State Department Awards $96M Industrial Building Construction Contract to Caddell Construction in Sarajevo
Contract Overview
Contract Amount: $96,071,312 ($96.1M)
Contractor: Caddell Construction CO., Inc.
Awarding Agency: Department of State
Start Date: 2007-09-25
End Date: 2010-05-01
Contract Duration: 949 days
Daily Burn Rate: $101.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NEC, SARAJEVO BOSNIA
Plain-Language Summary
Department of State obligated $96.1 million to CADDELL CONSTRUCTION CO., INC. for work described as: NEC, SARAJEVO BOSNIA Key points: 1. Contract awarded for industrial building construction in Sarajevo, Bosnia. 2. Caddell Construction Co., Inc. secured the $96M contract. 3. The contract was awarded under full and open competition. 4. Project duration is 949 days, starting September 25, 2007.
Value Assessment
Rating: fair
The contract value of $96M for industrial building construction appears within a reasonable range for a project of this scale and complexity, especially considering the location. Benchmarking against similar international construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best value.
Public Impact
Supports infrastructure development in post-conflict regions. Creates jobs and economic activity in Sarajevo. Enhances diplomatic and operational capabilities for the Department of State.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to international project complexities.
- Geopolitical risks in the operating region.
- Long project duration increases exposure to market fluctuations.
Positive Signals
- Awarded through full and open competition.
- Clear contract type (Firm Fixed Price) limits cost uncertainty.
- Experienced contractor likely involved.
Sector Analysis
Industrial building construction is a significant sector within the broader construction industry. Spending benchmarks for such projects vary widely based on location, scale, and specific requirements. This contract represents a substantial investment in infrastructure.
Small Business Impact
The data indicates this contract was awarded to Caddell Construction Co., Inc. and does not specify any subcontracting to small businesses. Further investigation would be needed to determine if small business participation was a requirement or opportunity.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Oversight would focus on project milestones, quality of work, adherence to budget, and timely completion to ensure accountability and taxpayer value.
Related Government Programs
- Industrial Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost overruns in international projects.
- Geopolitical risks in the operating environment.
- Long project duration.
- Lack of explicit small business participation noted.
Tags
industrial-building-construction, department-of-state, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $96.1 million to CADDELL CONSTRUCTION CO., INC.. NEC, SARAJEVO BOSNIA
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 $96.1 million.
What is the period of performance?
Start: 2007-09-25. End: 2010-05-01.
What specific industrial capabilities does this building support for the Department of State in Sarajevo?
The provided data does not specify the exact industrial capabilities the building is intended to support. However, given the context of diplomatic missions and potential post-conflict reconstruction, it could range from logistical support facilities, secure storage, maintenance workshops, or specialized operational infrastructure. Further details from the contract statement of work would clarify its purpose.
What are the primary risks associated with constructing industrial facilities in Sarajevo, Bosnia, and how were they mitigated?
Risks in Sarajevo could include political instability, logistical challenges in a developing region, potential corruption, and varying labor standards. Mitigation strategies likely involved thorough due diligence on the contractor, robust security protocols, clear contractual terms, and active project management by the State Department to monitor progress and address issues promptly.
How does the firm fixed price contract structure ensure value for money in this international construction project?
A firm fixed price (FFP) contract establishes a set price for the work, transferring most of the risk to the contractor. This structure provides cost certainty for the government, as the final price is not expected to change unless there are significant, unforeseen scope changes. It incentivizes the contractor to manage costs efficiently to maintain their profit margin.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial 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: 3
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $96,071,312
Exercised Options: $96,071,312
Current Obligation: $96,071,312
Timeline
Start Date: 2007-09-25
Current End Date: 2010-05-01
Potential End Date: 2010-05-01 00:00:00
Last Modified: 2015-06-11
More Contracts from Caddell Construction CO., Inc.
- Design/Build of NEW Embassy Compound for Santo Domingo, Dominican Republic — $150.9M (Department of State)
- THE Construction of the NEW NEC in the Hague Igf::ct::igf — $134.2M (Department of State)
- Djibouti NEC Project — $125.4M (Department of State)
- 3RD Army Headquarters Building — $106.1M (Department of Defense)
- Award of NEC Desgin/Build Contract for NEW Emabssy in Bujumbura, Burundi — $103.3M (Department of State)
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)