Department of the Army awards $91.8M construction contract to CDM Constructors Inc. for Site 13853-416 in Israel
Contract Overview
Contract Amount: $91,829,277 ($91.8M)
Contractor: CDM Constructors Inc.
Awarding Agency: Department of Defense
Start Date: 2020-02-21
End Date: 2022-08-24
Contract Duration: 915 days
Daily Burn Rate: $100.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOFA: CONTRACT FOR SITE 13853-416 IN ISRAEL
Plain-Language Summary
Department of Defense obligated $91.8 million to CDM CONSTRUCTORS INC. for work described as: SOFA: CONTRACT FOR SITE 13853-416 IN ISRAEL Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type generally shifts cost risk to the contractor. 3. The contract duration of 915 days indicates a significant, multi-year project. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The award amount of $91.8 million places this contract within a substantial spending category. 6. The contract was awarded by the Department of the Army, a major component of the Department of Defense.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without comparable projects in the same geographic region and for similar scope. However, the firm-fixed-price structure suggests that the initial price was determined through negotiation and competition. The total award amount of $91.8 million for a construction project of this duration (915 days) appears to be within a reasonable range for large-scale infrastructure development, though a detailed cost breakdown and comparison to similar international construction projects would be necessary for a more precise assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The number of bids received is not specified, but this procurement method is designed to foster price discovery and ensure the government receives competitive pricing. The use of full and open competition is generally considered the most effective way to achieve value for taxpayers.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving the most cost-effective proposals and preventing potential price inflation that could occur with limited competition.
Public Impact
The primary beneficiaries of this contract are likely the Department of Defense and its personnel stationed in or operating from Site 13853-416 in Israel, through the provision of improved or new facilities. The services delivered include commercial and institutional building construction, which could encompass a range of structures such as administrative buildings, barracks, or support facilities. The geographic impact is localized to Site 13853-416 in Israel, suggesting a specific operational or strategic location for the Department of Defense. The workforce implications would involve employment opportunities for construction workers, engineers, project managers, and support staff, both locally in Israel and potentially from the contractor's home country.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the firm-fixed-price structure.
- Geopolitical risks associated with construction projects in international locations, which could impact timelines and security.
- Dependency on a single contractor for a significant duration, raising concerns about performance if issues arise.
- Limited transparency on the specific breakdown of costs within the firm-fixed-price award.
Positive Signals
- The use of full and open competition suggests a robust process to select the most capable and cost-effective contractor.
- The firm-fixed-price contract type shifts significant cost risk to the contractor, incentivizing efficient project management.
- The substantial award amount indicates a project of considerable importance and scale for the Department of Defense.
- The contract duration of over two years allows for thorough planning and execution of complex construction tasks.
Sector Analysis
The construction sector, particularly for large-scale institutional and commercial buildings, is a significant part of the global economy. Government contracts for infrastructure development, especially in overseas locations, represent a substantial segment of this market. This contract fits within the broader category of defense infrastructure spending, which often involves complex logistical and security considerations. Comparable spending benchmarks would typically be found within large military construction programs or international development projects funded by governments.
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 for small businesses arising from a specific set-aside requirement. However, the prime contractor, CDM Constructors Inc., may choose to subcontract portions of the work to small businesses as part of their overall project management strategy, though this is not mandated by the contract terms provided.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally facilitated through contract award announcements and public contract databases, although detailed project-specific oversight reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Military Construction Program
- Overseas Contingency Operations (OCO) Construction
- Department of Defense Facilities Sustainment, Restoration, and Modernization (FSRM)
- Foreign Military Sales (FMS) related construction
Risk Flags
- Geopolitical Risk
- International Logistics Complexity
- Firm-Fixed-Price Cost Overrun Potential
- Long-Duration Project Management
Tags
construction, department-of-defense, department-of-the-army, israel, definitive-contract, full-and-open-competition, firm-fixed-price, commercial-and-institutional-building-construction, large-contract, international-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.8 million to CDM CONSTRUCTORS INC.. SOFA: CONTRACT FOR SITE 13853-416 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 $91.8 million.
What is the period of performance?
Start: 2020-02-21. End: 2022-08-24.
What is the track record of CDM Constructors Inc. on similar large-scale international construction projects for the Department of Defense?
Assessing the track record of CDM Constructors Inc. requires a review of their past performance on contracts of similar size, scope, and geographic complexity. Specifically, looking at their history with the Department of Defense or other government agencies for projects in international theaters would be crucial. This would involve examining past performance evaluations, any history of contract disputes, timely project completion rates, and adherence to budget. Without access to detailed performance data or a comprehensive project history for CDM Constructors Inc., it is difficult to definitively assess their suitability and past success on comparable projects. Further investigation into their portfolio and client feedback would be necessary.
How does the per-square-foot cost of this contract compare to similar construction projects in Israel or other Middle Eastern countries?
To compare the per-square-foot cost, detailed architectural plans and cost breakdowns for Site 13853-416 would be needed, which are not provided in the summary data. Additionally, a database of comparable construction projects in Israel and the surrounding region, accounting for factors like labor costs, material availability, security requirements, and specific building types (e.g., administrative, residential, industrial), would be essential. Given the firm-fixed-price nature, the initial bid would have factored these elements. However, without specific cost per unit metrics or access to regional construction cost indices and project databases, a direct comparison to benchmark rates is not feasible with the current information.
What are the primary risk indicators associated with this specific contract, considering its location and scope?
Key risk indicators for this contract include geopolitical instability in the region, which could lead to delays, security challenges, or increased operational costs. Construction in a foreign country presents logistical hurdles related to importing materials, equipment, and potentially labor, as well as navigating local regulations and customs. Furthermore, the firm-fixed-price nature, while beneficial for cost control, places the burden of managing unforeseen site conditions or price escalations squarely on the contractor. The duration of the contract (915 days) also increases the exposure to market volatility for materials and labor over an extended period. Finally, the specific nature of Site 13853-416 and its intended use could introduce unique operational or security risks.
What is the historical spending pattern for construction services by the Department of the Army in Israel over the past five years?
Analyzing historical spending patterns for construction services by the Department of the Army in Israel requires access to comprehensive federal procurement data. This would involve querying databases like USAspending.gov or FPDS for contracts awarded by the Army with a geographic focus on Israel within a specified timeframe (e.g., the last five fiscal years). The analysis should categorize spending by contract type, scope (e.g., new construction, renovation, infrastructure), and the specific agencies or commands within the Army that issued the awards. This would help determine if $91.8 million represents a typical investment, an outlier, or a significant increase/decrease in spending for such services in that region.
How does the competition level (full and open) for this contract potentially influence the final price and quality of the construction?
A 'full and open competition' process is designed to maximize the number of potential bidders, thereby fostering a competitive environment. This increased competition typically drives down prices as contractors vie to offer the most attractive bid to win the contract. Furthermore, a wider pool of bidders can lead to higher quality outcomes, as contractors are incentivized to showcase their capabilities and past performance to secure the award. The government benefits from potentially lower costs and a greater assurance of receiving services that meet or exceed specified quality standards. The absence of restrictions on who can bid ensures that the most capable and cost-effective solutions are considered.
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: W912GB19R0033
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CDM Smith Inc.
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: $91,829,277
Exercised Options: $91,829,277
Current Obligation: $91,829,277
Actual Outlays: $8,375,804
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-02-21
Current End Date: 2022-08-24
Potential End Date: 2022-08-24 00:00:00
Last Modified: 2023-08-06
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