GSA's $36.8M Courthouse Construction Contract Awarded to BL Harbert International LLC

Contract Overview

Contract Amount: $36,840,306 ($36.8M)

Contractor: BL Harbert International LLC

Awarding Agency: General Services Administration

Start Date: 2019-01-15

End Date: 2023-09-30

Contract Duration: 1,719 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD SERVICES FOR THE NEW US COURTHOUSE, 1128 GURNEE AVE, ANNISTON, AL 36201

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36201

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $36.8 million to BL HARBERT INTERNATIONAL LLC for work described as: DESIGN BUILD SERVICES FOR THE NEW US COURTHOUSE, 1128 GURNEE AVE, ANNISTON, AL 36201 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating cost certainty. 3. Project duration spans over 1700 days, encompassing a significant construction timeline. 4. The project is located in Anniston, Alabama, with implications for local economic impact. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The award value of $36.8 million represents a substantial investment in federal infrastructure.

Value Assessment

Rating: good

The contract value of $36.8 million for a new U.S. Courthouse appears reasonable given the scope of a design-build project. Benchmarking against similar federal courthouse construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps manage cost overruns, but the final cost will depend on the execution of the design and build phases.

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 moderate level of competition for this significant construction project. A higher number of bidders might have potentially led to more aggressive pricing, but three bidders often indicate sufficient competition for complex projects.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services or goods received.

Public Impact

The primary beneficiaries are the U.S. judicial system and the citizens of Anniston, Alabama, who will gain access to a new federal courthouse. The project delivers essential infrastructure for federal court operations, including courtrooms, offices, and related facilities. The geographic impact is concentrated in Anniston, Alabama, potentially stimulating local economic activity through job creation and material sourcing. Workforce implications include employment opportunities for construction workers, architects, engineers, and project managers during the design and build phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in large-scale construction projects.
Risk of unforeseen site conditions impacting cost and timeline.
Ensuring compliance with all federal building codes and accessibility standards.

Positive Signals

Firm fixed-price contract provides cost predictability.
Design-build approach can streamline project delivery.
Awarded under full and open competition, suggesting a robust selection process.

Sector Analysis

The construction sector, particularly for public infrastructure, is characterized by large contract values and long project durations. This courthouse construction falls under commercial and institutional building construction, a segment that requires specialized expertise in design, engineering, and project management. Comparable spending benchmarks for federal buildings vary widely based on size, complexity, and location, but projects in the tens of millions are common for new federal facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary contractor, BL Harbert International LLC, will likely manage the majority of the work. Further investigation into the subcontracting plan would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this project is likely managed by the General Services Administration (GSA), specifically its Public Buildings Service. Accountability measures would include adherence to the contract's terms, performance milestones, and quality control. Transparency is typically maintained through contract award databases and public reporting, though detailed project-specific oversight information may be limited.

Related Government Programs

Federal Courthouse Construction
Public Buildings Service Projects
Design-Build Contracts
General Services Administration Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays impacting project completion.
Ensuring compliance with all federal building standards and security requirements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $36.8 million to BL HARBERT INTERNATIONAL LLC. DESIGN BUILD SERVICES FOR THE NEW US COURTHOUSE, 1128 GURNEE AVE, ANNISTON, AL 36201

Who is the contractor on this award?

The obligated recipient is BL HARBERT INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $36.8 million.

What is the period of performance?

Start: 2019-01-15. End: 2023-09-30.

What is the track record of BL Harbert International LLC with federal contracts, particularly with the GSA?

BL Harbert International LLC has a history of working with federal agencies, including the General Services Administration. Their portfolio often includes large-scale construction projects, such as courthouses, military facilities, and other public infrastructure. Analyzing their past performance on similar GSA contracts, including adherence to schedule, budget, and quality standards, would provide insight into their reliability for this project. Specific data on past federal contract performance, including any past performance evaluations or disputes, would be crucial for a comprehensive assessment.

How does the awarded value of $36.8 million compare to similar federal courthouse construction projects?

Benchmarking this $36.8 million contract against similar federal courthouse construction projects requires detailed comparison of project scope, size (square footage), location, and complexity. Federal courthouses can vary significantly in cost per square foot due to security requirements, specialized court functions, and regional construction market conditions. Without specific data on comparable projects, it's difficult to definitively state if this value is high or low. However, for a new courthouse, a multi-million dollar award is typical, and the firm fixed-price nature suggests an effort to control costs.

What are the primary risks associated with a design-build construction contract of this magnitude?

The primary risks associated with a design-build contract of this magnitude include potential scope creep during the design phase, unforeseen site conditions that could impact both design and construction, and coordination challenges between the design and construction teams, even though they are under one contract. For a courthouse, specific risks involve meeting stringent security requirements, ensuring long-term durability and maintainability, and adhering to complex judicial functional needs. Schedule delays and cost overruns, while mitigated by the firm fixed-price structure, remain risks if not managed proactively through robust project management and contingency planning.

What is the expected impact of this courthouse construction on the local economy in Anniston, Alabama?

The construction of a new U.S. Courthouse in Anniston, Alabama, is expected to have a positive impact on the local economy. This includes the creation of numerous temporary jobs in the construction sector, such as laborers, tradespeople, engineers, and project managers. Additionally, the project will likely stimulate demand for local materials, equipment rentals, and support services. The presence of a new federal facility can also contribute to long-term economic stability and potentially attract related businesses or government services to the area.

How does the firm fixed-price contract type influence the risk allocation between the government and the contractor?

A firm fixed-price (FFP) contract shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This provides the government with cost certainty and protects against unexpected cost increases. However, it can also incentivize contractors to minimize costs, potentially impacting quality if not carefully monitored. For the government, the risk lies in ensuring the contractor has adequately priced the contract to account for all potential costs and risks, and that the quality standards are met.

What are the implications of the 3 bidders for this contract on price discovery and value for taxpayers?

Having three bidders for this contract suggests a moderate level of competition. While more bidders could potentially lead to lower prices, three bidders often indicate that the market has sufficient interest and capability for the project. This number is generally considered adequate for effective price discovery, meaning the bids submitted are likely to reflect a reasonable market price for the services. For taxpayers, this level of competition helps ensure that the government is not overpaying and that the contract award is based on a competitive process, promoting value for money.

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: 47PE0317R0010

Offers Received: 3

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: $36,840,306

Exercised Options: $36,840,306

Current Obligation: $36,840,306

Actual Outlays: $8,015,037

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $24,778,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline