Interior's $357.6MPojoaque Basin Water System Contract Awarded to CDM Constructors Inc
Contract Overview
Contract Amount: $357,614,790 ($357.6M)
Contractor: CDM Constructors Inc
Awarding Agency: Department of the Interior
Start Date: 2017-02-21
End Date: 2027-02-28
Contract Duration: 3,659 days
Daily Burn Rate: $97.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: POJOAQUE BASIN REGIONAL WATER SYSTEM IGF::OT::IGF
Place of Performance
Location: SANTA FE, SANTA FE County, NEW MEXICO, 87506
Plain-Language Summary
Department of the Interior obligated $357.6 million to CDM CONSTRUCTORS INC for work described as: POJOAQUE BASIN REGIONAL WATER SYSTEM IGF::OT::IGF Key points: 1. Significant investment in critical water infrastructure for New Mexico. 2. CDM Constructors Inc. secured a large definitive contract. 3. Full and open competition was utilized, suggesting potential for competitive pricing. 4. The contract spans a decade, indicating a long-term project with ongoing resource allocation.
Value Assessment
Rating: good
The contract value of $357.6 million over 10 years appears substantial for a water system construction project. Benchmarking against similar large-scale infrastructure projects would be necessary for a precise assessment, but the firm-fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to more favorable pricing for the government. The process aimed to identify the most capable and cost-effective contractor.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for a critical public infrastructure project.
Public Impact
Ensures access to clean and reliable water for the Pojoaque Basin region. Supports economic development and public health through improved water infrastructure. Creates jobs in construction and related industries in New Mexico.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) may present risks related to scope creep or changing technological needs.
- Potential for cost overruns if unforeseen geological or environmental challenges arise during construction.
- Reliance on a single contractor for an extended period could limit flexibility.
Positive Signals
- Addresses a critical need for water system upgrades in a specific region.
- Firm-fixed-price contract provides budget predictability.
- Full and open competition suggests a robust procurement process.
Sector Analysis
This contract falls under the construction sector, specifically water and sewer line construction. Large infrastructure projects like this are common for federal agencies managing public resources, with significant capital investments typical for ensuring system longevity and capacity.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract (ss: false, sb: false). Further analysis would be needed to determine if small businesses are participating as subcontractors to CDM Constructors Inc.
Oversight & Accountability
The Bureau of Reclamation, under the Department of the Interior, is responsible for overseeing this project. Standard oversight mechanisms for large construction contracts, including progress monitoring and quality control, are expected to be in place.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Long contract duration
- Potential for unforeseen site conditions
- Reliance on a single prime contractor
- Inflationary risk over a decade
Tags
water-and-sewer-line-and-related-structu, department-of-the-interior, nm, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $357.6 million to CDM CONSTRUCTORS INC. POJOAQUE BASIN REGIONAL WATER SYSTEM 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 the Interior (Bureau of Reclamation).
What is the total obligated amount?
The obligated amount is $357.6 million.
What is the period of performance?
Start: 2017-02-21. End: 2027-02-28.
What is the projected impact of this water system upgrade on the Pojoaque Basin's long-term water security and resilience?
The Pojoaque Basin Regional Water System project is designed to significantly enhance water security and resilience by upgrading aging infrastructure, improving water quality, and increasing system capacity. This investment is crucial for meeting the current and future demands of the region's growing population and agricultural needs, thereby safeguarding a vital resource against potential shortages and environmental challenges.
What are the primary risks associated with the 10-year duration of this firm-fixed-price contract, and how are they being mitigated?
The primary risks of a 10-year firm-fixed-price contract include potential for unforeseen cost increases due to inflation or material price volatility, scope creep if project requirements evolve, and contractor performance degradation over time. Mitigation strategies likely involve robust contract clauses for change orders, performance incentives, regular progress reviews, and contingency planning for potential delays or unforeseen site conditions.
How does the cost of this project compare to similar large-scale water infrastructure projects undertaken by other federal agencies or state governments?
Benchmarking this $357.6 million, 10-year project against similar large-scale water infrastructure initiatives requires detailed cost-per-mile or cost-per-gallon-capacity analysis. While the firm-fixed-price nature offers predictability, the overall value depends on specific project complexities, regional labor costs, and material expenses. A comprehensive comparison would involve analyzing data from projects of comparable scope and technical requirements.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: R16PS00829
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6000 UPTOWN BLVD NE STE 200, ALBUQUERQUE, NM, 87110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $357,614,790
Exercised Options: $357,614,790
Current Obligation: $357,614,790
Actual Outlays: $226,218,908
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-02-21
Current End Date: 2027-02-28
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-04-03
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