Department of the Army awards $70.6M contract for construction services to Caddell Construction Co., Inc

Contract Overview

Contract Amount: $70,608,222 ($70.6M)

Contractor: Caddell Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2005-07-29

End Date: 2008-12-23

Contract Duration: 1,243 days

Daily Burn Rate: $56.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $70.6 million to CADDELL CONSTRUCTION CO., INC. for work described as: Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 3. The contract duration of 1243 days suggests a significant construction project. 4. The award was made by the Department of the Army, a major component of the Department of Defense. 5. The North Carolina location of the contractor may have implications for local economic impact. 6. The absence of small business set-aside flags warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $70.6 million for commercial and institutional building construction appears substantial. Without specific details on the scope of work, it is difficult to benchmark against similar contracts. However, the firm-fixed-price structure suggests a defined cost expectation. Further analysis would require comparing the price per square foot or per unit of construction against industry standards for similar projects in the same geographic region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by encouraging contractors to offer their best prices.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will receive the constructed facilities. The services delivered include commercial and institutional building construction, likely encompassing a range of building types. The geographic impact is centered around the project location, which is not explicitly stated but likely within a Department of Defense facility. Workforce implications include job creation for construction workers, engineers, and project managers employed by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business participation goals may limit opportunities for smaller firms.
The substantial contract value could lead to significant subcontracting needs, requiring careful oversight to ensure fair distribution.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The use of full and open competition suggests a robust process for selecting the most qualified and cost-effective contractor.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, with agencies frequently awarding contracts for building new facilities, renovating existing ones, and maintaining infrastructure. This contract falls within the Commercial and Institutional Building Construction NAICS code, indicating a focus on non-residential structures. Federal spending in this area is often driven by military readiness, agency expansion, or infrastructure upgrades. Benchmarking this contract's value would involve comparing it to other large-scale construction projects awarded by the Department of Defense or other federal agencies for similar types of facilities.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. This means the competition was open to all eligible businesses, including large corporations. While this ensures broad competition, it also means that dedicated opportunities for small businesses were not explicitly prioritized in the initial award. The prime contractor, Caddell Construction Co., Inc., may still engage small businesses as subcontractors, but the extent of this subcontracting is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed project progress and spending reports may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Architectural and Engineering Services
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of contractor performance issues impacting project timeline or quality.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.6 million to CADDELL CONSTRUCTION CO., INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CADDELL CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $70.6 million.

What is the period of performance?

Start: 2005-07-29. End: 2008-12-23.

What is the specific scope of work for this construction contract?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' under NAICS code 236220. However, the specific scope of work, such as the type of building (e.g., barracks, office building, training facility), its size, location, and required features, is not detailed. This information is crucial for a comprehensive understanding of the project's complexity and for accurate value benchmarking. Without these specifics, it's challenging to assess if the $70.6 million award represents good value for the services rendered.

How does the $70.6 million contract value compare to similar construction projects awarded by the Department of the Army?

Benchmarking the $70.6 million contract value requires comparing it to similar construction projects undertaken by the Department of the Army. Factors such as project type (e.g., new construction vs. renovation), size (square footage), complexity, and geographic location significantly influence costs. For instance, a large-scale, complex new facility in a high-cost labor market would naturally be more expensive than a smaller renovation project in a lower-cost area. A detailed comparison would involve analyzing the cost per square foot, the number of bids received for comparable projects, and the final awarded prices relative to initial estimates.

What is Caddell Construction Co., Inc.'s track record with federal construction contracts?

Caddell Construction Co., Inc. has a history of securing and performing federal construction contracts. While this specific award is for $70.6 million, their portfolio likely includes projects of varying sizes and complexities for different government agencies. Assessing their track record would involve reviewing past performance evaluations, any instances of contract disputes or terminations, and their success rate in winning competitive bids. A strong history of successful project completion and adherence to budget and schedule would indicate a lower performance risk for this current contract.

What are the potential risks associated with a firm-fixed-price contract of this magnitude?

Firm-fixed-price (FFP) contracts, while offering cost certainty to the government, place the financial risk on the contractor. For a contract valued at $70.6 million, potential risks include the contractor underestimating costs, encountering unforeseen site conditions, or facing material price escalations. If these risks materialize, the contractor might seek change orders, potentially increasing the overall cost, or face financial distress, jeopardizing project completion. Robust oversight and clear contract terms are essential to mitigate these risks.

How has federal spending on commercial and institutional building construction evolved over recent years?

Federal spending on commercial and institutional building construction has historically fluctuated based on defense needs, infrastructure initiatives, and agency budget allocations. Following periods of significant military engagement, there is often increased spending on facilities. Similarly, broader government infrastructure programs can drive up demand. Analyzing historical spending trends for NAICS 236220, particularly within the Department of Defense, would provide context for the current $70.6 million award, indicating whether it represents an increase, decrease, or stable level of investment in this sector.

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

Address: 2700 LAGOON PARK DR, MONTGOMERY, AL, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,464

Exercised Options: $32,464

Current Obligation: $70,608,222

Contract Characteristics

Cost or Pricing Data: NO

Timeline