USAID's $14.9M reconstruction project order for construction materials and equipment awarded to CDM Constructors Inc

Contract Overview

Contract Amount: $14,902,410 ($14.9M)

Contractor: CDM Constructors Inc.

Awarding Agency: Agency for International Development

Start Date: 2008-07-01

End Date: 2013-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THEN PURPOSE OF THIS TASK ORDER IS TO PROCURE CONSTRUCTION MATERIAL, FURNITURE AND EQUIPMENT FOR BAGH AND MANSEHRA RECONSTRUCTION PROJECT SITE. IN SUPPORT OF THE CONSTRUCTION OF SCHOLLS AND CLINICS UNDER EARTHQUAKE RECONSTRUCTION PROJECT.

Plain-Language Summary

Agency for International Development obligated $14.9 million to CDM CONSTRUCTORS INC. for work described as: THEN PURPOSE OF THIS TASK ORDER IS TO PROCURE CONSTRUCTION MATERIAL, FURNITURE AND EQUIPMENT FOR BAGH AND MANSEHRA RECONSTRUCTION PROJECT SITE. IN SUPPORT OF THE CONSTRUCTION OF SCHOLLS AND CLINICS UNDER EARTHQUAKE RECONSTRUCTION PROJECT. Key points: 1. The contract supports critical reconstruction efforts for schools and clinics in Bagh and Mansehra. 2. A long duration of 5 years suggests a substantial and ongoing need for reconstruction services. 3. The cost-plus-fixed-fee contract type may lead to cost overruns if not carefully managed. 4. The agency's direct award indicates a specific need tied to the reconstruction project. 5. This order falls under broader management consulting services, highlighting the complexity of reconstruction efforts.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without comparable reconstruction material and equipment procurements for similar disaster relief efforts. The cost-plus-fixed-fee structure introduces inherent risk for cost escalation, as the final price is not fixed upfront. While the total value is substantial, its efficiency depends heavily on the management of underlying costs and the successful completion of the reconstruction project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. The presence of 4 bidders indicates a degree of market interest and potential for competitive pricing. However, the specific nature of reconstruction materials and equipment for a disaster zone might limit the pool of qualified and willing contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

Local communities in Bagh and Mansehra will benefit from the reconstruction of essential facilities like schools and clinics. The project directly supports the rebuilding of critical infrastructure following an earthquake. Educational opportunities for children and healthcare access for residents are expected to improve. Local employment may be indirectly supported through the construction activities facilitated by these materials and equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not rigorously monitored.
The long contract duration (5 years) increases the potential for cost creep and scope changes.
Procurement of construction materials and equipment for disaster zones can be subject to supply chain disruptions and price volatility.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Supports vital reconstruction efforts for schools and clinics, addressing a critical societal need.
The contract duration aligns with the long-term nature of post-disaster reconstruction projects.

Sector Analysis

This contract falls within the broader construction and management consulting sectors, specifically related to post-disaster reconstruction. The market for such specialized services is often driven by geopolitical events, natural disasters, and international aid initiatives. Comparable spending benchmarks are difficult to establish due to the unique nature of reconstruction projects and the specific geographic locations involved.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the nature of the procurement (construction materials and equipment for reconstruction), it's possible that larger firms were primary awardees, with potential for subcontracting opportunities for smaller specialized suppliers or service providers.

Oversight & Accountability

Oversight would typically be managed by the Agency for International Development (USAID), responsible for ensuring the proper use of funds and the successful execution of the reconstruction project. Accountability measures would involve performance reviews, site inspections, and financial audits. Transparency is generally maintained through contract award databases and public reporting, though specific project details might be limited.

Related Government Programs

Earthquake Reconstruction Projects
International Development Assistance
Post-Disaster Infrastructure Rebuilding
Construction Material Procurement

Risk Flags

Cost-plus-fixed-fee contract type may lead to cost overruns.
Long contract duration increases risk exposure.
Potential for supply chain disruptions in disaster zones.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $14.9 million to CDM CONSTRUCTORS INC.. THEN PURPOSE OF THIS TASK ORDER IS TO PROCURE CONSTRUCTION MATERIAL, FURNITURE AND EQUIPMENT FOR BAGH AND MANSEHRA RECONSTRUCTION PROJECT SITE. IN SUPPORT OF THE CONSTRUCTION OF SCHOLLS AND CLINICS UNDER EARTHQUAKE RECONSTRUCTION PROJECT.

Who is the contractor on this award?

The obligated recipient is CDM CONSTRUCTORS INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2008-07-01. End: 2013-06-30.

What was the specific breakdown of construction materials, furniture, and equipment procured under this delivery order?

The provided data does not detail the specific breakdown of construction materials, furniture, and equipment. The purpose statement indicates these items are for the Bagh and Mansehra Reconstruction Project, supporting schools and clinics. A comprehensive list would typically be found in the detailed statement of work or delivery schedules associated with the contract, which are not publicly available in this summary.

How did the pricing for these materials and equipment compare to market rates at the time of award?

Assessing the pricing against market rates is challenging without specific itemized costs and current market data from 2008. The cost-plus-fixed-fee (CPFF) contract type means the final price is not fixed upfront, making direct comparison difficult. However, the agency's oversight and the competitive bidding process under full and open competition suggest an effort to secure reasonable pricing, though CPFF contracts inherently carry a risk of costs exceeding initial estimates.

What were the key performance indicators (KPIs) for CDM Constructors Inc. under this delivery order?

Specific Key Performance Indicators (KPIs) for CDM Constructors Inc. are not detailed in the provided summary. Typically, for reconstruction projects involving materials and equipment, KPIs would focus on timely delivery, quality of goods, adherence to specifications, and cost control within the fixed fee parameters. USAID would have established performance standards and monitoring mechanisms to ensure the contractor met its obligations.

What is the track record of CDM Constructors Inc. in similar reconstruction or international development projects?

Information on CDM Constructors Inc.'s specific track record for similar reconstruction or international development projects is not provided in the summary data. A thorough assessment would require reviewing their past performance on contracts with USAID or other government agencies, including client feedback, project completion success rates, and any history of disputes or performance issues. This information is usually available through federal procurement databases and past performance reviews.

How has USAID managed the risks associated with cost-plus-fixed-fee contracts in post-disaster reconstruction?

USAID typically manages the risks associated with Cost-Plus-Fixed-Fee (CPFF) contracts through robust oversight, detailed cost accounting standards, and clear performance metrics. For reconstruction projects, this includes rigorous monitoring of expenditures, regular audits, and requiring detailed justifications for all costs incurred. The fixed fee component provides some incentive for efficiency, but the agency must actively manage the 'cost' portion to prevent overruns and ensure value for money.

What was the total spending by USAID on reconstruction efforts in Bagh and Mansehra during the period of this contract (2008-2013)?

The provided data only details this specific delivery order valued at $14.9 million. It does not offer a comprehensive view of USAID's total spending on reconstruction in Bagh and Mansehra between 2008 and 2013. USAID likely funded numerous other contracts and activities related to this project, encompassing various services, materials, and personnel. To determine total spending, one would need to aggregate data from all relevant contracts awarded by USAID for this reconstruction initiative.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CDM Smith Inc. (UEI: 055990261)

Address: 1 CAMBRIDGE PL 50 HAMPSHIRE ST, CAMBRIDGE, MA, 02139

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,902,410

Exercised Options: $14,902,410

Current Obligation: $14,902,410

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AID391I000701088

IDV Type: IDC

Timeline