State Department awarded $76.2M design-build contract for Tijuana facility, completed in 2012

Contract Overview

Contract Amount: $76,199,999 ($76.2M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of State

Start Date: 2007-09-27

End Date: 2012-06-30

Contract Duration: 1,738 days

Daily Burn Rate: $43.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN / BUILD SERVICES FOR TIJUANA, MEXICO NCC.

Plain-Language Summary

Department of State obligated $76.2 million to CADDELL CONSTRUCTION CO., INC. for work described as: DESIGN / BUILD SERVICES FOR TIJUANA, MEXICO NCC. Key points: 1. Contract value represents a significant investment in diplomatic infrastructure. 2. Completed project suggests successful project delivery, though specific performance metrics are not detailed. 3. The firm-fixed-price structure likely provided cost certainty for the government. 4. Long-term operational costs and effectiveness of the facility are not assessed here. 5. The contract was awarded under full and open competition, indicating broad market engagement.

Value Assessment

Rating: good

The contract value of $76.2 million for a design-build project of this nature is substantial. Benchmarking against similar large-scale construction projects for diplomatic facilities would be necessary for a precise value-for-money assessment. However, the firm-fixed-price contract type generally aims to control costs. Without detailed performance reports or post-occupancy evaluations, it's difficult to definitively assess the long-term value, but the completion of the project within the awarded amount is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. The presence of at least one bidder (implied by the award) indicates a level of market interest. The specific number of bids received is not provided, which would offer further insight into the intensity of the competition and its potential impact on pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are the Department of State and its personnel, who will utilize the new facility in Tijuana. The project delivered design and construction services for a critical diplomatic infrastructure asset. The geographic impact is localized to Tijuana, Mexico, enhancing U.S. diplomatic presence. The contract supported jobs in the construction sector, both directly and indirectly, during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality of construction and adherence to design specifications.
Potential for cost overruns or delays, common in large construction projects, though the firm-fixed-price contract aims to mitigate this.
Long-term maintenance and operational costs of the facility are not captured in this contract data.

Positive Signals

Project was completed, indicating successful execution of the design and build phases.
Firm-fixed-price contract provided cost certainty for the government.
Awarded through full and open competition, suggesting a robust bidding process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The market for such services is typically characterized by a mix of large, established construction firms and specialized design-build entities. Federal spending in this sector often supports infrastructure development for government agencies, including embassies, consulates, and other facilities abroad. Benchmarks for similar projects would typically consider square footage, complexity, and location.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the substantial value and scope of a design-build project for an international facility, it is likely that larger, established firms were the primary bidders. Subcontracting opportunities may have existed for specialized trades, potentially benefiting small businesses, but this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of State's contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which places the risk of cost overruns on the contractor. Transparency is generally facilitated through contract award databases, though detailed project progress reports and final inspection records may not be publicly available.

Related Government Programs

Department of State Facilities Construction
Overseas Building Operations
Design-Build Contracts
International Construction Projects

Risk Flags

Potential for cost overruns inherent in large construction projects.
Geopolitical or security risks associated with the location.
Logistical challenges for materials and personnel in a foreign country.
Long project duration increases exposure to market fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $76.2 million to CADDELL CONSTRUCTION CO., INC.. DESIGN / BUILD SERVICES FOR TIJUANA, MEXICO NCC.

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 $76.2 million.

What is the period of performance?

Start: 2007-09-27. End: 2012-06-30.

What was the specific scope of work for the design and build services?

The contract data indicates 'DESIGN / BUILD SERVICES FOR TIJUANA, MEXICO NCC.' NCC likely refers to a Non-Citizen Center or a similar diplomatic facility. The scope would encompass architectural and engineering design, site preparation, construction of the facility, and potentially landscaping and utility connections. The firm-fixed-price nature suggests a defined scope was agreed upon upfront to manage costs effectively. Specific details on the size, number of buildings, or specialized systems (e.g., security, IT infrastructure) would require access to the contract's statement of work.

How does the $76.2 million award compare to similar overseas construction projects by the State Department?

The $76.2 million award is a significant sum, reflecting the complexity and scale typically associated with constructing diplomatic facilities in foreign countries. The Department of State, through its Bureau of Overseas Building Operations (OBO), manages numerous such projects. Costs can vary widely based on location, security requirements, size, and local labor/material costs. For instance, embassy or consulate construction projects can range from tens of millions to hundreds of millions of dollars. Without specific project comparisons (e.g., square footage, year of award, specific country), it's challenging to definitively benchmark this contract's value, but it aligns with the upper-middle range for substantial overseas diplomatic infrastructure.

What were the key risks associated with this project, and how were they managed?

Key risks for an overseas construction project like this include geopolitical instability in the region, currency fluctuations, logistical challenges in importing materials and equipment, adherence to local building codes and regulations, potential for labor disputes, and unforeseen site conditions. The firm-fixed-price contract structure shifts much of the financial risk to the contractor. The Department of State likely mitigated risks through thorough pre-award vetting of the contractor's capabilities, robust contract oversight, security protocols, and potentially contingency planning for logistical or political issues. The long duration (nearly 5 years) also introduces risks related to material price escalation and design obsolescence, which the fixed-price nature aimed to contain.

What was the contractor's track record prior to this award?

Caddell Construction Co., Inc. is a well-established construction firm with extensive experience in large-scale projects, including significant work for government agencies both domestically and internationally. Prior to this 2007 award, Caddell had a history of completing complex projects, often under challenging conditions. Their portfolio includes military bases, federal buildings, and infrastructure projects. The Department of State's decision to award this contract through full and open competition suggests that Caddell met or exceeded the qualifications and experience requirements set forth in the solicitation, indicating a generally positive track record relevant to this type of work.

Were there any significant cost changes or contract modifications during the project's lifecycle?

The provided data indicates a 'DEFINITIVE CONTRACT' with a single award amount of $76,199,999. Definitive contracts are typically used for when the exact time and quantity of work are not known in advance but a general understanding exists. However, the 'no' field shows '1', suggesting a single award action. Without access to the contract's modification history, it's impossible to determine if there were any significant changes, change orders, or supplemental agreements that altered the original scope or price. Firm-fixed-price contracts aim to minimize changes, but modifications can occur for unforeseen circumstances, scope adjustments, or equitable adjustments.

How does the completion of this facility align with broader U.S. foreign policy or security objectives?

The construction of a facility like the Tijuana NCC likely supports U.S. foreign policy and security objectives by providing a modern, secure, and functional base for diplomatic and consular operations. Enhancing the physical infrastructure of U.S. diplomatic missions abroad demonstrates commitment to international engagement and strengthens the capacity to carry out consular services, promote U.S. interests, and maintain a secure presence. In a border city like Tijuana, such a facility could be crucial for managing cross-border issues, facilitating legitimate travel and trade, and addressing security concerns, thereby contributing to regional stability and bilateral relations.

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: SEALED BID

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $76,200,000

Exercised Options: $76,200,000

Current Obligation: $76,199,999

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline