State Department Awards $353.6M Embassy Construction Contract to BL Harbert International
Contract Overview
Contract Amount: $353,570,399 ($353.6M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2012-09-24
End Date: 2024-09-30
Contract Duration: 4,389 days
Daily Burn Rate: $80.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: JAKARTA, INDONESIA NEW EMBASSY COMPOUND IGF::OT::IGF
Plain-Language Summary
Department of State obligated $353.6 million to BL HARBERT INTERNATIONAL LLC for work described as: JAKARTA, INDONESIA NEW EMBASSY COMPOUND IGF::OT::IGF Key points: 1. Significant investment in diplomatic infrastructure. 2. BL Harbert International is a major player in large-scale construction. 3. Long contract duration may present cost escalation risks. 4. Construction sector is subject to material and labor cost volatility.
Value Assessment
Rating: fair
The contract value of $353.6 million for a new embassy compound is substantial. Benchmarking against similar large-scale government construction projects is difficult without more specific details on scope and location, but the price appears within a plausible range for such a complex undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 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 used for a critical diplomatic asset. While competition aims for efficiency, the large sum necessitates careful oversight to ensure value for money.
Public Impact
Enhances U.S. diplomatic presence and security in Indonesia. Supports local employment and economic activity in the construction sector. Represents a long-term commitment to international relations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (12 years) increases risk of cost overruns due to inflation and changing requirements.
- No indication of small business participation.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract provides cost certainty for the government.
- Contractor has experience in large-scale projects.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be highly variable, influenced by economic cycles, material costs, and government infrastructure priorities. The value is significant for a single project.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). This is common for very large, complex construction projects where prime contractors are large corporations, but it means opportunities for small businesses may be limited to subcontracting roles.
Oversight & Accountability
The long duration and significant value of this contract warrant robust oversight from the Department of State to ensure adherence to schedule, budget, and quality standards. Regular progress reviews and audits are crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- No explicit mention of small business subcontracting goals.
- Potential for scope creep over a 12-year project lifecycle.
- Lack of detailed performance metrics makes ongoing value assessment difficult.
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 $353.6 million to BL HARBERT INTERNATIONAL LLC. JAKARTA, INDONESIA NEW EMBASSY COMPOUND IGF::OT::IGF
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 $353.6 million.
What is the period of performance?
Start: 2012-09-24. End: 2024-09-30.
What specific factors contributed to the final contract price of $353.6 million, and how do they compare to industry benchmarks for similar embassy construction projects?
The final price is likely influenced by the complex security requirements, specialized materials, labor costs in Indonesia, design specifications, and the contractor's overhead and profit margins. A detailed cost breakdown compared to industry benchmarks for secure diplomatic facilities would be needed for a precise assessment. Factors like geopolitical stability and local economic conditions also play a role.
Given the 12-year duration, what mechanisms are in place to mitigate risks associated with inflation, material price fluctuations, and potential changes in project scope or security needs?
While a Firm Fixed Price contract offers initial cost certainty, long durations often include escalation clauses for labor and materials, or contingency funds. The contract likely specifies procedures for change orders and scope adjustments, requiring government approval and potentially impacting the total cost. Regular reviews by the Department of State are essential to manage these evolving risks proactively.
How effectively did the 'full and open competition' process ensure the best value for taxpayers, considering the contractor's past performance and the project's critical nature?
Full and open competition generally promotes value by fostering a competitive bidding environment. The effectiveness here depends on the rigor of the evaluation process, which likely considered technical capabilities, past performance, and price. For a critical asset like an embassy, ensuring the selected contractor can deliver on security, quality, and schedule is paramount, even if it means a higher bid compared to less experienced competitors.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
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
Address: 820 SHADES CREEK, 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: $353,570,399
Exercised Options: $353,570,399
Current Obligation: $353,570,399
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $172,684,452
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-24
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-01-15
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