DHS Coast Guard awards $37.1M wastewater treatment plant construction contract to CDM Constructors Inc

Contract Overview

Contract Amount: $37,111,021 ($37.1M)

Contractor: CDM Constructors Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-05-24

End Date: 2014-12-11

Contract Duration: 931 days

Daily Burn Rate: $39.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PETALUMA DBB CONSTRUCTION CONTRACT RECAP WASTEWATER TREATMENT PLANT REPLACEMENT IGF::OT::IGF

Place of Performance

Location: PETALUMA, SONOMA County, CALIFORNIA, 94952, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.1 million to CDM CONSTRUCTORS INC. for work described as: PETALUMA DBB CONSTRUCTION CONTRACT RECAP WASTEWATER TREATMENT PLANT REPLACEMENT IGF::OT::IGF Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 931 days indicates a significant, long-term construction project. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. Project located in California, potentially impacting local construction workforce and economy. 5. The contract is for commercial and institutional building construction, a broad category. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

The contract value of $37.1 million for a wastewater treatment plant replacement is substantial. Benchmarking this against similar projects is difficult without more specific project scope and location details. However, the firm-fixed-price nature suggests that the initial bid was considered competitive and that cost overruns are primarily the contractor's responsibility. The award to CDM Constructors Inc. requires further investigation into their past performance on similar projects to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders (indicated by 'no': 3) suggests a moderate level of competition for this project. While more than one bidder is positive, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down costs through competitive pressure.

Public Impact

The primary beneficiaries are the U.S. Coast Guard personnel and facilities at the Petaluma, California location, who will receive an upgraded wastewater treatment system. The service delivered is the construction of a replacement wastewater treatment plant, crucial for environmental compliance and operational sustainability. The geographic impact is localized to Petaluma, California, potentially creating temporary construction jobs in the region. The contract supports the construction industry and potentially specialized engineering and environmental services firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project complexities.
Risk of delays impacting the operational readiness of the Coast Guard facility.
Ensuring the quality of construction meets long-term operational and environmental standards.
Contractor's capacity and experience to manage a project of this scale and complexity.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
Firm-fixed-price contract type, which generally provides cost certainty for the government.
The project addresses a critical infrastructure need for the U.S. Coast Guard.
The contract duration is defined, allowing for project planning and oversight.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The U.S. construction market is vast, with significant government spending on infrastructure and facilities. This specific project addresses a critical need for the U.S. Coast Guard, likely aligning with broader federal investments in maintaining and upgrading essential government facilities. Comparable spending benchmarks would depend on the specific size and complexity of wastewater treatment plants.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that larger, established construction firms were the primary focus of the competition. The absence of small business considerations could limit opportunities for smaller companies to participate directly in this significant federal project, though they might be involved as subcontractors to the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office and project managers. Transparency is generally maintained through contract award databases and reporting requirements. Accountability measures would include performance reviews, adherence to contract terms, and potential penalties for non-compliance. The Inspector General's office for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Wastewater Treatment Facility Construction
Military Base Infrastructure Projects
Federal Building and Construction Contracts
Department of Homeland Security Facilities Management

Risk Flags

Potential for cost overruns due to fixed-price nature.
Risk of project delays impacting facility operations.
Ensuring long-term quality and durability of the constructed facility.
Contractor's capacity and past performance on similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.1 million to CDM CONSTRUCTORS INC.. PETALUMA DBB CONSTRUCTION CONTRACT RECAP WASTEWATER TREATMENT PLANT REPLACEMENT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CDM CONSTRUCTORS INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $37.1 million.

What is the period of performance?

Start: 2012-05-24. End: 2014-12-11.

What is the track record of CDM Constructors Inc. on similar federal construction projects, particularly wastewater treatment facilities?

A review of federal contract databases and past performance information would be necessary to assess CDM Constructors Inc.'s track record. Key indicators would include their successful completion of similar-sized wastewater treatment plant projects, adherence to schedule and budget on those projects, and any documented performance issues or disputes. Understanding their experience with firm-fixed-price contracts of this magnitude is also crucial. Without this specific data, it's difficult to definitively assess their capability and reliability for this particular contract, though their selection implies they met initial qualification criteria.

How does the awarded price of $37.1 million compare to industry benchmarks for similar wastewater treatment plant construction projects?

Benchmarking this contract's value requires detailed comparison with similar projects, considering factors like plant capacity, technological complexity, site conditions, and geographic location. The provided data does not offer sufficient detail for a precise comparison. However, the firm-fixed-price award suggests that the government believed the price was competitive at the time of bidding. Further analysis would involve consulting industry cost estimating guides, recent construction cost indices for the region, and data from similar public or private sector projects to determine if $37.1 million represents good value for money.

What are the primary risks associated with this firm-fixed-price construction contract, and how are they mitigated?

The primary risk with a firm-fixed-price contract is that the contractor may face unforeseen cost increases (e.g., material price spikes, labor shortages, unexpected site conditions) that erode their profit margin, potentially leading to quality compromises or project delays if not managed proactively. Mitigation strategies employed by the government typically include thorough pre-bid site investigations, detailed scope definition, robust contract clauses addressing change orders and unforeseen conditions, and diligent project oversight to ensure adherence to specifications and quality standards. The contractor's own risk management practices are also critical.

What is the historical spending pattern for wastewater treatment facility construction by the U.S. Coast Guard or Department of Homeland Security?

Analyzing historical spending requires access to comprehensive federal procurement data. Without specific historical data for this contract category, it's challenging to establish a pattern. However, federal agencies like the Coast Guard regularly invest in infrastructure upgrades and replacements to maintain operational readiness and comply with environmental regulations. Spending on such projects can fluctuate based on budget allocations, infrastructure condition assessments, and national priorities. A trend analysis over several fiscal years would reveal if this $37.1 million contract represents a typical investment or an outlier.

How many bids were received, and what does the level of competition indicate about the pricing and potential for contractor performance?

The data indicates that 3 bids were received for this contract. While receiving multiple bids is positive and suggests a degree of competition, 3 bidders is on the lower end for a contract of this magnitude. A higher number of bidders (e.g., 5 or more) typically intensifies competition, potentially leading to more aggressive pricing and a wider selection of qualified contractors. With only 3 bids, there's a possibility that the pricing might not have been as optimized as it could have been under more robust competition, and the government had a more limited pool from which to select the best value.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $37,111,021

Exercised Options: $37,111,021

Current Obligation: $37,111,021

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG4709D3EFK03

IDV Type: IDC

Timeline