DoD Awards $102M for Troop Housing Facilities, Raising Value Concerns

Contract Overview

Contract Amount: $21,464,828 ($21.5M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2006-02-22

End Date: 2008-10-18

Contract Duration: 969 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200605!701068!1700!N40085!NAVAL FAC ENGINEERING CMD MID LA!N4008506C4109 !A!N! !N! ! !20060222!20080228!102087285!102087285!102087285!N!CADDELL CONSTRUCTION CO INC !2700 LAGOON PARK DR !MONTGOMERY !AL!36109!34200!133!37!JACKSONVILLE (MCAS) !ONSLOW !N CAROLINA!+000021428000!N!N!000021653000!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!U!J!1!004!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! !N! ! !1700!N62470!0001! !

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to CADDELL CONSTRUCTION CO., INC. for work described as: 200605!701068!1700!N40085!NAVAL FAC ENGINEERING CMD MID LA!N4008506C4109 !A!N! !N! ! !20060222!20080228!102087285!102087285!102087285!N!CADDELL CONSTRUCTION CO INC !2700 LAGOON PARK DR !MONTGOMERY !AL!36109!34200!133!37!JACKSONVILLE (MCAS) !ONSL… Key points: 1. Contract awarded for troop housing facilities, a critical infrastructure need. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract value of $102M is significant, warranting scrutiny for value. 4. Construction sector spending is robust, but project-specific efficiency is key.

Value Assessment

Rating: questionable

The contract value of $102,087,285 for troop housing facilities appears high. Benchmarking against similar construction projects of this scale is necessary to determine if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters price discovery. However, the final award amount of $102M warrants further analysis to ensure it represents the best value achieved through the competitive process.

Taxpayer Impact: Taxpayer funds are being utilized for essential military infrastructure. Ensuring cost-effectiveness and value for money is paramount to responsible fiscal management.

Public Impact

Direct impact on military personnel by providing improved housing facilities. Potential economic stimulus in the Onslow County, North Carolina region through construction jobs and related activities. Long-term asset for the Department of Defense, contributing to military readiness and quality of life.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value requires thorough cost-benefit analysis.
Potential for cost overruns in large-scale construction projects.
Ensuring quality and durability of troop housing facilities.

Positive Signals

Addresses critical need for troop housing.
Awarded through full and open competition.
Supports military readiness and personnel welfare.

Sector Analysis

This contract falls within the Construction sector, specifically for institutional buildings. Federal spending in this area is substantial, driven by infrastructure needs and modernization efforts. Benchmarks for troop housing construction vary widely based on location, scope, and amenities.

Small Business Impact

While the primary awardee is a large business, the contract may offer subcontracting opportunities for small businesses in areas such as materials supply, specialized labor, or support services. Further investigation into subcontracting plans is recommended.

Oversight & Accountability

The Department of the Navy's Naval Facilities Engineering Command is responsible for this award. Oversight should focus on project execution, adherence to budget, and timely completion to ensure accountability and prevent waste.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

High contract value.
Potential for construction delays.
Complexity of military facility construction.
Ensuring long-term durability and maintenance cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to CADDELL CONSTRUCTION CO., INC.. 200605!701068!1700!N40085!NAVAL FAC ENGINEERING CMD MID LA!N4008506C4109 !A!N! !N! ! !20060222!20080228!102087285!102087285!102087285!N!CADDELL CONSTRUCTION CO INC !2700 LAGOON PARK DR !MONTGOMERY !AL!36109!34200!133!37!JACKSONVILLE (MCAS) !ONSLOW !N CAROLINA!+000021428000!N!N!000021653000!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!A!A!3! ! ! ! ! !999

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2006-02-22. End: 2008-10-18.

What specific factors contributed to the $102M contract value for troop housing facilities?

The contract value is likely influenced by factors such as the scale of the project (number of units, square footage), material costs, labor rates in the Jacksonville, NC area, specialized construction requirements for military facilities, and any included amenities or infrastructure development. A detailed breakdown of costs would be needed for a precise assessment.

Are there any identified risks associated with the construction timeline or potential delays?

Large construction projects inherently carry risks of delays due to weather, supply chain disruptions, or unforeseen site conditions. The contract duration of 969 days (approximately 2.6 years) suggests a significant undertaking. Proactive risk management by the Naval Facilities Engineering Command and Caddell Construction Co. Inc. will be crucial to mitigate potential schedule slippage.

How will the effectiveness of the troop housing facilities be measured post-construction?

Effectiveness will likely be measured through post-occupancy evaluations focusing on habitability, durability, maintenance requirements, and resident satisfaction. Performance metrics may also include energy efficiency and compliance with military housing standards. Regular inspections and feedback mechanisms will be vital for assessing long-term effectiveness.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: 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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline