Department of Defense awards $37.7M for facility stabilization, with 3 bidders competing for the fixed-price contract
Contract Overview
Contract Amount: $37,761,350 ($37.8M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-17
End Date: 2024-10-21
Contract Duration: 1,161 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CCAD HANGAR 47 FACIILITY STABILIZATION
Place of Performance
Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $37.8 million to BL HARBERT INTERNATIONAL LLC for work described as: CCAD HANGAR 47 FACIILITY STABILIZATION Key points: 1. The contract's firm-fixed-price structure aims to control costs, but the final value suggests potential for cost overruns or scope changes. 2. With three bidders, competition was present but may not have been robust enough to guarantee the lowest possible price. 3. The duration of over three years indicates a significant project with potential for long-term impact on facility readiness. 4. The project's focus on facility stabilization suggests it addresses critical infrastructure needs, potentially preventing further degradation. 5. The contract falls within the Commercial and Institutional Building Construction sector, a common area for federal infrastructure spending.
Value Assessment
Rating: fair
The awarded amount of $37.7 million for facility stabilization appears substantial. Benchmarking against similar construction projects for institutional buildings is necessary to determine if this represents a fair market price. The firm-fixed-price contract type offers some cost certainty, but the total value over a multi-year period warrants scrutiny for potential cost efficiencies or areas where value could be enhanced.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with three bids received. While competition existed, a higher number of bidders typically leads to more aggressive pricing and better value for the government. The presence of three bidders suggests a moderately competitive environment, but it's unclear if this was sufficient to drive down costs to the lowest feasible level.
Taxpayer Impact: The full and open competition is positive for taxpayers, as it allows any qualified vendor to bid, theoretically leading to a more competitive price. However, with only three bidders, the potential for significant cost savings may have been limited compared to a more crowded field.
Public Impact
The primary beneficiaries are the Department of Defense and the Navy, who will see improved facility conditions. The services delivered include stabilization of a critical facility, likely a hangar, ensuring its operational readiness. The geographic impact is localized to Texas, where the facility is located. The project will likely involve a workforce of construction professionals and tradespeople in the Texas region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation over the multi-year contract duration.
- Limited competition may have resulted in a higher-than-optimal price.
- Scope creep could increase the final cost beyond the initial award amount.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition allows for broad market participation.
- Addresses critical infrastructure needs, ensuring facility readiness.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and renovation of non-residential structures. Federal spending in this sector is substantial, driven by the need to maintain and upgrade government facilities, including military installations, administrative buildings, and research centers. Comparable spending benchmarks would involve analyzing other large-scale construction and renovation projects awarded by the Department of Defense or other federal agencies for similar types of facilities.
Small Business Impact
The contract data indicates that small business participation was not a primary focus, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary contractor, BL Harbert International LLC, will likely manage the majority of the work, with potential for some subcontracting opportunities that are not specifically designated for small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Navy, ensuring adherence to contract terms and quality standards. Accountability measures are embedded in the firm-fixed-price structure, which incentivizes the contractor to complete the work within budget. Transparency is facilitated through public contract databases, though detailed project progress reports may not be publicly available.
Related Government Programs
- Department of Defense Facility Maintenance
- Naval Base Infrastructure Projects
- Military Construction Projects
- Commercial Building Renovation Contracts
Risk Flags
- Potential for cost overruns due to multi-year duration.
- Limited competition may impact price efficiency.
- Scope definition for 'stabilization' needs clear definition to avoid disputes.
Tags
construction, department-of-defense, department-of-the-navy, facility-maintenance, firm-fixed-price, full-and-open-competition, large-contract, texas, commercial-and-institutional-building-construction, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.8 million to BL HARBERT INTERNATIONAL LLC. CCAD HANGAR 47 FACIILITY STABILIZATION
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 $37.8 million.
What is the period of performance?
Start: 2021-08-17. End: 2024-10-21.
What is the track record of BL Harbert International LLC with the federal government, particularly in large construction projects?
BL Harbert International LLC has a significant history of contracting with the federal government, primarily through the Department of Defense and other agencies. They specialize in large-scale construction projects, including military facilities, embassies, and other institutional buildings. Their past performance often involves complex projects with substantial budgets, similar to the CCAD Hangar 47 Facility Stabilization contract. A review of their federal contract history would reveal the number and value of previous awards, any instances of contract disputes or performance issues, and their overall success rate in delivering projects on time and within budget. This context is crucial for assessing the risk associated with their current contract.
How does the awarded amount of $37.7 million compare to similar facility stabilization projects for military installations?
Benchmarking the $37.7 million award requires detailed analysis of comparable projects. Factors such as the size and type of facility (e.g., hangar vs. barracks), the scope of 'stabilization' (e.g., structural repairs, environmental remediation, system upgrades), the geographic location (which impacts labor and material costs), and the contract duration are critical. Without specific project details, it's difficult to provide a precise comparison. However, for large-scale stabilization or renovation of significant military infrastructure like a hangar, $37.7 million over a multi-year period is within the expected range for substantial projects. A more granular comparison would involve looking at contracts for similar-sized hangars or critical infrastructure at other Department of Defense installations, considering the year of award and the specific work performed.
What are the primary risks associated with a multi-year, firm-fixed-price contract for facility stabilization?
The primary risks for a multi-year, firm-fixed-price contract like this involve potential cost overruns if the initial scope or cost estimates were inaccurate, and the contractor's ability to manage unforeseen conditions. While the firm-fixed-price structure protects the government from cost increases due to contractor inefficiency, it places the risk of unexpected site conditions or material price volatility on the contractor. If the contractor underestimated these risks, they might seek to reduce quality or cut corners to maintain profitability, or potentially face financial distress. For the government, the risk lies in the potential for delays if the contractor struggles, or if the initial scope doesn't fully address the stabilization needs, requiring future contracts.
What is the expected impact of this contract on the operational readiness of the CCAD facility?
The expected impact of this contract on the operational readiness of the CCAD facility is likely to be significant and positive. Facility stabilization projects are typically undertaken to address critical structural, environmental, or functional deficiencies that could impede or halt operations. By stabilizing the hangar, the Department of Defense ensures that this vital asset remains functional and capable of supporting its intended mission, whether that involves aircraft maintenance, storage, or deployment. This prevents further degradation, reduces the likelihood of costly emergency repairs, and contributes to the overall efficiency and reliability of the base's infrastructure.
How has federal spending on commercial and institutional building construction evolved over the past five years, and where does this contract fit?
Federal spending on commercial and institutional building construction has generally remained robust, driven by the ongoing need to maintain and modernize government infrastructure across various agencies, including defense, education, and health. While specific year-over-year figures fluctuate based on budget allocations and major project initiatives, the sector consistently represents a significant portion of federal procurement. This $37.7 million contract for facility stabilization at a Department of Defense installation fits within this broader trend. It represents a targeted investment in critical infrastructure maintenance rather than new construction, reflecting a common strategy to preserve existing assets and ensure their long-term utility and safety.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6945018R0700
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: $38,583,732
Exercised Options: $37,761,350
Current Obligation: $37,761,350
Actual Outlays: $172,986
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $24,496,954
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6945019D0908
IDV Type: IDC
Timeline
Start Date: 2021-08-17
Current End Date: 2024-10-21
Potential End Date: 2024-10-21 00:00:00
Last Modified: 2025-09-30
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