State Department's $167.5M Kosovo Embassy Construction Contract Awarded to BL Harbert International
Contract Overview
Contract Amount: $167,499,721 ($167.5M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2014-09-26
End Date: 2019-07-29
Contract Duration: 1,767 days
Daily Burn Rate: $94.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PRISTINA, KOSOVO NEW EMBASSY COMPOUND IGF::OT::IGF
Plain-Language Summary
Department of State obligated $167.5 million to BL HARBERT INTERNATIONAL LLC for work described as: PRISTINA, KOSOVO NEW EMBASSY COMPOUND IGF::OT::IGF Key points: 1. The contract value of $167.5 million represents a significant investment in diplomatic infrastructure. 2. BL Harbert International, the awardee, is a major player in large-scale construction projects. 3. The project's duration of 1767 days (approx. 4.8 years) indicates a complex and lengthy undertaking. 4. The 'Commercial and Institutional Building Construction' sector is vital for government operations abroad.
Value Assessment
Rating: fair
The contract value of $167.5 million for a new embassy compound appears substantial. Benchmarking against similar large-scale government construction projects would be necessary to definitively assess its pricing.
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. This method typically leads to more competitive pricing compared to limited or sole-source awards.
Taxpayer Impact: Taxpayer funds are utilized for this project, with the expectation of value derived from a secure and functional diplomatic facility.
Public Impact
Enhances U.S. diplomatic presence and security in Kosovo. Supports local economy through job creation during construction. Represents a long-term commitment to international relations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large, multi-year construction projects.
- Delays in construction timelines can impact operational readiness.
- Geopolitical factors in the region could pose unforeseen risks.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Firm Fixed Price contract type helps control costs.
- Long duration suggests a comprehensive and well-planned project.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector characterized by large project values and significant lead times. Benchmarks for similar embassy constructions or large government facilities would provide further context.
Small Business Impact
The data indicates the prime contractor is BL Harbert International LLC, a large business. There is no specific information provided regarding small business subcontracting participation in this award.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Robust oversight is crucial for managing complex construction projects, ensuring adherence to timelines, budget, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for schedule delays
- Risk of cost overruns
- Geopolitical instability in the region
- Complexity of international construction projects
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 $167.5 million to BL HARBERT INTERNATIONAL LLC. PRISTINA, KOSOVO NEW EMBASSY 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 $167.5 million.
What is the period of performance?
Start: 2014-09-26. End: 2019-07-29.
What was the initial estimated cost versus the final award amount, and how did the competitive bidding process influence this?
The provided data shows a final award amount of $167,499,721.1. Without the initial estimate or details of the bidding process, it's difficult to quantify the exact impact of competition on the final price. However, full and open competition generally drives prices down from initial estimates by fostering a competitive environment among bidders.
What are the key risk mitigation strategies employed by the Department of State for this long-term, high-value construction project?
While specific strategies aren't detailed, typical risk mitigation for such projects includes detailed contract clauses, performance bonds, regular progress reviews, contingency planning for unforeseen issues (like material shortages or site conditions), and strong project management oversight to ensure adherence to schedule and budget.
How does the successful completion of this embassy compound contribute to the overall effectiveness of U.S. diplomatic operations in Kosovo?
A modern, secure embassy compound is fundamental to effective diplomatic operations. It provides a safe working environment for personnel, enhances the capacity for consular services, facilitates diplomatic engagement, and serves as a visible symbol of U.S. commitment, thereby strengthening bilateral relations and advancing U.S. foreign policy objectives.
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: SAQMMA14R0118
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: $167,500,721
Exercised Options: $167,500,721
Current Obligation: $167,499,721
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $7,875,676
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-26
Current End Date: 2019-07-29
Potential End Date: 2019-07-29 00:00:00
Last Modified: 2023-07-14
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