Caddell Construction awarded $175M for Border Infrastructure Work, highlighting significant investment in national security infrastructure

Contract Overview

Contract Amount: $175,137,967 ($175.1M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-06-08

End Date: 2025-02-10

Contract Duration: 978 days

Daily Burn Rate: $179.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BORDER INFRASTRUCTURE WORK

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85706

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $175.1 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: BORDER INFRASTRUCTURE WORK Key points: 1. Contract value represents a substantial commitment to enhancing border security infrastructure. 2. The project falls under commercial and institutional building construction, indicating a focus on physical facilities. 3. A firm-fixed-price contract suggests predictable costs for the government, assuming scope is well-defined. 4. The duration of 978 days points to a long-term project requiring sustained effort and management. 5. Awarded by DHS to CBP, this contract directly supports border operations and management. 6. The absence of small business set-asides may limit opportunities for smaller firms in this large-scale project.

Value Assessment

Rating: good

The contract value of $175.1 million for border infrastructure work appears to be within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar large federal construction contracts would provide a more precise assessment, but the scale suggests a significant undertaking. The firm-fixed-price structure aims to control costs, but the ultimate value-for-money will depend on the quality of execution and adherence to the defined scope over the project's nearly 1000-day duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of two bids suggests a competitive process, though the exact number of proposals received and the evaluation criteria are not detailed here. Full and open competition generally promotes price discovery and encourages contractors to offer competitive pricing to win the award.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of obtaining the best possible price and value for the services rendered, by leveraging market forces.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), receiving enhanced infrastructure to support their mission. The services delivered involve the construction and potentially renovation of border infrastructure, which could include facilities, barriers, or related support structures. The geographic impact is specified as Arizona (AZ), indicating a direct focus on the southern border region. Workforce implications include job creation for construction workers, engineers, project managers, and support staff employed by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise in the specified Arizona terrain.
Dependence on a single prime contractor for a project of this magnitude carries execution risk.
The firm-fixed-price nature could lead to scope creep disputes if requirements are not meticulously managed.
Limited direct participation for small businesses due to the absence of specific set-asides.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract provides cost certainty for the government.
Long project duration allows for phased execution and potential learning curve benefits.
Contractor's experience in large-scale construction projects is implied by the award value.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical national infrastructure, including defense, security, and public services. The market size for federal construction is substantial, with agencies like Homeland Security frequently awarding large contracts for facility development and upgrades. This specific award contributes to the overall federal investment in border security infrastructure.

Small Business Impact

The contract data indicates that this award was not specifically set aside for small businesses (sb: false) and the prime contractor is not a small business (ss: false). This suggests that the primary award went to a large entity, Caddell Construction Co. Without specific subcontracting plans detailed, it's unclear what opportunities might exist for small businesses to participate as subcontractors. Large federal construction projects can sometimes include subcontracting goals, but this information is not provided.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection. As a large federal contract, it is likely subject to standard oversight mechanisms including contract performance reviews, financial audits, and potentially reviews by the DHS Office of Inspector General (OIG) if specific concerns or allegations arise. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Border Security Technology Modernization
Federal Building and Fire Station Construction
Department of Homeland Security Facilities
Customs and Border Protection Operations Support

Risk Flags

Potential for cost overruns due to long duration and complex environment.
Risk of contractor performance issues on a large-scale, long-term project.
Limited small business participation opportunities.
Scope definition and management critical for firm-fixed-price success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $175.1 million to CADDELL CONSTRUCTION CO. (DE), LLC. BORDER INFRASTRUCTURE WORK

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $175.1 million.

What is the period of performance?

Start: 2022-06-08. End: 2025-02-10.

What is Caddell Construction Co.'s track record with similar large-scale federal construction projects, particularly those related to infrastructure or security?

Caddell Construction Co. (DE), LLC has a significant history of performing large-scale construction projects for various federal agencies, including the Department of Defense and the Department of Homeland Security. Their portfolio often includes military construction, federal courthouses, and infrastructure projects. While specific details on past border infrastructure projects are not provided in this data snippet, their general experience suggests they are equipped to handle complex, high-value federal contracts. A deeper dive into their past performance ratings, any past performance issues, and the types of infrastructure they have previously built would offer a more comprehensive view of their suitability for this specific border infrastructure work.

How does the awarded amount of $175.1 million compare to the average cost of similar border infrastructure projects undertaken by the federal government?

Benchmarking the $175.1 million award requires comparing it to similar projects in terms of scope, complexity, and location. Border infrastructure can encompass a wide range of facilities, from processing centers and administrative buildings to physical barriers and access roads. Without a detailed scope of work for this specific contract, a precise comparison is difficult. However, large federal construction projects, especially those involving significant security and logistical considerations like border infrastructure, often run into the tens or hundreds of millions of dollars. The number of bids (2) suggests that while there was competition, it may not have been extensive, which could influence pricing. Further analysis would involve examining the square footage, specific types of construction, and duration relative to other CBP or DHS construction awards.

What are the primary risk indicators associated with a firm-fixed-price contract for a nearly 1000-day construction project in a potentially challenging environment like the Arizona border?

The primary risk indicator for a firm-fixed-price (FFP) contract of this duration (978 days) is the potential for unforeseen issues to impact costs and schedule, which the government is largely protected from under FFP, but which can strain the contractor's profitability and potentially lead to disputes or quality compromises if not managed proactively. For construction in the Arizona border region, risks include environmental challenges (extreme weather, terrain), potential supply chain disruptions, labor availability, and security considerations. While FFP shifts cost risk to the contractor, the government bears the risk of scope definition accuracy; any significant changes or unforeseen conditions could lead to change orders or contractor performance issues if not handled through contract modifications. The long duration amplifies these risks.

What does the 'Commercial and Institutional Building Construction' (NAICS 236220) classification imply about the nature of the border infrastructure being built?

The NAICS code 236220, 'Commercial and Institutional Building Construction,' indicates that the project involves the erection or renovation of buildings intended for commercial or public use, rather than purely industrial or residential structures. For border infrastructure, this could translate to the construction or modernization of facilities such as ports of entry buildings, border patrol stations, processing centers, detention facilities, administrative offices, or related support structures. It suggests a focus on the built environment that supports the operational and administrative functions of border security and management, rather than, for example, the physical barriers themselves (which might fall under heavy civil construction) or specialized technological installations.

Given the contract value and duration, what are the potential workforce implications, both for the prime contractor and the local Arizona economy?

A contract valued at $175.1 million with a duration of 978 days implies a substantial workforce requirement. Caddell Construction Co. will likely need to mobilize a significant team of project managers, engineers, supervisors, skilled tradespeople (electricians, plumbers, carpenters, etc.), and general laborers. This could involve hiring locally in Arizona or bringing in workers from outside the immediate area. For the local Arizona economy, this project represents a significant injection of capital, potentially creating numerous direct jobs in construction and indirect jobs in supporting industries such as material suppliers, equipment rental companies, and local services (housing, food, transportation) for the workforce. The long duration provides a sustained period of economic activity.

How does the fact that this is a 'Delivery Order' (aw: DELIVERY ORDER) affect our understanding of the contract's structure and flexibility?

The designation 'Delivery Order' typically implies that this contract is a task order or delivery order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the overall framework, terms, and conditions were likely established previously, and this specific order represents a defined scope of work with a set price and delivery schedule. It offers flexibility for the government to order specific goods or services as needed, up to a certain ceiling, without needing to re-compete the entire requirement each time. For this project, it means the $175.1 million and the 2025 end date are specific to this particular delivery order, and the underlying IDIQ contract may have different total values and durations.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $175,137,967

Exercised Options: $175,137,967

Current Obligation: $175,137,967

Actual Outlays: $149,111,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1017D00022

IDV Type: IDC

Timeline