State Department Awards $123M Design-Build Contract for New Embassy Compound in Eswatini
Contract Overview
Contract Amount: $123,004,013 ($123.0M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2012-09-26
End Date: 2016-12-30
Contract Duration: 1,556 days
Daily Burn Rate: $79.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MBABANE, SWAZILAND. DESIGN-BUILD CONTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC).
Plain-Language Summary
Department of State obligated $123.0 million to BL HARBERT INTERNATIONAL LLC for work described as: MBABANE, SWAZILAND. DESIGN-BUILD CONTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC). Key points: 1. The contract value of $123 million is significant for a single construction project. 2. BL Harbert International LLC is the sole awardee, indicating a competitive award process. 3. The project falls under Commercial and Institutional Building Construction, a common sector for federal spending. 4. The firm fixed price contract type aims to control costs, but the final price is key.
Value Assessment
Rating: good
The contract value of $123 million for a new embassy compound appears reasonable given the scope of design-build services. Benchmarking against similar large-scale international construction projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The selection of BL Harbert International LLC indicates they offered the best value.
Taxpayer Impact: Taxpayer funds are utilized for critical diplomatic infrastructure, with competition aiming for cost-effectiveness.
Public Impact
Enhances U.S. diplomatic presence and security in Eswatini. Supports local employment and economic activity during construction. Represents a long-term investment in international relations.
Waste & Efficiency Indicators
Waste Risk Score: 79 / 10
Warning Flags
- Potential for cost overruns in large-scale international construction.
- Geopolitical risks in Eswatini could impact project timeline or costs.
- Reliance on a single contractor for design and build.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
- Project duration aligns with typical large construction timelines.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector often involves significant capital investments for government facilities, both domestically and abroad.
Small Business Impact
The data indicates that small businesses were not directly awarded this prime contract. Opportunities for small businesses likely exist as subcontractors to BL Harbert International LLC.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, would be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost overruns.
- Geopolitical risks.
- Contractor performance risk.
- Logistical challenges in Eswatini.
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 $123.0 million to BL HARBERT INTERNATIONAL LLC. MBABANE, SWAZILAND. DESIGN-BUILD CONTRUCTION SERVICES FOR NEW EMBASSY COMPOUND (NEC).
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 $123.0 million.
What is the period of performance?
Start: 2012-09-26. End: 2016-12-30.
What was the competitive landscape like for this full and open solicitation, and how did BL Harbert International LLC's proposal stand out?
While awarded under full and open competition, specific details on the number of bids received and the evaluation criteria are not provided. BL Harbert International LLC likely demonstrated superior technical capabilities, a competitive price, and a strong understanding of the project's unique requirements and risks associated with construction in Eswatini.
What are the primary risks associated with constructing an embassy compound in Eswatini, and how were they mitigated in the contract?
Risks include logistical challenges, local labor availability and regulations, security concerns, and potential political instability. The firm fixed price contract aims to transfer some cost risk to the contractor. Mitigation likely involved detailed site assessments, security planning, and contract clauses addressing unforeseen circumstances.
How does the $123 million cost compare to similar international embassy construction projects, and what is the long-term value proposition?
Benchmarking against similar projects is crucial for a definitive cost assessment. The long-term value lies in establishing a secure and functional diplomatic presence, facilitating U.S. foreign policy objectives, and serving as a symbol of commitment to Eswatini.
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: TWO STEP
Solicitation ID: SAQMMA-12-R-0097
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: B.L. Harbert Holdings, L.L.C.
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: $123,005,191
Exercised Options: $123,005,191
Current Obligation: $123,004,013
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-26
Current End Date: 2016-12-30
Potential End Date: 2016-12-30 00:00:00
Last Modified: 2024-11-20
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