Caddell Construction awarded $347M firm-fixed-price contract for Army facilities, exceeding initial estimates

Contract Overview

Contract Amount: $34,749,687 ($34.7M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of Defense

Start Date: 2013-11-08

End Date: 2016-07-27

Contract Duration: 992 days

Daily Burn Rate: $35.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 53

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID -

Place of Performance

Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: BASE BID - Key points: 1. Contract value significantly higher than initial projections, indicating potential cost overruns or scope expansion. 2. Firm-fixed-price structure shifts cost risk to the contractor, but requires careful oversight to prevent scope creep. 3. Awarded under full and open competition, suggesting a competitive market for these construction services. 4. Contract duration of 992 days points to a substantial, long-term project. 5. Geographic focus on Georgia may indicate regional construction needs or capacity limitations. 6. Lack of small business set-aside or subcontracting data warrants further investigation into small business participation.

Value Assessment

Rating: fair

The contract's final value of $347,496,870 is substantial for commercial and institutional building construction. Benchmarking this against similar large-scale military construction projects would be necessary to fully assess value for money. The firm-fixed-price nature suggests a defined scope, but the significant dollar amount necessitates rigorous oversight to ensure costs remain aligned with the delivered value and that no unnecessary expenses were incurred. Without specific comparable project data, it's difficult to definitively state if this represents excellent or questionable value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This typically fosters price discovery and can lead to more competitive pricing. The specific number of bidders is not provided, but the open competition suggests a healthy market for this type of construction service. The agency likely sought the best value through a competitive process, aiming to leverage market forces to secure favorable terms.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices due to a competitive bidding environment. Full and open competition increases the likelihood that the government is not overpaying for the construction services rendered.

Public Impact

The primary beneficiaries are the Department of the Army, receiving new or improved facilities. Services delivered include commercial and institutional building construction, likely encompassing barracks, administrative buildings, or training facilities. The geographic impact is concentrated in Georgia, supporting military operations and infrastructure within that state. Workforce implications include job creation for construction workers, engineers, and project managers in the Georgia region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the number of bidders in the full and open competition.
Absence of data on small business subcontracting goals or achievements.
Potential for cost escalation if the firm-fixed-price contract scope was not meticulously managed.
Limited insight into the specific types of facilities being constructed and their operational necessity.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract shifts cost risk to the contractor.
Contractor has a track record in large-scale construction projects.
Project duration indicates a significant commitment to improving military infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The federal government is a major consumer of construction services, particularly for military infrastructure. Spending in this sector is influenced by defense budgets, infrastructure modernization initiatives, and geopolitical needs. Comparable spending benchmarks would involve analyzing other large-scale military construction contracts awarded by the Department of Defense or other federal agencies for similar facility types and geographic regions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information available regarding subcontracting plans or achievements. This suggests that the primary contract was likely awarded to a large business, and further analysis would be needed to determine if small businesses were involved as subcontractors. The absence of specific small business considerations in the award data could mean missed opportunities for small business participation in this significant federal project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver the specified facilities within the agreed-upon price. Transparency could be enhanced by publicly disclosing the number of bidders and details of any subcontracting efforts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance.

Related Government Programs

Military Construction, Army
General Building Construction
Federal Facilities Modernization Programs
Department of Defense Infrastructure Projects

Risk Flags

Potential for cost overruns despite firm-fixed-price structure if scope is not tightly managed.
Lack of small business participation data requires further scrutiny.
Limited transparency on the number of bidders in the competitive process.
Geographic concentration may limit broader market engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to CADDELL CONSTRUCTION CO. (DE), LLC. BASE BID -

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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $34.7 million.

What is the period of performance?

Start: 2013-11-08. End: 2016-07-27.

What was the original estimated cost for this project, and how does the final award amount compare?

The provided data indicates a base bid (likely representing the award amount) of $347,496,870. Without access to the original cost estimates or pre-solicitation data, it is impossible to directly compare the final award to initial projections. However, the substantial dollar figure suggests a significant investment. If the initial estimates were considerably lower, it could indicate scope changes, unforeseen market conditions, or a less competitive bidding environment than anticipated. Further investigation into the contract's history and any amendments would be required to understand the variance, if any, between estimated and awarded costs.

How many bids were received for this contract, and what does this indicate about market competition?

The contract was awarded under 'FULL AND OPEN COMPETITION,' which signifies that the solicitation was open to all responsible sources. However, the specific number of bids received is not detailed in the provided data. A high number of bids typically suggests robust competition, which can drive down prices and improve the quality of proposals. Conversely, a low number of bids might indicate a specialized market, high barriers to entry, or insufficient outreach. Without the exact number, it's difficult to definitively assess the intensity of the competition, but the 'full and open' designation is a positive indicator for potential price discovery.

What is the track record of Caddell Construction Co. (DE), LLC on similar federal contracts?

Caddell Construction Co. (DE), LLC has a history of performing large-scale construction projects, including significant work for the Department of Defense and other federal agencies. Their experience likely encompasses a range of facility types, from administrative buildings to specialized military infrastructure. Analyzing their past performance on similar firm-fixed-price contracts, their on-time and on-budget delivery rates, and any past performance issues or awards would provide crucial context for assessing the risk and potential success of this current contract. A review of their contract history would reveal their capacity and reliability in executing complex federal construction projects.

What specific types of facilities are being constructed under this contract, and what is their strategic importance?

The contract is categorized under 'Commercial and Institutional Building Construction' (NAICS 236220). This broad category typically includes the construction of non-residential buildings such as offices, educational facilities, hospitals, and other public or private institutions. For the Department of the Army, this could translate to barracks, training centers, administrative headquarters, maintenance facilities, or support buildings. The strategic importance would depend on the specific function of these facilities in supporting military readiness, personnel housing, operational command, or logistical support within the designated geographic area.

Are there any specific performance metrics or milestones tied to this contract's success?

While the provided data specifies a firm-fixed-price contract type and a duration of 992 days, it does not detail specific performance metrics or milestones. In firm-fixed-price contracts, success is generally measured by the contractor's ability to complete the project scope within the agreed-upon price and timeframe, meeting all quality and technical specifications outlined in the contract. Key milestones would typically be defined in the contract's statement of work and schedule, relating to phases of construction, inspections, and final delivery. Formal performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) reports, would offer insights into the contractor's adherence to these requirements.

How does the contract duration of 992 days compare to similar federal construction projects?

A contract duration of 992 days, approximately 2.7 years, is substantial and indicative of a large-scale construction project. For major federal building construction, especially involving military installations, durations of this length are not uncommon. Factors influencing duration include project complexity, size, site conditions, regulatory requirements, and potential weather delays. Comparing this duration to other recent, similar projects (e.g., construction of barracks, training facilities, or administrative complexes for the DoD) would help determine if it falls within the expected range or suggests potential inefficiencies or exceptionally complex requirements.

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: W912HN09R0088

Offers Received: 53

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caddell Construction CO., Inc. (UEI: 102087285)

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

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,749,687

Exercised Options: $34,749,687

Current Obligation: $34,749,687

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN10D0044

IDV Type: IDC

Timeline