GSA awards $76.5M contract for El Paso Courthouse pre-construction services to Caddell Construction

Contract Overview

Contract Amount: $76,504,694 ($76.5M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2005-09-25

End Date: 2008-12-02

Contract Duration: 1,164 days

Daily Burn Rate: $65.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROVIDE PRE-CONSTRUCTION VE SERVICES FOR NEW EL PASO, TX COURTHOUSE.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36121, UNITED STATES OF AMERICA

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $76.5 million to CADDELL CONSTRUCTION CO., INC. for work described as: PROVIDE PRE-CONSTRUCTION VE SERVICES FOR NEW EL PASO, TX COURTHOUSE. Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of 1164 days indicates a significant, long-term project. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The project scope involves pre-construction services, a critical early phase for large infrastructure. 5. Awarded by the General Services Administration (GSA), a key agency for federal building projects. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction.

Value Assessment

Rating: good

The contract value of $76.5 million for pre-construction services appears reasonable given the scale of a new courthouse project. Benchmarking against similar large-scale public building projects would provide a more precise value assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific details on the deliverables and market rates for similar pre-construction services in El Paso, a definitive value-for-money judgment is challenging, but the GSA's involvement suggests adherence to established procurement standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the GSA sought proposals from all responsible sources. The data shows two bids were received (no: 2). While two bidders is a relatively low number for full and open competition, it still suggests some level of market interest and potential for price discovery. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would offer further insight into the competitiveness.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. However, with only two bids, the potential for significant cost savings might be limited compared to a scenario with numerous competing offers.

Public Impact

The primary beneficiary is the General Services Administration, facilitating the development of federal infrastructure. The services delivered are crucial for the planning and execution of a new federal courthouse in El Paso, Texas. The geographic impact is concentrated in El Paso, Texas, with potential long-term benefits for the local justice system and community. Workforce implications include potential job creation for construction managers, architects, engineers, and other professionals involved in pre-construction activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have restricted price negotiation leverage.
The long contract duration could introduce risks related to changing economic conditions or project requirements.
Firm Fixed Price contracts can sometimes lead to contractor claims if unforeseen issues arise during execution.

Positive Signals

Full and open competition provides a baseline for fair market pricing.
Firm Fixed Price contract type offers cost certainty to the government.
Awarded by GSA, an agency with extensive experience in managing large construction projects.
Pre-construction services are essential for mitigating risks in the subsequent construction phases.

Sector Analysis

This contract falls within the construction sector, specifically focusing on commercial and institutional building construction (NAICS 236220). The market for pre-construction services is a specialized segment of the broader construction industry, involving planning, design coordination, estimating, and scheduling before physical construction begins. Federal courthouse construction represents a significant sub-segment of government infrastructure spending. Comparable spending benchmarks would involve analyzing other large federal building projects managed by the GSA or other agencies, considering factors like project complexity, location, and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no specific mention of small business subcontracting goals. This suggests that the primary contractor, Caddell Construction Co., Inc., is likely a large business. The absence of a small business set-aside means that opportunities for small businesses would primarily arise through subcontracting opportunities offered by the prime contractor, if any. Further analysis would be needed to determine if subcontracting plans were a requirement or if small businesses were actively engaged in the bidding process.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its construction projects, including the Public Buildings Service (PBS). Oversight would likely involve regular progress reviews, site inspections, and financial audits. Accountability measures would be embedded in the contract terms, with performance standards and potential penalties for non-compliance. Transparency is generally maintained through public contract databases and GSA's reporting requirements. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Courthouse Construction Projects
General Services Administration Public Buildings Service Contracts
Large-Scale Commercial Construction Projects
Pre-Construction Services Contracts

Risk Flags

Limited Competition
Long Contract Duration
Potential for Contractor Claims on FFP Contracts

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $76.5 million to CADDELL CONSTRUCTION CO., INC.. PROVIDE PRE-CONSTRUCTION VE SERVICES FOR NEW EL PASO, TX COURTHOUSE.

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 $76.5 million.

What is the period of performance?

Start: 2005-09-25. End: 2008-12-02.

What is the track record of Caddell Construction Co., Inc. with the federal government, particularly with the GSA?

Caddell Construction Co., Inc. has a significant history of working with the federal government, including numerous contracts with the General Services Administration (GSA) and the Department of Defense. Their portfolio often includes large-scale, complex projects such as courthouses, federal buildings, and military installations. A review of federal procurement data would reveal the volume and types of contracts awarded to Caddell, their performance ratings on past projects (if available), and any history of disputes or contract modifications. This specific contract for the El Paso Courthouse pre-construction services is one example of their engagement with the GSA on major infrastructure development.

How does the awarded amount of $76.5 million compare to similar pre-construction service contracts for federal courthouses?

Benchmarking this $76.5 million contract requires comparing it to pre-construction services for similarly sized and complex federal courthouses. Factors influencing cost include project square footage, anticipated construction value, complexity of design, and geographic location. Without access to a database of comparable pre-construction service contracts, a precise comparison is difficult. However, for large federal building projects, pre-construction services can represent a significant percentage of the overall project cost, often ranging from 5% to 15% of the anticipated construction value. If the total construction cost for the El Paso Courthouse is estimated to be in the range of $500 million to $1.5 billion, then $76.5 million would fall within a plausible range for comprehensive pre-construction services.

What are the primary risks associated with this firm fixed-price contract for pre-construction services?

While firm fixed-price (FFP) contracts are generally favored for cost certainty, risks can still emerge, particularly in long-duration pre-construction phases. For this $76.5 million contract spanning 1164 days, potential risks include unforeseen design complexities that may require extensive revisions, leading to contractor claims for additional time or compensation if not managed contractually. Changes in regulatory requirements or site conditions discovered during the pre-construction phase could also necessitate scope adjustments. Furthermore, if the contractor's initial cost estimates were overly optimistic or if material and labor costs escalate significantly beyond projections, the contractor might face reduced profit margins or seek contract modifications, potentially impacting the government's final cost if not carefully negotiated.

What is the expected effectiveness of these pre-construction services in ensuring the successful delivery of the new El Paso Courthouse?

The effectiveness of these pre-construction services is critical for the overall success of the new El Paso Courthouse project. These services typically encompass detailed cost estimating, constructability reviews, value engineering, scheduling, procurement strategy development, and coordination with design teams. By identifying potential issues, optimizing design for cost and efficiency, and establishing a realistic construction schedule early on, these services aim to minimize costly changes, delays, and disputes during the subsequent construction phase. A well-executed pre-construction phase, as intended by this contract, significantly enhances the likelihood of delivering the courthouse on time, within budget, and to the required quality standards.

How has federal spending on courthouse construction and related services trended over the past decade?

Federal spending on courthouse construction and related services, managed primarily by the General Services Administration (GSA), has historically fluctuated based on infrastructure needs, budget appropriations, and national priorities. Over the past decade, there has been a consistent need for modernization and expansion of federal judicial facilities. While specific figures vary annually, the GSA's Public Buildings Service consistently manages a substantial portfolio of construction and renovation projects. Factors such as aging infrastructure, security enhancements, and the need for increased capacity have driven sustained investment. Trends may also reflect shifts towards more sustainable building practices and technological integration in new federal facilities, influencing the scope and cost of both construction and pre-construction services.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $76,504,695

Exercised Options: $76,504,694

Current Obligation: $76,504,694

Timeline