Caddell Construction awarded $81.7M for Border Infrastructure, highlighting significant investment in national security infrastructure

Contract Overview

Contract Amount: $81,675,217 ($81.7M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-02

End Date: 2024-03-01

Contract Duration: 546 days

Daily Burn Rate: $149.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BORDER INFRASTRUCTURE

Place of Performance

Location: IMPERIAL BEACH, SAN DIEGO County, CALIFORNIA, 91932

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $81.7 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: BORDER INFRASTRUCTURE Key points: 1. The contract value represents a substantial commitment to enhancing border security infrastructure. 2. Competition dynamics for this large-scale project are crucial for ensuring taxpayer value. 3. Performance risk is moderate given the nature of construction projects and contractor experience. 4. This award falls within the broader context of national efforts to modernize border facilities. 5. The construction sector is vital for supporting government infrastructure initiatives. 6. The firm fixed-price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The award of $81.7 million for border infrastructure construction appears reasonable given the scale and complexity of such projects. Benchmarking against similar large-scale federal construction contracts for critical infrastructure would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost overruns, which is a positive indicator for 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 bidders had the opportunity to submit proposals. With 3 bidders, the competition level suggests a healthy market response for this type of specialized construction. This level of competition is generally expected to drive competitive pricing and encourage efficiency from the awarded contractor.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a wide range of potential solutions and competitive pricing, maximizing the value of federal investment in border infrastructure.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection and the Department of Homeland Security, gaining enhanced operational facilities. Services delivered include the construction and potentially renovation of critical border infrastructure, supporting national security. The geographic impact is focused on the border region, specifically California, where the project is located. Workforce implications include job creation within the construction sector, both directly for Caddell Construction and indirectly through its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of unforeseen site conditions requiring change orders.
Ensuring compliance with environmental and security regulations during construction.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps mitigate cost escalation risks.
Contractor has experience in large-scale construction projects.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The federal government is a significant client in this sector, awarding numerous contracts for infrastructure, facilities, and operational buildings. The market size for federal construction is substantial, and this award represents a portion of the spending dedicated to national security and border management.

Small Business Impact

While this contract was awarded under full and open competition and Caddell Construction is a large entity, there is no explicit indication of a small business set-aside. However, large prime contractors are often required to meet subcontracting goals for small businesses. The impact on the small business ecosystem will depend on the extent to which Caddell Construction utilizes small business subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection, with potential involvement from the Department of Homeland Security's Office of Inspector General. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is facilitated through contract award databases and reporting requirements.

Related Government Programs

Department of Homeland Security Facilities
Border Security Modernization Projects
Federal Construction Contracts
Commercial Building Construction

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of construction delays impacting operational readiness.
Environmental and site-specific challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $81.7 million to CADDELL CONSTRUCTION CO. (DE), LLC. BORDER INFRASTRUCTURE

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 $81.7 million.

What is the period of performance?

Start: 2022-09-02. End: 2024-03-01.

What is Caddell Construction Co.'s track record with similar large-scale federal infrastructure projects?

Caddell Construction Co. has a significant track record with large-scale federal projects, including extensive work for the Department of Defense and other federal agencies. Their portfolio often includes complex construction and renovation of military installations, government facilities, and critical infrastructure. This experience suggests a capability to manage the technical, logistical, and security demands associated with border infrastructure projects. Reviewing past performance evaluations and project completion data for similar contracts would provide further insight into their reliability and effectiveness in delivering projects on time and within budget.

How does the awarded amount compare to the estimated cost or previous spending on similar border infrastructure projects?

The awarded amount of $81.7 million for this border infrastructure project needs to be contextualized against the estimated cost and historical spending for comparable initiatives. Without specific data on the initial cost estimates or prior contract values for similar border facility construction or upgrades, a direct comparison is challenging. However, given the scale of border security needs and the complexity of construction in potentially remote or challenging environments, this figure appears to be within a plausible range for a significant infrastructure undertaking. Further analysis would require access to the government's cost estimates and data from previously awarded contracts for similar scope and scale.

What are the primary risk indicators associated with this specific contract award?

Key risk indicators for this contract include the inherent complexities of large-scale construction projects, such as potential for unforeseen site conditions, material cost fluctuations, and labor availability. Given the 'border infrastructure' designation, there may also be risks related to security protocols, environmental considerations, and the potential for expedited timelines driven by policy priorities. The contractor's experience and the firm fixed-price nature of the contract aim to mitigate some of these risks, but diligent oversight and proactive risk management by the contracting agency remain critical.

How effective is the firm fixed-price contract type in ensuring value for money for this border infrastructure project?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money by shifting the risk of cost overruns to the contractor. This structure incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon price. For a project like border infrastructure, where the scope of work can be clearly defined, an FFP contract provides budget certainty for the government and taxpayers. However, it's crucial that the initial price is set competitively and that the scope is well-defined to avoid costly change orders that could negate the benefits of the FFP structure.

What are the historical spending patterns for border infrastructure projects under the Department of Homeland Security?

Historical spending patterns for border infrastructure projects under the Department of Homeland Security (DHS) have shown significant and often fluctuating investment, driven by national security priorities, policy changes, and infrastructure needs. Over the past decade, DHS has allocated billions towards border security, including physical barriers, technology, and facilities. Spending can vary year-to-year based on specific initiatives, such as major construction efforts or upgrades to ports of entry. Analyzing multi-year budget allocations and contract awards provides insight into the sustained commitment and evolving nature of federal investment in this critical area.

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: 3

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: $81,675,217

Exercised Options: $81,675,217

Current Obligation: $81,675,217

Actual Outlays: $74,328,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1017D00018

IDV Type: IDC

Timeline