DoD's $24.4M Army HQ Building Construction Contract Awarded to Caddell Construction

Contract Overview

Contract Amount: $24,388,167 ($24.4M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-05

End Date: 2010-05-31

Contract Duration: 633 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 1001AC2A BDE/BN HQ BLDG

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79906

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to CADDELL CONSTRUCTION CO., INC. for work described as: 1001AC2A BDE/BN HQ BLDG Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Project duration of 633 days indicates a substantial construction timeline. 5. Geographic focus on Texas highlights regional infrastructure development. 6. No small business set-aside indicates the primary contractor is not a small business.

Value Assessment

Rating: fair

The contract value of $24.4 million for a headquarters building appears within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an attempt to lock in costs, but the final cost-effectiveness will depend on project execution and any change orders. Without detailed cost breakdowns or comparisons to industry standards for similar square footage and complexity, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this significant construction project. A higher number of bidders might typically lead to more aggressive pricing, but the specific nature of large-scale construction and the specialized requirements of a military headquarters could limit the pool of qualified firms. The competition level here suggests a balance between ensuring broad access to potential contractors and securing firms with the necessary expertise.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage efficiency. The fact that multiple companies bid on this project suggests that taxpayer dollars were likely used efficiently to secure a qualified contractor at a competitive price.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the new headquarters building. The contract delivers essential infrastructure for military command and operations. The project's geographic impact is concentrated in Texas, contributing to the local economy through construction jobs and related services. The construction activities will likely involve a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on a single prime contractor (Caddell Construction Co., Inc.) for overall project delivery.
Risk of schedule delays impacting operational readiness if construction timelines are not met.

Positive Signals

Firm fixed-price contract type helps mitigate cost escalation risks for the government.
Awarded through full and open competition, suggesting a competitive bidding process that likely secured a qualified contractor.
The contractor, Caddell Construction Co., Inc., has a track record in large-scale construction projects, implying experience relevant to this undertaking.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, government facilities, and educational institutions. The market for large-scale government construction projects is often characterized by significant contract values, stringent requirements, and a need for specialized expertise. Comparable spending benchmarks would involve analyzing the cost per square foot for similar government or large commercial building projects in the region and nationally.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Caddell Construction Co., Inc., is not listed as a small business. This indicates that the primary focus was on securing the most capable contractor for this large-scale project. There is no explicit information provided regarding subcontracting plans or goals for small businesses. The impact on the small business ecosystem would depend on whether Caddell Construction Co., Inc. actively seeks to engage small businesses as subcontractors for specialized services or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Construction (MILCON) Program
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service
Federal Buildings Fund

Risk Flags

Potential for cost overruns if unforeseen site conditions or design changes occur.
Risk of schedule delays impacting operational readiness.
Quality control during construction to ensure adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to CADDELL CONSTRUCTION CO., INC.. 1001AC2A BDE/BN HQ BLDG

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 $24.4 million.

What is the period of performance?

Start: 2008-09-05. End: 2010-05-31.

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

Caddell Construction Co., Inc. has a substantial history of undertaking large-scale construction projects, including numerous contracts with the Department of Defense and other federal agencies. They have experience in building military barracks, training facilities, administrative buildings, and other critical infrastructure. Their portfolio often includes projects with complex requirements, demanding schedules, and significant budgets, similar to the HQ building construction. Reviewing their past performance on projects of comparable size and complexity, including any reported issues or successes, would provide further insight into their capability to execute this specific contract effectively. Data on their on-time and on-budget completion rates for similar projects would be valuable for assessing their reliability.

How does the awarded price of $24.4 million compare to industry benchmarks for similar headquarters building construction in Texas?

To benchmark the $24.4 million award, one would typically compare the cost per square foot against similar commercial or institutional building projects in Texas. Factors such as building complexity, materials used, specific security requirements for a military HQ, and site conditions significantly influence cost. For instance, if the building is 100,000 square feet, the cost is $244 per square foot. This figure needs to be contextualized against average construction costs for office buildings or government facilities in the region, which can range widely. Industry reports from construction cost estimators or real estate data firms could provide relevant benchmarks. Without knowing the exact square footage and specific features, a precise comparison is difficult, but the figure appears substantial, necessitating a review against comparable projects.

What are the primary risks associated with this firm fixed-price construction contract, and how are they mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor bears the burden of cost overruns. However, this also means the government's cost is fixed, providing budget certainty. Risks for the government in an FFP contract often revolve around potential quality compromises if the contractor seeks to cut costs, or schedule delays if the contractor mismanages resources. Mitigation strategies include robust contract oversight, clear performance standards, detailed specifications, and penalties for delays. For this specific contract, the Department of the Army would likely employ project managers and quality assurance specialists to monitor progress, ensure adherence to specifications, and manage any necessary change orders judiciously. The contractor's own risk management practices are also crucial.

What is the expected impact of this headquarters building construction on the local Texas economy and workforce?

The construction of a significant headquarters building like this is expected to have a positive impact on the local Texas economy. It will create numerous jobs for skilled tradespeople (electricians, plumbers, carpenters, masons), general laborers, equipment operators, and construction management professionals. Beyond direct employment, the project will stimulate demand for materials, equipment rentals, and related services from local suppliers and businesses, generating a multiplier effect. The duration of the project (633 days) suggests a sustained period of economic activity. Upon completion, the building will support the operational needs of the Army, potentially leading to long-term employment for administrative and support staff.

How does this contract fit into the broader context of Department of Defense infrastructure spending and modernization efforts?

This contract for a headquarters building is part of the Department of Defense's ongoing efforts to maintain, modernize, and improve its vast infrastructure portfolio. Military branches continuously invest in facilities to support readiness, enhance operational capabilities, and provide adequate working and living environments for service members. Spending on construction projects like this is often driven by factors such as aging facilities, evolving mission requirements, and strategic basing decisions. It reflects a commitment to providing modern, secure, and efficient workspaces necessary for command and control functions. This specific project likely supports a particular Army command or unit's operational needs within the region.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9123806R0010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2700 LAGOON PARK DR, MONTGOMERY, AL, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,756,776

Exercised Options: $24,471,923

Current Obligation: $24,388,167

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123806D0032

IDV Type: IDC

Timeline