Army awards $19M contract for Fires Brigade Headquarters Building construction in Texas

Contract Overview

Contract Amount: $19,040,021 ($19.0M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-24

End Date: 2010-07-02

Contract Duration: 646 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FIRES BRIGADE HEADQUARTERS BUILDING

Place of Performance

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

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to CADDELL CONSTRUCTION CO., INC. for work described as: FIRES BRIGADE HEADQUARTERS BUILDING Key points: 1. Contract awarded for construction of a significant facility, indicating substantial investment in military infrastructure. 2. The project falls under commercial and institutional building construction, a broad category with varying cost drivers. 3. Fixed-price contract type suggests cost certainty for the government, but potential for contractor profit maximization. 4. Awarded by the Department of the Army, highlighting defense spending priorities. 5. The duration of the contract (646 days) suggests a complex construction project requiring significant planning and execution. 6. The contract was awarded under full and open competition, implying a competitive bidding process.

Value Assessment

Rating: fair

The contract value of $19 million for a headquarters building appears within a reasonable range for a project of this nature, though specific benchmarks are difficult without detailed scope. The firm fixed-price structure aims to control costs, but the ultimate value depends on the contractor's efficiency and the final build quality. Comparing this to similar military construction projects would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. With 3 bids received, the competition level suggests a reasonable opportunity for price discovery and selection of a qualified contractor. This approach generally benefits the government by fostering competitive pricing.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the new Fires Brigade Headquarters. The contract delivers a critical piece of infrastructure for military operations and command. The geographic impact is localized to Texas, where the construction will take place. The project will likely create construction jobs in the local Texas economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite fixed-price.
Risk of schedule delays impacting operational readiness if construction is not completed on time.
Quality control during construction is crucial to ensure the building meets long-term operational needs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Awarded by the Department of the Army, indicating alignment with defense infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. Federal spending in this sector often supports critical infrastructure for government operations, including military facilities. Benchmarking against similar government-funded construction projects of this scale is essential for assessing value, though specific comparable data for military headquarters is often proprietary.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information on subcontracting plans, but large construction projects often involve significant subcontracting opportunities, which could potentially benefit small businesses if actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant Army Corps of Engineers districts. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases, though detailed project progress and specific oversight reports may not be publicly available.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Army Corps of Engineers Contracts
General Building Construction

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of quality compromises if contractor faces cost pressures.
Dependency on contractor's financial stability and execution capability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to CADDELL CONSTRUCTION CO., INC.. FIRES BRIGADE HEADQUARTERS BUILDING

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 $19.0 million.

What is the period of performance?

Start: 2008-09-24. End: 2010-07-02.

What is the typical cost per square foot for constructing military headquarters buildings of this size and type?

Determining a precise cost per square foot for military headquarters buildings is complex due to variations in size, complexity, security requirements, and geographic location. However, general commercial and institutional building construction costs can range from $200 to $500+ per square foot, with specialized government or military facilities potentially falling at the higher end of this spectrum due to stringent standards. Without the square footage of the Fires Brigade Headquarters Building, a direct comparison is impossible. The total award of $19,040,021 suggests a substantial facility, and further details on the building's footprint would be needed to benchmark its cost-effectiveness against industry averages or similar military construction projects.

How does the number of bids (3) compare to similar Department of the Army construction contracts?

The number of bids received for federal contracts can vary significantly based on the contract's value, complexity, and the specific industry. For a construction project valued at approximately $19 million, receiving three bids under a full and open competition is a reasonable outcome. While more bids can sometimes indicate greater competition and potentially lower prices, three bids suggest that the opportunity was sufficiently advertised and that multiple qualified contractors were interested and capable of undertaking the project. Some large-scale or highly specialized construction projects might attract fewer bids due to limited qualified contractors, while others might see more if the scope is broadly appealing and less specialized.

What are the potential risks associated with a firm fixed-price contract for a large construction project?

While a firm fixed-price (FFP) contract offers cost certainty to the government, it carries specific risks for large construction projects. The primary risk is that the contractor may cut corners on quality or materials to maintain profitability if costs exceed their initial estimates. Conversely, if the contractor significantly underestimates costs, they may face financial distress or default. For the government, the risk lies in ensuring that the fixed price adequately covers all necessary aspects of the project, and that the contractor possesses the expertise and financial stability to complete it to the required standards. Robust oversight and clear performance specifications are crucial to mitigate these risks.

What is the historical spending trend for the Department of the Army on building construction in Texas?

Analyzing historical spending trends for the Department of the Army on building construction in Texas requires access to detailed federal procurement data over multiple fiscal years. Such an analysis would involve filtering contracts by agency (Department of the Army), location (Texas), and the relevant North American Industry Classification System (NAICS) codes for building construction (e.g., 236220). This would reveal patterns in contract awards, average contract values, and the types of construction projects undertaken. Without this specific historical data, it's difficult to contextualize the $19 million award for the Fires Brigade Headquarters Building within broader spending patterns. However, it is reasonable to assume that the Army maintains a consistent presence and investment in infrastructure in states with significant military installations like Texas.

What are the implications of the contract duration (646 days) on project management and potential delays?

A contract duration of 646 days (approximately 21 months) for a headquarters building construction project indicates a substantial undertaking. This extended timeline allows for detailed planning, phased construction, and integration of complex systems. However, it also increases the potential exposure to risks such as weather delays, material shortages, labor issues, and changes in project requirements. Effective project management by both the contractor and the government's representatives (e.g., Army Corps of Engineers) is critical to staying on schedule. Delays could impact the operational readiness of the Fires Brigade and potentially lead to cost increases if not managed within contractual provisions for extensions or liquidated damages.

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: $19,238,951

Exercised Options: $19,040,021

Current Obligation: $19,040,021

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123806D0032

IDV Type: IDC

Timeline