DoD awards $31.6M warehouse construction contract to Caddell Construction in Alabama

Contract Overview

Contract Amount: $31,628,590 ($31.6M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of Defense

Start Date: 2025-04-29

End Date: 2027-09-27

Contract Duration: 881 days

Daily Burn Rate: $35.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AMC WAREHOUSE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: CONSTRUCTION OF AMC WAREHOUSE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type aims to control costs for the government. 3. Project duration of 881 days indicates a significant construction undertaking. 4. The contract is for commercial and institutional building construction. 5. Geographic focus on Alabama may stimulate local economic activity. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

Benchmarking construction costs for large-scale facilities like warehouses is complex and depends heavily on specific requirements, location, and market conditions. Without detailed project specifications and comparable recent contract data for similar military warehouses in Alabama, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost certainty to the government, which is a positive indicator. The number of bids received (3) is on the lower side for a full and open competition, which could suggest potential for higher pricing than if more bidders had participated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Three bids were received. While competition is generally beneficial for price discovery, three bidders might indicate a less robust competitive landscape than ideal for a contract of this magnitude. This could potentially lead to a higher price than if a larger pool of bidders had vied for the contract.

Taxpayer Impact: The use of full and open competition is a positive step for taxpayers, ensuring that multiple companies had the opportunity to bid. However, the limited number of bids received warrants attention to ensure the government secured the best possible price.

Public Impact

The Department of Defense will benefit from the new warehouse facility, enhancing logistical capabilities. The construction services will be delivered in Alabama. The project is expected to create temporary employment opportunities for construction workers in the region. Local suppliers and subcontractors may also benefit from the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) in a full and open competition could indicate potential for suboptimal price discovery.
Firm fixed-price contracts can sometimes lead to higher initial bids to account for contractor risk.
The specific needs and complexity of the warehouse are not detailed, making direct cost comparisons difficult.

Positive Signals

Awarded through full and open competition, maximizing potential bidder pool.
Firm fixed-price contract provides cost certainty and limits government exposure to cost overruns.
Contract duration is clearly defined, allowing for project planning and oversight.

Sector Analysis

The construction sector is a significant component of federal spending, encompassing a wide range of projects from infrastructure to facility development. Military construction, in particular, often involves large-scale, specialized facilities. This contract for an AMC warehouse falls within the broader category of commercial and institutional building construction. Comparable spending benchmarks for similar military logistics facilities would typically be assessed based on square footage, specific storage requirements (e.g., climate control, security), and regional labor costs.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting goals explicitly mentioned in the provided data. This means that larger prime contractors were eligible to bid and potentially win the entire contract. The implications for the small business ecosystem are that opportunities for direct prime contracting were limited, and any involvement by small businesses would likely be through subcontracting, the extent of which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with specific contracting officers and project managers responsible for monitoring progress, quality, and adherence to the contract terms. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. The firm fixed-price nature of the contract itself serves as an accountability measure by capping the government's financial liability.

Related Government Programs

Military Construction
Department of Defense Facilities
Warehouse and Storage Facilities
General Building Construction

Risk Flags

Limited number of bids received for a full and open competition.
Potential for cost escalation if unforeseen site conditions are encountered (though mitigated by FFP).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to CADDELL CONSTRUCTION CO. (DE), LLC. CONSTRUCTION OF AMC WAREHOUSE

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 $31.6 million.

What is the period of performance?

Start: 2025-04-29. End: 2027-09-27.

What is Caddell Construction Co.'s track record with the Department of Defense?

Caddell Construction Co. (DE), LLC has a significant history of working with the Department of Defense and other federal agencies on large-scale construction projects. Their portfolio often includes military installations, aviation facilities, and other critical infrastructure. A review of federal contract databases would reveal the number and value of previous contracts awarded to Caddell by the DoD, as well as their performance ratings on those contracts. This historical data is crucial for assessing their capability and reliability for the current warehouse construction project. Without specific performance data for this contractor on similar DoD projects, it's difficult to provide a definitive assessment beyond their general experience.

How does the awarded price compare to similar warehouse construction projects?

A precise comparison of the $31.6 million award for this AMC warehouse to similar projects is challenging without detailed project specifications and location-specific cost data. Factors such as square footage, specialized climate control, security features, site preparation requirements, and local labor/material costs significantly influence construction expenses. Generally, large-scale government construction projects are benchmarked against industry standards and historical data for comparable facilities. The fact that this is a firm fixed-price contract awarded under full and open competition suggests an effort to achieve competitive pricing, but the limited number of bids (3) could temper expectations for the lowest possible price. Further analysis would require access to detailed project scope and comparable contract awards.

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential cost overruns if unforeseen site conditions arise (though mitigated by firm fixed-price), delays due to weather or supply chain disruptions, labor shortages impacting the project timeline, and quality control issues. For the government, a key risk is ensuring the facility meets all operational requirements and security standards. For the contractor, risks involve managing project scope, adhering to the fixed price, and meeting the demanding schedule. The limited number of bidders could also represent a risk if it leads to less competitive pricing than anticipated. Effective risk mitigation will depend on robust project management, clear communication, and diligent oversight from the Department of the Army.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs in construction projects where the scope of work is well-defined and risks are understood. It shifts the primary cost risk to the contractor, who is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This provides significant cost certainty for the government. However, contractors may build in higher contingency amounts into their FFP bids to account for potential risks, which could result in a higher initial price compared to cost-reimbursement contracts. For this $31.6 million warehouse construction, the FFP structure incentivizes Caddell Construction to control their own costs efficiently to maximize profit, thereby benefiting the government by preventing unexpected cost increases.

What is the historical spending trend for similar warehouse construction by the Department of the Army?

Historical spending trends for similar warehouse construction by the Department of the Army indicate a consistent need for logistical infrastructure to support military operations. Spending in this category can fluctuate based on strategic priorities, modernization efforts, and infrastructure replacement cycles. Analyzing past awards for warehouses of comparable size and function in similar geographic regions would provide context. Factors such as the average cost per square foot, the number of bids received on similar projects, and the typical contract durations would offer insights into current spending patterns and whether this $31.6 million award aligns with historical norms. Significant deviations might warrant further investigation into project-specific requirements or market conditions.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9127818R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caddell Construction CO., Inc.

Address: 445 DEXTER AVE, MONTGOMERY, AL, 36104

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: $31,656,090

Exercised Options: $31,628,590

Current Obligation: $31,628,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127824D0071

IDV Type: IDC

Timeline