State Department awards $258.7M construction contract to BL Harbert International for Ankara NEC project
Contract Overview
Contract Amount: $258,748,245 ($258.7M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2016-12-20
End Date: 2022-06-18
Contract Duration: 2,006 days
Daily Burn Rate: $129.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::CT::IGF - THIS REQUISITION PROVIDES FOR CONSTRUCTION SERVICES ON THE ANKARA, TURKEY NEC PROJECT.
Plain-Language Summary
Department of State obligated $258.7 million to BL HARBERT INTERNATIONAL LLC for work described as: IGF::CT::IGF - THIS REQUISITION PROVIDES FOR CONSTRUCTION SERVICES ON THE ANKARA, TURKEY NEC PROJECT. Key points: 1. Contract value represents a significant investment in overseas infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Definitive contract type indicates a long-term agreement for services. 4. Fixed-price structure aims to control costs for the government. 5. Project duration spans over six years, requiring sustained oversight. 6. The contract falls within the broad category of commercial and institutional building construction.
Value Assessment
Rating: good
The contract value of $258.7 million for construction services is substantial, reflecting the scale and complexity of building an NEC project in Ankara, Turkey. Benchmarking against similar overseas construction projects for diplomatic facilities would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract provides cost certainty to the government, mitigating risks associated with fluctuating expenses. The duration of the contract (2016-2022) also suggests a significant undertaking.
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. The number of bidders (4) suggests a moderate level of competition for this large-scale construction project. While four bidders is not exceptionally high for a contract of this magnitude, it still provides a basis for price discovery and ensures that the government is not limited to a single provider. The competitive process likely contributed to achieving a reasonable price for the services rendered.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment, which can lead to lower prices and better quality services. The presence of multiple bidders suggests that taxpayer funds were likely used efficiently.
Public Impact
The primary beneficiary is the Department of State, which will gain enhanced facilities for its operations in Ankara, Turkey. The contract delivers essential construction services for a critical infrastructure project. The geographic impact is localized to Ankara, Turkey, supporting U.S. diplomatic presence. The project likely created jobs in construction and related trades, both domestically for the contractor's home office and internationally for on-site labor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases the risk of cost overruns if not managed effectively.
- Overseas construction projects can face unique logistical and security challenges.
- The fixed-price nature might incentivize the contractor to cut corners if oversight is insufficient.
Positive Signals
- Full and open competition suggests a robust bidding process.
- Firm fixed-price contract provides cost certainty.
- The contractor, BL Harbert International LLC, has a track record in large-scale construction.
Sector Analysis
This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The global market for overseas construction, particularly for government facilities, is substantial, driven by diplomatic needs, security requirements, and infrastructure development. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by the State Department or other federal agencies for embassies, consulates, or other overseas installations. The scale of this contract ($258.7M) places it among significant infrastructure investments.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside requirement. However, the prime contractor, BL Harbert International LLC, may engage small businesses as subcontractors for various aspects of the construction project, depending on their procurement practices and the availability of specialized services. The overall impact on the small business ecosystem would depend on the extent of such subcontracting.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of State's Bureau of Overseas Buildings Operations (OBO) and potentially its Office of Inspector General (OIG). OBO is responsible for managing the design, construction, and maintenance of U.S. diplomatic facilities worldwide. The OIG provides independent audits, inspections, and investigations to ensure the integrity and efficiency of State Department operations, including major construction projects. Transparency would be facilitated through contract awards databases and potentially public reporting on project milestones.
Related Government Programs
- Department of State Embassy Construction
- Overseas Building Operations
- Federal Construction Contracts
- Large-Scale Infrastructure Projects
Risk Flags
- Long contract duration
- Overseas project location
- Fixed-price contract risk
- Potential for scope creep
Tags
construction, department-of-state, ankara, turkey, definitive-contract, firm-fixed-price, full-and-open-competition, commercial-institutional-building, large-contract, overseas-project, bl-harbert-international-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $258.7 million to BL HARBERT INTERNATIONAL LLC. IGF::CT::IGF - THIS REQUISITION PROVIDES FOR CONSTRUCTION SERVICES ON THE ANKARA, TURKEY NEC PROJECT.
