to assess its reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being utilized for critical diplomatic infrastructure, with the expectation of value derived from a competitive procurement process.

Public Impact

Enhances U.S. diplomatic presence and security in Liberia. Supports local economy through construction jobs and material sourcing. Represents a long-term U.S. commitment to the region.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

  • Potential for cost overruns in complex international construction.
  • Geopolitical risks in Liberia could impact project timeline and budget.
  • Long project duration (2009-2014) may have led to scope creep or price adjustments.

Positive Signals

  • Awarded via full and open competition.
  • Firm Fixed Price contract type limits contractor risk.
  • Clear project scope defined.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Benchmarks for similar embassy or large-scale government construction projects would provide context for cost and timeline efficiency.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of State, as the contracting and funding agency, is responsible for oversight. The duration of the contract suggests ongoing monitoring was required throughout the construction period.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of State Contracting
  • Department of State Programs

Risk Flags

  • Potential for cost overruns due to international location.
  • Security risks associated with the project site.
  • Long contract duration increases risk of scope creep.
  • Lack of small business participation noted.

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 $135.8 million to BL HARBERT INTERNATIONAL LLC. INITIAL AWARD FOR DESIGN/BUILD CONSTRUCTION SERVICES FOR A NEW EMBASSY COMPOUND (NEC) IN MONROVIA, LIBERIA. SIZE IS APPROXIMATELY 15,763 GROSS SQUARE METERS.

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 $135.8 million.

What is the period of performance?

Start: 2009-02-02. End: 2014-01-07.

What was the final cost compared to the initial award, and were there significant change orders?

The provided data shows the initial award amount. To fully assess value, a comparison of the final obligated amount against the initial award is crucial. Analysis of any change orders would reveal if scope adjustments or unforeseen circumstances led to cost increases, impacting the overall financial efficiency of the project.

What were the primary risks identified during the bidding process and how were they mitigated?

Given the location and scale, risks likely included security, logistical challenges, and local labor/material availability. Mitigation strategies would involve detailed site assessments, robust security plans, and strong contract management to address potential delays or cost escalations inherent in overseas construction.

How effectively did the full and open competition translate into cost savings or superior quality for this project?

While full and open competition generally fosters competitive pricing, the ultimate effectiveness depends on the number and quality of bids received, and the agency's negotiation. Assessing if the final cost was significantly below initial estimates or if the quality met or exceeded expectations would indicate the success of the competitive process.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SAQMMA-09-R-0006

Offers Received: 3

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, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $135,764,704

Exercised Options: $135,764,704

Current Obligation: $135,764,704

Timeline

Start Date: 2009-02-02

Current End Date: 2014-01-07

Potential End Date: 2014-01-07 00:00:00

Last Modified: 2014-09-03

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