DoD's $48.9M construction contract for simulations center awarded to Caddell Construction

Contract Overview

Contract Amount: $48,913,876 ($48.9M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-13

End Date: 2012-09-30

Contract Duration: 1,509 days

Daily Burn Rate: $32.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SIMULATIONS CENTER

Place of Performance

Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $48.9 million to CADDELL CONSTRUCTION CO., INC. for work described as: SIMULATIONS CENTER Key points: 1. Contract value of $48.9 million for a simulations center. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1509 days indicates a significant, long-term project. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The project is located in Georgia, potentially impacting local construction workforce. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: fair

The contract value of $48.9 million for a simulations center appears to be within a reasonable range for a large-scale construction project of this nature. Benchmarking against similar government-funded simulation facility constructions would provide a clearer picture of value for money. The firm fixed-price structure suggests an attempt to control costs, but the final value is dependent on the scope and any potential change orders over the project's 1509-day duration.

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 a bid. The presence of 6 bidders (indicated by 'no': 6) suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The multiple bids received indicate that the government had options to choose from, driving down the final negotiated price.

Public Impact

The primary beneficiaries are the Department of Defense personnel who will utilize the new simulations center for training and development. The contract delivers a critical infrastructure asset: a dedicated facility for advanced simulations. The geographic impact is concentrated in Georgia, where the construction will take place. The project will likely have implications for the local construction workforce in Georgia, providing employment opportunities during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all project complexities.
Risk of schedule delays given the long duration of the project (1509 days).
Dependence on the contractor's ability to manage a large-scale construction project effectively.
Limited visibility into the specific performance metrics of the simulations center post-construction.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty for the government.
The project addresses a specific need for advanced simulation capabilities within the DoD.
The contractor, Caddell Construction Co., Inc., has a track record in large-scale construction projects.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for infrastructure and facility development. This contract falls under commercial and institutional building construction, a broad category encompassing a wide range of projects. Federal spending in this area is often driven by modernization needs, operational requirements, and national security imperatives. Comparable spending benchmarks would involve analyzing other large-scale construction projects for government facilities, such as training centers, research labs, or administrative buildings.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). This suggests that the prime contract was awarded to a large business, Caddell Construction Co., Inc. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside means that opportunities for small businesses would likely arise through subcontracting opportunities offered by the prime contractor, rather than through direct set-aside awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases like FPDS, which provide public access to contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Construction Projects
Military Training Facilities
Simulation and Training Systems
Federal Building Construction
Large-Scale Construction Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or schedule slippage.
Firm fixed-price contract could lead to change order disputes if scope is not clearly defined.
Lack of explicit small business subcontracting goals may limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.9 million to CADDELL CONSTRUCTION CO., INC.. SIMULATIONS CENTER

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 $48.9 million.

What is the period of performance?

Start: 2008-08-13. End: 2012-09-30.

What is Caddell Construction Co., Inc.'s track record with similar large-scale federal construction projects, particularly those involving specialized facilities?

Caddell Construction Co., Inc. has a substantial history of executing large-scale federal construction projects. While specific details on their experience with simulation centers are not provided in this data snippet, their portfolio often includes complex facilities for defense, aerospace, and government agencies. Analyzing their past performance on similar projects, including contract values, project types (e.g., research facilities, training centers), and client satisfaction, would be crucial for a comprehensive assessment. Their ability to manage budgets, adhere to schedules, and meet stringent government requirements on previous projects would serve as key indicators of their capability for this simulations center contract.

How does the $48.9 million contract value compare to the cost of similar simulations centers built for federal agencies?

Benchmarking the $48.9 million contract value against similar federal simulations centers requires access to a broader dataset of construction contracts. Factors such as facility size (square footage), complexity of simulation technology integrated, geographic location (affecting labor and material costs), and specific requirements of the agency all influence the final price. Without comparative data on the scope and specifications of other simulation centers, it is difficult to definitively assess if $48.9 million represents excellent, fair, or concerning value. However, for a significant facility, this figure suggests a substantial investment.

What are the primary risk indicators associated with this firm fixed-price contract for a long-duration construction project?

The primary risk indicators for this firm fixed-price contract, especially given its 1509-day duration, revolve around potential cost overruns and scope creep. While the fixed price aims to cap the government's expenditure, unforeseen issues during construction (e.g., subsurface conditions, material price volatility, design changes) could lead to change orders, increasing the total cost. Contractor performance risk is also significant; a delay or subpar quality could impact the facility's operational readiness. Furthermore, the long timeline increases the exposure to economic fluctuations and potential shifts in project priorities. The government's risk is mitigated by robust contract oversight and clear performance specifications.

How effective is the 'full and open competition' approach in ensuring optimal value for taxpayer money in large construction contracts?

Full and open competition is generally considered the most effective method for ensuring optimal value for taxpayer money in large construction contracts. By allowing all responsible sources to bid, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive pricing. This broad competition drives down costs as contractors vie for the award. It also fosters innovation and allows the government to select the best combination of price, technical approach, and past performance. While it requires more administrative effort to manage the solicitation and evaluation process, the potential savings and quality improvements typically outweigh these costs.

What are the historical spending patterns for the Department of the Army in commercial and institutional building construction, and how does this contract fit?

Historical spending patterns for the Department of the Army in commercial and institutional building construction are typically substantial, reflecting the ongoing need for modernized infrastructure, training facilities, and operational support buildings. This $48.9 million contract for a simulations center aligns with the Army's strategic investments in advanced training capabilities. Analyzing past spending data would reveal trends in contract types, average project values, and the distribution of funds across different construction categories. This specific contract represents a significant, but likely not anomalous, investment within the broader context of the Army's capital improvement and facility development programs.

What are the implications of the contract being awarded in Georgia (ST: GA, SN: GEORGIA) for local economic impact and workforce development?

Awarding this $48.9 million construction contract in Georgia has several implications for the local economy and workforce. It is expected to create numerous jobs in the construction sector, benefiting skilled tradespeople, laborers, and related support services within the state. The influx of spending on materials and services can also stimulate local businesses. Furthermore, the project may necessitate workforce development initiatives or training programs to meet the demand for specific construction skills. The long duration of the project suggests a sustained economic impact over several years, contributing to the regional economy.

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

Solicitation ID: W912HN07R0013

Offers Received: 6

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: $48,913,876

Exercised Options: $48,913,876

Current Obligation: $48,913,876

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN07D0056

IDV Type: IDC

Timeline