DoD's $55.5M Construction Contract Awarded to BL Harbert International LLC for BCT-II-BCOF
Contract Overview
Contract Amount: $55,548,613 ($55.5M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2009-12-09
End Date: 2012-12-08
Contract Duration: 1,095 days
Daily Burn Rate: $50.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF 3 BCT-II-BCOF
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207
Plain-Language Summary
Department of Defense obligated $55.5 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION OF 3 BCT-II-BCOF Key points: 1. Contract value represents a significant investment in infrastructure development. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Duration of 1095 days indicates a substantial, long-term construction project. 5. Geographic focus on South Carolina highlights regional development efforts. 6. Contractor's prior experience in similar projects is a key performance indicator.
Value Assessment
Rating: good
The contract value of $55.5 million for construction services appears reasonable given the project's scope and duration. Benchmarking against similar large-scale institutional building projects within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to lock in costs, which can be beneficial if the contractor accurately estimated expenses. However, without detailed cost breakdowns or comparisons to industry standards for similar construction types, a definitive value assessment is challenging.
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 a bid. The presence of 3 bidders suggests a competitive environment, which typically drives better pricing and quality for the government. The level of competition is a positive sign for price discovery and ensures that the government is likely receiving a fair market price for the construction services rendered.
Taxpayer Impact: A competitive bidding process for this substantial contract helps ensure taxpayer funds are used efficiently by fostering price reductions and encouraging high-quality work from multiple capable firms.
Public Impact
The primary beneficiaries are the Department of Defense, which receives critical infrastructure, and BL Harbert International LLC, through contract revenue. The project delivers essential building construction services, likely for military operational or support facilities. The geographic impact is concentrated in South Carolina, potentially creating local jobs and stimulating the regional economy. Workforce implications include employment opportunities for construction labor, project managers, engineers, and support staff in the project's vicinity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
- Risk of schedule delays due to weather, material availability, or labor issues common in large construction projects.
- Dependence on the contractor's ability to manage complex logistics and subcontractors effectively.
Positive Signals
- Awarded under full and open competition, indicating a competitive market and likely fair pricing.
- Firm fixed-price contract type provides cost certainty for the government.
- Contractor has a track record, implying experience in delivering similar projects.
- Project duration suggests a well-defined scope and planning phase.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, educational facilities, and government buildings. The market size for federal construction projects is substantial, driven by the need to maintain and upgrade existing infrastructure and build new facilities. This specific contract likely supports the Department of the Army's operational readiness or infrastructure modernization goals within its facilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside requirement. However, the prime contractor, BL Harbert International LLC, may engage small businesses as subcontractors to fulfill parts of the construction project, contributing indirectly to the small business ecosystem. The extent of this subcontracting would depend on the contractor's procurement practices and the availability of qualified small business subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged during the contract's lifecycle.
Related Government Programs
- Military Construction Projects
- Department of Defense Facilities Management
- General Building Construction Services
- Army Corps of Engineers Projects
Risk Flags
- Potential for cost overruns due to long project duration and market volatility.
- Risk of schedule delays impacting operational readiness.
- Quality control concerns in large-scale construction projects.
- Contractor performance variability.
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, south-carolina, institutional-building, large-contract, infrastructure, us-military
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.5 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION OF 3 BCT-II-BCOF
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 $55.5 million.
What is the period of performance?
Start: 2009-12-09. End: 2012-12-08.
What is BL Harbert International LLC's track record with the Department of Defense for similar construction projects?
BL Harbert International LLC has a significant track record with the Department of Defense, having been awarded numerous contracts for construction services. While specific details for projects identical to BCT-II-BCOF are not provided in this data snippet, their history suggests experience in large-scale military construction. Analyzing past performance reviews, contract modifications, and on-time delivery rates for their previous DoD contracts would offer a clearer picture of their reliability and capability. A review of their contract history might reveal if they have successfully managed projects of similar scope, complexity, and value, particularly those involving institutional or operational facilities within military installations.
How does the awarded amount of $55.5 million compare to industry benchmarks for similar construction projects?
Benchmarking the $55.5 million award against industry standards for Commercial and Institutional Building Construction requires detailed project specifications, such as square footage, materials, complexity, and location-specific labor costs. Without these specifics, a direct comparison is difficult. However, for large-scale institutional buildings, this value suggests a substantial project. Industry cost estimators and construction cost databases (e.g., RSMeans) could provide comparative data if the project's scope (e.g., type of building, size, specific functional requirements) were known. The firm fixed-price nature implies the contractor believes this amount is sufficient to cover all costs and provide a reasonable profit, suggesting it aligns with their market assessment.
What are the primary risks associated with a firm fixed-price contract for a project of this duration?
The primary risk for the government in a firm fixed-price (FFP) contract, especially one spanning 1095 days, is that the contractor may not have adequately estimated all costs, leading to potential quality compromises to maintain profitability, or conversely, the government may have overpaid if the contractor's estimates were overly conservative. For the contractor, the risk lies in unforeseen cost increases (labor, materials, site conditions) that erode profit margins or lead to losses. Given the long duration, market volatility in material prices and labor availability poses a significant risk. Effective risk mitigation by the government involves thorough pre-award review of the contractor's cost proposal and robust oversight during execution to ensure quality standards are met.
What does the 'SC' status code signify in the context of this contract?
The 'SC' status code, as indicated in the provided data, likely refers to the contract's classification or a specific program identifier relevant to the Department of the Army's procurement system. Without a definitive key for these codes, its precise meaning is speculative. However, 'SC' could potentially stand for 'Source Control,' 'Special Category,' 'Service Contract,' or relate to a specific type of facility or project. Given the contract is for construction, it might denote a particular construction category or a funding stream. Further investigation into the Department of the Army's procurement regulations or contract data dictionaries would be necessary to ascertain the exact meaning and implications of the 'SC' code.
How does the number of bidders (3) impact the government's ability to secure competitive pricing?
Having three bidders in a full and open competition generally indicates a healthy level of competition, which is favorable for the government. Three bidders provide a reasonable basis for price comparison and encourage each bidder to submit their most competitive offer to win the contract. While more bidders could potentially lead to even lower prices, three is often considered a sufficient number to prevent collusion and ensure that the government is not unduly disadvantaged by a lack of viable alternatives. The government can leverage the bids received to negotiate or select the best value proposal, balancing price with technical qualifications and past performance.
What are the potential long-term implications of this construction project for the South Carolina region?
This $55.5 million construction project has several potential long-term implications for the South Carolina region. Economically, it will likely create numerous direct and indirect jobs during its three-year duration, boosting local employment in skilled trades, project management, and support services. It may also stimulate local businesses through the procurement of materials and services. Furthermore, the completed facility will serve a specific purpose for the Department of Defense, potentially enhancing military readiness or operational capabilities in the region, which could have long-term strategic benefits. The project could also lead to increased demand for local infrastructure (roads, utilities) and potentially spur further economic development around the facility.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9126G08R0145
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, BIRMINGHAM, AL, 90
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $55,548,613
Exercised Options: $55,548,613
Current Obligation: $55,548,613
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126G09D0017
IDV Type: IDC
Timeline
Start Date: 2009-12-09
Current End Date: 2012-12-08
Potential End Date: 2012-12-08 00:00:00
Last Modified: 2012-09-06
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