State Department Awards $731.6M Contract for New Beirut Embassy Construction
Contract Overview
Contract Amount: $731,649,996 ($731.6M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2016-12-29
End Date: 2026-02-06
Contract Duration: 3,326 days
Daily Burn Rate: $220.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BEIRUT, LEBANON NEW EMBASSY CONSTRUCTIONIGF::CL::IGF
Plain-Language Summary
Department of State obligated $731.6 million to BL HARBERT INTERNATIONAL LLC for work described as: BEIRUT, LEBANON NEW EMBASSY CONSTRUCTIONIGF::CL::IGF Key points: 1. Significant investment in diplomatic infrastructure. 2. BL Harbert International LLC, a large business, secured the contract. 3. Risk of cost overruns and schedule delays in complex international projects. 4. Construction sector spending is substantial, but specific benchmarks for embassies are hard to find.
Value Assessment
Rating: fair
The contract value of $731.6 million is substantial for embassy construction. Without specific benchmarks for similar scale and complexity projects, it's difficult to definitively assess pricing. However, the firm fixed-price structure aims to control costs.
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 sole-source or limited solicitations.
Taxpayer Impact: Taxpayers are impacted by the significant investment in diplomatic facilities, with the firm fixed-price contract intended to provide cost certainty.
Public Impact
Enhances U.S. diplomatic presence and security in Lebanon. Supports local economy through job creation during construction. Potential for long-term operational cost savings with a modern facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays due to international location and complexity.
- Risk of unforeseen site conditions impacting cost.
- Geopolitical instability in the region could affect project execution.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Awarded through full and open competition.
- Long duration allows for phased construction and management.
Sector Analysis
Embassy construction falls under the broader Commercial and Institutional Building Construction sector. While overall construction spending is high, specific benchmarks for high-security, international diplomatic facilities are not readily available, making direct comparisons challenging.
Small Business Impact
The contract was awarded to BL Harbert International LLC, a large business. There is no indication of small business subcontracting in the provided data, suggesting limited direct small business participation in the prime contract.
Oversight & Accountability
The Department of State is responsible for oversight. The long duration and international nature of the project necessitate robust oversight to manage risks and ensure timely completion within budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Geopolitical instability in Lebanon.
- Potential for unforeseen site conditions.
- Complexity of international construction projects.
- Long project duration increases exposure to market fluctuations.
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 $731.6 million to BL HARBERT INTERNATIONAL LLC. BEIRUT, LEBANON NEW EMBASSY CONSTRUCTIONIGF::CL::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 $731.6 million.
What is the period of performance?
Start: 2016-12-29. End: 2026-02-06.
What is the projected cost per square foot for this embassy construction compared to similar international embassy projects?
Without detailed project specifications and comparable data for similar international embassy constructions, a precise cost-per-square-foot benchmark is difficult to establish. Factors like security requirements, material sourcing, labor costs in Lebanon, and specific design features significantly influence per-square-foot pricing. Further analysis would require access to detailed architectural plans and cost breakdowns of comparable projects.
What are the primary risk mitigation strategies in place for geopolitical instability impacting the project?
The Department of State likely employs a multi-faceted approach to mitigate geopolitical risks. This may include enhanced security protocols for personnel and materials, contingency planning for supply chain disruptions, close coordination with local authorities and U.S. embassy security, and potentially incorporating flexible design elements that can adapt to changing security environments. Regular risk assessments and communication channels are crucial.
How does the firm fixed-price contract effectively ensure value for taxpayer money given the project's complexity and duration?
The firm fixed-price (FFP) contract aims to ensure value by shifting most of the cost risk to the contractor, BL Harbert International LLC. This incentivizes efficient project management and cost control. However, the long duration and potential for unforeseen issues in Lebanon mean that the government must have strong contract administration and oversight to prevent scope creep or claims that could erode the FFP's cost-saving benefits.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SAQMMA16R0030
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $731,649,996
Exercised Options: $731,649,996
Current Obligation: $731,649,996
Subaward Activity
Number of Subawards: 293
Total Subaward Amount: $72,111,689
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-12-29
Current End Date: 2026-02-06
Potential End Date: 2026-02-06 00:00:00
Last Modified: 2026-01-30
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