Department of Defense awards $20.6M engineering services contract to CDM Federal Programs Corporation
Contract Overview
Contract Amount: $20,653,529 ($20.7M)
Contractor: CDM Federal Programs Corporation
Awarding Agency: Department of Defense
Start Date: 2019-12-18
End Date: 2026-09-06
Contract Duration: 2,454 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RIO PUERTO NUEVO, CONTRACT 4
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $20.7 million to CDM FEDERAL PROGRAMS CORPORATION for work described as: RIO PUERTO NUEVO, CONTRACT 4 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2454 days indicates a long-term need for these engineering services. 3. The fixed-price contract type aims to control costs for the government. 4. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 5. The geographic location of the contract performance is Florida. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.
Value Assessment
Rating: good
The contract value of $20.6 million over approximately 2454 days (about 6.7 years) suggests an average annual spend of roughly $3 million. Without specific deliverables or comparable contracts for similar engineering services in the exact same scope, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides cost certainty. Benchmarking against industry standards for engineering services would require more detailed information on the specific tasks and expertise required.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding process where multiple companies had the opportunity to compete for the work. The number of bidders is not specified, but the method of competition implies a level of market engagement that should theoretically lead to competitive pricing.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple offerors, leading to better value.
Public Impact
The primary beneficiary is the Department of the Army, which will receive engineering services to support its operations. The services delivered are categorized under engineering services, crucial for infrastructure, planning, or technical support. Contract performance is located in Florida, potentially impacting the local economy and workforce in that state. The contract may create or sustain jobs for engineers and related technical professionals in Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen complexities in engineering projects.
- Risk of contractor performance issues impacting project timelines or quality, despite fixed-price terms.
- Dependence on a single contractor for a significant duration could limit flexibility if needs change.
Positive Signals
- The use of full and open competition suggests a deliberate effort to secure the best value through market forces.
- The firm fixed-price contract type provides budget predictability for the Department of Defense.
- The long-term nature of the contract indicates a sustained and important requirement for these engineering services.
Sector Analysis
Engineering services, classified under NAICS code 541330, represent a significant sector within professional, scientific, and technical services. This sector encompasses a wide range of activities, from civil and mechanical engineering to specialized design and consulting. Federal spending in this area often supports infrastructure projects, defense installations, and research and development initiatives. The market size for engineering services is substantial, with numerous firms ranging from small specialized consultancies to large multinational corporations. This contract fits within the broader federal procurement landscape for technical and engineering support.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The primary contractor, CDM Federal Programs Corporation, will likely manage the subcontracting opportunities based on its own business strategy and the project's needs, rather than through a federal mandate for small business participation on this specific contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to complete the work within the agreed-upon budget. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction may apply if allegations of fraud, waste, or abuse arise.
Related Government Programs
- Department of Defense Engineering Services
- Army Corps of Engineers Contracts
- Professional, Scientific, and Technical Services Procurement
- Federal Infrastructure Support Contracts
Risk Flags
- Long-term contract duration may pose flexibility risks.
- Fixed-price contract shifts cost overrun risk to contractor.
- Performance quality and timeliness are key success factors.
Tags
engineering-services, department-of-defense, department-of-the-army, full-and-open-competition, firm-fixed-price, delivery-order, florida, professional-scientific-and-technical-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.7 million to CDM FEDERAL PROGRAMS CORPORATION. RIO PUERTO NUEVO, CONTRACT 4
Who is the contractor on this award?
The obligated recipient is CDM FEDERAL PROGRAMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2019-12-18. End: 2026-09-06.
What is the track record of CDM Federal Programs Corporation with the Department of Defense?
Assessing the track record of CDM Federal Programs Corporation with the Department of Defense requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations, and any reported issues or disputes. A detailed analysis would look at the types of services provided, the value and duration of past contracts, and whether they consistently met performance requirements and delivery schedules. Without specific historical data on CDM Federal Programs Corporation's performance with the DoD, it is difficult to provide a definitive assessment of their reliability and expertise for this specific $20.6 million engineering services contract.
How does the awarded price compare to similar engineering services contracts?
Benchmarking the awarded price of $20.6 million for engineering services requires comparison with contracts of similar scope, complexity, and duration awarded by the Department of Defense or other federal agencies. The average annual value of this contract is approximately $3 million ($20.6M / ~6.7 years). To assess value for money, one would need to identify comparable contracts for engineering services (NAICS 541330) and analyze their pricing structures, deliverables, and performance periods. Factors such as geographic location, specific technical requirements, and the level of competition in those comparable contracts are crucial for a fair comparison. Without access to a detailed database of comparable contracts and their specific terms, a precise value comparison is not feasible.
What are the primary risks associated with this contract?
The primary risks associated with this contract include potential cost overruns if the firm fixed-price structure does not adequately account for unforeseen engineering challenges or scope creep. There is also a risk of contractor performance issues, where CDM Federal Programs Corporation might fail to meet quality standards or delivery timelines, potentially impacting the Department of the Army's operations. Given the long duration of the contract (2454 days), there's a risk that the government's needs may evolve, and the contract's fixed terms might become less adaptable. Furthermore, reliance on a single contractor for an extended period could limit the government's flexibility in seeking alternative solutions if circumstances change.
How effective is full and open competition in ensuring value for this type of engineering service?
Full and open competition is generally considered an effective mechanism for ensuring value for engineering services by maximizing the number of potential bidders and fostering a competitive environment. This process encourages offerors to submit their most competitive proposals, both in terms of technical approach and price. By allowing all responsible sources to participate, the government increases the likelihood of identifying the contractor that offers the best overall value. While the specific number of bidders for this contract is not provided, the method of competition itself suggests a strong foundation for price discovery and selection of a qualified provider, which should translate into better value for taxpayers compared to less competitive procurement methods.
What is the historical spending trend for engineering services by the Department of the Army?
Historical spending trends for engineering services by the Department of the Army are substantial, reflecting the agency's extensive infrastructure, base operations, and defense-related projects. The Army consistently procures a wide array of engineering services, from design and construction oversight to environmental engineering and technical consulting, often through large IDIQ vehicles and individual task orders. Annual spending can fluctuate based on budget allocations, major construction initiatives, and evolving operational requirements. Analyzing past spending patterns would reveal significant investments in this sector, underscoring its importance to the Army's mission readiness and facility management. This $20.6 million contract represents one component of that broader historical expenditure.
What are the implications of the firm fixed-price contract type for this engineering award?
The firm fixed-price (FFP) contract type for this engineering award has significant implications for both the contractor and the government. For the government, FFP provides the highest degree of cost certainty, as the price is fixed and generally not subject to adjustment unless there are specific contract modifications. This shifts the risk of cost overruns to the contractor, incentivizing them to manage their costs efficiently. For CDM Federal Programs Corporation, it means they bear the financial risk if their actual costs exceed the estimated costs. This contract type is typically used when the scope of work is well-defined and the risks are understood, making it suitable for many types of engineering services where deliverables can be clearly specified.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8381 DIX ELLIS STE 400, JACKSONVILLE, FL, 32256
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,653,529
Exercised Options: $20,653,529
Current Obligation: $20,653,529
Actual Outlays: $4,285,018
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912EP19D0015
IDV Type: IDC
Timeline
Start Date: 2019-12-18
Current End Date: 2026-09-06
Potential End Date: 2026-09-06 00:00:00
Last Modified: 2025-12-02
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