State Department Awards $72.3M Construction Contract for Gabon Embassy
Contract Overview
Contract Amount: $74,432,173 ($74.4M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2010-04-16
End Date: 2013-06-21
Contract Duration: 1,162 days
Daily Burn Rate: $64.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: AWARD IN THE AMOUNT OF $72,259,413.00 FOR CONSTRUCTION OF NEC, LIBREVILLE, GABON.
Plain-Language Summary
Department of State obligated $74.4 million to BL HARBERT INTERNATIONAL LLC for work described as: AWARD IN THE AMOUNT OF $72,259,413.00 FOR CONSTRUCTION OF NEC, LIBREVILLE, GABON. Key points: 1. The contract is for the construction of the U.S. Embassy in Libreville, Gabon. 2. The award was made under full and open competition. 3. The contract duration is 1162 days. 4. The total value of the contract is $72,259,413.
Value Assessment
Rating: good
The award amount of $72.3 million for embassy construction appears reasonable given the scope and location. Benchmarking against similar international construction projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Enhances U.S. diplomatic presence and security in Gabon. Supports local employment and economic activity during construction. Represents a significant investment in U.S. infrastructure abroad.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to international construction complexities.
- Geopolitical risks in Gabon could impact project timeline and budget.
- Currency exchange rate fluctuations could affect final costs.
Positive Signals
- Awarded under full and open competition, indicating competitive pricing.
- Experienced contractor likely selected, reducing execution risk.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the Construction sector, specifically commercial and institutional building construction. International construction projects often carry higher risks and costs compared to domestic projects due to logistics, security, and regulatory differences.
Small Business Impact
The contract was awarded to BL Harbert International LLC, a large business. There is no indication of small business participation in this specific award, which is common for large-scale, specialized construction projects.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Regular progress reports and site inspections are expected to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- International project complexities
- Geopolitical instability in the region
- Logistical challenges in Gabon
- Potential for currency fluctuations
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 $74.4 million to BL HARBERT INTERNATIONAL LLC. AWARD IN THE AMOUNT OF $72,259,413.00 FOR CONSTRUCTION OF NEC, LIBREVILLE, GABON.
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 $74.4 million.
What is the period of performance?
Start: 2010-04-16. End: 2013-06-21.
What is the benchmark cost per square foot for similar embassy construction projects globally?
Benchmarking the cost per square foot against similar U.S. embassy construction projects globally is crucial for assessing value. Factors like location, security requirements, and local labor costs significantly influence these figures. Without specific project details, a precise benchmark is difficult, but generally, such projects are high-cost due to stringent standards.
What specific risks were identified during the procurement process for this project in Gabon?
Specific risks identified during procurement likely included logistical challenges in Gabon, potential security concerns, local labor availability and cost, and compliance with local building codes and regulations. The contracting agency would have assessed these risks and incorporated mitigation strategies into the contract terms and performance requirements.
How effectively does the firm fixed price contract mitigate cost escalation risks for the government?
A firm fixed price (FFP) contract is designed to shift most of the risk of cost overruns to the contractor. This provides the government with maximum cost certainty, as the price is set upfront. Any cost increases incurred by the contractor are generally absorbed by them, unless specific contract clauses allow for adjustments.
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: 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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $74,432,173
Exercised Options: $74,432,173
Current Obligation: $74,432,173
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-16
Current End Date: 2013-06-21
Potential End Date: 2013-06-21 00:00:00
Last Modified: 2013-08-19
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