DoD awards $150M for Airmen training complex in Texas, highlighting construction sector activity

Contract Overview

Contract Amount: $150,006,762 ($150.0M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-20

End Date: 2023-04-24

Contract Duration: 1,496 days

Daily Burn Rate: $100.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROVIDE FOR A 1,248 PERSON AIRMEN TRAINING COMPLEX, DORMITORY AND A DINING/CLASSROOM FACILITY WITH SUPPORTING FACILITIES TO INCLUDE A FREE STANDING EQUIPMENT BUILDING TO HOUSE THE MECHANICAL EQUIPMENT, WEAPONS CLEANING PAVILION, RUNNING TRACK, EXERCISE PADS, PARKING LOTS, AT/FP LOW SECURITY WALL WITH INTEGRATED STREET LIGHTS AND LANDSCAPING/IRRIGATION.

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $150.0 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: PROVIDE FOR A 1,248 PERSON AIRMEN TRAINING COMPLEX, DORMITORY AND A DINING/CLASSROOM FACILITY WITH SUPPORTING FACILITIES TO INCLUDE A FREE STANDING EQUIPMENT BUILDING TO HOUSE THE MECHANICAL EQUIPMENT, WEAPONS CLEANING PAVILION, RUNNING TRACK, EXERCISE PADS, PARKING LOTS, AT/FP L… Key points: 1. Contract addresses critical infrastructure needs for airmen training. 2. Project scope includes dormitory, dining/classroom, and support facilities. 3. Construction sector benefits from significant federal investment. 4. Fixed-price contract type aims to control costs. 5. Project duration spans over four years, indicating a substantial undertaking. 6. Location in Texas suggests regional economic impact.

Value Assessment

Rating: good

The contract value of $150 million for a 1,248-person airmen training complex appears reasonable given the comprehensive scope. This includes dormitory, dining/classroom facilities, and extensive supporting infrastructure like equipment buildings, cleaning pavilions, and recreational areas. While specific cost breakdowns are not provided, the firm fixed-price nature of the contract suggests an effort to establish a clear budget. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment, but the scale and complexity indicate a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield favorable pricing and innovative solutions. The presence of two bidders, as indicated by the data, suggests a moderate level of competition for this substantial project. A higher number of bidders could potentially drive prices down further, but two is not necessarily indicative of a lack of competition for a project of this magnitude and specialization.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better value. This approach ensures that the government explores a wider range of options and selects the most cost-effective solution.

Public Impact

Benefits airmen by providing modern training and living facilities. Delivers essential infrastructure for military readiness and personnel development. Geographic impact is concentrated in Texas, supporting local construction jobs and economy. Workforce implications include employment for construction workers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Schedule delays could impact training timelines and operational readiness.
Quality control during a multi-year construction project requires diligent oversight.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition likely resulted in a competitive bid.
Project addresses a clear and stated need for improved training facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure for military, education, and government operations. The market size for large-scale federal construction projects is substantial, with numerous firms capable of undertaking such complex endeavors. This contract represents a notable investment within this sector, contributing to the overall economic activity and employment within the construction industry.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). While this contract was not directly set aside for small businesses, the prime contractor, Caddell Construction Co. (DE), LLC, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be crucial in determining the overall impact on the small business ecosystem. Further analysis of subcontracting plans would be needed to assess the direct benefits to small construction firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, with potential involvement from the Air Force for training aspects. Accountability measures are inherent in the firm fixed-price contract type, which places cost risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Defense Infrastructure
Training Facilities
Government Building Construction

Risk Flags

Potential for schedule delays impacting training readiness.
Risk of unforeseen site conditions impacting costs or schedule.
Need for robust quality assurance throughout the multi-year construction period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $150.0 million to CADDELL CONSTRUCTION CO. (DE), LLC. PROVIDE FOR A 1,248 PERSON AIRMEN TRAINING COMPLEX, DORMITORY AND A DINING/CLASSROOM FACILITY WITH SUPPORTING FACILITIES TO INCLUDE A FREE STANDING EQUIPMENT BUILDING TO HOUSE THE MECHANICAL EQUIPMENT, WEAPONS CLEANING PAVILION, RUNNING TRACK, EXERCISE PADS, PARKING LOTS, AT/FP LOW SECURITY WALL WITH INTEGRATED STREET LIGHTS AND LANDSCAPING/IRRIGATION.

