State Department's $135.7M Embassy Construction Contract Awarded to Caddell Construction

Contract Overview

Contract Amount: $135,735,432 ($135.7M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of State

Start Date: 2013-09-30

End Date: 2015-06-30

Contract Duration: 638 days

Daily Burn Rate: $212.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF NEW U.S. EMBASSY IN NOUACHOTT, MAURITANIA IGF::OT::IGF

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36109

State: Alabama Government Spending

Plain-Language Summary

Department of State obligated $135.7 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: CONSTRUCTION OF NEW U.S. EMBASSY IN NOUACHOTT, MAURITANIA IGF::OT::IGF Key points: 1. Contract value represents a significant investment in diplomatic infrastructure. 2. Awarded via full and open competition, suggesting a robust market for such services. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Project duration of 638 days indicates a substantial construction undertaking. 5. Geographic location in Mauritania presents unique logistical and operational challenges. 6. Contractor has a history of large-scale government construction projects.

Value Assessment

Rating: good

The contract value of $135.7 million for the construction of a new U.S. Embassy in Nouakchott, Mauritania, appears to be within a reasonable range for a project of this scale and complexity. While direct comparisons are difficult without specific project details and market conditions at the time of award, large-scale diplomatic facility construction projects often involve significant costs due to security requirements, specialized materials, and international logistics. The firm fixed-price nature of the contract suggests an effort to establish a clear cost ceiling, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. With three bidders submitting proposals, the competition level appears moderate. This suggests that the government likely received competitive pricing, although a higher number of bidders could have potentially driven prices down further. The process aimed to ensure a fair selection based on technical capabilities and price.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government secures the best possible price for the construction services, avoiding inflated costs that might arise from a less competitive environment.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel, who will gain a modern, secure, and functional embassy facility. The project delivers critical diplomatic infrastructure necessary for maintaining U.S. foreign relations and operations in Mauritania. The geographic impact is concentrated in Nouakchott, Mauritania, contributing to local economic activity through construction jobs and material sourcing. Workforce implications include employment opportunities for construction workers, engineers, project managers, and support staff, both locally and potentially internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or logistical challenges arise in Mauritania.
Risk of project delays due to the complexities of international construction and security protocols.
Dependence on a single contractor for a critical infrastructure project requires close monitoring.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
Awarded through full and open competition, suggesting a competitive selection process.
Contractor (Caddell Construction) has experience with large-scale government and embassy construction projects.

Sector Analysis

The construction sector for government facilities, particularly embassies, is a specialized niche within the broader construction industry. These projects demand adherence to stringent security, architectural, and sustainability standards set by agencies like the State Department. The market involves a limited number of highly qualified firms capable of undertaking such complex international projects. Benchmarking involves comparing costs against similar embassy constructions or high-security government buildings, considering factors like location, size, and specific security features.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The nature of large-scale embassy construction typically involves prime contractors with significant resources and capabilities, often leading to prime contracts being awarded to larger firms. Subcontracting opportunities may exist, but their extent and focus on small businesses would require further investigation into the contractor's specific subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Department of State's Bureau of Overseas Buildings Operations (OBO), which is responsible for managing the design, construction, and maintenance of U.S. diplomatic facilities worldwide. The Inspector General of the Department of State would also have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is generally maintained through contract award notices and reporting requirements, though specific project details might be limited due to security concerns.

Related Government Programs

U.S. Embassy Construction Projects
Department of State Facilities Management
Overseas Buildings Operations (OBO)
International Construction Contracts

Risk Flags

Geopolitical Risk in Mauritania
Logistical Challenges in Overseas Construction
Security Requirements for Diplomatic Facilities
Potential for Unforeseen Site Conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $135.7 million to CADDELL CONSTRUCTION CO. (DE), LLC. CONSTRUCTION OF NEW U.S. EMBASSY IN NOUACHOTT, MAURITANIA IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CADDELL CONSTRUCTION CO. (DE), LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $135.7 million.

What is the period of performance?

Start: 2013-09-30. End: 2015-06-30.

What is Caddell Construction Co.'s track record with similar U.S. Department of State construction projects?

Caddell Construction Co. (DE), LLC has a significant track record of constructing facilities for the U.S. government, including numerous projects for the Department of State and the U.S. Army Corps of Engineers. They have been involved in building embassies, consulates, and other secure government facilities both domestically and internationally. Their experience often includes projects with high security requirements and complex logistical challenges, similar to the Nouakchott embassy construction. Reviewing their past performance on similar projects, including any reported issues or successes, provides context for their capability to execute this contract effectively and within budget.

How does the awarded amount of $135.7 million compare to the average cost of constructing U.S. embassies of similar size and complexity?

Determining an exact average cost for U.S. embassy construction is challenging due to variations in size, security features, location, and specific program requirements. However, projects of this nature, especially those in challenging overseas locations, can range from tens of millions to well over a hundred million dollars. The $135.7 million figure for the Nouakchott embassy appears to be within the upper range for such projects, reflecting the complexities of building a secure diplomatic facility in an international setting. Factors like site preparation, specialized security infrastructure, and adherence to strict architectural standards contribute significantly to the overall cost.

What are the primary risks associated with constructing a U.S. Embassy in Nouakchott, Mauritania, and how were they mitigated in the contract?

Key risks for this project include geopolitical instability in the region, logistical challenges of transporting materials and personnel to Mauritania, potential security threats, and unforeseen site conditions. The contract's firm fixed-price structure aims to mitigate financial risks by capping the government's expenditure. The State Department's Overseas Buildings Operations (OBO) likely implemented rigorous security protocols and project management oversight to address security and logistical concerns. Furthermore, the selection of Caddell Construction, a company with demonstrated experience in similar environments, suggests a mitigation strategy based on contractor capability and past performance.

What was the estimated cost or budget for this project prior to the contract award, and how does the final award compare?

The provided data does not include the pre-award estimated cost or budget for the construction of the U.S. Embassy in Nouakchott. However, the contract was awarded at $135,735,432. In a full and open competition with three bidders, the final award amount is typically a result of the bidding process where contractors submit their proposals based on their assessment of project requirements and costs. Without the government's initial estimate, it's difficult to definitively state if the award was significantly over or under budget, but the competitive nature suggests the price reflects market conditions and contractor assessments.

What is the historical spending trend for U.S. Embassy construction projects managed by the Department of State over the last five years?

Historical spending on U.S. Embassy construction projects managed by the Department of State has generally been substantial, reflecting ongoing needs for modernizing and securing diplomatic facilities worldwide. While specific annual figures fluctuate based on the number and scale of projects initiated, the overall trend indicates consistent, significant investment. The Bureau of Overseas Buildings Operations (OBO) budget typically allocates hundreds of millions of dollars annually towards new construction, major renovations, and security upgrades. This Nouakchott project, valued at over $135 million, aligns with the scale of major capital investments seen in recent years for critical diplomatic infrastructure.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caddell Construction CO., Inc. (UEI: 102087285)

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

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $135,735,432

Exercised Options: $135,735,432

Current Obligation: $135,735,432

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline