DoD awards $38M for gate construction, with BL Harbert International LLC securing the contract
Contract Overview
Contract Amount: $38,090,304 ($38.1M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-06
End Date: 2025-07-31
Contract Duration: 1,182 days
Daily Burn Rate: $32.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION OF AIREY AND TYNDALL GATES
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32403
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $38.1 million to BL HARBERT INTERNATIONAL LLC for work described as: DESIGN AND CONSTRUCTION OF AIREY AND TYNDALL GATES Key points: 1. The contract value of $38.1 million appears reasonable for a large-scale construction project of this nature. 2. Full and open competition was utilized, suggesting a robust bidding process and potential for competitive pricing. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The project duration of nearly 4 years indicates a significant undertaking requiring substantial resources. 5. The contract is for commercial and institutional building construction, a common sector for federal spending. 6. The award to a single contractor, BL Harbert International LLC, is typical for complex construction projects.
Value Assessment
Rating: good
The contract value of $38.1 million for the design and construction of gates is within the expected range for large federal construction projects. Benchmarking against similar Department of Defense construction contracts for infrastructure would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is a positive indicator, as it shifts cost risk to the contractor and encourages efficient project management. Without specific per-unit cost data or detailed project specifications, a definitive assessment of pricing efficiency is challenging, but the overall value appears fair given the scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation resulted in 7 bids, suggesting a healthy level of interest and competition for this project. A higher number of bids generally leads to better price discovery and potentially lower costs for the government. The fact that 7 bids were received implies that the market for this type of construction is competitive.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and ensured the government received competitive proposals. This process helps prevent inflated pricing and promotes efficient use of public funds.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel, who will gain enhanced security and access control through the new gates. The project delivers essential infrastructure improvements, specifically the design and construction of Airey and Tyndall Gates. The geographic impact is localized to Florida, where the gates are being constructed. The project will likely involve a workforce of construction professionals, tradespeople, and project managers, contributing to employment in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays given the nearly 4-year duration of the contract.
- Risk of scope creep if project requirements are not clearly defined and managed.
- Dependence on a single contractor for successful project completion.
Positive Signals
- Firm fixed-price contract type mitigates financial risk for the government.
- Full and open competition suggests a competitive bidding environment.
- Award to an established contractor, BL Harbert International LLC, may indicate a track record of successful project execution.
Sector Analysis
The construction sector is a significant area of federal spending, particularly for infrastructure projects supporting military installations and government facilities. This contract falls under commercial and institutional building construction, a broad category encompassing a wide range of projects. Federal spending in this area is often driven by modernization needs, security enhancements, and facility upgrades. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by the Department of Defense or other federal agencies for similar infrastructure improvements.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to BL Harbert International LLC, a large prime contractor, suggests that the primary focus was on securing a capable entity for a large-scale project. Further analysis would be needed to determine if subcontracting opportunities for small businesses exist within the execution of this contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and relevant project managers within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability by capping the government's financial exposure. Transparency is generally maintained through contract award databases and public reporting, although detailed project-specific oversight mechanisms are not explicitly stated. The Inspector General's office may conduct audits or investigations if specific concerns arise regarding performance or financial management.
Related Government Programs
- Department of Defense Military Construction
- Federal Infrastructure Projects
- Army Corps of Engineers Construction Contracts
- Government Facility Modernization
Risk Flags
- Long project duration may increase risk of cost escalation or scope creep.
- Dependence on a single contractor for a multi-year project.
- Potential for quality issues if contractor faces cost pressures.
Tags
construction, department-of-defense, florida, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, infrastructure, army, commercial-institutional-building
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.1 million to BL HARBERT INTERNATIONAL LLC. DESIGN AND CONSTRUCTION OF AIREY AND TYNDALL GATES
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 $38.1 million.
What is the period of performance?
Start: 2022-05-06. End: 2025-07-31.
What is the track record of BL Harbert International LLC with the federal government, particularly in large-scale construction projects?
BL Harbert International LLC has a significant history of contracting with the federal government, particularly the Department of Defense. They have been awarded numerous contracts for construction and engineering services, often involving large-scale projects such as barracks, training facilities, and infrastructure improvements. Their experience typically includes working in various geographic locations, including overseas. A review of federal procurement data would reveal the specific types and values of contracts they have previously held, providing insight into their performance history and capacity to handle projects like the Airey and Tyndall Gates construction. Past performance evaluations, where available, would offer a more direct assessment of their reliability and quality of work.
How does the $38.1 million cost compare to similar gate construction projects for the Department of Defense?
Benchmarking the $38.1 million cost against similar Department of Defense gate construction projects requires access to a database of comparable contracts. Factors such as the size and complexity of the gates, the specific security features required, the geographic location (which impacts labor and material costs), and the overall scope of work (including design, site preparation, and installation) significantly influence project costs. Generally, large-scale, high-security gate installations at military installations can range from several million to tens of millions of dollars. The provided value appears to be within a reasonable range for a substantial project, but a precise comparison would necessitate identifying contracts with similar specifications and timelines.
What are the primary risks associated with a firm fixed-price contract for a project of this duration?
While firm fixed-price (FFP) contracts are generally favored for their cost control benefits, a project spanning nearly four years (1182 days) introduces specific risks. The primary risk for the contractor is underestimating costs due to unforeseen economic fluctuations, such as significant increases in material prices or labor rates over the extended period. For the government, the risk lies in the contractor potentially cutting corners on quality to maintain profitability if costs escalate beyond their projections, or in potential disputes arising from scope interpretation over such a long duration. Effective contract management, clear specifications, and proactive communication are crucial to mitigate these risks.
What is the expected impact of this project on the local workforce and economy in Florida?
The design and construction of the Airey and Tyndall Gates are expected to have a positive impact on the local workforce and economy in Florida. The project will create jobs for construction workers, engineers, project managers, and administrative staff. BL Harbert International LLC, as the prime contractor, will likely source labor and materials locally where feasible, injecting funds into the regional economy through wages, supplier payments, and associated spending. The duration of the project suggests sustained employment opportunities over several years. Additionally, the improved infrastructure may indirectly benefit the local community by enhancing security and operational efficiency at the affected military installation.
How does the number of bids (7) influence the government's ability to secure competitive pricing for this construction project?
Receiving 7 bids for this construction project is a positive indicator of competitive pricing. A higher number of bids generally increases the likelihood that the government will receive proposals reflecting true market value. With multiple bidders vying for the contract, each is incentivized to offer their most competitive price and best terms to win the award. This competitive pressure helps to drive down costs for the government compared to a scenario with fewer bidders, where the risk of non-competitive pricing is higher. The presence of 7 bids suggests that the market is sufficiently robust and that the solicitation was attractive enough to draw significant interest.
Are there any specific performance metrics or milestones defined within the contract to ensure timely and quality completion?
The provided data does not explicitly detail the specific performance metrics or milestones within the contract. However, for a project of this magnitude and duration, it is standard practice for such contracts to include detailed schedules, phased delivery requirements, and quality assurance provisions. The contracting officer and project management team within the Department of the Army would be responsible for monitoring progress against these defined milestones and ensuring adherence to quality standards throughout the construction lifecycle. The firm fixed-price nature also implies that meeting these requirements within budget is paramount for the contractor's profitability.
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: W9127820R0022
Offers Received: 7
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: $38,202,304
Exercised Options: $38,090,304
Current Obligation: $38,090,304
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $27,466,599
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-05-06
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-08-01
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