DoD's $376M Construction Contract Awarded to Caddell Construction Under Full and Open Competition
Contract Overview
Contract Amount: $37,619,322 ($37.6M)
Contractor: Caddell Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2004-04-15
End Date: 2009-07-29
Contract Duration: 1,931 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: FORT KNOX, HARDIN County, KENTUCKY, 40121
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $37.6 million to CADDELL CONSTRUCTION CO., INC. for work described as: Key points: 1. Significant investment in building construction for the Department of the Army. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration (1931 days) may indicate complex or phased projects. 4. The contract was awarded by the Department of Defense, a major federal spender.
Value Assessment
Rating: fair
The award amount of $376,193,220 is substantial for a construction contract. Benchmarking requires detailed project scope, but the number of bids (2) is on the lower side for full and open competition, potentially impacting price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows all responsible sources to submit bids. However, only two bids were received, which is a relatively low number for this type of competition and may suggest limitations in market reach or contractor interest.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. The low number of bids warrants scrutiny to ensure competitive pricing was achieved.
Public Impact
Supports military infrastructure development and readiness. Potential for job creation in the construction sector within Kentucky. Long-term project may involve multiple phases and significant resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Low number of bids received for a full and open competition.
- Long contract duration could lead to cost overruns if not managed effectively.
Positive Signals
- Awarded under full and open competition, promoting fairness.
- Contract supports critical Department of the Army infrastructure needs.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Federal spending in this area is substantial, driven by infrastructure needs across various agencies. Benchmarks vary widely based on project type, location, and complexity.
Small Business Impact
The data indicates that Caddell Construction Co., Inc. received the award. There is no specific information provided regarding small business participation or subcontracting goals within this contract award notice.
Oversight & Accountability
The Department of Defense, as a large agency, typically has robust oversight mechanisms for major construction contracts. However, the effectiveness of this oversight for this specific contract would depend on detailed project management and reporting.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Low number of bids received (2) for full and open competition.
- Long contract duration (1931 days) increases risk of cost escalation and schedule delays.
- Potential for limited price competition due to few bidders.
- Lack of information on small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, ky, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.6 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 $37.6 million.
What is the period of performance?
Start: 2004-04-15. End: 2009-07-29.
What was the estimated cost or baseline for this project, and how did the received bids compare?
The provided data does not include the estimated cost or baseline for the project, nor does it detail the value of the two bids received. To assess value, a comparison of the awarded price ($376,193,220) against the government's estimate and the competitor's bid is necessary. Understanding the bid spread would reveal the degree of price competition.
Given the long duration and limited bids, what are the primary risks to cost and schedule?
The primary risks include potential cost escalation due to inflation over the 1931-day period, unforeseen site conditions, and scope creep. With only two bidders, there's also a risk of contractor performance issues or delays, as there are fewer alternatives if the primary contractor falters. Effective project management and contingency planning are crucial.
How does the awarded price compare to similar large-scale military construction projects in the region or of similar scope?
Without specific details on the project's scope (e.g., type of buildings, square footage, specific military requirements) and the prevailing market rates in Kentucky during 2004-2009, a direct comparison is difficult. However, $376 million represents a significant investment, and benchmarking against similar DoD construction projects would be essential for a thorough value assessment.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2700 LAGOON PARK DRIVE, MONTGOMERY, AL, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $37,607,152
Exercised Options: $37,607,152
Current Obligation: $37,619,322
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-15
Current End Date: 2009-07-29
Potential End Date: 2009-07-29 00:00:00
Last Modified: 2009-07-22
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