State Department Awards $230M Contract for Hyderabad Consular Compound to Caddell Construction
Contract Overview
Contract Amount: $229,683,589 ($229.7M)
Contractor: Caddell Construction CO. (DE), LLC
Awarding Agency: Department of State
Start Date: 2016-09-24
End Date: 2023-04-30
Contract Duration: 2,409 days
Daily Burn Rate: $95.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NEW CONSULAR COMPOUND IN HYDERABAD, INDIA IGF::CT::IGF
Plain-Language Summary
Department of State obligated $229.7 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: NEW CONSULAR COMPOUND IN HYDERABAD, INDIA IGF::CT::IGF Key points: 1. The contract value of $229.7 million represents a significant investment in diplomatic infrastructure. 2. Full and open competition was utilized, suggesting a robust market for such construction services. 3. The project's duration of over 2000 days indicates a complex and long-term undertaking. 4. The sector is Commercial and Institutional Building Construction, a key area for government infrastructure.
Value Assessment
Rating: fair
The contract value of $229.7 million for a consular compound is substantial. Benchmarking against similar large-scale government construction projects is difficult without more specific cost breakdowns, but the price appears within a reasonable range for a project of this complexity and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a firm fixed-price contract provides cost certainty for the government, though it may limit flexibility if unforeseen issues arise.
Taxpayer Impact: The firm fixed-price nature of the contract aims to protect taxpayers by establishing a ceiling on costs. However, the overall value suggests a significant expenditure.
Public Impact
Enhances diplomatic presence and services in India. Supports economic activity through construction jobs and material sourcing. Represents a long-term U.S. government investment in international relations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2009 days) increases risk of cost overruns or delays.
- Firm Fixed Price contract may not accommodate unforeseen site conditions or design changes efficiently.
- Lack of small business participation noted (sb: false).
Positive Signals
- Awarded under full and open competition, promoting market efficiency.
- Significant investment in critical diplomatic infrastructure.
- Clear contract type (Firm Fixed Price) for cost predictability.
Sector Analysis
The Commercial and Institutional Building Construction sector is vital for government infrastructure projects. Spending in this sector can fluctuate based on national priorities and economic conditions. This contract represents a large single award within this domain.
Small Business Impact
The data indicates no specific small business participation in this contract (sb: false). For a contract of this magnitude, it's common for large prime contractors to be involved, but opportunities for subcontracting to small businesses should be explored.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Given the significant value and duration, regular oversight and performance monitoring are crucial to ensure timely completion and adherence to specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long project duration increases risk.
- Potential for cost overruns due to market fluctuations.
- Lack of small business involvement.
- Firm Fixed Price contract may limit flexibility for unforeseen issues.
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 $229.7 million to CADDELL CONSTRUCTION CO. (DE), LLC. NEW CONSULAR COMPOUND IN HYDERABAD, INDIA IGF::CT::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 $229.7 million.
What is the period of performance?
Start: 2016-09-24. End: 2023-04-30.
What is the estimated cost per square foot for the new consular compound, and how does it compare to similar facilities?
The provided data does not include square footage, making a per-square-foot cost analysis impossible. To assess value, a comparison would require detailed project specifications and cost breakdowns, benchmarked against other recently constructed consular facilities or similar large-scale government buildings in comparable regions.
What are the primary risks associated with the long duration of this construction project, and what mitigation strategies are in place?
The primary risks of a 2009-day project include potential cost escalation due to inflation, material price volatility, and unforeseen site conditions. Mitigation strategies likely involve robust contract clauses for change orders, contingency planning, and proactive project management by the Department of State to address issues promptly.
How effectively does the firm fixed-price contract balance cost control with the need for flexibility in a complex international construction project?
A firm fixed-price contract offers strong cost control for the government by setting a ceiling. However, it can reduce flexibility, potentially leading to disputes or costly change orders if unforeseen issues arise during construction. Effective management requires clear scope definition and a well-defined change order process.
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
Solicitation ID: SAQMMA-16-R0127
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: $229,683,589
Exercised Options: $229,683,589
Current Obligation: $229,683,589
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-24
Current End Date: 2023-04-30
Potential End Date: 2023-04-30 00:00:00
Last Modified: 2024-12-09
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