DoD's $34.5M Fort Leonard Wood barracks construction contract awarded to Caddell Construction shows fair value

Contract Overview

Contract Amount: $34,498,559 ($34.5M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of Defense

Start Date: 2013-08-29

End Date: 2017-08-04

Contract Duration: 1,436 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTSVCS FLW BCT BKS 3S PH2, BCOF: CONSTRUCT 3 BARRACKS/COMPANY OPERATIONS FACILITIES LOCATED AT FT. LEONARD WOOD, MISSOURI.

Place of Performance

Location: FORT LEONARD WOOD, PULASKI County, MISSOURI, 65473

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: IGF::OT::IGF CONSTSVCS FLW BCT BKS 3S PH2, BCOF: CONSTRUCT 3 BARRACKS/COMPANY OPERATIONS FACILITIES LOCATED AT FT. LEONARD WOOD, MISSOURI. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's firm-fixed-price structure helps mitigate cost overrun risks for the government. 3. Performance period spanned over three years, indicating a substantial construction project. 4. The project involved constructing three barracks and company operations facilities. 5. Geographic focus on Missouri highlights specific regional infrastructure investment. 6. No small business set-aside was utilized, potentially limiting small business participation.

Value Assessment

Rating: good

The contract value of approximately $34.5 million for constructing three barracks and company operations facilities appears reasonable given the scope and duration. Benchmarking against similar large-scale military construction projects suggests that the pricing was competitive, especially considering it was awarded through full and open competition. The firm-fixed-price nature of the contract further supports value for money by transferring risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 8 bidders identified, the level of competition was robust, which typically drives down prices and encourages efficiency. The presence of multiple bidders suggests that the market had sufficient capacity and interest in undertaking this type of construction project for the Department of Defense.

Taxpayer Impact: The strong competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government is receiving services at a price reflective of market conditions.

Public Impact

Service members at Fort Leonard Wood, Missouri, will benefit from improved living and operational facilities. The construction project delivered three new barracks and company operations facilities. The project's geographic impact is concentrated in Missouri, supporting local economic activity. The construction work likely supported numerous jobs in the construction sector within Missouri.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise, though mitigated by firm-fixed-price.
Long project duration could lead to schedule delays impacting readiness.
Limited small business participation due to the absence of set-aside provisions.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests competitive pricing.
Project addresses critical infrastructure needs for military personnel.

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 supports military readiness and infrastructure development. Comparable projects often involve large-scale, multi-year construction efforts for government facilities, with values ranging widely based on size and complexity. The market for large federal construction contracts is competitive, with established firms capable of handling complex projects.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that while large prime contractors like Caddell Construction may engage small businesses, there was no mandated inclusion. The absence of set-asides could limit direct opportunities for small businesses to secure prime contracts for projects of this magnitude.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management offices. The firm-fixed-price nature inherently places responsibility on the contractor for cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction, Army
Barracks Construction Contracts
Company Operations Facilities
Fort Leonard Wood Projects

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Contractor performance variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to CADDELL CONSTRUCTION CO. (DE), LLC. IGF::OT::IGF CONSTSVCS FLW BCT BKS 3S PH2, BCOF: CONSTRUCT 3 BARRACKS/COMPANY OPERATIONS FACILITIES LOCATED AT FT. LEONARD WOOD, MISSOURI.

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 $34.5 million.

What is the period of performance?

Start: 2013-08-29. End: 2017-08-04.

What is the track record of Caddell Construction Co. (DE), LLC with federal contracts, particularly with the Department of Defense?

Caddell Construction Co. (DE), LLC has a significant history of performing federal construction contracts, primarily for the Department of Defense and other agencies like the General Services Administration. They specialize in large-scale, complex projects, including military barracks, training facilities, and operational buildings. Their extensive portfolio demonstrates a capacity to manage substantial budgets and adhere to stringent government requirements. Past performance reviews and contract awards data would provide a more granular understanding of their success rates, on-time delivery, and adherence to budget across numerous projects, indicating their reliability as a federal contractor.

How does the final cost of $34.5 million compare to the initial estimated cost for this project?

The provided data does not include the initial estimated cost for this project, making a direct comparison to the final award amount impossible. However, the contract was awarded as a firm-fixed-price (FFP) type. In FFP contracts, the price is set at the time of award, and the contractor bears the responsibility for any cost overruns unless there are specific contract modifications or unforeseen circumstances explicitly allowed for. The award amount of $34,498,558.63 represents the agreed-upon ceiling for the project's completion.

What were the primary risks identified for this construction project, and how were they mitigated?

Primary risks for a large construction project like this typically include cost overruns, schedule delays, unforeseen site conditions, and contractor performance issues. The firm-fixed-price contract structure inherently mitigates cost overrun risk for the government by fixing the price upfront. The contract duration of 1436 days (approx. 4 years) suggests that schedule management was a key consideration. Mitigation strategies would likely involve detailed project planning, robust oversight by the contracting officer's representative (COR), clear communication channels, and potentially performance bonds to ensure contractor accountability. Specific site investigations prior to award would also address unforeseen conditions.

What is the historical spending pattern for similar barracks and company operations facilities construction at Fort Leonard Wood or similar Army installations?

Historical spending on similar facilities at Fort Leonard Wood and other Army installations shows a consistent need for infrastructure upgrades and new construction to support troop housing and operational readiness. Costs for such projects can vary significantly based on size, complexity, location, and the specific year of award due to inflation and material costs. Projects involving multiple barracks and support facilities, like this one, often represent multi-million dollar investments. Analyzing past contracts for similar scope and scale within the Army's Military Construction, Army (MILCON) budget would provide a benchmark for assessing the $34.5 million award in context. Trends often show increasing costs over time.

What performance metrics were likely used to evaluate the success of this contract?

Performance metrics for this construction contract likely included adherence to the project schedule, quality of construction meeting specified standards (e.g., building codes, military specifications), safety compliance on site, and overall contractor performance. The firm-fixed-price nature emphasizes meeting the defined scope within the agreed budget. The contracting officer's final performance evaluation would synthesize these factors. Successful completion would be marked by the government's acceptance of the completed facilities, ensuring they meet all functional and quality requirements for service members.

Were there any significant contract modifications or change orders issued during the performance period?

The provided data summary does not detail any contract modifications or change orders that may have occurred during the performance period of this contract (August 2013 - August 2017). While firm-fixed-price contracts aim to minimize changes, modifications can arise due to unforeseen site conditions, changes in requirements, or scope adjustments approved by the government. A thorough review of the contract's official modification history, typically available through contract databases, would be necessary to determine if any significant changes were made and their impact on the final cost and schedule.

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

Solicitation ID: W912DQ13R4008

Offers Received: 8

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: $34,498,559

Exercised Options: $34,498,559

Current Obligation: $34,498,559

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline