State Department Awards $509M Contract for Erbil Consulate Construction to BL Harbert International
Contract Overview
Contract Amount: $509,362,438 ($509.4M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2017-06-30
End Date: 2025-08-31
Contract Duration: 2,984 days
Daily Burn Rate: $170.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ERBIL, IRAQ NEW CONSULATE CONSTRUCTION IGF::CL::IGF
Plain-Language Summary
Department of State obligated $509.4 million to BL HARBERT INTERNATIONAL LLC for work described as: ERBIL, IRAQ NEW CONSULATE CONSTRUCTION IGF::CL::IGF Key points: 1. Significant investment in diplomatic infrastructure with a $509M contract. 2. BL Harbert International, a large business, secured the award. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The project falls under Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $509M for a consulate construction project is substantial. Benchmarking against similar large-scale government construction projects is necessary to fully assess value, but the firm fixed price suggests cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and allows for a wider range of contractors to propose solutions.
Taxpayer Impact: Taxpayer funds are being utilized for a critical diplomatic facility. The competitive nature of the award aims to ensure efficient use of these funds.
Public Impact
Enhances U.S. diplomatic presence and security in Iraq. Supports economic activity through construction jobs and material sourcing. Long-term asset for U.S. foreign policy operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is extensive (2984 days).
- No small business participation noted.
- Potential for cost overruns in complex international construction.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector, which involves the erection of non-residential buildings. Government spending in this sector often supports infrastructure development and diplomatic facilities.
Small Business Impact
The data indicates that this contract was not awarded to a small business. There is no specific set-aside for small businesses mentioned, which is a missed opportunity for supporting smaller enterprises in this large contract.
Oversight & Accountability
The Department of State is responsible for overseeing this construction project. Robust oversight will be crucial to ensure the project stays on schedule, within budget, and meets quality standards, especially given its international location and complexity.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Extensive contract duration.
- No small business participation.
- Potential for geopolitical and security risks 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 $509.4 million to BL HARBERT INTERNATIONAL LLC. ERBIL, IRAQ NEW CONSULATE CONSTRUCTION IGF::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 $509.4 million.
What is the period of performance?
Start: 2017-06-30. End: 2025-08-31.
What is the benchmark cost per square foot for similar international consulate constructions to assess the value of this $509M award?
Benchmarking the cost per square foot for this $509M consulate construction requires detailed project specifications and comparison with recently completed, similar-sized diplomatic facilities in comparable geopolitical regions. Factors like security requirements, local labor costs, material import duties, and specific architectural designs significantly influence per-square-foot costs. Without these specifics, a precise benchmark is difficult, but general estimates for large government facilities can range widely, making detailed analysis crucial.
What are the specific risks associated with constructing a consulate in Erbil, Iraq, and how are they being mitigated?
Risks in Erbil include geopolitical instability, security threats, logistical challenges for material and personnel transport, and potential labor disputes. Mitigation strategies likely involve stringent security protocols, robust supply chain management, partnerships with local security firms, and comprehensive contingency planning. The long contract duration suggests these risks are factored into the schedule and budget.
How effectively does the firm fixed price contract type manage potential cost escalations given the project's scale and location?
A firm fixed price (FFP) contract is designed to transfer most of the cost risk to the contractor, BL Harbert International. This incentivizes efficient cost management. However, for a project of this magnitude and complexity in an international setting, the initial price must be carefully negotiated to account for anticipated risks. Significant unforeseen issues could still lead to claims or disputes, potentially impacting the final cost despite the FFP structure.
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: SAQMMA17R0015
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: $509,362,438
Exercised Options: $509,362,438
Current Obligation: $509,362,438
Subaward Activity
Number of Subawards: 307
Total Subaward Amount: $68,343,712
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-06-30
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-09-30
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