State Department Awards $90.5M Embassy Renovation Contract to BL Harbert International
Contract Overview
Contract Amount: $90,552,490 ($90.6M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2011-11-01
End Date: 2014-09-30
Contract Duration: 1,064 days
Daily Burn Rate: $85.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HELSINKI, FINLAND. DESIGN/BUILD CONSTRUCTION SERVICES FOR EMBASSY COMPOUND RENOVATION AND NEW CHANCERY ADDITION.
Plain-Language Summary
Department of State obligated $90.6 million to BL HARBERT INTERNATIONAL LLC for work described as: HELSINKI, FINLAND. DESIGN/BUILD CONSTRUCTION SERVICES FOR EMBASSY COMPOUND RENOVATION AND NEW CHANCERY ADDITION. Key points: 1. Contract awarded for significant embassy compound renovation and new chancery addition. 2. BL Harbert International, a large business, secured the contract. 3. The contract was awarded under full and open competition. 4. Firm Fixed Price contract type suggests clear scope and cost control.
Value Assessment
Rating: good
The contract value of $90.5M for a design/build embassy project appears reasonable given the scope. Benchmarking against similar large-scale government construction projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating a robust process for selecting the contractor. This method generally promotes competitive pricing and ensures the best value is sought.
Taxpayer Impact: The use of full and open competition aims to secure the most cost-effective solution for taxpayers on this significant infrastructure project.
Public Impact
Enhances diplomatic presence and security through facility upgrades. Supports construction jobs and related industries. Modernized facilities improve operational efficiency for embassy staff.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Positive Signals
- Full and open competition utilized
- Firm Fixed Price contract type
- Clear project scope (design/build)
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Government spending in this sector often involves large, complex projects with significant capital investment.
Small Business Impact
The data indicates that small businesses were not primary awardees on this specific contract, as it was awarded to BL Harbert International, a large business. Opportunities for small business subcontracting may exist but are not detailed here.
Oversight & Accountability
The Department of State, as the contracting agency, is responsible for overseeing the execution of this contract to ensure compliance with terms and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $90.6 million to BL HARBERT INTERNATIONAL LLC. HELSINKI, FINLAND. DESIGN/BUILD CONSTRUCTION SERVICES FOR EMBASSY COMPOUND RENOVATION AND NEW CHANCERY ADDITION.
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 $90.6 million.
What is the period of performance?
Start: 2011-11-01. End: 2014-09-30.
What was the competitive landscape like during the bidding process?
The contract was awarded under full and open competition, suggesting multiple bids were likely received. While the specific number of bidders isn't provided, this method is designed to foster a competitive environment, driving down costs and ensuring the government selects the most advantageous offer based on technical merit and price.
Are there any identified risks associated with this contract's execution?
Potential risks could include unforeseen site conditions during construction, delays in material procurement, or scope creep if the design-build process isn't tightly managed. The firm fixed price contract helps mitigate cost overruns, but schedule adherence and quality control remain key oversight areas.
How does this project's cost compare to similar embassy construction projects?
Without specific benchmarks for comparable embassy renovation and new construction projects, a precise value assessment is difficult. However, the $90.5M figure for a design/build project of this scale is substantial, and its cost-effectiveness would be best evaluated against projects with similar geographic, security, and functional requirements.
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
Solicitation ID: SAQMMA-11-R-0074
Offers Received: 4
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: $90,552,491
Exercised Options: $90,552,491
Current Obligation: $90,552,490
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-11-01
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2016-12-21
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