State Department's $82.7M Kathmandu Embassy Construction Awarded to Caddell Construction Under Full and Open Competition
Contract Overview
Contract Amount: $82,682,679 ($82.7M)
Contractor: Caddell Construction CO., Inc.
Awarding Agency: Department of State
Start Date: 2004-09-30
End Date: 2009-08-10
Contract Duration: 1,775 days
Daily Burn Rate: $46.6K/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) KATHMANDU, NEPAL
Plain-Language Summary
Department of State obligated $82.7 million to CADDELL CONSTRUCTION CO., INC. for work described as: NEW EMBASSY COMPOUND (NEC) KATHMANDU, NEPAL Key points: 1. The contract value of $82.7 million for the New Embassy Compound in Kathmandu represents a significant investment in diplomatic infrastructure. 2. Caddell Construction, the awardee, has a history of large-scale construction projects, indicating potential for successful execution. 3. The project's duration of 1775 days (approx. 4.8 years) suggests a complex undertaking with inherent schedule risks. 4. The sector is Commercial and Institutional Building Construction, a broad category with varying cost benchmarks.
Value Assessment
Rating: fair
The award amount of $82.7 million for a new embassy compound appears substantial. Without specific project scope details and comparable international construction costs, a precise pricing assessment is difficult. However, the firm fixed-price contract type suggests the government has locked in costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally expected to yield competitive pricing. The presence of 4 bids indicates a degree of market interest and price discovery.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding environment.
Public Impact
Enhances U.S. diplomatic presence and security in Nepal. Supports local employment and economic activity during construction. Potential for long-term operational cost savings through modern, efficient design.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration and complexity
- Geopolitical stability in Nepal
- Potential for unforeseen site conditions
Positive Signals
- Firm fixed-price contract
- Awarded under full and open competition
- Experienced contractor
Sector Analysis
The construction of diplomatic facilities falls under the broader Commercial and Institutional Building Construction sector. Benchmarks for such specialized projects are highly variable, depending on location, security requirements, and specific design elements.
Small Business Impact
The data indicates that neither small business set-asides nor subcontracting goals were explicitly mentioned for this contract. This suggests the primary award went to a large business, and the extent of small business participation is not detailed.
Oversight & Accountability
The Department of State, through its Bureau of Overseas Buildings Operations, typically oversees such construction projects. Accountability would involve adherence to contract terms, budget, schedule, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long project duration
- Construction in a seismically active region
- Potential logistical challenges
- Geopolitical factors in Nepal
Tags
commercial-and-institutional-building-co, department-of-state, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $82.7 million to CADDELL CONSTRUCTION CO., INC.. NEW EMBASSY COMPOUND (NEC) KATHMANDU, NEPAL
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 $82.7 million.
What is the period of performance?
Start: 2004-09-30. End: 2009-08-10.
What is the estimated cost per square foot for this embassy construction, and how does it compare to similar international embassy projects?
Without the total square footage of the new embassy compound, calculating the cost per square foot is not possible from the provided data. Comparing this to similar international embassy projects would require access to detailed project specifications and cost data for comparable facilities, which is not publicly available.
What are the specific risks associated with constructing an embassy in Kathmandu, Nepal, and what mitigation strategies are in place?
Risks could include seismic activity (Kathmandu is in a high-risk zone), political instability, logistical challenges in a developing country, and potential security threats. Mitigation strategies would likely involve robust structural engineering, comprehensive security planning, contingency budgeting, and close coordination with local authorities.
How will the success of this project be measured in terms of long-term value and effectiveness for U.S. diplomatic operations?
Success will be measured by the facility's ability to support diplomatic functions securely and efficiently, its durability over its intended lifespan, and its contribution to fostering positive bilateral relations. Post-occupancy evaluations assessing operational costs, security effectiveness, and user satisfaction would provide further insight.
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
Financial Breakdown
Contract Ceiling: $82,682,679
Exercised Options: $82,682,679
Current Obligation: $82,682,679
Timeline
Start Date: 2004-09-30
Current End Date: 2009-08-10
Potential End Date: 2009-08-10 00:00:00
Last Modified: 2009-08-13
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