GSA's $87.5M Rockford Courthouse Construction Contract Awarded to Caddell Construction Under Full and Open Competition

Contract Overview

Contract Amount: $87,519,858 ($87.5M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2003-11-13

End Date: 2010-11-12

Contract Duration: 2,556 days

Daily Burn Rate: $34.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE NEW U.S. COURTHOUSE IN ROCKFORD, ILLINOIS

Place of Performance

Location: ROCKFORD, WINNEBAGO County, ILLINOIS, 61101

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $87.5 million to CADDELL CONSTRUCTION CO., INC. for work described as: CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE NEW U.S. COURTHOUSE IN ROCKFORD, ILLINOIS Key points: 1. The contract represents a significant investment in federal infrastructure, specifically for judicial facilities. 2. Awarded via full and open competition, suggesting a broad market engagement. 3. The firm-fixed-price structure aims to control costs and transfer risk to the contractor. 4. The project duration of 2556 days indicates a complex, multi-year construction undertaking. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded by the General Services Administration (GSA), a key federal agency for real estate and procurement.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for similar courthouse construction projects of this scale and complexity. The firm-fixed-price nature suggests an attempt to lock in costs, but the total value of $87.5 million indicates a substantial public expenditure. Further analysis would require comparing the cost per square foot or per unit of construction against industry standards for federal buildings of similar specifications and location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that the GSA sought proposals from all responsible sources. The number of bids received (4) suggests a moderate level of competition for this large-scale construction project. While four bidders is not exceptionally high for a project of this magnitude, it does provide a basis for price discovery and ensures that the award was made to the most advantageous offer.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better value for the government.

Public Impact

The primary beneficiaries are the judicial system and the public in Rockford, Illinois, who will gain access to a new U.S. Courthouse. The contract delivers essential construction services for a critical piece of federal infrastructure. The geographic impact is localized to Rockford, Illinois, providing a modern facility for federal court operations. The project likely created numerous jobs in the construction sector within Illinois during its multi-year duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Contract duration is lengthy, increasing the risk of delays due to weather, labor issues, or supply chain disruptions.
Complexity of constructing a federal courthouse may present unique challenges not fully captured in initial cost estimates.

Positive Signals

Firm-fixed-price contract transfers significant cost risk to the contractor.
Awarded through full and open competition, suggesting a competitive bidding process.
The General Services Administration has extensive experience managing large-scale construction projects.

Sector Analysis

The construction industry, particularly for large institutional buildings, is characterized by significant capital investment, specialized labor, and complex project management. Federal courthouse construction falls under the broader category of commercial and institutional building construction, often involving stringent security, accessibility, and durability requirements. The market size for such projects is substantial, with government agencies like the GSA being major clients. This contract fits within the sector by addressing the need for modern, secure, and functional federal facilities.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses and the prime contractor, Caddell Construction Co., Inc., is a large firm. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether Caddell actively seeks to engage small businesses for specialized trades or material supply during the project's execution.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress reviews, site inspections, and financial audits. Accountability is ensured through the contract terms, including performance milestones and payment schedules. Transparency is generally maintained through public contract databases, though detailed project-specific oversight reports may not always be publicly accessible. The Inspector General of the GSA would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Construction
Courthouse Construction Projects
GSA Public Buildings Service Contracts
Infrastructure Investment

Risk Flags

Potential for cost overruns
Risk of project delays
Complexity of federal building construction

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $87.5 million to CADDELL CONSTRUCTION CO., INC.. CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE NEW U.S. COURTHOUSE IN ROCKFORD, ILLINOIS

Who is the contractor on this award?

The obligated recipient is CADDELL CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $87.5 million.

What is the period of performance?

Start: 2003-11-13. End: 2010-11-12.

What was the initial estimated cost of the project, and how does the final award amount compare?

The provided data indicates a final award amount of $87,519,858.44. However, the initial estimated cost of the project is not available in the provided data. To assess value for money, a comparison between the initial estimate and the final award is crucial. A significant difference could indicate issues with the initial budgeting, scope changes, or a highly competitive bidding process driving down costs. Without the initial estimate, it's difficult to determine if the final award represents a favorable outcome relative to the government's initial expectations or if it reflects unforeseen cost increases.

How did the number of bids (4) influence the final contract price compared to projects with more or fewer bidders?

Receiving four bids suggests a moderate level of competition. Generally, a higher number of bids tends to drive prices down due to increased market pressure. Conversely, fewer bids might indicate less interest or a more specialized requirement, potentially leading to higher prices. With four bidders for this $87.5 million project, it implies that the price achieved is likely competitive, but perhaps not as aggressively priced as it might have been with six or more offers. The specific pricing strategies of the bidders and the GSA's evaluation criteria would also play a significant role in the final negotiated price.

What are the key performance indicators (KPIs) used by the GSA to monitor the progress and quality of this construction project?

While specific KPIs for this contract are not detailed in the provided data, federal construction contracts typically include KPIs related to schedule adherence (e.g., meeting key milestones), budget management (e.g., tracking expenditures against planned costs), quality control (e.g., compliance with specifications, defect rates), safety performance (e.g., incident rates), and adherence to environmental regulations. The GSA's project managers would likely conduct regular site visits, review progress reports, and hold meetings with the contractor to monitor these aspects. Failure to meet KPIs could result in contractual remedies, including penalties or withholding of payments.

What is the historical spending pattern of the GSA on similar courthouse construction projects in Illinois or the Midwest region?

Analyzing historical spending patterns for similar courthouse construction projects by the GSA in Illinois or the Midwest would provide valuable context for the $87.5 million award. This would involve examining past contracts for size, scope, duration, and final cost. Benchmarking this project against previous ones could reveal trends in construction costs, contractor performance, and the effectiveness of GSA's procurement strategies. Without access to GSA's historical contract database or specific project archives, it is difficult to provide a detailed comparison of spending patterns. However, such analysis is crucial for understanding long-term investment in federal infrastructure.

What specific risks were identified during the procurement process, and what mitigation strategies were put in place?

The provided data does not explicitly detail the risks identified during the procurement process for this specific contract. However, common risks in large federal construction projects include potential cost overruns due to unforeseen site conditions, material price volatility, labor shortages, design changes, and contractor performance issues. Mitigation strategies typically involve thorough site investigations, robust contract language (like firm-fixed-price), clear specifications, pre-qualification of bidders, performance bonds, and active project management and oversight by the contracting agency. The GSA's standard operating procedures would include risk assessment and mitigation planning for such significant projects.

How does the firm-fixed-price (FFP) contract type impact the contractor's incentive to control costs and ensure project efficiency?

A firm-fixed-price (FFP) contract is designed to provide the contractor with a fixed price for the defined scope of work. This structure incentivizes the contractor to manage costs effectively and operate efficiently to maximize profit. Any cost overruns beyond the agreed-upon price are borne by the contractor, while any savings achieved through efficiency also benefit the contractor. This contrasts with cost-reimbursement contracts, where the government assumes more cost risk. For a project like the Rockford Courthouse, the FFP structure aims to provide cost certainty for the GSA and encourages Caddell Construction to maintain tight control over project expenses and timelines.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $87,519,858

Exercised Options: $87,519,858

Current Obligation: $87,519,858

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline