State Department awards $232M construction contract for Athens compound major rehab to Caddell Construction

Contract Overview

Contract Amount: $232,027,041 ($232.0M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of State

Start Date: 2017-09-29

End Date: 2026-12-31

Contract Duration: 3,380 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: DESIGN-BID-BUILD CONSTRUCTION SERVICES FOR THE ATHENS COMPOUND MAJOR REHAB IN GREECE.IGF::OT::IGF

Plain-Language Summary

Department of State obligated $232.0 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: DESIGN-BID-BUILD CONSTRUCTION SERVICES FOR THE ATHENS COMPOUND MAJOR REHAB IN GREECE.IGF::OT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating cost certainty. 3. The project duration is substantial, spanning over 3380 days, implying a long-term commitment. 4. The contract is for construction services, a critical component of infrastructure development. 5. The geographic location in Greece highlights the international scope of the project. 6. The contractor, Caddell Construction Co. (DE), LLC, has secured a significant award.

Value Assessment

Rating: good

The contract value of $232 million for a major rehabilitation project in Athens appears reasonable given the scope and duration. While specific benchmarks for overseas construction of this scale are difficult to ascertain without more granular data, the firm fixed-price nature of the contract provides cost control. Comparing this to similar large-scale embassy or compound renovations by the State Department would offer further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of two bids suggests a moderate level of competition for this significant project. A higher number of bidders could potentially drive prices lower, but two bids can still result in a competitive outcome, especially for specialized or large-scale construction projects.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best value by encouraging multiple companies to bid, potentially leading to lower overall costs compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel, who will utilize the rehabilitated Athens compound. The contract delivers essential construction services for the major rehabilitation of a key diplomatic facility. The geographic impact is concentrated in Athens, Greece, supporting U.S. diplomatic operations abroad. The project will likely involve a significant workforce, including skilled trades and construction labor, both locally and potentially from the U.S.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (over 9 years) increases the risk of cost overruns due to inflation or unforeseen site conditions.
Reliance on a single contractor for such a long and critical project could lead to dependency and potential leverage issues.
International construction projects can face unique risks related to local regulations, labor availability, and geopolitical factors.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
Awarding to a known entity (Caddell Construction) may indicate a level of confidence in their past performance and capability.
Full and open competition suggests a thorough vetting process and potential for competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The global market for large-scale construction and infrastructure projects, particularly those involving government facilities abroad, is substantial. Such projects often require specialized expertise and adherence to stringent security and quality standards. Benchmarking would involve comparing the cost per square foot or per project phase against similar international government building projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Caddell Construction is a large entity, there is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if subcontracting opportunities exist and how they are being managed to ensure small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and potentially its Office of Inspector General. Given the international location, specific oversight mechanisms may involve on-site representatives and regular reporting requirements. Transparency is facilitated through contract award databases, but detailed project progress and financial oversight reports are typically internal.

Related Government Programs

Department of State Facilities Management
Overseas Building Operations
Embassy and Consulate Construction
International Infrastructure Projects

Risk Flags

Long project duration increases risk exposure.
Potential for cost escalation despite fixed-price contract due to unforeseen circumstances.
Reliance on a single contractor for an extended period.
International project complexities (logistics, regulations, security).

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $232.0 million to CADDELL CONSTRUCTION CO. (DE), LLC. DESIGN-BID-BUILD CONSTRUCTION SERVICES FOR THE ATHENS COMPOUND MAJOR REHAB IN GREECE.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 $232.0 million.

What is the period of performance?

Start: 2017-09-29. End: 2026-12-31.

What is Caddell Construction's track record with the Department of State and similar international construction projects?

Caddell Construction Co. has a significant history of working with the U.S. Department of Defense and the Department of State on various construction projects, including overseas facilities. Their portfolio often includes large-scale, complex projects in challenging environments. A review of their past performance ratings, any past disputes or contract terminations, and the successful completion of similar projects would provide a clearer picture of their reliability and capability for this Athens compound rehabilitation. Specific data on their performance on prior State Department contracts would be crucial for a comprehensive assessment.

How does the cost per square foot or per phase of this project compare to similar overseas government construction projects?

Without specific details on the square footage or detailed phase breakdowns of the Athens compound rehabilitation, a direct cost-per-square-foot comparison is challenging. However, large-scale international construction projects for government facilities often incur higher costs due to security requirements, logistical complexities, specialized materials, and adherence to U.S. federal standards in foreign locations. Benchmarking against similar embassy or consulate renovations or new constructions managed by the State Department's Overseas Building Operations (OBO) or the Department of Defense would be necessary. The firm fixed-price nature suggests an effort to control these potentially variable costs.

What are the primary risks associated with a construction project of this magnitude and duration in Greece?

Key risks for this project include geopolitical instability in the region, potential labor disputes or shortages in Greece, currency fluctuations if payments are not strictly in USD, unforeseen archaeological discoveries during excavation, changes in Greek building codes or regulations, and logistical challenges in transporting materials and equipment. The long duration (nearly 9.5 years) amplifies risks related to inflation, material price volatility, and the potential for contractor performance degradation over time. Robust risk mitigation strategies, contingency planning, and strong on-site project management are essential.

How effective are the firm fixed-price and definitive contract types in managing costs and risks for long-term overseas construction?

A firm fixed-price (FFP) contract is generally effective in controlling costs for the government, as the contractor assumes most of the risk for cost overruns. This is particularly beneficial for projects with well-defined scopes. A definitive contract provides a framework for a long-term relationship. For a project spanning over 3380 days, the FFP structure provides significant cost certainty upfront. However, it requires a very precise initial scope definition; any significant changes could lead to costly change orders. The long duration still presents risks related to economic factors and unforeseen conditions that the contractor must absorb or negotiate.

What is the historical spending trend for similar construction and rehabilitation projects by the Department of State?

The Department of State, primarily through its Bureau of Overseas Buildings Operations (OBO), consistently allocates significant funds towards the construction, renovation, and maintenance of its diplomatic facilities worldwide. Historical spending data reveals a trend of multi-million dollar awards for major projects, often exceeding $100 million for new embassies or large-scale rehabilitations. Factors influencing spending include the age and condition of existing facilities, security upgrades, and the need to expand capacity. The Athens compound rehabilitation aligns with this ongoing investment in maintaining and modernizing the U.S. diplomatic infrastructure globally.

What are the implications of awarding a contract of this size and duration to a single entity like Caddell Construction?

Awarding a contract of this magnitude ($232 million) and duration (over 9 years) to a single entity like Caddell Construction concentrates significant responsibility and potential risk. On the positive side, it allows for continuity and deep project familiarity. However, it also means the government is heavily reliant on that single contractor's performance, financial stability, and management capacity throughout the project lifecycle. Any issues with the contractor could severely delay or jeopardize the project. Robust oversight, clear performance metrics, and contingency plans are crucial to mitigate the risks associated with this concentrated award.

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: SAQMMA16R0513

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caddell Construction CO., Inc.

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

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: $232,027,041

Exercised Options: $232,027,041

Current Obligation: $232,027,041

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline