State Department's $108M Nuevo Laredo Consulate Construction Awarded to BL Harbert International
Contract Overview
Contract Amount: $108,406,277 ($108.4M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2014-09-27
End Date: 2018-06-05
Contract Duration: 1,347 days
Daily Burn Rate: $80.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NUEVO LAREDO CONSULATE COMPOUND IGF::OT::IGF
Plain-Language Summary
Department of State obligated $108.4 million to BL HARBERT INTERNATIONAL LLC for work described as: NUEVO LAREDO CONSULATE COMPOUND IGF::OT::IGF Key points: 1. The contract value of $108.4 million for the Nuevo Laredo Consulate Compound represents a significant investment in diplomatic infrastructure. 2. BL Harbert International, the awardee, operates within the competitive Commercial and Institutional Building Construction sector. 3. The definitive contract, awarded under full and open competition, suggests a robust price discovery process. 4. Potential risks include project delays or cost overruns inherent in large-scale construction projects.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a well-defined scope and cost control. Benchmarking against similar large-scale government construction projects would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple bidders likely participated. This competitive environment is expected to drive favorable pricing for the government.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for this critical infrastructure project.
Public Impact
Enhances U.S. diplomatic presence and security in Nuevo Laredo. Supports local employment and economic activity during the construction phase. Provides a modern, functional facility for consular services.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Potential for scope creep impacting final cost.
- Geopolitical risks associated with border region operations.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Awarded under full and open competition.
- Experienced contractor selected.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, characterized by large-scale projects with significant capital outlays. Benchmarks for similar consulate or embassy construction projects would be relevant.
Small Business Impact
While the prime contractor is BL Harbert International, the contract details do not specify small business subcontracting goals or achievements. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of State's contracting oversight mechanisms are crucial for ensuring project milestones are met, quality standards are upheld, and funds are disbursed appropriately throughout the contract duration.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for schedule delays due to external factors.
- Geopolitical risks in border region.
- Complexity of large-scale construction projects.
- Limited visibility into 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 $108.4 million to BL HARBERT INTERNATIONAL LLC. NUEVO LAREDO CONSULATE COMPOUND IGF::OT::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 $108.4 million.
What is the period of performance?
Start: 2014-09-27. End: 2018-06-05.
What is the projected economic impact of this construction project on the local Nuevo Laredo economy?
The construction of the Nuevo Laredo Consulate Compound is expected to generate significant economic benefits for the local economy through job creation for construction workers, demand for local materials and services, and increased economic activity for businesses supporting the project. The duration of the contract (1347 days) suggests a sustained period of economic stimulus.
What are the primary risks associated with constructing a federal facility in a border region like Nuevo Laredo?
Key risks include security concerns due to the border location, potential supply chain disruptions, challenges in labor recruitment and retention, and the possibility of unforeseen geological or environmental conditions. The firm fixed price contract aims to mitigate cost overruns, but schedule delays due to these external factors remain a concern.
How does the firm fixed price contract structure ensure the effectiveness and value for money of this construction project?
The firm fixed price (FFP) contract establishes a ceiling cost, incentivizing the contractor to manage expenses efficiently and complete the project within budget. This structure provides cost certainty for the government and taxpayers, ensuring that the allocated funds are used effectively to deliver the specified facility. However, it places the risk of cost overruns on the contractor.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: SAQMMA14R0117
Offers Received: 3
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 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: $108,406,277
Exercised Options: $108,406,277
Current Obligation: $108,406,277
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $3,538,872
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-27
Current End Date: 2018-06-05
Potential End Date: 2018-06-05 00:00:00
Last Modified: 2021-06-21
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