State Department Awards $372M Construction Contract to Caddell Construction for 5 Years

Contract Overview

Contract Amount: $676,810,374 ($676.8M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of State

Start Date: 2022-11-01

End Date: 2027-10-24

Contract Duration: 1,818 days

Daily Burn Rate: $372.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ---------- 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

Plain-Language Summary

Department of State obligated $676.8 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: ---------- 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 Key points: 1. The contract is a firm-fixed-price definitive contract valued at $372,283,300. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is 1818 days, ending in October 2027. 4. This award falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $372M for a 5-year duration appears reasonable for large-scale construction projects. Benchmarking against similar large federal building construction contracts 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 that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing the value of taxpayer funds for this construction project.

Public Impact

Supports infrastructure development for the Department of State. Creates construction jobs and economic activity. Ensures facilities meet operational and security requirements. Potential for long-term facility maintenance and upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long, requiring careful monitoring.
Potential for cost overruns in large construction projects.
Dependence on contractor performance for timely completion.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract limits cost uncertainty.
Long-term contract provides stability for project execution.

Sector Analysis

This contract is within the Commercial and Institutional Building Construction sector, which involves the building and renovation of non-residential structures. Federal spending in this sector can fluctuate based on infrastructure needs and agency priorities.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Caddell Construction Co. (DE), LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The presence of a COR (Contracting Officer's Representative) and Contracting Officer suggests established oversight mechanisms. However, the comment requesting resubmission indicates potential issues or a need for further review in the approval process.

Related Government Programs

Commercial and Institutional Building Construction
Department of State Contracting
Department of State Programs

Risk Flags

Contract requires significant taxpayer investment.
Large-scale construction projects are inherently complex and prone to delays.
Potential for scope creep if not managed tightly.
Dependence on a single prime contractor for execution.
Need for robust oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $676.8 million to 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

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 $676.8 million.

What is the period of performance?

Start: 2022-11-01. End: 2027-10-24.

What specific construction projects or facilities does this contract cover, and how do they align with the Department of State's strategic objectives?

The provided data does not specify the exact nature of the construction projects. However, given the agency, it likely pertains to embassies, consulates, or other diplomatic facilities abroad or domestically. These projects would align with strategic objectives by providing secure, functional, and modern infrastructure necessary for diplomatic operations and personnel safety.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract to ensure successful project delivery and prevent cost overruns?

The contract details do not explicitly list KPIs or risk mitigation strategies. However, as a firm-fixed-price contract, the primary incentive for the contractor is to complete the work within the agreed budget. Standard construction contract management practices, including regular progress reviews, quality control checks, and adherence to project schedules, would be employed to manage risks and ensure delivery.

How does the Department of State ensure the long-term sustainability and maintainability of the constructed facilities under this contract?

While the contract focuses on initial construction, long-term sustainability and maintainability are typically addressed through design specifications, material selection, and potentially separate maintenance agreements. The Department of State would likely incorporate energy efficiency standards, durable materials, and accessibility requirements into the project's scope to ensure the facilities are sustainable and cost-effective to maintain over their lifecycle.

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: 3

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: $676,810,374

Exercised Options: $676,810,374

Current Obligation: $676,810,374

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline