Department of the Navy awarded $38.8M for Joint HQ/JOC Facility construction to Caddell Construction Co

Contract Overview

Contract Amount: $38,835,537 ($38.8M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-24

End Date: 2016-09-28

Contract Duration: 1,100 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P230 JOINT HQ/JOC FACILITY

Plain-Language Summary

Department of Defense obligated $38.8 million to CADDELL CONSTRUCTION CO., INC. for work described as: IGF::OT::IGF P230 JOINT HQ/JOC FACILITY Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Definitive contract type indicates a firm commitment for services. 4. Project duration of 1100 days points to a substantial construction timeline. 5. Fixed-price contract type shifts cost risk to the contractor. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: good

The contract value of $38.8 million for a Joint HQ/JOC Facility appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor assumed the primary cost risk, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 13 bids suggests a healthy level of interest and competition for this significant construction project. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more cost-effective outcome for taxpayers by driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel requiring the Joint HQ/JOC Facility. The contract delivers essential construction services for a critical military facility. Geographic impact is localized to the facility's construction site. Workforce implications include employment opportunities for construction labor and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Delays in construction schedule could impact operational readiness.
Quality control during construction is crucial to ensure facility longevity and functionality.

Positive Signals

Full and open competition suggests a strong market response and potential for competitive pricing.
Firm fixed-price contract shifts cost risk to the contractor, potentially protecting the government from unexpected expenses.
Experienced contractor (Caddell Construction Co.) may bring valuable expertise to the project.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The Department of Defense is a major client for construction services, with significant annual spending on facilities. Comparable spending benchmarks would involve analyzing other large-scale military construction projects awarded by various branches of the armed forces, considering factors like facility type, size, and location.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that opportunities for small business participation were not explicitly mandated through this specific award, potentially limiting their direct involvement in this large project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Naval Base Infrastructure
Joint Headquarters Facilities

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions impacting cost
Ensuring long-term facility functionality and security

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 million to CADDELL CONSTRUCTION CO., INC.. IGF::OT::IGF P230 JOINT HQ/JOC FACILITY

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 $38.8 million.

What is the period of performance?

Start: 2013-09-24. End: 2016-09-28.

What is the track record of Caddell Construction Co. on similar large-scale government construction projects?

Caddell Construction Co., Inc. has a significant history of performing large-scale construction projects, including many for government and military clients. Their portfolio often includes complex facilities requiring adherence to stringent security and performance standards. Analyzing their past performance on projects of similar size and complexity, particularly within the Department of Defense, would reveal their ability to manage budgets, timelines, and quality. Past performance reviews and contract completion data from federal procurement databases can offer insights into their reliability and effectiveness as a contractor. A review of their project history would likely show a pattern of successful delivery on major infrastructure initiatives.

How does the awarded price compare to industry benchmarks for similar facility construction?

Benchmarking the $38.8 million award against industry standards for similar Joint HQ/JOC facilities requires detailed cost data and project specifications. Factors such as square footage, complexity of systems (e.g., IT infrastructure, security features), and geographic location significantly influence construction costs. While the firm fixed-price nature suggests the contractor absorbed risk, a comprehensive comparison would involve analyzing cost per square foot, cost per function, and the inclusion of specialized requirements. Without access to detailed project scope and comparable market data for similar military facilities, a precise value-for-money assessment is challenging. However, the competitive bidding process with 13 offers suggests the price was likely market-driven.

What are the primary risks associated with the construction of a Joint HQ/JOC Facility?

Key risks in constructing a Joint HQ/JOC Facility include potential cost overruns due to unforeseen site conditions or material price fluctuations, despite the firm fixed-price contract. Schedule delays are another significant risk, stemming from weather, labor shortages, supply chain disruptions, or design changes, which can impact operational readiness. Quality control is paramount to ensure the facility meets long-term functional and security requirements. Furthermore, cybersecurity risks related to the integrated systems within the facility, and the potential for scope creep if requirements evolve during construction, also pose considerable challenges. Effective risk mitigation strategies by the contractor and oversight by the Navy are crucial.

What is the historical spending pattern for similar facilities by the Department of the Navy?

Historical spending by the Department of the Navy on similar facilities, such as headquarters and operational command centers, typically represents a substantial portion of their infrastructure budget. Annual outlays can range from hundreds of millions to billions of dollars, depending on the scale of modernization, new construction, and renovation projects undertaken across various naval installations. Analyzing past five to ten years of obligated funds for construction contracts of comparable size and purpose would reveal trends in investment, average contract values, and the frequency of such awards. This historical context helps in assessing whether the $38.8 million award is consistent with past spending patterns or represents an outlier.

How does the contract duration of 1100 days align with typical construction timelines for such facilities?

A contract duration of 1100 days, approximately three years, is generally within the expected timeframe for the construction of a significant facility like a Joint HQ/JOC. Large-scale institutional and commercial buildings, especially those with specialized military requirements, often involve extensive planning, site preparation, foundation work, structural assembly, interior fit-out, and systems integration. The duration accounts for potential weather delays, phased construction, and the coordination of various trades. While shorter durations might be achievable for simpler structures, 1100 days suggests a comprehensive project scope that necessitates a multi-year commitment to ensure quality and thorough execution.

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

Solicitation ID: N6247013R3000

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,525,537

Exercised Options: $38,835,537

Current Obligation: $38,835,537

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline