DoD's $25.2M commissary construction contract awarded to Caddell Construction shows fair value and strong competition

Contract Overview

Contract Amount: $25,216,271 ($25.2M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-04

End Date: 2014-08-31

Contract Duration: 1,822 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COMMISSARY BUILDING CONSTRUCTION

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: COMMISSARY BUILDING CONSTRUCTION Key points: 1. Contract value appears reasonable given the scope of commercial building construction. 2. Full and open competition suggests a healthy market with multiple bidders. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly five years indicates a substantial project. 5. Awarded by the Defense Commissary Agency, supporting military family quality of life. 6. No small business set-aside was utilized, potentially limiting smaller firm participation.

Value Assessment

Rating: good

The contract's total value of approximately $25.2 million for a commissary building construction project appears to be within a reasonable range for large-scale commercial construction. Benchmarking against similar projects would provide a more precise assessment, but the fixed-price nature of the award suggests that the initial bid reflected a negotiated value for the defined scope. Without specific per-unit cost data, a definitive value-for-money judgment is challenging, but the competitive award process likely contributed to a fair price.

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 project. While more bidders could potentially drive prices lower, three offers generally provide a basis for price comparison and selection of the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better quality services through a competitive bidding process.

Public Impact

Military families and personnel at Fort Lee, Virginia, will benefit from an improved commissary facility. The project delivers essential infrastructure for the Defense Commissary Agency's mission. The geographic impact is localized to Fort Lee, Virginia. Construction activities will likely involve a skilled workforce in the commercial building sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited subcontracting opportunities for small businesses due to the prime contractor's size and the nature of the project.
Lack of specific small business participation goals in the award details.

Positive Signals

The project supports the quality of life for military members and their families, a key government objective.
Awarding to a known entity like Caddell Construction suggests a degree of confidence in their capabilities.
The fixed-price contract type offers cost certainty to the government.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses the construction of non-residential buildings such as commercial, industrial, and institutional structures. The Defense Commissary Agency's project is a significant undertaking within this sector, requiring specialized construction expertise. Comparable spending benchmarks for large-scale government construction projects can vary widely based on location, complexity, and specific building requirements.

Small Business Impact

The contract was not awarded as a small business set-aside, and the details do not indicate specific subcontracting goals for small businesses. This suggests that the primary contract was awarded to a large business, Caddell Construction Co. (DE), LLC. While large prime contractors may engage small businesses for subcontracting, the absence of explicit set-aside provisions or goals means there is no guaranteed flow-down of work to the small business sector for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Commissary Agency's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which shifts most of the cost risk to the contractor. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Defense Commissary Agency Operations
Federal Building and Infrastructure Projects

Risk Flags

Potential for cost increases if unforeseen site conditions arise, despite fixed-price contract.
Risk of schedule delays impacting project completion timeline.
Dependence on contractor's performance and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to CADDELL CONSTRUCTION CO. (DE), LLC. COMMISSARY BUILDING CONSTRUCTION

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 (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2009-09-04. End: 2014-08-31.

What is the track record of Caddell Construction Co. (DE), LLC with the federal government, particularly for similar construction projects?

Caddell Construction Co. (DE), LLC has a significant history of federal contracting, particularly with the Department of Defense and other agencies involved in construction. They have been awarded numerous contracts for military construction, infrastructure, and facility upgrades. Their experience often includes large-scale projects similar to commissary construction, such as barracks, training facilities, and administrative buildings. Reviewing their past performance ratings and contract history on federal procurement databases would provide a detailed understanding of their reliability, quality of work, and adherence to schedules and budgets on previous government projects. This specific contract award suggests they met the government's criteria for capability and past performance.

How does the awarded price of $25.2 million compare to similar commissary construction projects or large commercial building projects in the region?

Benchmarking the $25.2 million price requires detailed project specifications (square footage, materials, complexity, specific amenities) and regional construction cost indices. However, for a large-scale commissary, which serves as a significant retail and logistical facility for military bases, this figure is not inherently excessive. Comparable projects, such as large supermarkets or distribution centers, can range from tens to hundreds of millions of dollars depending on scale and location. The Defense Commissary Agency likely conducted its own cost estimates and market research to ensure the awarded price represented fair market value. Without access to detailed cost breakdowns or a database of highly comparable commissary projects, a precise comparison is difficult, but the competitive award process provides some assurance of reasonable pricing.

What are the primary risks associated with this type of construction contract, and how were they mitigated?

The primary risks for a large construction project like this include cost overruns, schedule delays, unforeseen site conditions, and quality defects. The mitigation strategy employed here is the firm-fixed-price (FFP) contract type. FFP shifts the majority of the cost risk to the contractor, Caddell Construction. They are obligated to complete the work for the agreed-upon price, incentivizing them to manage costs efficiently. Schedule delays can still occur, but liquidated damages clauses often apply. Mitigation for quality defects is handled through contract specifications, inspections, and warranty periods. The government's role involves clear scope definition, diligent oversight, and timely decision-making to prevent delays within its control.

What is the expected impact of this commissary construction on the operational efficiency and morale of the military community at Fort Lee?

The construction of a new or significantly improved commissary is expected to have a positive impact on the operational efficiency and morale of the military community at Fort Lee. A modern commissary offers a wider selection of goods, better shopping experiences (e.g., improved layout, checkout efficiency), and potentially more convenient operating hours. This directly enhances the quality of life for service members and their families by providing access to affordable groceries. Improved facilities can also boost morale, making the base a more attractive assignment and contributing to overall well-being. Operationally, an efficient commissary supports the financial well-being of military families, which is a key component of readiness and retention.

How has the Defense Commissary Agency's spending on construction projects evolved over the years, and does this contract align with historical patterns?

The Defense Commissary Agency (DeCA) undertakes periodic construction and renovation projects to modernize its facilities and ensure they meet the needs of the military community. Spending patterns can fluctuate based on budget allocations, infrastructure needs assessments, and the lifecycle of existing facilities. Large-scale new construction projects like this commissary building represent significant capital investments. Historically, DeCA has managed a portfolio of construction and renovation projects across various bases. This $25.2 million contract for a single, substantial facility appears consistent with the agency's role in providing essential infrastructure. Analyzing DeCA's budget history and capital investment plans would reveal trends in their construction spending and confirm if this project aligns with their strategic priorities and funding cycles.

What does the number of bidders (3) indicate about the market for large-scale commissary construction services?

Having three bidders for this commissary construction project suggests a moderately competitive market for this specific type of large-scale government construction. It indicates that there are at least a few firms capable of undertaking such a significant project and willing to compete for it. A higher number of bidders (e.g., 5+) might suggest even more robust competition, potentially leading to lower prices or more innovative solutions. Conversely, fewer than three bidders could signal potential market concentration, barriers to entry for new firms, or a lack of interest in this particular contract type or location. For this project, three bidders provided enough competition to allow the Defense Commissary Agency to select a contractor based on best value.

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

Offers Received: 3

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: $25,216,271

Exercised Options: $25,216,271

Current Obligation: $25,216,271

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300207D0006

IDV Type: IDC

Timeline