State Department's $871M Pakistan Embassy Construction Contract Awarded to BL Harbert International
Contract Overview
Contract Amount: $871,494,138 ($871.5M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2010-09-30
End Date: 2020-09-30
Contract Duration: 3,653 days
Daily Burn Rate: $238.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TAS::19 0535 000::TAS NEW EMBASSEY COMPOUND AND HOUSING, ISLAMABAD, PAKISTAN.
Plain-Language Summary
Department of State obligated $871.5 million to BL HARBERT INTERNATIONAL LLC for work described as: TAS::19 0535 000::TAS NEW EMBASSEY COMPOUND AND HOUSING, ISLAMABAD, PAKISTAN. Key points: 1. The contract value of $871.5 million represents a significant investment in diplomatic infrastructure. 2. BL Harbert International, a large business, secured this contract through full and open competition. 3. The project carries inherent risks associated with large-scale international construction, including geopolitical and logistical challenges. 4. The construction sector is characterized by complex supply chains and fluctuating material costs.
Value Assessment
Rating: good
The contract's final value of $871.5 million appears reasonable given the scope of constructing a new embassy compound and housing in a challenging international location. Benchmarking against similar large-scale government construction projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified contractors to bid.
Taxpayer Impact: Taxpayer funds are being utilized for a critical diplomatic facility. The competitive award process aims to ensure value for money, but the substantial cost necessitates ongoing scrutiny.
Public Impact
Enhances U.S. diplomatic presence and security in Pakistan. Supports local employment and economic activity in Pakistan during construction. Represents a long-term U.S. government investment in international relations.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns due to international project complexities.
- Geopolitical instability in the region could impact project timelines and costs.
- Reliance on a single large contractor for a project of this magnitude.
Positive Signals
- Awarded through full and open competition, indicating market responsiveness.
- Firm Fixed Price contract type helps control costs.
- Clear definition of scope for embassy compound and housing.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Large-scale government construction projects like this often involve significant capital outlays and are benchmarked against similar federal building initiatives.
Small Business Impact
The contract was awarded to BL Harbert International, a large business. There is no indication of specific small business subcontracting goals or participation in this data.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Given the project's scale and location, robust oversight mechanisms are crucial to manage risks and ensure successful completion within budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Geopolitical instability
- Logistical challenges in international deployment
- Potential for scope creep
- Security risks associated with large construction sites abroad
- Fluctuations in global material costs
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $871.5 million to BL HARBERT INTERNATIONAL LLC. TAS::19 0535 000::TAS NEW EMBASSEY COMPOUND AND HOUSING, ISLAMABAD, PAKISTAN.
Who is the contractor on this award?
The obligated recipient is BL HARBERT INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $871.5 million.
What is the period of performance?
Start: 2010-09-30. End: 2020-09-30.
What were the key performance indicators and milestones established for this project, and how were they tracked to ensure successful delivery?
The provided data does not detail specific performance indicators or milestones. However, for a project of this scale, typical KPIs would include adherence to schedule, quality of construction, safety compliance, and budget management. Tracking would likely involve regular progress reports, site inspections, and milestone reviews by the contracting officer's representative.
How did the geopolitical climate in Pakistan influence the risk assessment and mitigation strategies during the contract's execution?
Geopolitical factors in Pakistan can significantly impact construction projects, including security threats, political instability, and regulatory changes. A thorough risk assessment would have identified these, and mitigation strategies might include enhanced security protocols, flexible scheduling, local stakeholder engagement, and contingency planning for supply chain disruptions.
What measures were in place to ensure the long-term sustainability and maintainability of the new embassy compound and housing?
While not detailed here, ensuring sustainability and maintainability would typically involve incorporating energy-efficient designs, using durable materials, and establishing comprehensive maintenance plans. The contract likely included provisions for warranties and training for facility management staff to ensure the longevity of the 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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
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: $871,498,138
Exercised Options: $871,498,138
Current Obligation: $871,494,138
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $10,198,178
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2021-05-11
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