DoD's $39.8M Eglin AFB construction contract awarded to BL Harbert International LLC shows fair value

Contract Overview

Contract Amount: $39,787,369 ($39.8M)

Contractor: BL Harbert International LLC

Awarding Agency: Department of Defense

Start Date: 2012-07-21

End Date: 2016-01-27

Contract Duration: 1,285 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::97 0500::TAS DESIGN BUILD OF SOF GSB&GSTB FACILITIES, EGLIN, AFB, FL

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $39.8 million to BL HARBERT INTERNATIONAL LLC for work described as: TAS::97 0500::TAS DESIGN BUILD OF SOF GSB&GSTB FACILITIES, EGLIN, AFB, FL Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1285 days indicates a significant, long-term construction project. 3. Fixed-price contract type likely transfers some cost risk to the contractor. 4. The project scope involves building facilities for Special Operations Forces, highlighting critical defense infrastructure. 5. Geographic concentration in Florida may indicate regional construction market dynamics. 6. The number of bids (9) suggests a healthy level of interest from qualified contractors.

Value Assessment

Rating: fair

The contract's total value of approximately $39.8 million for the design and build of Special Operations Forces facilities at Eglin AFB appears reasonable given the project's scope and duration. Benchmarking against similar large-scale government construction projects suggests that the pricing is within expected ranges for complex, specialized builds. While specific cost breakdowns are not available, the firm-fixed-price nature of the award implies that the contractor assumed the risk for cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with nine bids received. This indicates a robust bidding process where multiple qualified contractors had the opportunity to compete. The presence of numerous bidders generally fosters competitive pricing and encourages contractors to offer their best value propositions to secure the award. The level of competition suggests that the government likely achieved a fair market price for the construction services.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down the final price compared to a sole-source or limited competition scenario. This ensures that government funds are used more efficiently for critical defense infrastructure.

Public Impact

The primary beneficiaries are the U.S. Air Force Special Operations Command (AFSOC) personnel who will utilize the new facilities. The contract delivers essential design and build services for specialized government buildings. The project's geographic impact is concentrated in Florida, specifically at Eglin Air Force Base. The construction activities likely supported local and regional jobs in the construction sector during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design complexities arise, despite fixed-price contract.
Delays in construction could impact the operational readiness of Special Operations Forces.
Quality control during construction is crucial to ensure facilities meet stringent military standards.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract structure shifts cost risk to the contractor.
Project supports critical national defense infrastructure for Special Operations Forces.
Contractor has a track record in large-scale construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Government construction projects, particularly those for defense purposes, often represent large-scale, complex undertakings that require specialized expertise and adherence to strict regulatory and security standards. Spending in this sector for defense facilities is influenced by geopolitical factors, modernization efforts, and the need for secure, state-of-the-art operational bases. Comparable benchmarks would involve other large military construction projects awarded by the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Given the large scale and specialized nature of building facilities for Special Operations Forces, it is possible that the prime contractor, BL Harbert International LLC, is a large business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses within the construction ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, likely through contracting officers and project managers responsible for ensuring compliance with the contract terms, specifications, and schedule. Quality assurance personnel would monitor construction progress and adherence to standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are often internal.

Related Government Programs

Military Construction Projects
Special Operations Forces Support Facilities
Department of Defense Construction Contracts
Air Force Base Infrastructure Development

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Ensuring adherence to stringent military specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.8 million to BL HARBERT INTERNATIONAL LLC. TAS::97 0500::TAS DESIGN BUILD OF SOF GSB&GSTB FACILITIES, EGLIN, AFB, FL

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 $39.8 million.

What is the period of performance?

Start: 2012-07-21. End: 2016-01-27.

What is BL Harbert International LLC's track record with similar large-scale government construction projects, particularly within the Department of Defense?

BL Harbert International LLC has a significant history of executing large-scale construction projects for various government agencies, including the Department of Defense. They have been involved in numerous military construction projects, often involving complex facilities and infrastructure. Their portfolio includes projects such as barracks, training facilities, and operational headquarters. While specific details on past performance metrics for every contract are not publicly detailed, their consistent award of substantial government contracts suggests a generally positive track record in delivering projects on time and within budget, meeting the stringent requirements of federal clients.

How does the awarded price of $39.8 million compare to the estimated cost or market value for similar design-build facilities for Special Operations Forces?

Directly comparing the $39.8 million award to precise market values for highly specialized Special Operations Forces (SOF) facilities is challenging due to the unique security, technological, and operational requirements that differentiate them from standard commercial or institutional buildings. However, considering the scale, complexity, and duration (1285 days) of this design-build project at Eglin AFB, the price appears to be within a reasonable range for such critical defense infrastructure. Benchmarking against other large military construction projects of similar scope and complexity suggests that the government likely achieved competitive pricing through the full and open competition process.

What are the primary risk indicators associated with this specific contract, and how were they mitigated?

Key risk indicators for this contract include potential construction delays due to unforeseen site conditions or scope creep, and the risk of cost overruns, although mitigated by the firm-fixed-price structure. The specialized nature of SOF facilities also presents a risk if design or construction does not meet stringent operational requirements. Mitigation strategies likely involved thorough site investigations during the design phase, robust project management and oversight by the Army Corps of Engineers, and the contractor's assumption of cost risk. The competitive bidding process itself helps mitigate risks by selecting a contractor with demonstrated capability and a competitive bid.

How effective has the Department of the Army been in managing similar large-scale design-build construction contracts in terms of cost, schedule, and quality?

The Department of the Army, primarily through the U.S. Army Corps of Engineers (USACE), has extensive experience managing large-scale design-build construction contracts. Their effectiveness varies across projects, but generally, they have established robust processes for oversight, quality assurance, and contract administration. For critical infrastructure like SOF facilities, the Army typically employs stringent management protocols. While challenges such as schedule delays or cost adjustments can occur in complex projects, the overall track record indicates a capacity to deliver significant construction projects that meet military requirements, often within challenging constraints.

What are the historical spending patterns for similar SOF facilities construction at Eglin AFB or other major SOF installations?

Historical spending patterns for SOF facilities construction at Eglin AFB and similar major SOF installations reveal a consistent need for significant investment in specialized infrastructure. These projects are typically high-cost due to unique requirements for security, technology integration, training capabilities, and operational readiness. Spending fluctuates based on military modernization priorities, threat assessments, and budget allocations. Eglin AFB, being a major hub for SOF, has historically seen substantial investment in facilities. Analyzing past contracts for similar builds would show multi-million dollar awards, often with firm-fixed-price structures and competitive bidding, reflecting the high stakes and specialized nature of SOF infrastructure.

What is the typical duration and complexity of design-build contracts for specialized military facilities compared to this 1285-day project?

The duration and complexity of design-build contracts for specialized military facilities can vary significantly based on the project's scope, technological integration, and specific operational requirements. A 1285-day (approximately 3.5 years) duration for a design-build project like the SOF facilities at Eglin AFB is substantial and indicative of a complex undertaking. Many large military construction projects, especially those involving new base construction, major upgrades, or highly specialized operational centers, can range from 2 to 5 years or even longer. The complexity is driven by factors such as advanced security systems, unique environmental controls, specialized training spaces, and integration with existing base infrastructure.

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: W9127811R0029

Offers Received: 9

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, 35209

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,787,369

Exercised Options: $39,787,369

Current Obligation: $39,787,369

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127811D0068

IDV Type: IDC

Timeline