State Department Awards $228M Design/Build Contract for Nassau Embassy Compound to Caddell Construction

Contract Overview

Contract Amount: $228,009,133 ($228.0M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of State

Start Date: 2018-12-28

End Date: 2023-12-01

Contract Duration: 1,799 days

Daily Burn Rate: $126.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD SERVICES FOR THE NEW EMBASSY COMPOUND NASSAU, BAHAMAS. TO INCLUDE VALUE ADDED TAX (VAT) AND PAYMENT AND PERFORMANCE BONDS.

Plain-Language Summary

Department of State obligated $228.0 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: DESIGN/BUILD SERVICES FOR THE NEW EMBASSY COMPOUND NASSAU, BAHAMAS. TO INCLUDE VALUE ADDED TAX (VAT) AND PAYMENT AND PERFORMANCE BONDS. Key points: 1. The contract covers design and construction services for a new embassy compound in Nassau, Bahamas. 2. Caddell Construction Co. (DE), LLC was awarded the definitive contract. 3. The contract includes Value Added Tax (VAT) and payment/performance bonds. 4. The project falls under Commercial and Institutional Building Construction. 5. The contract was awarded via full and open competition.

Value Assessment

Rating: good

The contract value of $228 million for a new embassy compound appears reasonable given the scope, which includes design, construction, VAT, and bonding. Benchmarking against similar large-scale government construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment among qualified contractors.

Public Impact

Enhances diplomatic presence and security in the Bahamas. Supports local economy through construction jobs and related services. Represents a significant long-term investment in international relations. Potential for increased tourism and business due to improved infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for large government facilities can vary significantly based on location, complexity, and security requirements. The $228 million award is substantial for a single embassy project.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large construction firm. There is no direct information on small business subcontracting opportunities within this award.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including site inspections and progress reporting, would be in place to ensure compliance and quality.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-state, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $228.0 million to CADDELL CONSTRUCTION CO. (DE), LLC. DESIGN/BUILD SERVICES FOR THE NEW EMBASSY COMPOUND NASSAU, BAHAMAS. TO INCLUDE VALUE ADDED TAX (VAT) AND PAYMENT AND PERFORMANCE BONDS.

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 State (Department of State).

What is the total obligated amount?

The obligated amount is $228.0 million.

What is the period of performance?

Start: 2018-12-28. End: 2023-12-01.

What is the projected timeline for the completion of the Nassau Embassy Compound, and are there any penalties for delays?

The contract duration is 1799 days, which is approximately 5 years, from the start date of December 28, 2018, to the end date of December 1, 2023. While the data doesn't explicitly state penalties, large government contracts typically include clauses for liquidated damages or other penalties for significant delays beyond the contractor's control.

How does the inclusion of VAT in the contract price affect the overall cost-effectiveness for the government?

Including VAT in the contract price simplifies the financial management for the government by consolidating all costs upfront. However, it means the government is effectively paying the tax, which might be higher than if the contractor could claim VAT exemptions or credits, potentially impacting the true cost-effectiveness.

What measures are in place to ensure the long-term durability and security of the new embassy compound?

The contract specifies a design/build approach, implying the contractor is responsible for both. The inclusion of payment and performance bonds provides financial assurance against non-performance. Specific durability and security measures would be detailed in the design specifications, subject to government review and approval.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM18R0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caddell Construction CO., Inc.

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $228,140,685

Exercised Options: $228,140,685

Current Obligation: $228,009,133

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2018-12-28

Current End Date: 2023-12-01

Potential End Date: 2023-12-01 00:00:00

Last Modified: 2025-07-15

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