DoD Awards $32.8M Firm Fixed Price Contract for Israeli Air Force Construction Project
Contract Overview
Contract Amount: $32,850,117 ($32.9M)
Contractor: CDM Constructors Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-12
End Date: 2027-09-08
Contract Duration: 635 days
Daily Burn Rate: $51.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THE PROJECT INVOLVES THE DESIGN-BID-BUILD (DBB) OF A CONSTRUCTION PROJECT (KNOWN AS PROJECT 20117) IN ISRAEL FOR THE MOD AND ISRAEL AIR FORCE (IAF) FOR USE BY THE IAF.
Plain-Language Summary
Department of Defense obligated $32.9 million to CDM CONSTRUCTORS INC. for work described as: THE PROJECT INVOLVES THE DESIGN-BID-BUILD (DBB) OF A CONSTRUCTION PROJECT (KNOWN AS PROJECT 20117) IN ISRAEL FOR THE MOD AND ISRAEL AIR FORCE (IAF) FOR USE BY THE IAF. Key points: 1. Contract awarded to CDM Constructors Inc. for a Design-Bid-Build construction project in Israel. 2. Project 20117 aims to provide facilities for the Israeli Air Force. 3. The contract type is Firm Fixed Price, indicating defined costs. 4. This project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The contract value of $32.8 million for a construction project of this nature and duration appears within a reasonable range, though specific benchmarks for international military construction are not readily available.
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 that should drive price discovery and potentially favorable pricing for the government.
Taxpayer Impact: The firm fixed price contract type limits the government's exposure to cost overruns, providing cost certainty for taxpayers.
Public Impact
Supports critical infrastructure for a key U.S. ally's air force operations. Enhances military readiness and operational capabilities through facility upgrades. Represents U.S. commitment to regional security and defense cooperation. Potential for job creation and economic activity in the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical risks associated with construction in Israel.
- Potential for unforeseen site conditions impacting schedule or cost.
- Logistical challenges of managing an international construction project.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded under full and open competition.
- Supports a vital U.S. ally's defense infrastructure.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope, location, and specific requirements. Benchmarks for international military construction are less standardized than domestic projects.
Small Business Impact
The data indicates that this contract was not awarded to small businesses, as indicated by 'sb': false. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the awarding agency. Oversight will likely involve contract management teams ensuring adherence to the design-bid-build process, quality standards, and schedule milestones.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geopolitical instability in the region.
- Potential for unforeseen site conditions.
- Logistical challenges of international project management.
- Reliance on foreign supply chains.
- Contractor's past performance in similar international projects.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.9 million to CDM CONSTRUCTORS INC.. THE PROJECT INVOLVES THE DESIGN-BID-BUILD (DBB) OF A CONSTRUCTION PROJECT (KNOWN AS PROJECT 20117) IN ISRAEL FOR THE MOD AND ISRAEL AIR FORCE (IAF) FOR USE BY THE IAF.
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 $32.9 million.
What is the period of performance?
Start: 2025-12-12. End: 2027-09-08.
What specific facilities are being constructed or upgraded for the IAF, and how do these align with current operational needs?
The provided data does not specify the exact nature of the facilities. However, given the context of an air force, it could range from aircraft hangars and maintenance facilities to command centers or support infrastructure. Understanding the specific requirements is crucial to assessing the project's value and ensuring it directly supports the IAF's evolving operational needs and strategic objectives.
What risk mitigation strategies are in place to address potential cost overruns or schedule delays inherent in international construction projects?
While the contract is Firm Fixed Price, mitigating risks like unforeseen site conditions, supply chain disruptions, or geopolitical instability is critical. The agency should have robust contingency plans, clear communication channels with the contractor, and potentially performance bonds. Regular site inspections and proactive issue resolution are key to managing these inherent international project risks effectively.
How will the effectiveness of the completed facilities be measured to ensure they meet the IAF's long-term operational requirements?
Effectiveness measurement should extend beyond initial acceptance. This includes post-occupancy evaluations, user feedback from the IAF, and assessment of the facilities' contribution to operational readiness and efficiency over time. Key performance indicators related to durability, functionality, and adaptability to future needs should be established and tracked.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912ER25RA009
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 75 STATE ST STE 701, BOSTON, MA, 02109
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,850,117
Exercised Options: $32,850,117
Current Obligation: $32,850,117
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-12
Current End Date: 2027-09-08
Potential End Date: 2027-09-08 00:00:00
Last Modified: 2026-03-03
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