DOJ's $183M USP Yazoo City prison construction contract awarded to Yates Caddell Joint Venture

Contract Overview

Contract Amount: $182,932,177 ($182.9M)

Contractor: Yates Caddell Joint Venture

Awarding Agency: Department of Justice

Start Date: 2009-09-04

End Date: 2012-06-01

Contract Duration: 1,001 days

Daily Burn Rate: $182.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 151003 - DESIGN-BUILD CONSTRUCTION OF UNITED STATES PENITENTIARY (USP) YAZOO CITY, MISSISSIPPI.

Place of Performance

Location: YAZOO CITY, YAZOO County, MISSISSIPPI, 39194

State: Mississippi Government Spending

Plain-Language Summary

Department of Justice obligated $182.9 million to YATES CADDELL JOINT VENTURE for work described as: 151003 - DESIGN-BUILD CONSTRUCTION OF UNITED STATES PENITENTIARY (USP) YAZOO CITY, MISSISSIPPI. Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs for the government. 3. The project duration of 1001 days indicates a significant construction timeline. 4. The contract was awarded by the Department of Justice, Federal Prison System. 5. The construction falls under the Commercial and Institutional Building Construction NAICS code. 6. The awarded amount is close to the pre-negotiated amount, indicating good price control.

Value Assessment

Rating: good

The awarded amount of $182,932,177 is very close to the pre-negotiated amount of $182,749,000, suggesting effective cost management during the bidding process. Without specific benchmarks for USP construction projects of this scale and complexity, a direct value-for-money assessment is challenging. However, the tight adherence to the pre-negotiated figure implies a well-defined scope and competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. Seven bids were received, demonstrating a healthy level of interest and competition for this significant construction project. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers by encouraging multiple firms to offer their best pricing to secure the contract.

Public Impact

The primary beneficiaries are the Federal Prison System and the Department of Justice, gaining a new correctional facility. The project delivers design-build construction services for a United States Penitentiary. The geographic impact is concentrated in Yazoo City, Mississippi, with potential local economic benefits. The construction project implies significant workforce implications, including construction jobs and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of cost overruns if unforeseen site conditions arise, despite firm-fixed-price.
Ensuring quality of construction meets federal penitentiary standards.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a competitive pricing environment.
Awarded to a joint venture, potentially leveraging specialized expertise.

Sector Analysis

This contract falls within the construction sector, specifically for institutional buildings. The market for federal correctional facility construction is specialized, often involving large-scale design-build projects with stringent security and operational requirements. Comparable spending benchmarks would typically be found in other large federal or state prison construction projects, which are infrequent but significant in value.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific contract appears limited, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this project would typically be managed by the Bureau of Prisons' project management and contracting offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of the specified facility. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available.

Related Government Programs

Federal Prison System Construction Projects
Department of Justice Capital Investments
Design-Build Construction Contracts
Correctional Facility Development

Risk Flags

Potential for construction delays.
Risk of unforeseen site conditions impacting cost/schedule.
Ensuring compliance with stringent federal facility standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $182.9 million to YATES CADDELL JOINT VENTURE. 151003 - DESIGN-BUILD CONSTRUCTION OF UNITED STATES PENITENTIARY (USP) YAZOO CITY, MISSISSIPPI.

Who is the contractor on this award?

The obligated recipient is YATES CADDELL JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $182.9 million.

What is the period of performance?

Start: 2009-09-04. End: 2012-06-01.

What is the track record of Yates Caddell Joint Venture in completing large-scale federal construction projects?

Information on the specific track record of the 'Yates Caddell Joint Venture' for large-scale federal construction projects is not directly available in the provided data. However, the award of this significant $183 million contract by the Department of Justice suggests they possess the necessary qualifications and experience to undertake such projects. Further investigation into their past performance on similar government contracts, including project completion times, adherence to budget, and quality of work, would be necessary for a comprehensive assessment. Publicly available contract databases and contractor performance systems (like the Federal Awardee Performance and Integrity Information System -FAPIIS) could provide more detailed insights into their history.

How does the awarded price compare to similar federal penitentiary construction projects?

Directly comparing the $182.9 million awarded price for the USP Yazoo City project to similar federal penitentiary constructions is challenging without access to a comprehensive database of comparable projects. Factors such as size (square footage), capacity (inmate population), specific security features, geographic location (affecting labor and material costs), and the year of construction significantly influence project costs. However, the fact that the awarded amount was very close to the pre-negotiated amount ($182,749,000) suggests that the pricing was well-defined and likely competitive within the context of the bidding process. Benchmarking against other Bureau of Prisons projects of similar scale and complexity, if available, would provide a more robust comparison.

What are the primary risks associated with a design-build construction contract of this magnitude?

The primary risks associated with a design-build contract of this magnitude, such as the USP Yazoo City project, include potential coordination issues between design and construction phases, although design-build aims to mitigate this. For the government, risks involve ensuring the final design meets all operational and security requirements, and that the fixed price adequately covers all potential construction challenges. Contractor risks include accurately estimating all costs for both design and construction, managing unforeseen site conditions, and meeting stringent federal building standards within the fixed price. Delays in permitting, material availability, or labor shortages can also pose significant risks to timely completion and overall project success.

How effective is the firm-fixed-price contract type in controlling costs for large federal construction projects?

The firm-fixed-price (FFP) contract type is generally considered effective in controlling costs for large federal construction projects, especially when the scope of work is well-defined. It shifts the majority of the cost risk to the contractor, who is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and avoid cost overruns. However, for complex projects with potential for unforeseen issues (like ground conditions or design complexities), an FFP contract can sometimes lead to contractors building in higher contingency amounts, potentially increasing the initial price. In this case, the awarded price being very close to the pre-negotiated amount suggests the FFP was effectively managed.

What are the historical spending patterns for federal prison construction by the Bureau of Prisons?

Historical spending patterns for federal prison construction by the Bureau of Prisons (BOP) typically involve large, infrequent capital investments. The BOP's budget includes allocations for facility construction, renovation, and maintenance. Major new prison constructions are often multi-year projects, with significant funding allocated in specific fiscal years. Spending can fluctuate based on the need for new capacity, aging infrastructure requiring replacement, and congressional appropriations. Analyzing BOP's historical budget documents and contract award data would reveal trends in the number, size, and cost of construction projects undertaken over time. This specific $183 million contract represents a substantial single investment within that broader pattern.

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: RFPX000576

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 GULLY AVE, PHILADELPHIA, MS, 03

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $182,932,177

Exercised Options: $182,932,177

Current Obligation: $182,932,177

Contract Characteristics

Cost or Pricing Data: NO

Timeline