State Department's $122M office annex construction contract awarded to BL Harbert International LLC

Contract Overview

Contract Amount: $122,333,917 ($122.3M)

Contractor: BL Harbert International LLC

Awarding Agency: Department of State

Start Date: 2011-09-30

End Date: 2015-01-19

Contract Duration: 1,207 days

Daily Burn Rate: $101.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN&CONSTRUCTION OF A NEW OFFICE ANNEX (NOX)

Plain-Language Summary

Department of State obligated $122.3 million to BL HARBERT INTERNATIONAL LLC for work described as: DESIGN&CONSTRUCTION OF A NEW OFFICE ANNEX (NOX) Key points: 1. The contract value of $122.3 million represents a significant investment in federal infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type aims to control costs and provide predictability. 4. The project duration of 1207 days indicates a substantial construction undertaking. 5. The contract was awarded by the Department of State, highlighting its role in agency facilities management. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $122.3 million for the construction of a new office annex appears reasonable for a project of this scale. Without specific benchmarks for similar annex constructions by the State Department or other agencies, a direct price comparison is difficult. However, the firm-fixed-price structure suggests that the contractor assumed the primary risk for cost overruns, which can be a positive indicator of value if the final cost remains within the awarded amount. The duration of the contract (1207 days) also provides context for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders (implied by 'no': 6) suggests a healthy level of competition for this significant construction project. A competitive bidding process generally leads to more favorable pricing and better terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more cost-effective outcome for taxpayers by driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of State personnel who will utilize the new office annex, potentially improving working conditions and operational efficiency. The project delivers essential infrastructure in the form of a new office building, supporting the agency's mission. The geographic impact is localized to the site of the new annex, likely within the United States. The construction phase will likely involve a significant workforce, including architects, engineers, construction workers, and project managers, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price contract.
Delays in project completion could impact the agency's operational capacity.
Ensuring the quality of construction meets long-term durability and safety standards.

Positive Signals

Awarded through full and open competition, indicating a competitive market for the services.
Firm-fixed-price contract type helps to lock in costs and manage budget.
The contractor, BL Harbert International LLC, has experience in large-scale construction projects.

Sector Analysis

The construction sector is a vital part of the economy, encompassing a wide range of building projects from residential to large-scale commercial and institutional facilities. The Department of State's investment in a new office annex falls under commercial and institutional building construction. The total federal spending on construction can fluctuate significantly based on infrastructure needs and agency priorities. This contract represents a specific instance of federal investment within this broader sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem through this specific contract appears limited. However, larger prime contractors often engage small businesses as subcontractors, so there may be indirect opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program officials within the Department of State. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly available.

Related Government Programs

Federal Building Construction
Department of State Facilities Management
Government Office Building Projects

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting agency operations.
Ensuring long-term quality and durability of construction.
Contractor performance and financial stability.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $122.3 million to BL HARBERT INTERNATIONAL LLC. DESIGN&CONSTRUCTION OF A NEW OFFICE ANNEX (NOX)

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 $122.3 million.

What is the period of performance?

Start: 2011-09-30. End: 2015-01-19.

What is the track record of BL Harbert International LLC in completing similar federal construction projects on time and within budget?

BL Harbert International LLC has a history of undertaking large-scale construction projects, including federal facilities. Analyzing their past performance on similar contracts awarded by the Department of State or other federal agencies would provide insight into their reliability. Key metrics to examine would include on-time completion rates, adherence to budget, and any instances of contract disputes or modifications. A review of their project portfolio and client feedback, where available, can help assess their capacity to manage complex federal construction endeavors effectively and mitigate potential risks associated with project execution.

How does the awarded price of $122.3 million compare to the estimated cost or benchmark for similar office annex construction projects?

Benchmarking the $122.3 million contract value against similar federal office annex constructions is crucial for assessing value for money. This comparison would ideally involve projects of comparable size, complexity, and geographic location, awarded around the same time period. Factors such as the specific architectural requirements, site conditions, and prevailing construction material costs in the region would need to be considered. Without access to detailed cost breakdowns or a database of comparable projects with their awarded prices, a precise value-for-money assessment is challenging. However, the fact that it was awarded under full and open competition suggests that the price was deemed competitive by the market.

What are the primary risk indicators associated with this firm-fixed-price construction contract?

While firm-fixed-price contracts are designed to control costs, risks can still emerge. For this project, potential risks include unforeseen site conditions (e.g., soil issues, hazardous materials) that could lead to change orders and cost increases, despite the fixed price. Contractor performance risk is also a factor; if BL Harbert International LLC faces financial difficulties or management issues, it could jeopardize project timelines and quality. Furthermore, the long duration of the contract (1207 days) increases the exposure to market fluctuations in material costs and labor availability, which could strain the contractor's ability to maintain the fixed price without compromising quality or seeking additional compensation through contract modifications.

How effective is the Department of State's procurement process in ensuring competitive pricing for large construction projects like this office annex?

The Department of State's utilization of 'full and open competition' for this $122.3 million office annex construction contract suggests a commitment to competitive pricing. This method allows all responsible contractors to bid, fostering a market-driven environment that typically yields better prices for the government. The presence of six bidders further indicates a healthy level of interest and competition. The effectiveness of the procurement process can be further evaluated by examining the bid evaluation criteria, the clarity of the solicitation documents, and whether the final awarded price represented a significant saving compared to initial government estimates. Consistent use of competitive procedures for similar projects would point towards an effective process.

What is the historical spending pattern of the Department of State on construction and facilities management over the past five years?

Analyzing the Department of State's historical spending on construction and facilities management over the past five years would provide context for the $122.3 million office annex contract. This would involve examining annual expenditures on new construction, renovations, maintenance, and related services. Understanding this trend can reveal whether this contract represents a typical investment, an increase in spending, or a deviation from historical patterns. It can also highlight the agency's priorities and its capacity to manage multiple large-scale projects simultaneously. Comparing this contract's value to the overall facilities budget would offer further insights into its significance.

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: 6

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, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $122,333,917

Exercised Options: $122,333,917

Current Obligation: $122,333,917

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline