DoD Awards $68M Warehouse Construction Contract to BL Harbert International LLC
Contract Overview
Contract Amount: $68,012,021 ($68.0M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2019-06-19
End Date: 2023-05-05
Contract Duration: 1,416 days
Daily Burn Rate: $48.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: GENERAL PURPOSE WAREHOUSE
Place of Performance
Location: TEXARKANA, BOWIE County, TEXAS, 75501
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $68.0 million to BL HARBERT INTERNATIONAL LLC for work described as: GENERAL PURPOSE WAREHOUSE Key points: 1. Significant investment in infrastructure for the Department of Defense. 2. BL Harbert International LLC, a large business, secured the contract. 3. The contract was awarded under full and open competition. 4. The project spans over 1400 days, indicating a substantial construction effort.
Value Assessment
Rating: fair
The award amount of $68M for a general purpose warehouse appears within a reasonable range for large-scale construction projects. However, without specific details on size, features, and location, a precise comparison is difficult. The firm fixed price contract suggests cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple qualified contractors had the opportunity to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required construction services.
Public Impact
Supports military readiness and logistics operations through improved warehousing. Potential for job creation in the Texas region where construction will take place. Ensures the Department of Defense has adequate facilities for storing equipment and supplies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1416 days) could lead to cost overruns if not managed effectively.
- Firm Fixed Price contracts can shift risk to the contractor, potentially leading to higher initial bids.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Definitive contract provides a clear framework for the project.
- Construction in Texas may leverage local resources and expertise.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the DoD is crucial for maintaining and upgrading facilities necessary for operational support and personnel. Benchmarks for similar large-scale warehouse construction can vary significantly based on geographic location, size, and specific requirements.
Small Business Impact
The contract was awarded to BL Harbert International LLC, identified as a large business. There is no indication of small business subcontracting participation in the provided data, which could be an area for further review to ensure small business utilization.
Oversight & Accountability
The definitive contract structure provides a clear basis for oversight. Monitoring the project's progress against the firm fixed price and schedule will be key for accountability. The long duration necessitates diligent program management to ensure timely and cost-effective completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may increase risk of cost escalation.
- Lack of detail on warehouse specifications hinders precise value assessment.
- No explicit mention of small business subcontracting goals.
- Potential for contractor bid inflation due to long-term FFP commitment.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.0 million to BL HARBERT INTERNATIONAL LLC. GENERAL PURPOSE WAREHOUSE
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 Army).
What is the total obligated amount?
The obligated amount is $68.0 million.
What is the period of performance?
Start: 2019-06-19. End: 2023-05-05.
What are the specific square footage and key features of the general purpose warehouse to better assess its value?
The provided data lacks specific details on the warehouse's size (square footage) and its intended features or capacity. Understanding these elements is crucial for a comprehensive value assessment. Without this information, it's challenging to benchmark the $68 million cost against industry standards for similar facilities, making it difficult to determine if the price reflects optimal value for the government's investment.
What are the potential risks associated with the 1416-day contract duration for this construction project?
A duration of 1416 days (nearly four years) for a warehouse construction project introduces several risks. These include potential escalation of material and labor costs beyond initial projections, unforeseen site conditions that could cause delays, and the possibility of design or requirement changes over such an extended period. Effective risk mitigation strategies and robust project management will be essential to control costs and ensure timely completion.
How does the firm fixed price (FFP) contract type impact the government's ability to ensure cost-effectiveness for this large construction project?
The Firm Fixed Price (FFP) contract type shifts the risk of cost overruns to the contractor, BL Harbert International LLC. While this provides budget certainty for the Department of the Army, it can also lead contractors to build in higher contingency amounts into their bids to cover potential unforeseen expenses. The government's effectiveness in ensuring cost-effectiveness relies heavily on the thoroughness of the initial requirements definition and the competitiveness of the bidding process under full and open competition.
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: SEALED BID
Solicitation ID: W9126G19B0007
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: $68,012,021
Exercised Options: $68,012,021
Current Obligation: $68,012,021
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-06-19
Current End Date: 2023-05-05
Potential End Date: 2023-05-05 00:00:00
Last Modified: 2023-02-23
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