DoD's $82.3M wastewater treatment plant contract at JBLM awarded to CDM Constructors Inc

Contract Overview

Contract Amount: $82,348,844 ($82.3M)

Contractor: CDM Constructors Inc.

Awarding Agency: Department of Defense

Start Date: 2014-01-16

End Date: 2018-01-18

Contract Duration: 1,463 days

Daily Burn Rate: $56.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN-BUILD OF A `CLASS A WASTE WATER TREATMENT PLANT (WWTP) WITH NUTRIENT REMOVAL, TO INCLUDE REDUNDANT PROCESS EQUIPMENT WHILE APPLYING AN ACTIVATED SLUDGE SYSTEM EMPLOYING NUTRIENT REMOVAL WITH TERTIARY MEMBRANE FILTRATION, SUPPORTING A PROJECTED TOTAL POPULATION OF 100,000 PEOPLE AT JOINT BASE LEWIS-MCCHORD, WA.

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $82.3 million to CDM CONSTRUCTORS INC. for work described as: IGF::OT::IGF DESIGN-BUILD OF A `CLASS A WASTE WATER TREATMENT PLANT (WWTP) WITH NUTRIENT REMOVAL, TO INCLUDE REDUNDANT PROCESS EQUIPMENT WHILE APPLYING AN ACTIVATED SLUDGE SYSTEM EMPLOYING NUTRIENT REMOVAL WITH TERTIARY MEMBRANE FILTRATION, SUPPORTING A PROJECTED TOTAL POPULATIO… Key points: 1. The contract aimed to construct a state-of-the-art wastewater treatment plant with advanced nutrient removal capabilities. 2. The project included redundant process equipment and an activated sludge system with tertiary membrane filtration. 3. The facility is designed to support a projected population of 100,000 people at Joint Base Lewis-McChord. 4. The contract was awarded using full and open competition, indicating a broad market solicitation. 5. The firm-fixed-price contract type suggests a defined scope and cost control measures. 6. The duration of the contract was approximately 4 years, from January 2014 to January 2018.

Value Assessment

Rating: fair

Benchmarking the value of this specific wastewater treatment plant construction contract is challenging without detailed cost breakdowns and comparable project data. However, the scale of the project, supporting 100,000 people, suggests a significant investment. The firm-fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if the final price reflects efficient execution. Further analysis would require comparing the per-unit cost of treatment capacity or construction cost per capita against similar large-scale municipal or military infrastructure projects.

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 bids. The solicitation process likely involved a detailed request for proposals (RFP) and a thorough evaluation of technical and cost factors. The presence of 12 bidders (no) indicates a competitive market for this type of large-scale construction project, which generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition suggests that taxpayers benefited from a robust bidding process, likely resulting in a more competitive price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the residents and personnel of Joint Base Lewis-McChord, ensuring access to modern and compliant wastewater treatment services. The contract delivered essential infrastructure for environmental protection and public health by constructing a new wastewater treatment plant. The geographic impact is localized to Joint Base Lewis-McChord in Washington State. The project likely involved a significant construction workforce, contributing to local employment and economic activity during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for unforeseen site conditions or material price fluctuations.
Ensuring the long-term operational efficiency and maintenance costs of the advanced treatment systems are within budget.
The complexity of integrating new infrastructure with existing base utilities could present logistical challenges.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor.
Full and open competition with 12 bidders suggests a competitive pricing environment.
The project addresses a critical need for upgraded wastewater treatment infrastructure at a major military installation.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering and infrastructure development. The market for large-scale wastewater treatment plant construction is characterized by specialized engineering firms and construction companies capable of handling complex projects. The Department of Defense is a significant investor in infrastructure, and projects like this are crucial for maintaining operational readiness and environmental compliance at military installations. Comparable spending benchmarks would involve looking at other large municipal or federal wastewater treatment facility construction projects, considering factors like capacity, technology employed, and geographic location.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside objective (sb: false). While CDM Constructors Inc. may have utilized small businesses as subcontractors, the primary award was not specifically targeted towards small businesses. The impact on the small business ecosystem would depend on the subcontracting opportunities generated, which are not detailed in the provided data. Without specific subcontracting plans or reports, it's difficult to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting and technical offices within the Department of the Army at Joint Base Lewis-McChord. As a firm-fixed-price contract, oversight would focus on ensuring compliance with the contract scope, schedule, and quality standards. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arose during the contract's performance.

Related Government Programs

Military Construction (MILCON)
Environmental Infrastructure Projects
Wastewater Treatment Facility Construction
Department of Defense Facilities Management

Risk Flags

Potential for cost escalation if not managed tightly under fixed-price.
Ensuring long-term operational and maintenance costs are sustainable.
Complexity of advanced treatment systems requires specialized expertise.
Environmental compliance during construction and operation is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.3 million to CDM CONSTRUCTORS INC.. IGF::OT::IGF DESIGN-BUILD OF A `CLASS A WASTE WATER TREATMENT PLANT (WWTP) WITH NUTRIENT REMOVAL, TO INCLUDE REDUNDANT PROCESS EQUIPMENT WHILE APPLYING AN ACTIVATED SLUDGE SYSTEM EMPLOYING NUTRIENT REMOVAL WITH TERTIARY MEMBRANE FILTRATION, SUPPORTING A PROJECTED TOTAL POPULATION OF 100,000 PEOPLE AT JOINT BASE LEWIS-MCCHORD, WA.

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 Army).

What is the total obligated amount?

The obligated amount is $82.3 million.

What is the period of performance?

Start: 2014-01-16. End: 2018-01-18.

What was the contractor's track record with similar large-scale DoD infrastructure projects prior to this award?

Assessing CDM Constructors Inc.'s track record would involve reviewing their past performance on similar projects, particularly those involving wastewater treatment facilities or large civil engineering endeavors for the Department of Defense or other federal agencies. A review of their contract history, including any past performance evaluations, awards, or disputes, would provide insight into their capabilities and reliability. Without specific data on CDM Constructors Inc.'s prior projects, it's difficult to definitively state their experience level. However, winning a competitive bid for a project of this magnitude suggests they possessed the necessary qualifications and demonstrated capability to execute the work.

How does the final cost of this project compare to the initial estimated cost, and were there any significant change orders?

The provided data shows the awarded amount ($82,348,844.28) as the final contract value. As this was a firm-fixed-price contract, the expectation is that the awarded amount represents the total cost, barring any unforeseen circumstances that would necessitate contract modifications. Significant change orders are less common and typically more scrutinized under fixed-price contracts compared to cost-reimbursement types. To determine if there were significant change orders or if the final cost deviated from initial estimates, a deeper dive into the contract's modification history and any associated documentation would be required. The absence of reported overruns in the summary data suggests the project may have been completed within the awarded budget.

What were the key performance indicators (KPIs) used to evaluate the success of the wastewater treatment plant construction?

Key performance indicators for a project of this nature would typically include adherence to the construction schedule, meeting all specified technical and quality standards for the wastewater treatment plant, and ensuring the facility operates within design parameters upon completion. Specific KPIs might involve the plant's efficiency in nutrient removal, its capacity to handle the projected population load, compliance with environmental discharge regulations, and the successful integration of redundant systems. The final acceptance of the facility by the government would signify that these KPIs were met. Documentation related to project close-out, testing, and commissioning would detail the achievement of these performance metrics.

Were there any environmental compliance issues or challenges encountered during the construction phase?

The construction of a wastewater treatment plant inherently involves strict environmental regulations and compliance measures. While the provided data does not explicitly detail any environmental compliance issues, it is standard practice for such projects to undergo rigorous environmental reviews and monitoring throughout the construction process. This would include managing construction site runoff, controlling dust and noise pollution, and ensuring proper disposal of any hazardous materials encountered. Any significant environmental challenges or non-compliance incidents would typically be documented in project reports, environmental impact assessments, or potentially through IG investigations if they were severe enough to warrant such scrutiny.

How does the cost per capita supported by this facility compare to national averages for similar infrastructure projects?

To compare the cost per capita, we first need to determine the cost per person supported. The total contract value is approximately $82.35 million, and the facility supports 100,000 people. This yields a cost of roughly $823.50 per person supported. National averages for constructing wastewater treatment plants can vary widely based on location, technology, and regulatory requirements. However, costs can range from several hundred to over a thousand dollars per capita for advanced treatment facilities. Without more specific data on comparable projects (e.g., technology level, specific nutrient removal requirements), a precise comparison is difficult. Generally, advanced treatment systems like those specified (nutrient removal, membrane filtration) tend to be more expensive per capita than basic treatment systems.

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: W912DW13R0001

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CDM Smith Inc.

Address: 14432 SE EASTGATE WAY STE 100, BELLEVUE, WA, 98007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $82,348,844

Exercised Options: $82,348,844

Current Obligation: $82,348,844

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline