DoD awards $75.6M for drone facility construction, with BL Harbert International LLC winning the competitive bid
Contract Overview
Contract Amount: $75,604,386 ($75.6M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2021-12-10
End Date: 2025-05-27
Contract Duration: 1,264 days
Daily Burn Rate: $59.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF WEG SUBSCALE DRONE FACILITIES
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32403
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $75.6 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION OF WEG SUBSCALE DRONE FACILITIES Key points: 1. The contract value of $75.6 million for drone facility construction appears substantial, necessitating a close review of its value proposition. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The contract duration of 1264 days indicates a long-term commitment, requiring robust performance monitoring. 4. The firm-fixed-price structure shifts most cost risk to the contractor, which can be beneficial for the government if managed effectively. 5. The project's focus on drone facilities aligns with evolving defense technology needs. 6. The geographic location in Florida may have implications for local workforce and material sourcing.
Value Assessment
Rating: good
Benchmarking this $75.6 million construction contract against similar Department of Defense projects for specialized facilities is crucial. While specific per-unit cost data for drone facilities is not readily available, the firm-fixed-price nature of the award suggests that the contractor assumes the primary risk for cost overruns. The award to BL Harbert International LLC, a known entity in large-scale construction, provides some confidence. However, a detailed cost breakdown and comparison to industry standards for commercial and institutional building construction would be necessary for a more definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 5 bidders, as suggested by the data, points to a competitive environment for this type of specialized construction. A competitive process generally helps ensure that the government receives fair market value for its investment and encourages contractors to offer their best pricing and technical solutions.
Taxpayer Impact: The robust competition for this contract is a positive signal for taxpayers, as it likely drove down the final price and ensured a wider pool of qualified contractors were considered, preventing potential price gouging.
Public Impact
The primary beneficiaries are the Department of Defense, which will gain essential infrastructure for drone operations. The services delivered include the construction of specialized facilities designed to support advanced drone technology. The geographic impact is concentrated in Florida, potentially creating local jobs and stimulating the regional economy. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Florida area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the long duration and specialized nature of drone facilities.
- Ensuring compliance with environmental regulations during construction in Florida.
- Managing potential delays due to material availability or specialized labor shortages.
- Verifying the long-term operational readiness and suitability of the constructed facilities for evolving drone technology.
Positive Signals
- Award to an experienced contractor (BL Harbert International LLC) with a track record in large-scale projects.
- Firm-fixed-price contract structure limits government exposure to cost overruns.
- Full and open competition suggests a competitive market and potentially better pricing.
- Clear project scope for drone facility construction aligns with strategic defense modernization efforts.
Sector Analysis
The construction sector, specifically commercial and institutional building construction (NAICS 236220), is a significant part of the U.S. economy. This contract falls within the defense sub-sector, which often involves specialized requirements and higher security protocols. The market for defense construction is substantial, with significant government spending allocated annually. Comparable spending benchmarks would typically involve other large-scale military facility constructions, such as barracks, training centers, or hangar projects, though drone-specific facilities represent a newer and evolving niche.
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 set-aside provision. However, the prime contractor, BL Harbert International LLC, may engage small businesses as subcontractors for various construction trades or material supply, depending on their subcontracting plan and the project's needs. The overall impact on the small business ecosystem would depend on the extent of such subcontracting.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army, a component of the Department of Defense. Mechanisms would include regular progress reports from the contractor, site inspections, and potentially the appointment of a contracting officer's representative (COR). Accountability is ensured through the firm-fixed-price contract terms, which penalize the contractor for cost overruns. Transparency may be enhanced through public contract databases, though specific project details and internal oversight processes are typically not fully disclosed.
Related Government Programs
- Military Construction Projects
- Defense Infrastructure Modernization
- Advanced Technology Facilities
- Unmanned Aerial Vehicle (UAV) Support Infrastructure
Risk Flags
- Long contract duration increases risk of obsolescence or changing requirements.
- Specialized nature of drone facilities may lead to unique cost drivers.
- Firm-fixed-price contract requires careful monitoring to ensure quality standards are met.
Tags
construction, department-of-defense, department-of-the-army, florida, definitive-contract, full-and-open-competition, firm-fixed-price, large-contract, drone-facilities, military-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.6 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION OF WEG SUBSCALE DRONE FACILITIES
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 $75.6 million.
What is the period of performance?
Start: 2021-12-10. End: 2025-05-27.
What is BL Harbert International LLC's track record with Department of Defense construction contracts?
BL Harbert International LLC has a significant history of working with the Department of Defense on various construction projects. While specific details on drone facility construction are not immediately apparent from this single award, the company has experience with large-scale military infrastructure, including barracks, training facilities, and administrative buildings. Their past performance on similar, albeit not identical, projects suggests a capacity to handle complex government construction requirements. A deeper dive into their contract history would reveal the types of projects, their success rates, and any past performance issues or commendations received from the DoD.
How does the $75.6 million cost compare to similar drone facility construction projects?
Direct cost comparisons for specialized drone facilities are challenging due to the novelty of such infrastructure and the variability in specific requirements (e.g., hangar size, testing ranges, maintenance bays, security features). However, $75.6 million for a significant construction project of this nature, especially within a defense context which often involves higher security and specialized materials, is within a plausible range for large-scale institutional or commercial building construction. Benchmarking against other large military construction projects (e.g., barracks, training centers) of similar square footage or complexity would provide a more relevant comparison, though the unique demands of drone operations may justify a premium.
What are the primary risks associated with this firm-fixed-price contract for drone facility construction?
The primary risk with a firm-fixed-price (FFP) contract, while generally favorable to the government by capping costs, lies in the contractor's potential to cut corners on quality or materials to maintain profitability if unforeseen issues arise during construction. For specialized drone facilities, risks include the rapid evolution of drone technology rendering the facility obsolete before completion or shortly after, potential delays due to specialized material sourcing or labor, and ensuring the facility meets stringent operational and security requirements. The long duration (1264 days) also increases the risk of external factors like economic fluctuations or regulatory changes impacting the project.
How effective is full and open competition in ensuring value for taxpayer money in defense construction?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in defense construction. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as indicated by the 5 bidders in this case, increases the likelihood that the government will receive a fair market price. However, effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess proposals to select the best value, not just the lowest price.
What are historical spending patterns for similar defense construction projects in Florida?
Historical spending patterns for defense construction projects in Florida are substantial, given the state's significant military presence. The Department of Defense frequently awards contracts for infrastructure development, training facilities, and operational support across various branches. While specific data for drone facilities is limited due to their specialized nature, Florida has seen considerable investment in construction projects supporting aviation, naval operations, and troop housing. Analyzing past awards for large-scale military construction in Florida, particularly those involving aviation or technology infrastructure, would provide context for the $75.6 million award, though the unique requirements of drone facilities might lead to different cost structures.
What are the potential long-term implications of constructing specialized drone facilities for the DoD?
The long-term implications of constructing specialized drone facilities are significant for the DoD's modernization and operational capabilities. These facilities are crucial for the development, testing, maintenance, and deployment of unmanned aerial systems (UAS), which are increasingly vital for intelligence, surveillance, reconnaissance, and combat missions. Investing in such infrastructure supports the strategic shift towards greater reliance on autonomous systems, enhancing force projection and reducing risk to personnel. The facilities must be adaptable to future technological advancements in drone capabilities and autonomy to ensure long-term strategic value.
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: TWO STEP
Solicitation ID: W9127820R0029
Offers Received: 5
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: $76,533,915
Exercised Options: $75,604,386
Current Obligation: $75,604,386
Actual Outlays: $8,953,100
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $11,538,161
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-10
Current End Date: 2025-05-27
Potential End Date: 2025-05-27 00:00:00
Last Modified: 2025-10-14
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