State Department awards $73.9M for new embassy compound in Algiers, completed in 2014

Contract Overview

Contract Amount: $73,900,542 ($73.9M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of State

Start Date: 2004-09-30

End Date: 2014-06-27

Contract Duration: 3,557 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW EMBASSY COMPOUND (NEC) ALGIERS

Plain-Language Summary

Department of State obligated $73.9 million to CADDELL CONSTRUCTION CO., INC. for work described as: NEW EMBASSY COMPOUND (NEC) ALGIERS Key points: 1. Contract awarded to Caddell Construction Co., Inc. for a significant infrastructure project. 2. The project involved commercial and institutional building construction, indicating a large-scale development. 3. Full and open competition suggests a robust bidding process. 4. The contract duration was substantial, spanning over 9 years from award to completion. 5. The final award amount was $73.9 million, representing a significant federal investment. 6. The contract type was Firm Fixed Price, which typically transfers risk to the contractor.

Value Assessment

Rating: good

The contract value of $73.9 million for a new embassy compound is substantial. Benchmarking against similar large-scale construction projects for diplomatic facilities would provide a clearer picture of value for money. However, the firm fixed-price nature of the contract suggests that the government secured a defined cost, assuming the contractor managed their risks effectively. The long duration from award to completion (over 9 years) could indicate complexities or phased development, which might influence the effective annual spending rate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple contractors likely vied for the project. The presence of four bidders (no=4) further supports this, providing a reasonable level of competition that should have driven pricing towards market rates. The government likely received a range of proposals to evaluate.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality services. The presence of multiple bidders suggests that taxpayer funds were likely used efficiently through a process designed to obtain the best value.

Public Impact

The primary beneficiary is the U.S. Department of State, which gains a new, modern embassy compound in Algiers. The project delivered critical infrastructure for diplomatic operations and personnel. The geographic impact is concentrated in Algiers, Algeria, enhancing U.S. diplomatic presence in North Africa. The construction likely involved a significant workforce, including skilled trades and project management personnel, both domestically and potentially locally in Algeria.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) could indicate potential for cost overruns or scope creep if not managed tightly.
Firm Fixed Price contracts can sometimes lead to disputes if unforeseen issues arise that are not clearly defined in the scope of work.
The specific nature of embassy construction can involve unique security and logistical challenges that may impact cost and schedule.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely secured fair market value.
Firm Fixed Price contract type generally provides cost certainty for the government.
Completion of a major infrastructure project like a new embassy compound signifies successful project execution and delivery of a critical asset.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The construction of a new embassy compound is a high-value, complex project within this sector, often involving specialized security features and adherence to stringent international building standards. The market for such projects is typically dominated by large, experienced construction firms capable of managing significant budgets and complex logistics. Federal spending in this area supports diplomatic infrastructure and national security objectives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb=false) and there is no information on subcontracting (st=""). Given the scale and complexity of constructing a new embassy compound, it is unlikely that small businesses would be the primary contractors, though they may have participated as subcontractors. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's Bureau of Overseas Buildings Operations (OBO) and its contracting officers. The firm fixed-price nature of the contract implies that the contractor bears significant responsibility for cost control. Transparency would be facilitated through contract award notices and potentially through Inspector General reports if any issues arose during performance. The long duration suggests ongoing monitoring was likely required.

Related Government Programs

New Embassy Compound Construction
Department of State Facilities Management
Overseas Diplomatic Infrastructure
Large-Scale Commercial Construction Projects

Risk Flags

Long contract duration
Potential for scope creep
Complexity of international construction projects

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $73.9 million to CADDELL CONSTRUCTION CO., INC.. NEW EMBASSY COMPOUND (NEC) ALGIERS

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $73.9 million.

What is the period of performance?

Start: 2004-09-30. End: 2014-06-27.

What was the initial estimated cost versus the final award amount, and what factors contributed to any difference?

The provided data shows a final award amount of $73,900,542.11. However, it does not include the initial estimated cost or the contract's ceiling value. To assess potential cost growth or savings, a comparison between the initial estimate and the final award is crucial. Factors influencing differences could include changes in scope, unforeseen site conditions, material cost fluctuations, or the competitive landscape during bidding. Without the initial estimate, it's difficult to determine if the final price represented an increase or decrease relative to expectations.

How did Caddell Construction Co., Inc.'s performance on this contract compare to their other federal contracts?

Assessing Caddell Construction Co., Inc.'s performance requires access to contract performance ratings (e.g., CPARS reports) and historical contract data. This specific contract, awarded in 2004 and completed in 2014, spanned a significant period. A review of their performance on this NEC Algiers project, looking at adherence to schedule, budget, quality standards, and any disputes or claims, would be necessary. Comparing these metrics against their overall federal contract portfolio would reveal if this project was an outlier, a standard performance, or indicative of broader trends in their project execution and management capabilities.

What were the key risks identified during the bidding process for the NEC Algiers project, and how were they mitigated?

Key risks for a project of this magnitude typically include geopolitical instability in the region, complex security requirements, logistical challenges in importing materials, potential for labor disputes, and unforeseen geological or environmental conditions at the construction site. Given the 'full and open competition' and 'firm fixed price' nature, bidders would have been incentivized to thoroughly assess and price these risks. Mitigation strategies would likely have been detailed in the proposals and included robust security protocols, contingency planning for supply chain disruptions, adherence to strict quality control measures, and potentially specialized insurance. The long duration suggests ongoing risk management was critical.

How does the cost per square foot of the New Embassy Compound compare to similar diplomatic facilities built around the same time?

The provided data does not include the square footage of the New Embassy Compound, making a direct cost-per-square-foot comparison impossible. To benchmark effectively, one would need the total constructed area. Assuming typical embassy sizes, the $73.9 million award would need to be divided by the square footage to derive a cost per unit. This figure could then be compared to publicly available data or industry reports on the construction costs of other embassies or large-scale government facilities built internationally during the 2004-2014 period. Factors like location, security features, and material costs significantly influence this metric.

What was the total federal spending on embassy construction and related infrastructure by the Department of State in the fiscal years surrounding this contract's award and completion?

The data provided focuses solely on the NEC Algiers contract ($73.9M awarded 2004, completed 2014). To understand the broader spending context, one would need to examine the Department of State's budget appropriations and obligations for facilities construction, maintenance, and security over the period. This would involve analyzing historical budget documents and contract databases for other embassy projects, renovations, and security upgrades globally. Such an analysis would reveal trends in federal investment in diplomatic infrastructure and the relative scale of the Algiers project within the Department's overall capital expenditure.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2700 LAGOON PARK DRIVE, MONTGOMERY, AL, 02

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

Financial Breakdown

Contract Ceiling: $73,900,542

Exercised Options: $73,900,542

Current Obligation: $73,900,542

Timeline