Fort Campbell maintenance shop construction awarded to BL Harbert International for $41.3M
Contract Overview
Contract Amount: $41,342,183 ($41.3M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2020-05-20
End Date: 2022-12-15
Contract Duration: 939 days
Daily Burn Rate: $44.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF A GENERAL PURPOSE MAINTENANCE SHOP AT FORT CAMPBELL TN.
Place of Performance
Location: FORT CAMPBELL, MONTGOMERY County, TENNESSEE, 42223
Plain-Language Summary
Department of Defense obligated $41.3 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION OF A GENERAL PURPOSE MAINTENANCE SHOP AT FORT CAMPBELL TN. Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for construction services. 3. Risk indicators include contract duration and fixed-price nature. 4. Performance context is a general purpose maintenance facility. 5. Sector positioning within Defense construction services.
Value Assessment
Rating: good
The contract value of $41.3 million for a general purpose maintenance shop at Fort Campbell appears reasonable given the scope of construction. Benchmarking against similar military construction projects of this size and complexity would provide further insight. The firm-fixed-price contract type suggests that the government has a clear understanding of the project requirements and associated costs, which can lead to better cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a healthy level of competition for this type of construction project. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions.
Taxpayer Impact: The full and open competition and multiple bids received are beneficial for taxpayers, as they likely resulted in a lower overall price than a sole-source or limited competition award.
Public Impact
The primary beneficiaries are the U.S. Army personnel and operations at Fort Campbell, Tennessee, who will utilize the new maintenance shop. The service delivered is the construction of a general purpose maintenance facility, crucial for the upkeep of military equipment and vehicles. The geographic impact is localized to Fort Campbell, Tennessee, supporting regional economic activity through construction jobs. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Tennessee area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 939 days (over 2.5 years) could introduce risks related to material cost fluctuations and labor availability.
- Firm-fixed-price contracts can sometimes lead to change orders if scope is not perfectly defined upfront, potentially increasing costs.
Positive Signals
- Awarded under full and open competition with 7 bidders, suggesting a competitive pricing environment.
- The project addresses a clear operational need for maintenance facilities at a major military installation.
- The firm-fixed-price structure provides cost certainty for the government, assuming scope is well-managed.
Sector Analysis
The construction sector, particularly for government and military facilities, is a significant market. This contract falls within the Commercial and Institutional Building Construction sub-sector. Spending on military base infrastructure is a consistent component of the Department of Defense budget, with projects often awarded through competitive bidding to large construction firms. Comparable spending benchmarks would involve analyzing other military construction projects of similar scale and complexity.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While BL Harbert International LLC is the prime contractor, there may be subcontracting opportunities for small businesses within the construction trades. The extent of small business subcontracting would need further investigation to assess its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and project management personnel within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified facility within budget. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Military Construction, Army
- General Purpose Facilities Construction
- Department of Defense Facilities Maintenance
- Base Realignment and Closure (BRAC) related construction
Risk Flags
- Long contract duration may increase risk of cost escalation or labor issues.
- Potential for change orders in fixed-price contracts if scope is not perfectly defined.
Tags
construction, defense, department-of-defense, department-of-the-army, fort-campbell, tennessee, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, maintenance-facility
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.3 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION OF A GENERAL PURPOSE MAINTENANCE SHOP AT FORT CAMPBELL TN.
Who is the contractor on this award?
The obligated recipient is BL HARBERT INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $41.3 million.
What is the period of performance?
Start: 2020-05-20. End: 2022-12-15.
What is the track record of BL Harbert International LLC with the Department of Defense?
BL Harbert International LLC has a significant history of contracting with the Department of Defense, particularly for construction projects. Reviewing their past performance on similar military construction projects, including their on-time and on-budget delivery rates, would provide valuable context. Analyzing their safety records and any past disputes or contract modifications on prior DoD contracts can further inform an assessment of their reliability and capability for projects like the Fort Campbell maintenance shop.
How does the awarded price compare to similar construction projects at other military installations?
A direct comparison of the $41.3 million award for the Fort Campbell maintenance shop to similar projects requires detailed analysis of project scope, size (square footage), complexity, and location. Factors such as local labor costs, material availability, and specific design requirements can significantly influence project costs. Benchmarking against projects awarded within the last 1-2 years at comparable Army installations would be most relevant. Without access to detailed cost breakdowns and specific project specifications for comparable contracts, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a reasonable market price was achieved.
What are the primary risks associated with a firm-fixed-price contract for a multi-year construction project?
Firm-fixed-price (FFP) contracts offer cost certainty to the government but can shift significant risk to the contractor. For a long-duration project like this (939 days), key risks include: 1) Material Cost Escalation: Fluctuations in the price of construction materials over the contract period can erode contractor profit margins or lead to requests for equitable adjustments. 2) Labor Shortages/Cost Increases: Difficulty in securing skilled labor or rising wage demands can impact contractor performance and profitability. 3) Unforeseen Site Conditions: Discovering unexpected geological issues or environmental hazards can necessitate design changes and increase costs, potentially leading to disputes if not adequately addressed through contract clauses. 4) Scope Creep: If the project requirements are not meticulously defined and managed, changes or additions to the scope can lead to disputes over cost and schedule impacts.
What is the historical spending trend for general purpose maintenance shops at Army installations?
Analyzing historical spending trends for general purpose maintenance shops at Army installations requires access to comprehensive contract data over several fiscal years. This would involve identifying similar projects, their award values, and the number of bids received. Trends might reveal increasing or decreasing costs due to inflation, changes in military requirements, or shifts in construction market dynamics. Understanding these patterns can help contextualize the current $41.3 million award and assess whether it aligns with historical spending, adjusted for inflation and scope differences. A significant deviation from historical norms could warrant further investigation.
How effective are full and open competitions in ensuring competitive pricing for large construction contracts?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for large construction contracts. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving multiple, aggressive offers. This heightened competition drives down prices as contractors vie for the award. The presence of 7 bidders in this case supports the effectiveness of this approach, suggesting that the market had sufficient capacity and interest. However, the ultimate measure of effectiveness is whether the final award price represents good value relative to the scope and quality required.
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
Solicitation ID: W912QR20R0011
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: $41,342,183
Exercised Options: $41,342,183
Current Obligation: $41,342,183
Actual Outlays: $1,737,352
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-05-20
Current End Date: 2022-12-15
Potential End Date: 2022-12-15 00:00:00
Last Modified: 2023-09-15
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