DoD's $55.7M RPA Operations Facility contract awarded to BL Harbert International LLC for construction services
Contract Overview
Contract Amount: $55,744,860 ($55.7M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2020-12-30
End Date: 2023-12-20
Contract Duration: 1,085 days
Daily Burn Rate: $51.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RPA OPERATIONS FACILITY
Place of Performance
Location: GOOSE CREEK, BERKELEY County, SOUTH CAROLINA, 29445
Plain-Language Summary
Department of Defense obligated $55.7 million to BL HARBERT INTERNATIONAL LLC for work described as: RPA OPERATIONS FACILITY Key points: 1. The contract value of $55.7 million for a significant construction project indicates a substantial investment in defense infrastructure. 2. Awarded under full and open competition, this suggests a robust bidding process aimed at achieving competitive pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable final costs. 4. The project's duration of 1085 days points to a complex undertaking requiring extensive planning and execution. 5. The North American Industry Classification System (NAICS) code 236220 categorizes this as Commercial and Institutional Building Construction. 6. The contract was awarded by the Department of the Navy, highlighting a specific branch's infrastructure needs.
Value Assessment
Rating: good
The contract value of $55.7 million for a large-scale construction project appears reasonable given the scope of building a dedicated RPA operations facility. Benchmarking against similar large-scale government construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government sought cost certainty, which is a positive indicator for budget management. However, without detailed cost breakdowns or comparisons to private sector construction of equivalent facilities, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. With 6 bidders participating, the competition level appears healthy, suggesting that the Navy sought a broad range of proposals to ensure competitive pricing and quality. This level of competition is generally favorable for price discovery and can lead to better value for the government.
Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The primary beneficiaries are the Department of Defense and the Navy, gaining a critical facility for Remotely Piloted Aircraft (RPA) operations. The services delivered include the construction of a specialized facility, essential for supporting advanced military aviation capabilities. The geographic impact is concentrated in South Carolina, where the facility is located, potentially bringing local economic benefits through construction jobs and related services. Workforce implications include employment opportunities for construction workers, engineers, architects, and project managers involved in the building process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
- Delays in construction could impact the operational readiness of the RPA program.
- Ensuring the facility meets all specialized technical requirements for RPA operations is critical.
Positive Signals
- Awarded under full and open competition, indicating a competitive market for construction services.
- Firm-fixed-price contract type provides cost certainty for the government.
- The project addresses a specific and critical defense infrastructure need for RPA operations.
- The contractor, BL Harbert International LLC, has experience 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. The market for government construction, particularly defense-related infrastructure, is substantial, with agencies like the Department of the Navy frequently issuing contracts for new facilities and upgrades. This specific project supports the growing need for infrastructure to house and operate advanced aviation assets like RPAs. Comparable spending benchmarks would involve analyzing other large-scale military facility construction projects awarded by various branches of the DoD.
Small Business Impact
The contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that the primary focus was on securing the best overall bid from any qualified source, rather than prioritizing small business participation. The impact on the small business ecosystem would be indirect, primarily through potential opportunities with the prime contractor if they choose to subcontract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the facility as specified. Transparency is generally maintained through contract award databases and public reporting, although detailed project progress and specific cost management data may not be fully public.
Related Government Programs
- Department of Defense Military Construction
- Naval Facilities Engineering Command Projects
- Remotely Piloted Aircraft Systems Infrastructure
- Government Commercial Building Construction
Risk Flags
- Potential for construction delays
- Risk of unforeseen site conditions
- Ensuring specialized technical requirements are met
- Supply chain disruptions impacting materials
Tags
construction, defense, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, large-contract, south-carolina, commercial-and-institutional-building-construction, infrastructure, rpa-operations
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.7 million to BL HARBERT INTERNATIONAL LLC. RPA OPERATIONS FACILITY
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 $55.7 million.
What is the period of performance?
Start: 2020-12-30. End: 2023-12-20.
What is the track record of BL Harbert International LLC in completing large-scale government construction projects on time and within budget?
BL Harbert International LLC has a significant history of undertaking large-scale construction projects, including numerous contracts with government agencies. Their portfolio includes a variety of facility types, often involving complex requirements and substantial budgets. While specific on-time and within-budget performance metrics for all past projects are not readily available in this dataset, their repeated selection for major contracts suggests a generally positive track record. Analyzing past performance data from sources like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would provide a more detailed understanding of their historical success rates in meeting project timelines and financial constraints.
How does the per-square-foot construction cost of this RPA Operations Facility compare to similar government or private sector projects?
Determining the exact per-square-foot cost requires detailed information on the facility's size (square footage) and specific features, which is not provided in the summary data. However, the total contract value of $55.7 million for a specialized facility suggests a significant investment. To benchmark, one would need to identify comparable government or private sector projects (e.g., other military operational facilities, large institutional buildings) and compare their total cost against their respective square footage. Factors such as location, specialized technical requirements (e.g., security, IT infrastructure, environmental controls for RPA operations), and prevailing construction market rates in South Carolina would heavily influence this comparison. Without these details, a precise per-square-foot comparison is not feasible.
What are the primary risks associated with the construction of this RPA Operations Facility, and how are they being mitigated?
Key risks include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the facility's operational readiness. Cost overruns are a risk, although mitigated by the firm-fixed-price contract, which places the financial burden on the contractor. Technical risks involve ensuring the facility meets the highly specific and evolving requirements for RPA operations, including IT, power, and security infrastructure. Mitigation strategies likely involve robust project management, detailed site investigations, contingency planning, strict quality control, and clear communication channels between the Navy and BL Harbert International LLC. The contract's performance clauses also serve as a mitigation tool.
What is the expected impact of this facility on the Navy's Remotely Piloted Aircraft (RPA) operational capabilities?
The construction of a dedicated RPA Operations Facility is expected to significantly enhance the Navy's RPA capabilities by providing a centralized, secure, and purpose-built environment for operations, maintenance, training, and mission planning. Such facilities are crucial for supporting the increasing reliance on RPAs for intelligence, surveillance, reconnaissance, and other missions. This investment suggests a strategic expansion or consolidation of RPA assets, potentially leading to improved operational efficiency, enhanced command and control, and greater mission effectiveness. The facility will likely serve as a hub for critical RPA functions, supporting current and future technological advancements in unmanned aviation.
How has federal spending on construction projects for defense infrastructure evolved over the past five years, and does this contract align with trends?
Federal spending on defense infrastructure construction has generally remained robust, driven by modernization efforts, evolving threats, and the need to support new military technologies like RPAs. Agencies like the Department of Defense consistently allocate significant portions of their budget to building and upgrading facilities. This $55.7 million contract for an RPA Operations Facility aligns with this trend, reflecting the ongoing investment in specialized infrastructure to support advanced military capabilities. Trends often show increased spending on facilities related to cybersecurity, unmanned systems, and advanced training, making this contract a representative example of current defense infrastructure priorities.
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: N6945020R0063
Offers Received: 6
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: $57,007,996
Exercised Options: $55,744,860
Current Obligation: $55,744,860
Actual Outlays: $5,323,366
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-30
Current End Date: 2023-12-20
Potential End Date: 2023-12-20 00:00:00
Last Modified: 2024-08-09
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