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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $150.0 million.

What is the period of performance?

Start: 2019-03-20. End: 2023-04-24.

What is the track record of Caddell Construction Co. (DE), LLC on similar federal projects?

Caddell Construction Co. (DE), LLC has a significant history of performing large-scale federal construction projects, particularly for the Department of Defense and Department of State. Their portfolio includes numerous military construction projects, embassies, and other institutional facilities both domestically and internationally. Analyzing their past performance on similar firm-fixed-price contracts, especially those involving complex training facilities or dormitory construction, would provide insight into their ability to manage scope, schedule, and budget effectively. Past performance reviews and contract completion data from federal procurement databases would be essential for a thorough assessment of their reliability and expertise in executing projects of this magnitude.

How does the cost per square foot or per person compare to similar military construction projects?

To benchmark the value, a detailed cost-per-square-foot or cost-per-person analysis would be necessary. The total contract value is $150,006,762.26 for a 1,248-person complex. Without specific square footage or detailed cost breakdowns by facility type (dormitory, dining/classroom, support), a precise comparison is challenging. However, if we assume a typical dormitory occupancy and standard facility sizes, the cost per person could be estimated. For context, similar large-scale military barracks or training facilities can range significantly, often from $50,000 to over $100,000 per person, depending on location, complexity, and amenities. A thorough analysis would require access to the project's detailed cost estimates and architectural plans to compare against industry benchmarks for similar Department of Defense construction projects.

What are the primary risks associated with a multi-year construction project of this scale?

The primary risks associated with a multi-year construction project of this scale include potential cost overruns due to unforeseen site conditions, material price escalation (though mitigated by fixed-price), labor shortages, and design changes. Schedule delays are also a significant risk, which can impact the operational readiness and training schedules of the Air Force. Furthermore, ensuring consistent quality control over a prolonged construction period requires robust oversight. Environmental factors, permitting issues, and contractor performance are also key risk areas. The firm fixed-price nature of this contract shifts much of the cost risk to the contractor, but schedule and performance risks remain critical considerations for the government.

How effective are firm fixed-price contracts in managing costs for large construction projects?

Firm fixed-price (FFP) contracts are generally considered effective in managing costs for large construction projects when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor agrees to a set price for the work, assuming responsibility for any cost overruns. This provides budget certainty for the government. However, for complex, long-duration projects like this airmen training complex, there's a risk that contractors may inflate their initial bid price to account for potential uncertainties, or that scope creep, if not managed tightly, could lead to change orders that increase the total cost. Effective management and clear contract terms are crucial to realizing the cost-control benefits of FFP.

What is the historical spending trend for similar Air Force training infrastructure projects?

Historical spending on Air Force training infrastructure projects can vary significantly year over year, influenced by modernization needs, force structure changes, and budget allocations. Major construction projects like this often represent significant capital investments that may not occur annually. Analyzing past budgets for military construction (MILCON) appropriations for the Air Force would reveal trends. For example, periods of increased global security concerns or shifts in training doctrine might drive higher spending on new facilities. Conversely, budget constraints or a focus on upgrading existing infrastructure could lead to lower spending on new builds. This $150 million project represents a substantial single investment, likely part of a larger, multi-year infrastructure plan.

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: TWO STEP

Solicitation ID: W9126G18R0010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caddell Construction CO., Inc.

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $150,006,762

Exercised Options: $150,006,762

Current Obligation: $150,006,762

Subaward Activity

Number of Subawards: 105

Total Subaward Amount: $139,139,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline