State Department Awards $228M Design/Build Contract for Nassau Embassy Compound to Caddell Construction
Contract Overview
Contract Amount: $228,009,133 ($228.0M)
Contractor: Caddell Construction CO. (DE), LLC
Awarding Agency: Department of State
Start Date: 2018-12-28
End Date: 2023-12-01
Contract Duration: 1,799 days
Daily Burn Rate: $126.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD SERVICES FOR THE NEW EMBASSY COMPOUND NASSAU, BAHAMAS. TO INCLUDE VALUE ADDED TAX (VAT) AND PAYMENT AND PERFORMANCE BONDS.
Plain-Language Summary
Department of State obligated $228.0 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: DESIGN/BUILD SERVICES FOR THE NEW EMBASSY COMPOUND NASSAU, BAHAMAS. TO INCLUDE VALUE ADDED TAX (VAT) AND PAYMENT AND PERFORMANCE BONDS. Key points: 1. The contract covers design and construction services for a new embassy compound in Nassau, Bahamas. 2. Caddell Construction Co. (DE), LLC was awarded the definitive contract. 3. The contract includes Value Added Tax (VAT) and payment/performance bonds. 4. The project falls under Commercial and Institutional Building Construction. 5. The contract was awarded via full and open competition.
Value Assessment
Rating: good
The contract value of $228 million for a new embassy compound appears reasonable given the scope, which includes design, construction, VAT, and bonding. Benchmarking against similar large-scale government construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment among qualified contractors.
Public Impact
Enhances diplomatic presence and security in the Bahamas. Supports local economy through construction jobs and related services. Represents a significant long-term investment in international relations. Potential for increased tourism and business due to improved infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in international construction projects.
- Exchange rate fluctuations could impact final costs.
- Complexity of managing VAT and bonding requirements.
Positive Signals
- Clear scope of work with definitive contract type.
- Inclusion of VAT and performance bonds mitigates some financial risks.
- Awarded through full and open competition.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for large government facilities can vary significantly based on location, complexity, and security requirements. The $228 million award is substantial for a single embassy project.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large construction firm. There is no direct information on small business subcontracting opportunities within this award.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including site inspections and progress reporting, would be in place to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- International construction project risks (logistics, regulations).
- Potential for scope creep or change orders.
- Dependency on foreign labor and material availability.
- Exchange rate volatility impacting costs.
- Ensuring compliance with local Bahamian laws and taxes.
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 $228.0 million to CADDELL CONSTRUCTION CO. (DE), LLC. DESIGN/BUILD SERVICES FOR THE NEW EMBASSY COMPOUND NASSAU, BAHAMAS. TO INCLUDE VALUE ADDED TAX (VAT) AND PAYMENT AND PERFORMANCE BONDS.
Who is the contractor on this award?
The obligated recipient is CADDELL CONSTRUCTION CO. (DE), LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $228.0 million.
What is the period of performance?
Start: 2018-12-28. End: 2023-12-01.
What is the projected timeline for the completion of the Nassau Embassy Compound, and are there any penalties for delays?
The contract duration is 1799 days, which is approximately 5 years, from the start date of December 28, 2018, to the end date of December 1, 2023. While the data doesn't explicitly state penalties, large government contracts typically include clauses for liquidated damages or other penalties for significant delays beyond the contractor's control.
How does the inclusion of VAT in the contract price affect the overall cost-effectiveness for the government?
Including VAT in the contract price simplifies the financial management for the government by consolidating all costs upfront. However, it means the government is effectively paying the tax, which might be higher than if the contractor could claim VAT exemptions or credits, potentially impacting the true cost-effectiveness.
What measures are in place to ensure the long-term durability and security of the new embassy compound?
The contract specifies a design/build approach, implying the contractor is responsible for both. The inclusion of payment and performance bonds provides financial assurance against non-performance. Specific durability and security measures would be detailed in the design specifications, subject to government review and approval.
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: 19AQMM18R0004
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Caddell Construction CO., Inc.
Address: 2700 LAGOON PARK DR, MONTGOMERY, AL, 36109
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $228,140,685
Exercised Options: $228,140,685
Current Obligation: $228,009,133
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-28
Current End Date: 2023-12-01
Potential End Date: 2023-12-01 00:00:00
Last Modified: 2025-07-15
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