State Department Awards $99.6M NATO HQ Fit-Out Contract to Caddell Construction

Contract Overview

Contract Amount: $99,630,114 ($99.6M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of State

Start Date: 2014-06-09

End Date: 2018-05-31

Contract Duration: 1,452 days

Daily Burn Rate: $68.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES FOR NEW NATO HEADQUARTERS FIT-OUT IGF::OT::IGF

Plain-Language Summary

Department of State obligated $99.6 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: CONSTRUCTION SERVICES FOR NEW NATO HEADQUARTERS FIT-OUT IGF::OT::IGF Key points: 1. The contract value of $99.6 million for construction services is significant. 2. Caddell Construction Co. (DE), LLC secured the award. 3. The contract was awarded under full and open competition. 4. The sector is Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $99.6 million is substantial for a fit-out project. Benchmarking against similar large-scale construction projects would be necessary to fully assess pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: The significant contract value means taxpayer funds are being utilized, and competitive bidding aims to ensure efficient use of these funds.

Public Impact

Construction services for critical diplomatic infrastructure. Impact on NATO's operational capabilities. Potential for job creation in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 1452 days is lengthy.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar large-scale government construction projects would provide further context.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract award. Further investigation may be needed to understand if subcontracting opportunities were pursued.

Oversight & Accountability

The Department of State managed this procurement. Oversight would focus on project execution, adherence to specifications, and financial management throughout the contract period.

Related Government Programs

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

Risk Flags

Long contract duration.
No explicit small business participation noted.
Potential for cost escalation in large construction projects.
Dependence on contractor performance for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $99.6 million to CADDELL CONSTRUCTION CO. (DE), LLC. CONSTRUCTION SERVICES FOR NEW NATO HEADQUARTERS FIT-OUT IGF::OT::IGF

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 $99.6 million.

What is the period of performance?

Start: 2014-06-09. End: 2018-05-31.

What was the competitive landscape like for this full and open solicitation, and how did it influence the final price?

While awarded under full and open competition, the specific number of bids received and the range of proposed prices are not detailed. This method generally fosters competition, which should drive prices down. However, the complexity and scale of the project could limit the number of qualified bidders, potentially impacting the degree of price reduction achieved.

What are the primary risks associated with a long-duration construction project of this magnitude, and how were they mitigated?

Risks include cost overruns due to material price fluctuations, labor shortages, unforeseen site conditions, and project delays. Mitigation strategies typically involve detailed contract clauses, contingency planning, robust project management, and performance bonds. The firm fixed price nature of this contract shifts some cost risk to the contractor.

How effectively does this contract contribute to the overall mission and operational readiness of NATO, considering the fit-out scope?

The fit-out of new headquarters is crucial for establishing a functional and secure operational environment. A well-executed fit-out ensures that NATO personnel have the necessary facilities and infrastructure to collaborate and execute their missions effectively. The success of this contract directly impacts the efficiency and capability of the organization.

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: TWO STEP

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caddell Construction CO., Inc. (UEI: 102087285)

Address: 2700 LAGOON PARK DR, MONTGOMERY, AL, 36109

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $99,630,114

Exercised Options: $99,630,114

Current Obligation: $99,630,114

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline