Naval Facilities Engineering Command awarded $15.3M construction contract for Camp Pendleton, with CDM Constructors Inc. as the prime

Contract Overview

Contract Amount: $9,971,079 ($10.0M)

Contractor: CDM Smith Inc.

Awarding Agency: Department of Defense

Start Date: 2004-09-29

End Date: 2008-02-24

Contract Duration: 1,243 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200412!005643!1700!C8711 !NAVAL FACILITIES ENGINEERING COM!N6871104D5110 !A!N! !N!0002 ! !20040929!20060502!153112284!153112284!153112284!N!CDM CONSTRUCTORS INC !1925 PALOMAR OAKS WAY !CARLSBAD !CA!92008!10550!073!06!CAMP PENDLETON !SAN DIEGO !CALIFORNIA!+000003484000!N!N!000000000000!Y111!OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !237110!E! !5!B!S! ! ! !99990909!B! ! !A! !A!N!J!2!003!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to CDM SMITH INC. for work described as: 200412!005643!1700!C8711 !NAVAL FACILITIES ENGINEERING COM!N6871104D5110 !A!N! !N!0002 ! !20040929!20060502!153112284!153112284!153112284!N!CDM CONSTRUCTORS INC !1925 PALOMAR OAKS WAY !CARLSBAD !CA!92008!10550!073!06!CAMP PENDLETON !SAN … Key points: 1. Contract awarded for construction services at Camp Pendleton, indicating a need for facility upgrades or new builds. 2. The contract was awarded to CDM Constructors Inc., a private entity. 3. The contract duration was 1243 days, suggesting a significant construction project. 4. The award amount of $15.3 million represents a substantial investment in military infrastructure. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction, excluding buildings. 6. The contract was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

The total award amount for this contract was $15,311,228.40. Without specific benchmarks for similar construction projects at military installations or detailed cost breakdowns, it is difficult to definitively assess value for money. However, the duration of the contract (1243 days) suggests a substantial project, and the fixed-price nature of the contract provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The data shows 3 bids were received. A competitive process generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to bid, fostering a more competitive environment that can drive down prices and improve the quality of services.

Public Impact

The primary beneficiaries of this contract are the United States Navy and the personnel stationed at Camp Pendleton, who will benefit from improved or new facilities. The services delivered include construction, likely related to heavy and civil engineering projects as indicated by the NAICS code. The geographic impact is localized to Camp Pendleton, a Marine Corps Base in San Diego County, California. The contract has implications for the construction workforce, potentially creating jobs for skilled laborers, engineers, and project managers in the San Diego area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive construction period.
Dependence on a single prime contractor (CDM Constructors Inc.) for project completion.
Risk of delays due to weather, supply chain issues, or site-specific challenges at a large military installation.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Fixed-price contract type offers cost predictability.
The contract was awarded to a specific entity, implying a selection based on qualifications and proposed value.

Sector Analysis

This contract falls within the Construction sector, specifically heavy and civil engineering construction (NAICS 237990). This sector is critical for developing and maintaining infrastructure, including military bases. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by the Department of Defense or other federal agencies for similar types of projects at military installations.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is not explicitly detailed. However, the prime contractor may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC), which is responsible for planning, designing, constructing, maintaining, and operating facilities for the Navy and Marine Corps. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS, though detailed project oversight reports are not always publicly available.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Management
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for cost overruns due to long project duration.
Contractor performance risk.
Dependency on specific site conditions at Camp Pendleton.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to CDM SMITH INC.. 200412!005643!1700!C8711 !NAVAL FACILITIES ENGINEERING COM!N6871104D5110 !A!N! !N!0002 ! !20040929!20060502!153112284!153112284!153112284!N!CDM CONSTRUCTORS INC !1925 PALOMAR OAKS WAY !CARLSBAD !CA!92008!10550!073!06!CAMP PENDLETON !SAN DIEGO !CALIFORNIA!+000003484000!N!N!000000000000!Y111!OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !237110!E! !5!B!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is CDM SMITH INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2004-09-29. End: 2008-02-24.

What was the specific nature of the construction project at Camp Pendleton?

The contract data indicates the NAICS code as 237990, which covers 'Other Heavy and Civil Engineering Construction.' This typically includes projects such as highways, streets, bridges, tunnels, water and sewer systems, and other infrastructure projects, but specifically excludes the construction of buildings. Therefore, the project likely involved significant civil engineering work at Camp Pendleton, such as utility upgrades, road construction, site preparation, or other non-building related infrastructure development, rather than the erection of new structures.

How does the $15.3 million award compare to similar construction projects for military bases?

Comparing the $15.3 million award requires context regarding the scope and complexity of the specific project. Large-scale civil engineering projects at military installations can vary significantly in cost. For instance, major utility upgrades, new airfield construction, or extensive road networks can easily run into tens or hundreds of millions of dollars. Without knowing the exact deliverables of this particular contract, a direct comparison is challenging. However, $15.3 million is a substantial sum, suggesting a significant undertaking that is likely in line with major infrastructure improvements at a large base like Camp Pendleton.

What are the potential risks associated with a fixed-price contract for a multi-year construction project?

Fixed-price contracts, while offering cost certainty to the buyer, can pose risks to the contractor if costs escalate beyond projections. For a multi-year construction project like this one (1243 days), risks include unforeseen site conditions (e.g., soil issues, environmental hazards), material price volatility, labor shortages, or design changes. If the contractor underestimates these factors, they may incur losses. Conversely, the government benefits from a capped price, but could face risks if the contractor cuts corners on quality to maintain profitability, necessitating robust oversight.

What was the track record of CDM Constructors Inc. prior to this award?

Information regarding CDM Constructors Inc.'s specific track record prior to this award is not detailed in the provided data snippet. However, the fact that they were awarded a significant federal contract suggests they met the necessary qualifications, experience, and financial stability requirements set forth by the Naval Facilities Engineering Command during the full and open competition process. Further research into their past performance on similar government contracts would be needed for a comprehensive assessment.

How does the number of bids (3) impact the perceived value for money?

Receiving 3 bids in a full and open competition is generally considered a moderate level of competition. While more bids can sometimes lead to more competitive pricing, 3 bidders often indicate sufficient market interest to drive a reasonable price. The key factor is whether these 3 bidders were capable and competitive. If the bids were closely priced, it suggests the market had a good understanding of the project's value. If there was a significant spread, it might warrant closer examination of the winning bid's assumptions and the reasons for the higher bids from competitors.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Contractor Details

Address: 1925 PALOMAR OAKS WAY STE, CARLSBAD, CA, 92008

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6871104D5110

IDV Type: IDC

Timeline