State Department Awards $322M Consulate Compound Contract to Caddell Construction
Contract Overview
Contract Amount: $321,962,568 ($322.0M)
Contractor: Caddell Construction CO. (DE), LLC
Awarding Agency: Department of State
Start Date: 2022-07-28
End Date: 2027-02-15
Contract Duration: 1,663 days
Daily Burn Rate: $193.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RIO NEW CONSULATE COMPOUND CONTRACT AWARD
Plain-Language Summary
Department of State obligated $322.0 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: RIO NEW CONSULATE COMPOUND CONTRACT AWARD Key points: 1. The contract value of $321.96M is substantial for a single construction project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration of 1663 days (approx. 4.5 years) indicates a long-term commitment. 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 (FFP) award, which typically offers good value by shifting risk to the contractor. The award amount of $321.96M is significant, and without specific per-unit cost data, a direct benchmark is difficult. However, FFP contracts are generally favored for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method is designed to foster price discovery and ensure the government receives competitive pricing.
Taxpayer Impact: The use of full and open competition aims to secure the best possible price for taxpayers on this large-scale construction project.
Public Impact
Taxpayers will fund the construction of a new consulate compound, a significant infrastructure investment. The project's long duration means sustained economic activity and potential job creation in the construction sector. The specific location and purpose of the consulate compound will impact local communities and diplomatic relations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns on long-term, complex construction projects.
- Contract duration may exceed initial estimates.
- Geopolitical factors could impact project execution or security.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition likely yielded a competitive price.
- Project addresses critical infrastructure needs for the Department of State.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this area often involves large, complex projects with significant lead times and costs, requiring robust oversight.
Small Business Impact
The data indicates the award went to Caddell Construction Co. (DE), LLC, a specific entity. There is no explicit information provided regarding small business participation or subcontracting goals within this award notice.
Oversight & Accountability
The award is a definitive contract from the Department of State, suggesting established procurement processes. Oversight will be crucial given the project's scale and duration to ensure adherence to contract terms and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long project duration increases risk of cost escalation.
- Potential for unforeseen site conditions or material shortages.
- Geopolitical factors could impact project security or requirements.
- Lack of specific cost breakdown hinders detailed value analysis.
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 $322.0 million to CADDELL CONSTRUCTION CO. (DE), LLC. RIO NEW CONSULATE COMPOUND CONTRACT AWARD
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 $322.0 million.
What is the period of performance?
Start: 2022-07-28. End: 2027-02-15.
What is the estimated cost per square foot for the consulate compound construction, and how does it compare to similar federal projects?
The provided data does not include square footage or detailed cost breakdowns, making a per-square-foot cost analysis impossible. To assess value, this information would need to be obtained and benchmarked against comparable federal construction projects of similar scope and location to determine if the pricing is competitive and efficient for taxpayers.
What are the specific risks associated with the 4.5-year duration of this consulate compound construction project?
The extended duration presents risks such as potential material cost inflation, labor availability fluctuations, and unforeseen site conditions. Additionally, geopolitical instability or changes in diplomatic needs could impact the project's scope or security requirements. Robust risk management and contingency planning by the Department of State are essential to mitigate these long-term challenges.
How effectively does the 'Full and Open Competition' method ensure optimal value and quality for this large-scale construction project?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer competitive pricing and innovative solutions. For a project of this magnitude, it increases the likelihood of selecting a contractor with the best technical capabilities and cost-effectiveness. However, effective evaluation of proposals and diligent contract management are critical to realizing these benefits and ensuring the final outcome meets quality and performance expectations.
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
Offers Received: 2
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: $321,962,568
Exercised Options: $321,962,568
Current Obligation: $321,962,568
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-28
Current End Date: 2027-02-15
Potential End Date: 2027-02-15 00:00:00
Last Modified: 2025-09-30
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