NNSA's Albuquerque Complex construction contract awarded to Caddell Construction for over $145M, completed in 2022

Contract Overview

Contract Amount: $145,262,470 ($145.3M)

Contractor: Caddell Construction CO. (DE), LLC

Awarding Agency: Department of Defense

Start Date: 2018-04-24

End Date: 2022-03-20

Contract Duration: 1,426 days

Daily Burn Rate: $101.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: W912PP18C0004 NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) ALBUQUERQUE COMPLEX, ALBUQUERQUE, BERNALILLO COUNTY, NEW MEXICO

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $145.3 million to CADDELL CONSTRUCTION CO. (DE), LLC for work described as: W912PP18C0004 NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) ALBUQUERQUE COMPLEX, ALBUQUERQUE, BERNALILLO COUNTY, NEW MEXICO Key points: 1. Contract value of $145.26M for construction services at the NNSA Albuquerque Complex. 2. Awarded via full and open competition, indicating a broad market solicitation. 3. The contract was a definitive contract with a firm fixed price, suggesting cost certainty. 4. Performance period spanned nearly four years, from April 2018 to March 2022. 5. The contractor, Caddell Construction Co. (DE), LLC, has experience in large-scale construction projects. 6. The project falls under the Commercial and Institutional Building Construction NAICS code. 7. No indication of small business set-aside or subcontracting goals. 8. The contract was awarded by the Department of the Army for the NNSA.

Value Assessment

Rating: good

The contract value of $145.26M for the NNSA Albuquerque Complex construction appears to be within a reasonable range for a project of this scale and complexity, given the firm fixed-price nature which typically includes contractor risk. Benchmarking against similar large-scale institutional or government facility construction projects would provide a more precise value-for-money assessment. The duration of nearly four years suggests a substantial undertaking, and the final cost should be evaluated against initial estimates and any change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement strategy, meaning that all responsible sources were permitted to submit a bid. The presence of 4 bidders (as indicated by 'no': 4) suggests a competitive environment, which generally leads to better price discovery and potentially more favorable terms for the government. The level of competition is a positive indicator for achieving value for taxpayer dollars.

Taxpayer Impact: A full and open competition ensures that the government explores the widest possible range of contractors, driving down prices through market forces and maximizing the use of taxpayer funds.

Public Impact

The primary beneficiaries are the National Nuclear Security Administration (NNSA) and its personnel at the Albuquerque Complex, who will utilize the constructed facilities. The services delivered include the construction of commercial and institutional buildings, likely supporting NNSA's mission-critical operations. The geographic impact is concentrated in Albuquerque, Bernalillo County, New Mexico. Workforce implications include employment opportunities for construction workers and related trades during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurred, despite firm fixed price.
Dependence on a single contractor for a critical infrastructure project.
Risk of delays impacting NNSA's operational timelines.
Quality control and assurance during a multi-year construction project.
Potential for unforeseen site conditions impacting cost and schedule.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process.
Contract awarded to an experienced construction firm.
Project completion within the specified timeframe (though end date is past).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The market for government construction projects is substantial, with agencies like the Department of Defense and its sub-agencies (like NNSA) being major clients. Spending in this sector is often driven by infrastructure upgrades, new facility development, and modernization efforts. Comparable spending benchmarks would involve analyzing other large federal construction contracts for similar types of facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Caddell Construction Co. (DE), LLC, is likely a large business. There is no explicit information regarding subcontracting plans or performance related to small businesses within this specific contract award. Future analysis could explore whether the prime contractor has a history of subcontracting with small businesses on similar projects.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army, overseeing the NNSA's interests. Accountability measures are inherent in the firm fixed-price contract type, which places cost risk on the contractor. Transparency is generally provided through contract award databases, though detailed project progress and specific oversight activities may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NNSA Facility Construction
Department of Energy Construction Projects
Department of Defense Infrastructure Modernization
Federal Building and Facility Construction
Large-Scale Construction Contracts

Risk Flags

Potential for cost overruns if contractor mismanaged risks.
Risk of quality compromises due to fixed-price nature.
Schedule delays impacting NNSA operations.
Contractor performance issues on large-scale projects.
Unforeseen site conditions impacting budget and timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $145.3 million to CADDELL CONSTRUCTION CO. (DE), LLC. W912PP18C0004 NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) ALBUQUERQUE COMPLEX, ALBUQUERQUE, BERNALILLO COUNTY, NEW MEXICO

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 $145.3 million.

What is the period of performance?

Start: 2018-04-24. End: 2022-03-20.

What was the initial estimated cost of the project, and how did the final award amount compare?

The provided data shows a final award amount of $145,262,470.34. However, the initial estimated cost is not directly available in this dataset. To assess value for money, a comparison between the initial estimate and the final award is crucial. Significant deviations could indicate issues with initial planning, scope changes, or unforeseen circumstances. Further investigation into the contract's history, including pre-award solicitations and amendments, would be necessary to retrieve the estimated cost and analyze any variances.

What specific types of buildings or facilities were constructed under this contract?

The NAICS code 236220, 'Commercial and Institutional Building Construction,' suggests the construction of a variety of non-residential buildings. For the NNSA Albuquerque Complex, this could include administrative buildings, laboratories, research facilities, security infrastructure, or support buildings. The exact nature of the facilities would be detailed in the contract's Statement of Work (SOW). Given the NNSA's mission, these facilities likely support nuclear security, research, and development activities, requiring specialized construction standards and security features.

Were there any significant change orders or contract modifications that impacted the final cost or schedule?

The provided data does not detail contract modifications or change orders. A definitive contract with a firm fixed price aims to minimize cost fluctuations. However, large, multi-year projects often experience modifications due to evolving requirements, unforeseen conditions, or design adjustments. Analyzing the contract's modification history, if publicly available, would reveal if such changes occurred and their impact on the final $145.26M award. Significant modifications could alter the initial assessment of value for money and contractor performance.

What is Caddell Construction Co. (DE), LLC's track record with similar federal construction projects?

Caddell Construction Co. (DE), LLC is a large, established construction firm with a significant portfolio of federal projects, including work for the Department of Defense and other government agencies. Their experience often includes large-scale, complex facilities, potentially similar to those required by the NNSA. A review of their past performance on contracts of comparable size, scope, and complexity would provide insight into their capabilities, reliability, and history of meeting cost and schedule targets. Past performance evaluations and contract award data can offer a more detailed picture.

How does the contract duration of 1426 days compare to industry standards for similar projects?

A duration of 1426 days (approximately 3.9 years) for a $145M construction project is not unusual, especially for complex government facilities that may involve specialized requirements, security protocols, and stringent quality control. Industry standards vary widely based on project type, size, location, and complexity. For large institutional or industrial construction, multi-year timelines are common. The key is whether this duration was efficient and aligned with the project's scope and any potential delays or accelerations experienced.

What are the potential risks associated with the firm fixed-price contract type for this project?

While a firm fixed-price (FFP) contract offers cost certainty to the government, it places significant cost risk on the contractor. For a project of this magnitude and duration, risks for the contractor could include underestimating costs, encountering unforeseen site conditions, material price escalations, or labor shortages, all of which could lead to financial losses if not managed effectively. For the government, the primary risk with FFP is that the contractor may cut corners on quality to protect profit margins if cost pressures become too high, necessitating robust oversight and quality assurance measures.

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: W912PP18R0001

Offers Received: 4

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: $146,850,395

Exercised Options: $145,285,395

Current Obligation: $145,262,470

Actual Outlays: $20,653,163

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $16,052,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline