DoD's $26.8M Water System Contract Awarded to CDM Constructors Inc. Faces Scrutiny
Contract Overview
Contract Amount: $26,781,155 ($26.8M)
Contractor: CDM Constructors Inc
Awarding Agency: Department of Defense
Start Date: 2016-04-11
End Date: 2019-10-10
Contract Duration: 1,277 days
Daily Burn Rate: $21.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF WATER DISTRIBUTION SYSTEM
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70143
Plain-Language Summary
Department of Defense obligated $26.8 million to CDM CONSTRUCTORS INC for work described as: IGF::OT::IGF WATER DISTRIBUTION SYSTEM Key points: 1. The contract awarded to CDM Constructors Inc. for water distribution systems is a significant expenditure. 2. Competition details are available, but the specific impact on pricing needs further analysis. 3. Potential risks include project delays or cost overruns, common in large construction projects. 4. The sector is construction, specifically water and sewer infrastructure, vital for military bases.
Value Assessment
Rating: fair
The contract's value of $26.8 million is substantial for water and sewer line construction. Benchmarking against similar projects is necessary to determine if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the final price and its discovery mechanism require deeper investigation to ensure optimal value for taxpayers.
Taxpayer Impact: The $26.8 million expenditure on this water distribution system represents a significant investment. Ensuring competitive pricing through robust oversight is crucial for maximizing taxpayer value.
Public Impact
Essential infrastructure upgrade for a military installation. Potential for job creation in the construction sector. Impact on local water quality and supply reliability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration and potential for scope creep.
- Reliance on a single contractor for a critical utility system.
- Weather and environmental factors impacting construction timelines.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type can limit cost overruns.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on water and sewer infrastructure. Spending in this area is often driven by infrastructure modernization needs and regulatory compliance.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's duration and value warrant close oversight to ensure adherence to timelines, budget, and quality standards. Accountability mechanisms should be in place to address any deviations or performance issues.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Significant contract value requires diligent oversight.
- Long contract duration (over 3 years) increases risk of cost escalation or scope creep.
- Construction projects are inherently susceptible to delays and unforeseen issues.
- Lack of detail on small business participation.
Tags
water-and-sewer-line-and-related-structu, department-of-defense, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to CDM CONSTRUCTORS INC. IGF::OT::IGF WATER DISTRIBUTION SYSTEM
Who is the contractor on this award?
The obligated recipient is CDM CONSTRUCTORS 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 $26.8 million.
What is the period of performance?
Start: 2016-04-11. End: 2019-10-10.
What was the competitive landscape like for this specific water and sewer construction project, and how did it influence the final contract price?
The contract was awarded under 'full and open competition,' suggesting multiple bidders participated. However, the specific number of bids received and the pricing strategies employed by the bidders are not detailed. Understanding these factors is key to assessing if the competitive process effectively drove down costs and ensured the best value for the government.
What are the primary risks associated with the construction of a water distribution system of this magnitude, and what mitigation strategies are in place?
Key risks include unforeseen site conditions (e.g., soil instability, existing utilities), weather delays, material cost fluctuations, and potential labor shortages. Mitigation strategies typically involve thorough site investigations, contingency planning in the schedule and budget, robust contract management, and clear communication channels with the contractor.
How effectively does this $26.8 million investment in water infrastructure contribute to the operational readiness and long-term sustainability of the Department of Defense facility?
A modern and reliable water distribution system is fundamental to base operations, supporting personnel, training, and mission requirements. This investment likely enhances water quality, reduces maintenance costs, and improves system resilience against failures, thereby contributing significantly to operational readiness and long-term sustainability.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N6945015R1605
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CDM Smith Inc.
Address: 2301 MAITLAND CENTER PKWY STE 300, MAITLAND, FL, 32751
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,781,155
Exercised Options: $26,781,155
Current Obligation: $26,781,155
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-04-11
Current End Date: 2019-10-10
Potential End Date: 2019-10-10 00:00:00
Last Modified: 2023-08-11
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