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 $258.7 million.
What is the period of performance?
Start: 2016-12-20. End: 2022-06-18.
What is BL Harbert International LLC's track record with large federal construction contracts, particularly overseas?
BL Harbert International LLC has a significant track record in large-scale construction projects, including numerous federal contracts both domestically and internationally. They have been involved in building embassies, consulates, and other government facilities for the Department of State, as well as projects for other agencies like the Department of Defense. Their experience often includes complex projects in challenging environments, requiring adherence to strict security and quality standards. Reviewing their past performance on similar projects, including any past performance evaluations or awards/debarments, would provide further insight into their capabilities and reliability for the Ankara NEC project.
How does the $258.7 million contract value compare to similar overseas construction projects by the State Department?
The $258.7 million contract value is substantial and aligns with the typical scale of major construction projects for U.S. diplomatic facilities overseas. Projects like New Embassy Compounds (NECs) or major chancery renovations often run into the hundreds of millions of dollars due to the extensive requirements for security, specialized systems, durable construction, and the logistical complexities of building in foreign locations. For instance, other NEC projects awarded by the State Department in recent years have often ranged from $150 million to over $500 million, depending on the size of the facility, location, and specific security enhancements required. This contract appears to be within the expected range for a project of this nature.
What are the primary risks associated with a six-year fixed-price construction contract for an overseas project?
The primary risks associated with a six-year fixed-price construction contract for an overseas project include potential cost overruns if the fixed price was underestimated, scope creep if changes are not managed rigorously, and contractor performance issues. For overseas projects, additional risks involve geopolitical instability, currency fluctuations, supply chain disruptions, labor availability and cost variations, and unforeseen site conditions. The fixed-price nature, while beneficial for cost certainty, can put pressure on the contractor if costs escalate beyond projections, potentially leading to quality compromises or disputes if not managed with strong oversight and clear contract terms.
How effective are the oversight mechanisms for large overseas construction contracts managed by the Department of State?
The Department of State, through its Bureau of Overseas Buildings Operations (OBO), employs a multi-layered oversight system for its large overseas construction contracts. This typically includes resident engineers, project directors, quality assurance specialists, and contracting officers' representatives on-site to monitor progress, quality, and adherence to specifications. The Office of Inspector General (OIG) also conducts independent audits and investigations to ensure accountability and identify potential fraud, waste, or abuse. While these mechanisms are robust, the effectiveness can vary based on resource allocation, the complexity of the project, and the specific challenges of the overseas location. Regular reporting, site visits, and performance reviews are key components.
What is the historical spending pattern for construction services by the Department of State over the last decade?
Over the last decade, the Department of State has consistently allocated significant funding towards the construction and renovation of its diplomatic facilities worldwide. Annual spending has fluctuated based on the number and scale of major projects initiated, but generally falls in the range of several billion dollars per year. This includes funding for New Embassy Compounds (NECs), chancery renovations, staff housing, and security upgrades. The trend has been towards modernizing aging infrastructure, enhancing security in response to evolving threats, and improving sustainability. The data for this specific $258.7 million contract fits within this broader pattern of substantial investment in overseas infrastructure.
What does the 'Commercial and Institutional Building Construction' (NAICS 236220) classification imply for this contract?
The NAICS code 236220, 'Commercial and Institutional Building Construction,' indicates that the contract scope involves the construction of buildings that are not primarily residential. This category typically includes a wide range of structures such as office buildings, government facilities, educational institutions, hospitals, and other public or private non-residential buildings. For this Department of State contract, it signifies that the project involves constructing a facility intended for official government operations, likely encompassing administrative offices, meeting spaces, security infrastructure, and potentially other support facilities, rather than housing units.
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: SAQMMA16R0128
Offers Received: 4
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: $258,748,245
Exercised Options: $258,748,245
Current Obligation: $258,748,245
Subaward Activity
Number of Subawards: 149
Total Subaward Amount: $39,191,636
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2016-12-20
Current End Date: 2022-06-18
Potential End Date: 2022-06-18 00:00:00
Last Modified: 2024-08-26
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