Naval Facilities Engineering Command awarded $153M for construction services, with 3 bids received

Contract Overview

Contract Amount: $48,970,085 ($49.0M)

Contractor: CDM Smith Inc.

Awarding Agency: Department of Defense

Start Date: 2006-02-27

End Date: 2009-06-02

Contract Duration: 1,191 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200605!319341!1700!N62473!NAVFAC SOUTHWEST !N6871104D5110 !A!N! !N!0007 ! !20060227!20080303!153112284!153112284!153112284!N!CDM CONSTRUCTORS INC !1925 PALOMAR OAKS WAY STE !CARLSBAD !CA!92008!10561!073!06!CAMP PENDLETON SOUTH!SAN DIEGO !CALIFORNIA!+000021200000!N!N!000000000000!Y111!OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !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! ! !1700!M00681!0001! !

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $49.0 million to CDM SMITH INC. for work described as: 200605!319341!1700!N62473!NAVFAC SOUTHWEST !N6871104D5110 !A!N! !N!0007 ! !20060227!20080303!153112284!153112284!153112284!N!CDM CONSTRUCTORS INC !1925 PALOMAR OAKS WAY STE !CARLSBAD !CA!92008!10561!073!06!CAMP PENDLETON SOUTH!SAN … Key points: 1. Contract value of $153.1 million for construction services represents a significant investment in infrastructure. 2. The competition involved 3 bidders, suggesting a moderate level of market interest for this type of service. 3. A firm-fixed-price contract indicates that the contractor bears the risk of cost overruns. 4. The contract duration of approximately 3 years (1191 days) suggests a substantial project scope. 5. The primary service area is Camp Pendleton South, San Diego, California, indicating a focus on military base infrastructure. 6. The North American Industry Classification System (NAICS) code 237990 points to 'Other Heavy and Civil Engineering Construction'.

Value Assessment

Rating: good

The total contract value of $153.1 million is substantial. Benchmarking this against similar large-scale construction projects for military bases would provide further context on value for money. The firm-fixed-price nature of the award suggests a clear understanding of project scope and cost expectations between the government and the contractor. Without specific per-unit cost data or detailed scope breakdowns, a precise value-for-money assessment is challenging, but the competitive bidding process implies a reasonable price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This indicates that multiple contractors had the opportunity to bid, and the agency actively sought a broad range of potential suppliers. The presence of three bidders suggests a healthy, though not exceptionally crowded, competitive environment for this specific construction project. This level of competition generally supports price discovery and encourages competitive pricing.

Taxpayer Impact: For taxpayers, full and open competition with multiple bidders typically leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

The primary beneficiary is the Department of the Navy, receiving construction services for its facilities. The services delivered include construction, likely related to office buildings and other infrastructure at Camp Pendleton South. The geographic impact is concentrated in San Diego, California, specifically at Camp Pendleton South. The contract supports the construction workforce, creating jobs and economic activity in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, though mitigated by firm-fixed-price.
Ensuring timely completion within the 3-year duration is critical for operational readiness at the base.
Quality control and adherence to specifications are paramount for long-term infrastructure integrity.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Award to CDM Constructors Inc. indicates a potentially established relationship or proven capability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically NAICS code 237990. This sector is crucial for developing and maintaining large-scale infrastructure, including military installations. The market for such services is characterized by large, specialized firms capable of undertaking complex projects. Spending in this sector is often driven by government needs for base modernization, expansion, and maintenance, making it a significant area of federal expenditure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). The prime contractor, CDM Constructors Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business ecosystem. Further investigation into subcontracting goals would be necessary to assess the full impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy and the Naval Facilities Engineering Command (NAVFAC). Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services within budget. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Construction
Naval Facilities Modernization
Heavy Civil Engineering Projects
Department of Defense Infrastructure
Camp Pendleton Development

Risk Flags

Contract Duration
Project Scope Complexity
Quality Assurance Requirements
Safety Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.0 million to CDM SMITH INC.. 200605!319341!1700!N62473!NAVFAC SOUTHWEST !N6871104D5110 !A!N! !N!0007 ! !20060227!20080303!153112284!153112284!153112284!N!CDM CONSTRUCTORS INC !1925 PALOMAR OAKS WAY STE !CARLSBAD !CA!92008!10561!073!06!CAMP PENDLETON SOUTH!SAN DIEGO !CALIFORNIA!+000021200000!N!N!000000000000!Y111!OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !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 $49.0 million.

What is the period of performance?

Start: 2006-02-27. End: 2009-06-02.

What is the historical spending pattern for construction services at Camp Pendleton South by the Department of the Navy?

Analyzing historical spending data for construction services at Camp Pendleton South by the Department of the Navy would reveal trends in contract values, types of services procured, and the frequency of awards. This contract, valued at $153.1 million over approximately three years, represents a significant single investment. Understanding if this is a typical expenditure level or an outlier requires examining past contracts for similar projects (e.g., new building construction, renovations, infrastructure upgrades) awarded to various contractors over the last decade or more. Such analysis could highlight periods of increased investment or shifts in procurement strategies, providing context for the current contract's scale and importance.

How does the per-unit cost of this contract compare to similar construction projects for office buildings on military bases?

A detailed per-unit cost comparison for this contract is not feasible with the provided data, as specific unit costs (e.g., cost per square foot, cost per cubic yard of concrete) are not itemized. To perform such a comparison, one would need access to the detailed bid proposals and the contract's line-item breakdown. Benchmarking against similar projects would involve identifying comparable office building construction contracts awarded by the Navy or other DoD branches at similar bases, considering factors like building size, complexity, materials, and prevailing labor rates. Without this granular data, assessing the value for money on a per-unit basis remains qualitative, relying on the competitive nature of the award.

What is CDM Constructors Inc.'s track record with large-scale federal construction contracts, particularly with the Department of the Navy?

CDM Constructors Inc. has a history of securing and executing large-scale federal construction contracts. Their involvement with the Department of the Navy on projects like this one at Camp Pendleton suggests a demonstrated capability to meet the requirements of military infrastructure development. A thorough review of their past performance, including contract history, past performance evaluations (if publicly available), and any record of disputes or contract terminations, would provide a comprehensive understanding of their reliability and expertise. Examining their portfolio of completed projects, especially those of similar scope and value, is crucial for assessing their suitability and past success in delivering complex construction services for government clients.

What are the key performance indicators (KPIs) used to measure the success of this construction contract?

Key performance indicators (KPIs) for this construction contract would likely focus on adherence to schedule, budget, quality standards, and safety regulations. Specific metrics could include on-time completion of project milestones, adherence to the firm-fixed-price budget without exceeding it, compliance with architectural and engineering specifications, and the number of safety incidents reported during construction. Post-completion, KPIs might also involve the building's operational efficiency and durability. The Department of the Navy would establish these KPIs in the contract's performance work statement, and regular progress reviews would track the contractor's performance against them.

What is the potential impact of this contract on the local construction labor market in the San Diego area?

This $153.1 million construction contract is expected to have a positive impact on the local construction labor market in the San Diego area. Projects of this magnitude typically require a significant workforce, including skilled tradespeople (electricians, plumbers, carpenters, heavy equipment operators), project managers, engineers, and support staff. The duration of the contract (approx. 3 years) suggests sustained employment opportunities. This influx of work can lead to increased demand for labor, potentially boosting wages and creating jobs, benefiting both the direct construction workforce and related industries such as material suppliers and equipment rental companies.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1925 PALOMAR OAKS WAY STE, CARLSBAD, CA, 49

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6871104D5110

IDV Type: IDC

Timeline