DoD's $22.6M Gulf Coast Construction MATOC Awarded to Caddell Construction Shows Moderate Competition

Contract Overview

Contract Amount: $22,616,094 ($22.6M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2010-08-01

End Date: 2014-09-30

Contract Duration: 1,521 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MATOC UNRESTRICTED GULF COAST

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to CADDELL CONSTRUCTION CO., INC. for work described as: MATOC UNRESTRICTED GULF COAST Key points: 1. Contract awarded through full and open competition, indicating a broad market approach. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Delivery orders under this MATOC suggest a need for flexible, on-demand construction services. 4. The contract duration of over 4 years points to a sustained requirement for construction. 5. Awarded to a single contractor, this MATOC structure implies a focus on a primary partner for multiple projects. 6. The geographic focus on the Gulf Coast suggests specific regional infrastructure or facility needs. 7. The absence of small business set-aside indicates the primary contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this MATOC is challenging without specific delivery order details. However, the total value of $22.6 million over approximately four years suggests a moderate annual spend. The firm fixed price structure is generally favorable for cost control, but the overall value-for-money depends heavily on the quality and efficiency of the construction services delivered through subsequent delivery orders. Without comparative data on similar MATOCs for construction services in the region, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates there were 5 bids received. While 5 bidders represent a degree of competition, it is not exceptionally high for a large indefinite-delivery indefinite-quantity (IDIQ) vehicle. This level of competition suggests that while the government sought multiple potential offerors, the market may not have been as robust as anticipated, or that the specific requirements of the MATOC favored a smaller pool of qualified bidders.

Taxpayer Impact: The full and open competition with 5 bidders likely resulted in competitive pricing for the base contract and subsequent delivery orders, offering reasonable value to taxpayers. However, a higher number of bidders could have potentially driven prices even lower.

Public Impact

The Department of Defense benefits from a flexible contracting vehicle to address various construction needs. Services delivered include commercial and institutional building construction across the Gulf Coast region. The geographic impact is concentrated in Florida, supporting military infrastructure and facilities. Workforce implications include employment opportunities for construction labor and trades in the specified region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if delivery orders are not tightly managed under the fixed-price structure.
Risk of contractor performance issues impacting project timelines and quality.
Limited visibility into the specific projects undertaken and their individual cost-effectiveness.
Dependence on a single contractor could lead to reduced leverage if future needs arise.
The MATOC structure might not always yield the best price for individual, well-defined projects compared to direct competition.

Positive Signals

Firm Fixed Price contract type provides cost certainty and transfers risk to the contractor.
Full and open competition ensures a broad base of potential contractors were considered.
MATOC structure allows for efficient procurement of multiple, undefined construction projects.
Award to an established contractor like Caddell Construction suggests a level of proven capability.
The contract duration indicates a sustained need, potentially leading to economies of scale over time.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major consumer of construction services, particularly for maintaining and upgrading its vast network of facilities. The market size for federal construction is substantial, with agencies like the Army frequently utilizing IDIQ vehicles like MATOCs to streamline the procurement of diverse construction projects. Benchmarks for similar construction MATOCs vary widely based on scope, duration, and agency, but this contract's value is within a moderate range for its type.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses in the provided data. This suggests that the primary focus was on securing a capable contractor through full and open competition, rather than specifically targeting small business participation at the prime contract level. While Caddell Construction may engage small businesses as subcontractors, the structure of this MATOC does not inherently prioritize or guarantee small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Department of the Army contracting command. Performance would be monitored through the delivery order process, with specific project milestones and quality standards outlined in each order. Transparency is facilitated through contract award databases, though detailed project-level spending and performance data may be less accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization (FSRM)
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Construction Services Contracts
Department of Defense Contracts

Risk Flags

Potential for cost creep if delivery orders are not well-defined.
Performance risk associated with a single contractor managing multiple projects.
Limited competitive pressure on individual delivery orders.
Dependence on contractor's ability to scale resources for multiple concurrent projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to CADDELL CONSTRUCTION CO., INC.. MATOC UNRESTRICTED GULF COAST

Who is the contractor on this award?

The obligated recipient is CADDELL CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2010-08-01. End: 2014-09-30.

What is Caddell Construction Co., Inc.'s track record with the Department of Defense and other federal agencies?

Caddell Construction Co., Inc. has a significant history of contracting with the Department of Defense and other federal agencies, particularly for large-scale construction projects. They have been awarded numerous contracts for military construction, infrastructure, and facility upgrades across various branches of the armed forces and other government entities. Their portfolio often includes complex projects requiring specialized expertise, such as barracks, training facilities, and operational buildings. Reviewing their past performance on similar IDIQ vehicles and firm-fixed-price contracts would provide insight into their reliability, quality of work, and ability to manage costs and schedules effectively. Federal procurement databases often detail their award history, including contract values and agencies involved, allowing for a comprehensive assessment of their federal contracting experience.

How does the $22.6 million total value compare to similar construction MATOCs awarded by the DoD?

The $22.6 million total value for this MATOC, awarded over approximately four years, positions it as a moderately sized contract vehicle. Many construction MATOCs awarded by the Department of Defense can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and geographic coverage. For instance, larger regional or global construction IDIQs might exceed $100 million. Conversely, smaller, more specialized MATOCs or those with shorter durations might fall below $10 million. This particular contract's value suggests a focused need for construction services within a specific region (Gulf Coast, Florida) rather than a broad, agency-wide requirement. Without knowing the specific types of projects anticipated under this MATOC, a direct comparison is difficult, but it appears to be a standard-sized vehicle for its intended purpose.

What are the primary risks associated with a Firm Fixed Price MATOC structure for construction?

The primary risks associated with a Firm Fixed Price (FFP) MATOC structure for construction primarily revolve around cost certainty versus flexibility and potential for disputes. For the government, the main risk is that the fixed prices negotiated upfront may not reflect actual market conditions or unforeseen site conditions encountered during specific delivery orders, potentially leading to less favorable pricing if costs decrease or if the contractor included significant contingency. Conversely, the contractor bears the risk of cost overruns due to poor estimating, unexpected material price increases, labor shortages, or design changes initiated by the government. Disputes can arise if the scope of work for a delivery order is ambiguous or if changes are required, leading to claims and potential delays. Effective management of scope and change orders is crucial to mitigate these risks for both parties.

How effective is a 5-bidder competition for a large construction MATOC in ensuring competitive pricing?

A competition with 5 bidders for a large construction MATOC represents a moderate level of market engagement. While it is certainly better than a sole-source or limited competition scenario, it may not always guarantee the most aggressive pricing. The effectiveness hinges on several factors: the qualifications of the bidders, the clarity and attractiveness of the solicitation requirements, and the overall health of the construction market at the time of solicitation. If the 5 bidders are all highly capable and competitive firms, the pricing could be quite favorable. However, if the market is constrained, or if the requirements are highly specialized, 5 bidders might represent the majority of qualified firms, limiting the downward pressure on prices. Generally, a higher number of bidders (e.g., 8-10+) tends to correlate with more robust price discovery and potentially lower costs for the government.

What historical spending patterns exist for construction services in the Gulf Coast region by the Department of the Army?

Historical spending patterns for construction services in the Gulf Coast region by the Department of the Army are typically substantial, driven by the significant military presence and infrastructure needs in states like Florida, Alabama, Mississippi, Louisiana, and Texas. The Army frequently invests in facility upgrades, new construction, and maintenance to support training, operations, and personnel. Spending often fluctuates based on military readiness requirements, congressional appropriations, and specific infrastructure projects like base expansions or resilience initiatives (e.g., related to hurricane preparedness). MATOCs and other IDIQ vehicles are common procurement methods used to efficiently address these recurring and varied construction needs across the region. Analyzing past spending data would reveal trends in project types, average contract values, and the prevalence of different contracting vehicles.

What are the implications of awarding a MATOC to a single contractor for multiple delivery orders?

Awarding a MATOC to a single contractor, as indicated here, implies a strategic decision to establish a primary relationship for a defined set of construction services. This approach can streamline the procurement process for subsequent projects, as the foundational contract terms, pricing structures, and contractor qualifications are already established. It can foster a stronger working relationship and better understanding of the agency's needs. However, it also concentrates risk with one entity and potentially reduces competitive pressure on individual delivery orders compared to competing each project separately. The government must ensure robust oversight and performance management to maintain value and quality throughout the contract's life. This structure is often chosen when there's a predictable, ongoing need for similar services where a long-term partnership is deemed beneficial.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,616,094

Exercised Options: $22,616,094

Current Obligation: $22,616,094

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127807D0036

IDV Type: IDC

Timeline