State Department Awards $175M Embassy Design-Build Contract to Caddell Construction in Sri Lanka
Contract Overview
Contract Amount: $174,938,781 ($174.9M)
Contractor: Caddell Construction CO. (DE), LLC
Awarding Agency: Department of State
Start Date: 2016-05-01
End Date: 2022-06-15
Contract Duration: 2,236 days
Daily Burn Rate: $78.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN BUILD SERVICES FOR A NEW EMBASSY COMPOUND IN COLOMBO, SRI LANKA IGF::OT::IGF
Plain-Language Summary
Department of State obligated $174.9 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: DESIGN BUILD SERVICES FOR A NEW EMBASSY COMPOUND IN COLOMBO, SRI LANKA IGF::OT::IGF Key points: 1. Significant investment in diplomatic infrastructure abroad. 2. Caddell Construction is a major player in large-scale construction projects. 3. Potential risks include geopolitical instability and complex logistical challenges. 4. The construction sector is highly competitive, impacting pricing.
Value Assessment
Rating: good
The contract value of $174.9M for a new embassy compound appears reasonable given the scope and location. Benchmarking against similar international construction projects of this scale is difficult due to unique site-specific factors and geopolitical considerations.
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. The use of a firm-fixed-price contract aims to transfer risk to the contractor and control costs.
Taxpayer Impact: Taxpayer funds are being used for critical diplomatic infrastructure, aiming for long-term value and security.
Public Impact
Enhances U.S. diplomatic presence and security in Sri Lanka. Supports local employment and economic activity during construction. Represents a long-term commitment to international relations.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Geopolitical risks in Sri Lanka.
- Potential for cost overruns on complex international projects.
- Logistical challenges for materials and personnel.
Positive Signals
- Firm-fixed-price contract limits cost uncertainty.
- Experienced contractor with a track record in large projects.
- Full and open competition likely yielded competitive pricing.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for government facilities, especially overseas, is often driven by security needs and diplomatic priorities.
Small Business Impact
The data indicates this was a large prime contract awarded to Caddell Construction Co. (DE), LLC. There is no specific information provided regarding subcontracting opportunities for small businesses on this project.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Given the project's scale and international location, robust oversight mechanisms are crucial to ensure quality, cost control, and adherence to security standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Geopolitical instability in Sri Lanka.
- Potential for supply chain disruptions.
- Complexity of international construction logistics.
- Security risks associated with diplomatic facilities.
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 $174.9 million to CADDELL CONSTRUCTION CO. (DE), LLC. DESIGN BUILD SERVICES FOR A NEW EMBASSY COMPOUND IN COLOMBO, SRI LANKA 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 $174.9 million.
What is the period of performance?
Start: 2016-05-01. End: 2022-06-15.
What is the estimated cost per square foot for the new embassy compound, and how does it compare to similar U.S. embassy construction projects?
Without specific square footage data, a precise cost per square foot cannot be calculated. However, the total contract value of $174.9 million for a new embassy compound suggests a significant investment. Benchmarking against other overseas embassy projects requires detailed analysis of size, complexity, security features, and local construction costs, which are highly variable.
What specific geopolitical risks were identified for this project in Sri Lanka, and what mitigation strategies are in place?
Geopolitical risks in Sri Lanka could include political instability, security threats, and potential disruptions to supply chains or labor. Mitigation strategies likely involve close coordination with the U.S. Embassy, local authorities, and security firms, alongside contingency planning for unforeseen events and adaptable construction schedules.
How effectively does the firm-fixed-price contract structure manage potential cost escalations given the project's duration and international setting?
A firm-fixed-price contract is designed to cap costs for the government, transferring the risk of cost overruns to the contractor. However, in long-duration, international projects, unforeseen circumstances (e.g., material price fluctuations, currency exchange rates, regulatory changes) can still pose challenges. Robust contract clauses and diligent oversight are essential to manage these risks effectively.
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: SAQMMA15R0193
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $174,938,781
Exercised Options: $174,938,781
Current Obligation: $174,938,781
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-05-01
Current End Date: 2022-06-15
Potential End Date: 2022-06-15 00:00:00
Last Modified: 2024-11-25
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