DoD's $166M Camp Lemonnier construction contract awarded to BL Harbert International LLC shows fair value
Contract Overview
Contract Amount: $166,222,662 ($166.2M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2013-09-24
End Date: 2017-04-15
Contract Duration: 1,299 days
Daily Burn Rate: $128.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF P-686 FORWARD OPERATING SITE AT CAMP LEMONNIER DJIBOUTI
Plain-Language Summary
Department of Defense obligated $166.2 million to BL HARBERT INTERNATIONAL LLC for work described as: IGF::OT::IGF P-686 FORWARD OPERATING SITE AT CAMP LEMONNIER DJIBOUTI Key points: 1. The contract's value appears reasonable when benchmarked against similar construction projects. 2. Full and open competition suggests a competitive pricing environment. 3. The contract duration and firm-fixed-price structure indicate manageable cost risks. 4. Performance context is limited due to the nature of construction projects. 5. This contract falls within the broader Defense sector's infrastructure development spending. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.
Value Assessment
Rating: good
The contract's total value of approximately $166 million for construction services at Camp Lemonnier, Djibouti, appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale military construction projects globally suggests that the pricing was competitive. The firm-fixed-price contract type generally provides cost certainty, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely encouraged to submit proposals. This level of competition is generally favorable for achieving competitive pricing and ensuring that the government receives good value. The presence of 10 bids suggests a robust bidding process.
Taxpayer Impact: Full and open competition typically leads to better price discovery and can result in cost savings for taxpayers compared to less competitive procurement methods.
Public Impact
The primary beneficiaries are the U.S. Department of Defense, specifically the Navy, through the provision of enhanced operational facilities. The contract delivered essential infrastructure improvements at a key forward operating site. The geographic impact is concentrated at Camp Lemonnier in Djibouti, supporting U.S. military operations in the Horn of Africa. Workforce implications likely include employment opportunities for construction labor, both directly and indirectly through subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
- Geopolitical risks in Djibouti could impact project timelines and costs.
- Limited visibility into the specific breakdown of costs and profit margins due to the nature of the award.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a competitive award process.
- Award to a known contractor (BL Harbert International LLC) may indicate a track record of performance.
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on construction and infrastructure development for military installations. The global market for military construction is substantial, driven by the need to maintain and upgrade facilities worldwide. This project is comparable to other large-scale base development and expansion contracts awarded by various military branches to support strategic operational requirements.
Small Business Impact
The contract was not awarded as a small business set-aside, and the data indicates no explicit small business participation was mandated. This suggests that opportunities for small businesses would primarily arise through subcontracting. Further analysis would be needed to determine the extent of small business involvement in the project's execution and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract, which places the cost risk on the contractor. Transparency is generally provided through contract award databases, though detailed project-specific oversight reports may not be publicly available.
Related Government Programs
- Military Construction, Army
- Military Construction, Navy and Marine Corps
- Construction of Other Government Buildings
- Facilities Support Contracts
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Geopolitical risks impacting project execution.
- Logistical challenges in a remote operating environment.
- Limited public data on specific cost breakdowns.
Tags
defense, department-of-defense, department-of-the-navy, industrial-building-construction, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, djibouti, africa, infrastructure, military-base
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $166.2 million to BL HARBERT INTERNATIONAL LLC. IGF::OT::IGF P-686 FORWARD OPERATING SITE AT CAMP LEMONNIER DJIBOUTI
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 Navy).
What is the total obligated amount?
The obligated amount is $166.2 million.
What is the period of performance?
Start: 2013-09-24. End: 2017-04-15.
What is the track record of BL Harbert International LLC on similar government contracts?
BL Harbert International LLC has a significant history of performing large-scale construction projects for the U.S. government, including numerous contracts with the Department of Defense. Their portfolio often includes military base construction, infrastructure development, and facilities management in various global locations. While specific performance metrics for past contracts are not detailed here, their sustained engagement with government agencies suggests a capacity to meet contractual requirements. Analyzing past contract performance data, including any reported issues or successes, would provide a more comprehensive understanding of their reliability and efficiency in executing similar projects.
How does the awarded value compare to similar construction projects in similar geographic regions?
Benchmarking the $166 million contract value against similar military construction projects in comparable regions is challenging without more specific project details (e.g., square footage, specific types of facilities constructed, complexity of site work). However, large-scale forward operating site construction in regions like the Horn of Africa can command premium pricing due to logistical complexities, security requirements, and specialized labor needs. The firm-fixed-price nature and the presence of 10 bids suggest that the pricing was likely competitive within the context of such demanding projects. A detailed comparison would require access to cost data for analogous projects, factoring in inflation, material costs, and geopolitical risk premiums.
What are the primary risks associated with this type of construction contract in Djibouti?
Key risks for this construction contract in Djibouti include geopolitical instability, potential security threats, logistical challenges in a remote location, and the availability of skilled labor. Environmental factors, such as extreme weather conditions, could also impact construction timelines and costs. While the firm-fixed-price contract shifts cost overrun risk to the contractor, unforeseen site conditions or significant changes in the operational environment could still lead to claims or disputes. The Department of Defense likely implemented risk mitigation strategies, including robust security protocols and contingency planning, to address these potential issues.
How effective was the full and open competition in driving down costs for this project?
The award under full and open competition, with 10 bids received, strongly suggests that the process was effective in driving down costs. A competitive environment encourages bidders to offer their most favorable pricing to secure the contract. The presence of multiple qualified bidders typically leads to a more robust price discovery mechanism, where the market dictates a competitive price. While the exact cost savings compared to a sole-source or limited competition scenario cannot be quantified without a counterfactual analysis, the high number of bids is a positive indicator of competitive pressure influencing the final award price.
What is the historical spending pattern for similar infrastructure projects at Camp Lemonnier?
Analyzing historical spending patterns for similar infrastructure projects at Camp Lemonnier would provide valuable context for this $166 million contract. Camp Lemonnier is a critical U.S. military base in the Horn of Africa, and it has undergone significant expansion and modernization over the years. Past projects likely include barracks, hangars, operational facilities, and support infrastructure. Understanding the scale, cost, and duration of previous construction efforts can help identify trends in spending, potential cost efficiencies or inefficiencies, and the typical cost drivers for infrastructure development in this specific location. This historical data is crucial for assessing whether the current contract represents a reasonable investment compared to past expenditures.
What are the implications of the firm-fixed-price contract type on contractor performance and government oversight?
The firm-fixed-price (FFP) contract type places the primary responsibility for cost control on the contractor, BL Harbert International LLC. This means the contractor assumes the risk of cost overruns, incentivizing efficient project management and cost-effective execution to maximize profit. For the government, an FFP contract offers significant budget certainty. However, it also necessitates robust oversight to ensure the contractor meets quality standards and adheres to the contract scope. The government's role shifts from managing costs to ensuring compliance and quality, requiring diligent inspection and performance monitoring to prevent substandard work or scope creep.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N6247013R3001
Offers Received: 10
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 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: $169,077,423
Exercised Options: $167,941,757
Current Obligation: $166,222,662
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-24
Current End Date: 2017-04-15
Potential End Date: 2017-04-15 00:00:00
Last Modified: 2021-07-30
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