DoD Awards $13M Firm Fixed Price Contract for Israel Infirmary Construction to CDM Constructors Inc
Contract Overview
Contract Amount: $13,020,060 ($13.0M)
Contractor: CDM Constructors Inc.
Awarding Agency: Department of Defense
Start Date: 2024-12-30
End Date: 2027-01-09
Contract Duration: 740 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF INFIRMARY IN ISRAEL.
Plain-Language Summary
Department of Defense obligated $13.0 million to CDM CONSTRUCTORS INC. for work described as: CONSTRUCTION OF INFIRMARY IN ISRAEL. Key points: 1. The contract value is $13,020,060. 2. CDM Constructors Inc. was awarded the contract. 3. The contract falls under Commercial and Institutional Building Construction. 4. The project duration is 740 days.
Value Assessment
Rating: fair
The contract value of $13,020,060 for infirmary construction appears reasonable given the firm fixed-price nature and the project's scope and duration. Benchmarking against similar DoD construction projects in overseas locations would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely benefiting from a competitive market, potentially leading to cost savings compared to non-competitive awards.
Public Impact
Construction of a new infirmary will improve healthcare infrastructure in Israel. The project supports military readiness and personnel well-being. The firm fixed-price contract shifts cost overrun risk to the contractor. The duration of nearly two years suggests a significant construction undertaking.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Geopolitical risks associated with construction in Israel.
- Contractor performance and quality control.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type.
- Clear project scope and defined end date.
Sector Analysis
This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. DoD construction projects, especially overseas, can be subject to higher costs due to logistics, security, and specialized labor requirements.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from this agency. The firm fixed-price nature and defined delivery order suggest clear accountability for project completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost escalation due to unforeseen site conditions.
- Geopolitical risks impacting project timeline and execution.
- Ensuring quality standards in a remote construction environment.
- Logistical challenges for material and personnel transport.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to CDM CONSTRUCTORS INC.. CONSTRUCTION OF INFIRMARY IN ISRAEL.
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 $13.0 million.
What is the period of performance?
Start: 2024-12-30. End: 2027-01-09.
What is the benchmark cost per square foot for similar infirmary construction projects in comparable overseas locations?
Benchmarking the cost per square foot against similar infirmary construction projects in comparable overseas locations is crucial for a precise value assessment. Factors like local labor costs, material availability, security requirements, and logistical challenges significantly influence construction expenses in foreign territories. Without this comparative data, it's difficult to definitively state if $13,020,060 represents an optimal price.
What specific risks are associated with constructing a medical facility in Israel, and how are they mitigated by the contract terms?
Construction in Israel may involve unique risks such as geopolitical instability, complex regulatory environments, and specialized security protocols. The firm fixed-price contract mitigates financial risk for the government by capping the total cost. However, the contractor must manage risks related to site conditions, labor, and material sourcing. The contract's specific clauses on force majeure and dispute resolution would detail mitigation strategies for external risks.
How effectively does the firm fixed-price contract ensure the delivery of a high-quality infirmary within the specified timeline and budget?
A firm fixed-price contract effectively ensures delivery within budget by placing the financial risk on the contractor. However, it can sometimes incentivize cost-cutting that might compromise quality if not rigorously overseen. The government's quality assurance surveillance plan and the contractor's own quality control processes are critical for ensuring the infirmary meets all specifications and functional requirements within the 740-day duration.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912GB20R0011
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 75 STATE ST, SUITE 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: $13,020,060
Exercised Options: $13,020,060
Current Obligation: $13,020,060
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912GB21D0027
IDV Type: IDC
Timeline
Start Date: 2024-12-30
Current End Date: 2027-01-09
Potential End Date: 2027-01-09 00:00:00
Last Modified: 2025-12-19
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