State Department Awards $168M Design-Build Contract for Nairobi Embassy
Contract Overview
Contract Amount: $168,201,838 ($168.2M)
Contractor: Caddell Construction CO. (DE), LLC
Awarding Agency: Department of State
Start Date: 2017-09-30
End Date: 2023-09-30
Contract Duration: 2,191 days
Daily Burn Rate: $76.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD SERVICES FOR NAIROBI NOX/SPX US EMBASSY NAIROBI, KENYAIGF::OT::IGF
Plain-Language Summary
Department of State obligated $168.2 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: DESIGN-BUILD SERVICES FOR NAIROBI NOX/SPX US EMBASSY NAIROBI, KENYAIGF::OT::IGF Key points: 1. Significant investment in diplomatic infrastructure abroad. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with large-scale international construction projects. 4. Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $168.2 million for design-build services for an embassy is substantial. Benchmarking against similar large-scale international construction projects would be necessary for a precise assessment, but the firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: Taxpayer funds are being used for critical diplomatic facilities. Competitive bidding aims to ensure efficient use of these funds.
Public Impact
Enhances U.S. diplomatic presence and security in Kenya. Supports economic activity through construction jobs and material sourcing. Represents a long-term investment in international relations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in international projects.
- Geopolitical risks in the project location.
- Complexity of managing a large design-build contract.
Positive Signals
- Firm-fixed-price contract limits cost uncertainty.
- Full and open competition drives value.
- Strategic importance of the embassy facility.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar embassy construction or large government building projects would provide further context on cost-effectiveness.
Small Business Impact
The data indicates the award went to 'CADDELL CONSTRUCTION CO. (DE), LLC', which is not explicitly identified as a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or met.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Robust oversight is crucial for managing the complexities of international construction and ensuring adherence to contract terms and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Large contract value increases potential financial risk.
- International location presents logistical and security challenges.
- Long contract duration (2191 days) increases exposure to changing conditions.
- Lack of explicit small business participation noted.
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 $168.2 million to CADDELL CONSTRUCTION CO. (DE), LLC. DESIGN-BUILD SERVICES FOR NAIROBI NOX/SPX US EMBASSY NAIROBI, KENYAIGF::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 $168.2 million.
What is the period of performance?
Start: 2017-09-30. End: 2023-09-30.
What is the estimated cost per square foot for this embassy construction, and how does it compare to similar projects?
The provided data does not include square footage, making a direct cost-per-square-foot calculation impossible. To assess value, this metric would need to be obtained and compared against benchmarks for U.S. embassy constructions or similar large-scale institutional buildings in comparable international locations.
What specific risks were identified during the procurement process for this international construction project, and what mitigation strategies are in place?
The data does not detail specific risks identified during procurement. However, typical risks for such projects include geopolitical instability, logistical challenges in Kenya, currency fluctuations, and contractor performance issues. Mitigation strategies likely involve detailed security plans, robust contract management, and contingency planning.
How effectively does this contract contribute to the long-term strategic goals of the Department of State in the region?
The construction of a new embassy signifies a commitment to diplomatic engagement and security in Nairobi, Kenya. This facility is crucial for supporting U.S. foreign policy objectives, consular services, and fostering bilateral relations, thereby contributing significantly to the strategic goals in East Africa.
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: SAQMMA17R0271
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: $168,201,838
Exercised Options: $168,201,838
Current Obligation: $168,201,838
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-30
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2026-03-25
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