State Department's $125M Laos Embassy Project Awarded to BL Harbert International
Contract Overview
Contract Amount: $125,233,439 ($125.2M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2011-08-28
End Date: 2015-12-10
Contract Duration: 1,565 days
Daily Burn Rate: $80.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD OF NEW EMBASSY COMPOUND IN VIENTIANE, LAOS.
Plain-Language Summary
Department of State obligated $125.2 million to BL HARBERT INTERNATIONAL LLC for work described as: DESIGN/BUILD OF NEW EMBASSY COMPOUND IN VIENTIANE, LAOS. Key points: 1. The contract value of $125.2 million for the design/build of the new embassy compound in Vientiane, Laos, represents a significant investment. 2. BL Harbert International LLC secured the award under full and open competition, indicating a competitive bidding process. 3. The project falls under Commercial and Institutional Building Construction, a sector that can involve complex logistical and security considerations. 4. The firm fixed-price contract type suggests that cost risks were largely borne by the contractor, potentially leading to price stability.
Value Assessment
Rating: good
The $125.2 million contract price for the embassy construction appears reasonable given the scope of a design/build project for an overseas diplomatic facility. Benchmarking against similar large-scale government construction projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. This competitive environment is generally conducive to achieving fair market prices.
Taxpayer Impact: The competitive nature of the procurement process aims to ensure taxpayer funds are used efficiently for the construction of essential diplomatic infrastructure.
Public Impact
Enhances U.S. diplomatic presence and security in Laos. Supports local employment and economic activity during construction. Represents a long-term investment in international relations and infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to unforeseen site conditions or material price fluctuations.
- Geopolitical risks associated with operating in Laos could impact project timelines and security.
- Contract duration of 1565 days indicates a complex and lengthy project.
Positive Signals
- Firm fixed-price contract helps control costs.
- Full and open competition suggests a robust selection process.
- Project addresses a critical government need for diplomatic facilities.
Sector Analysis
The Commercial and Institutional Building Construction sector involves large-scale projects with significant material and labor requirements. Spending in this sector can vary widely based on project complexity, location, and security needs, with embassy construction being at the higher end.
Small Business Impact
The data indicates that BL Harbert International LLC, a large business, received the contract. There is no specific information provided regarding small business participation or subcontracting goals for this particular award.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reviews, would be in place to ensure quality and adherence to the contract.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Contract duration is lengthy (1565 days).
- Project is located internationally, increasing logistical complexity.
- No explicit mention of small business subcontracting goals.
- Potential for unforeseen site conditions in a foreign location.
- Geopolitical factors could introduce risks.
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $125.2 million to BL HARBERT INTERNATIONAL LLC. DESIGN/BUILD OF NEW EMBASSY COMPOUND IN VIENTIANE, LAOS.
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 $125.2 million.
What is the period of performance?
Start: 2011-08-28. End: 2015-12-10.
What was the initial estimated cost versus the final award amount, and what factors contributed to any difference?
The provided data does not include the initial estimated cost, only the final award amount of $125,233,439.24. Analyzing the difference between estimates and awards is crucial for understanding procurement efficiency. Significant deviations could indicate issues with initial budgeting, scope changes during the procurement process, or market fluctuations impacting contractor bids.
Were there any significant change orders or modifications issued during the contract period, and how did they impact the final cost?
The data does not detail contract modifications or change orders. For a project of this duration and complexity, it is common to have modifications. Understanding these changes is vital for assessing cost control effectiveness and identifying potential scope creep or unforeseen challenges that affected the final expenditure.
How does the cost per square foot of this embassy compare to similar overseas construction projects of comparable size and security requirements?
A cost per square foot benchmark is not provided in the data. To assess value, this metric would need to be calculated and compared against similar U.S. embassy or other high-security government facility constructions abroad. Such a comparison would reveal if the $125.2 million award represents an efficient use of taxpayer funds relative to industry standards.
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: 7
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: $125,233,439
Exercised Options: $125,233,439
Current Obligation: $125,233,439
Contract Characteristics
Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Timeline
Start Date: 2011-08-28
Current End Date: 2015-12-10
Potential End Date: 2015-12-10 00:00:00
Last Modified: 2017-08-01
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