CDM Constructors Inc. awarded $18.8M for Sindh health facility construction, a significant investment in regional infrastructure

Contract Overview

Contract Amount: $18,760,178 ($18.8M)

Contractor: CDM Constructors Inc.

Awarding Agency: Agency for International Development

Start Date: 2011-09-21

End Date: 2014-11-30

Contract Duration: 1,166 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TO AWARD A TASK ORDER TO CDM FOR THE CONSTRUCTION/REHABILITATION OF TWO HEALTH FACILITIES IN SINDH PROVINCE

Plain-Language Summary

Agency for International Development obligated $18.8 million to CDM CONSTRUCTORS INC. for work described as: TO AWARD A TASK ORDER TO CDM FOR THE CONSTRUCTION/REHABILITATION OF TWO HEALTH FACILITIES IN SINDH PROVINCE Key points: 1. The contract value represents a substantial commitment to improving healthcare infrastructure in Sindh Province. 2. Competition dynamics for this project are crucial for ensuring taxpayer value and efficient resource allocation. 3. Performance monitoring will be key to mitigating risks associated with large-scale construction and rehabilitation projects. 4. This award situates within broader U.S. foreign aid efforts aimed at enhancing public health services. 5. The firm fixed-price contract type suggests a defined scope and budget, potentially limiting cost overruns.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of rehabilitation and construction for the two health facilities. However, $18.8 million for two facilities suggests a significant investment per facility, averaging nearly $9.4 million each. This figure needs to be compared against similar international development projects for healthcare infrastructure to assess value for money. The firm fixed-price nature aims to control costs, but the actual value realized depends heavily on the quality of work and adherence to the original scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and encourage contractors to offer their best terms. The presence of multiple bidders typically leads to more favorable pricing for the government compared to sole-source or limited competition scenarios. The number of bidders (4) suggests a reasonable level of interest and competition for this type of project.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the government secures services at a competitive price and avoids paying a premium.

Public Impact

The primary beneficiaries are the residents of Sindh Province, Pakistan, who will gain access to improved healthcare facilities. The project delivers construction and rehabilitation services for two health facilities, enhancing local healthcare capacity. The geographic impact is concentrated in Sindh Province, addressing specific regional development needs. Workforce implications include job creation for local labor during the construction and rehabilitation phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in construction projects if not tightly managed.
Risks associated with executing large-scale infrastructure projects in a developing region.
Ensuring quality of construction and rehabilitation meets international standards.
Timely completion within the allocated budget and timeframe.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost certainty for the government.
Focus on essential healthcare infrastructure aligns with development goals.

Sector Analysis

This contract falls within the construction and professional services sector, specifically related to infrastructure development for public services. The market for international development construction projects is competitive, with various firms specializing in global infrastructure. Benchmarking this spending requires comparison to similar USAID or other international development agency projects focused on healthcare facility construction in similar geopolitical and economic contexts. The value of $18.8 million is significant for a single project of this nature.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-value infrastructure project, it is likely that CDM Constructors Inc. may engage subcontractors. The extent to which small businesses, particularly local ones in Pakistan, are involved in subcontracting opportunities would be a key factor in assessing the broader economic impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agency for International Development (USAID) contracting officers and program officials. Accountability measures would include performance monitoring, site inspections, and adherence to contract terms. Transparency is usually facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

USAID Health Programs
International Infrastructure Development
Pakistan Development Assistance
Global Health Security Initiatives

Risk Flags

Potential for cost overruns if scope is not strictly managed.
Risks associated with construction in a developing region.
Dependency on contractor's past performance and capacity.
Ensuring long-term sustainability and maintenance of facilities post-construction.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $18.8 million to CDM CONSTRUCTORS INC.. TO AWARD A TASK ORDER TO CDM FOR THE CONSTRUCTION/REHABILITATION OF TWO HEALTH FACILITIES IN SINDH PROVINCE

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 $18.8 million.

What is the period of performance?

Start: 2011-09-21. End: 2014-11-30.

What is the specific scope of work for the construction and rehabilitation of the two health facilities?

The provided data indicates the task order is for the 'construction/rehabilitation of two health facilities in Sindh Province.' However, the specific details regarding the scope of work, such as the size of the facilities, the extent of rehabilitation required (e.g., structural repairs, modernization of equipment, expansion), and the types of health services they are intended to support, are not detailed in the summary data. A comprehensive understanding of the project's value and risks necessitates a thorough review of the task order's statement of work, including architectural plans, technical specifications, and any associated deliverables.

How does the $18.8 million award compare to similar healthcare infrastructure projects funded by USAID or other international donors in Pakistan or similar regions?

Without access to a detailed database of comparable international development projects, a precise benchmark is difficult. However, $18.8 million for two health facilities suggests an average investment of approximately $9.4 million per facility. This figure needs to be contextualized against the scale and complexity of the facilities being built or renovated. Factors such as the cost of materials, labor rates in Sindh Province, security considerations, and the specific medical capabilities to be housed within the facilities would influence the overall cost. A comparative analysis would involve examining projects with similar objectives, geographic locations, and funding sources to determine if this award represents a fair market price and efficient use of funds.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract for CDM Constructors Inc.?

The provided summary data does not specify the KPIs or risk mitigation strategies. Typically, for construction and rehabilitation projects of this magnitude, KPIs would include adherence to schedule, budget compliance, quality of workmanship, safety standards, and successful handover of functional facilities. Risk mitigation strategies would likely address potential issues such as unforeseen site conditions, supply chain disruptions, labor disputes, political instability, and environmental concerns. These would be detailed in the contract's performance work statement and risk management plan, requiring active monitoring by the contracting agency.

What is CDM Constructors Inc.'s track record with USAID or similar international development agencies, particularly on health infrastructure projects?

Information regarding CDM Constructors Inc.'s specific track record with USAID or other international development agencies on health infrastructure projects is not included in the provided data. A thorough assessment would require reviewing their past performance evaluations, project history, and any reported issues or successes on similar contracts. This due diligence is crucial for understanding the contractor's capacity, reliability, and experience in delivering complex projects in challenging environments, which directly impacts the likelihood of successful project execution and value for taxpayer money.

What is the historical spending pattern for health facility construction and rehabilitation projects by the Agency for International Development in Pakistan?

The provided data focuses on a single task order and does not offer historical spending patterns for USAID in Pakistan related to health facility construction. To analyze historical spending, one would need to examine USAID's contract databases and budget allocations over several fiscal years. This analysis would reveal trends in investment, the average cost per project, the number of projects awarded, and the types of facilities prioritized. Understanding these patterns provides context for the current $18.8 million award, indicating whether it aligns with or deviates from historical funding levels and priorities for health infrastructure in the region.

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: FIRM FIXED PRICE (J)

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: $18,760,178

Exercised Options: $18,760,178

Current Obligation: $18,760,178

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AID391I000701088

IDV Type: IDC

Timeline