State Dept. Construction Contract Awarded to BL Harbert International for $163.9M Under Full and Open Competition
Contract Overview
Contract Amount: $163,974,309 ($164.0M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2014-01-30
End Date: 2019-05-29
Contract Duration: 1,945 days
Daily Burn Rate: $84.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::CT::IGF
Plain-Language Summary
Department of State obligated $164.0 million to BL HARBERT INTERNATIONAL LLC for work described as: IGF::CT::IGF Key points: 1. The contract value of $163.9 million represents a significant investment in infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of 1945 days indicates a long-term project with substantial scope. 4. The fixed-price nature of the contract aims to control costs for the government.
Value Assessment
Rating: fair
The award amount of $163.9M for commercial and institutional building construction is substantial. Benchmarking against similar large-scale construction projects would be necessary to fully assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the construction services.
Public Impact
Supports infrastructure development and modernization efforts by the Department of State. Potential for job creation within the construction sector and related industries. Ensures facilities are built or improved to meet operational needs. Long-term project may involve multiple phases and significant resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or quality indicators in the provided data.
- Potential for cost overruns if unforeseen issues arise during the long project duration.
- Dependence on a single contractor for an extended period could limit flexibility.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Firm fixed price contract helps in budget certainty.
- Significant investment indicates a critical need being addressed.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a vital area for government infrastructure. Spending benchmarks in this sector vary widely based on project scope, location, and complexity.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Oversight would typically involve regular progress reviews, site inspections, and financial audits by the Department of State to ensure contract compliance and project completion according to specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long contract duration increases exposure to market volatility.
- Lack of detailed scope of work and performance metrics.
- Potential for scope creep without stringent change control.
- No indication of small business participation.
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 $164.0 million to BL HARBERT INTERNATIONAL LLC. IGF::CT::IGF
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 $164.0 million.
What is the period of performance?
Start: 2014-01-30. End: 2019-05-29.
What specific construction services were included in this $163.9M contract, and how do they align with the Department of State's strategic infrastructure goals?
The provided data categorizes this as 'Commercial and Institutional Building Construction' but lacks specifics on the exact services. Understanding if this contract covers new construction, renovation, or specialized facility upgrades is crucial. Aligning these services with the Department of State's long-term infrastructure plans, such as embassy security enhancements or new diplomatic facilities, would clarify the strategic value and necessity of this significant expenditure.
Given the 1945-day duration, what are the primary risk mitigation strategies employed by the Department of State and BL Harbert International to manage potential cost escalations or delays?
For a contract spanning over five years, risks like material price fluctuations, labor shortages, or unforeseen site conditions are significant. Mitigation strategies likely include detailed contract clauses addressing change orders, escalation provisions (if any), liquidated damages for delays, and robust project management protocols. Regular progress reporting and joint risk assessment meetings between the agency and the contractor are essential to proactively identify and address potential issues before they impact cost or schedule.
How effectively did the 'full and open competition' process ensure value for money, and what was the competitive landscape like for this specific construction project?
The 'full and open competition' designation suggests a broad solicitation, theoretically maximizing the number of potential bidders and fostering a competitive environment. To assess effectiveness, one would need to examine the number of bids received, the range of proposed prices, and the final negotiated price against initial estimates. Understanding the market capacity for such large-scale projects and the specific qualifications of the bidders would further illuminate whether the competition truly yielded optimal value for the taxpayer.
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.
Address: 820 SHADES CREEK PKWY STE 3000, 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: $163,974,309
Exercised Options: $163,974,309
Current Obligation: $163,974,309
Subaward Activity
Number of Subawards: 98
Total Subaward Amount: $15,898,785
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-01-30
Current End Date: 2019-05-29
Potential End Date: 2019-05-29 00:00:00
Last Modified: 2023-07-21
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