State Department Awards $211.9M Consulate Construction Contract to Caddell Construction
Contract Overview
Contract Amount: $211,927,514 ($211.9M)
Contractor: Caddell Construction CO. (DE), LLC
Awarding Agency: Department of State
Start Date: 2021-09-24
End Date: 2026-04-02
Contract Duration: 1,651 days
Daily Burn Rate: $128.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION NEW CONSULATE COMPOUND
Plain-Language Summary
Department of State obligated $211.9 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: CONSTRUCTION NEW CONSULATE COMPOUND Key points: 1. The contract value of $211.9 million is significant for a single construction project. 2. Caddell Construction is a major player in government construction, indicating strong competition. 3. The project's long duration (2021-2026) presents potential risks related to cost escalation and scope creep. 4. The sector is Commercial and Institutional Building Construction, a common area for federal spending.
Value Assessment
Rating: good
The contract is a firm-fixed-price definitive contract, which typically offers good value by locking in costs. Benchmarking against similar large-scale government construction projects would be necessary for a precise assessment, but the fixed price suggests a competitive bid process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing as multiple qualified contractors can 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 construction services.
Public Impact
Construction of a new consulate compound will enhance diplomatic presence and operations. The project will create numerous jobs in the construction sector. The long-term nature of the project means sustained economic activity in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration increases risk of cost overruns due to inflation.
- Potential for scope creep over the multi-year construction period.
- Dependence on a single contractor for a large, critical facility.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm-fixed-price contract type helps control costs.
- Experienced contractor likely to manage project effectively.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, covering a wide range of facilities from administrative buildings to specialized research labs. Benchmarks for similar large-scale diplomatic facilities would be relevant.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as Caddell Construction Co. (DE), LLC is a large business. There is no information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of State, as the contracting agency, is responsible for overseeing the construction and ensuring compliance with contract terms. The long duration necessitates ongoing oversight to manage risks and ensure timely completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long project duration (over 4.5 years).
- Potential for material and labor cost inflation.
- Dependence on a single large contractor.
- Lack of explicit small business participation noted.
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 $211.9 million to CADDELL CONSTRUCTION CO. (DE), LLC. CONSTRUCTION NEW CONSULATE COMPOUND
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 $211.9 million.
What is the period of performance?
Start: 2021-09-24. End: 2026-04-02.
What is the estimated cost per square foot for this consulate compound, and how does it compare to similar diplomatic facilities?
The provided data does not include square footage or cost per square foot. To assess value, this metric would need to be calculated and compared against industry benchmarks for government-funded diplomatic construction projects. Factors like location, security requirements, and specific amenities significantly influence per-square-foot costs.
What are the specific risks associated with the 1651-day duration of this firm-fixed-price contract?
The primary risks with a long-duration firm-fixed-price contract include potential for material cost escalation, labor rate increases, and unforeseen site conditions that could lead to change orders. While the fixed price protects the government from cost overruns on the base scope, significant changes or delays could still impact the overall project timeline and necessitate costly modifications.
How effectively does the 'full and open competition' method ensure optimal value for taxpayer money in large construction projects like this?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer their best pricing and technical solutions. This process typically drives down costs through competitive pressure. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to manage the resulting contract to prevent scope creep and ensure quality.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19AQMM20R0024
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Caddell Construction CO., Inc.
Address: 445 DEXTER AVE STE 11000, MONTGOMERY, AL, 36104
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: $211,927,514
Exercised Options: $211,927,514
Current Obligation: $211,927,514
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-24
Current End Date: 2026-04-02
Potential End Date: 2026-04-02 00:00:00
Last Modified: 2026-03-31
More Contracts from Caddell Construction CO. (DE), LLC
- ---------- Comments: Please Resubmit Once Revised Action Memo and Rfca ARE Fully Cleared. COR: Daniel Replogle Contracting Officer: Alla Weinstein Approved Action Memo and Rfca ARE Attached. Rfca Link: Https://Usdos.sharepoint.com/:f:/S/Pdcrfca — $676.8M (Department of State)
- Design and Construction of the NEW Embassy Compound Located in Juba, South Sudan — $614.7M (Department of State)
- Construction Services for NEW Embassy Compound (NEC) in Mexico City, Mexicoigf::ot::igf Obligation Amount Includes Value Added TAX (VAT) — $584.2M (Department of State)
- THE Purpose of This Award IS to Provide Construction Services for a NEW Embassy Compound in Brasilia Brazil — $376.3M (Department of State)
- Design/Build NEW Embassy Compound in Port of Spain, Trinidad and Tobago — $350.2M (Department of State)
View all Caddell Construction CO. (DE), LLC federal contracts →
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)