DoD Awards $27.4M Construction Contract to CDM Constructors Inc. for Israel Site Upgrades

Contract Overview

Contract Amount: $27,403,614 ($27.4M)

Contractor: CDM Constructors Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2025-03-30

Contract Duration: 1,368 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOFA: SITE 13850 AND 13851, ISRAEL

Plain-Language Summary

Department of Defense obligated $27.4 million to CDM CONSTRUCTORS INC. for work described as: SOFA: SITE 13850 AND 13851, ISRAEL Key points: 1. Contract value of $27.4 million for construction services. 2. CDM Constructors Inc. is the awardee. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. The sector is Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $27.4 million for construction services appears to be within a reasonable range for large-scale infrastructure projects. Benchmarking against similar DoD construction contracts in overseas locations would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to more competitive pricing. The use of a definitive contract suggests a well-defined scope of work.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces.

Public Impact

Supports U.S. military infrastructure and operations in Israel. Potential for job creation through subcontracting opportunities. Impact on local construction markets in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific details on small business participation.
  • Potential for cost overruns in overseas construction projects.
  • Geopolitical risks associated with operating in Israel.

Positive Signals

  • Awarded under full and open competition.
  • Firm Fixed Price contract type can control costs.
  • Long-term contract duration allows for phased execution.

Sector Analysis

The Commercial and Institutional Building Construction sector is vital for maintaining and upgrading facilities. Spending in this sector can fluctuate based on geopolitical needs and infrastructure investment priorities, with overseas projects often carrying higher logistical costs.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further investigation would be needed to determine if any subcontracting opportunities were specifically set aside for small businesses.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for oversight. The use of a definitive contract and firm fixed price structure implies a degree of accountability for the contractor's performance and cost management.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for cost overruns due to overseas location.
  • Geopolitical risks in the region.
  • Limited information on small business utilization.
  • Need for detailed scope of work analysis.
  • Lack of comparative pricing data for similar 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 $27.4 million to CDM CONSTRUCTORS INC.. SOFA: SITE 13850 AND 13851, 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 $27.4 million.

What is the period of performance?

Start: 2021-07-01. End: 2025-03-30.

What specific types of construction or upgrades are included in the scope of work for SOFA Sites 13850 and 13851?

The provided data does not detail the specific construction activities. Further analysis of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) is required to understand the exact nature of the upgrades, such as building new facilities, renovating existing structures, or installing specialized equipment. This information is crucial for assessing the project's complexity and potential risks.

How does the $27.4 million contract value compare to similar construction projects managed by the DoD in the Middle East region?

Benchmarking this contract against similar DoD construction projects in the Middle East is essential for a comprehensive value assessment. Factors like local labor costs, material availability, security requirements, and logistical challenges in Israel can significantly influence pricing. Without comparative data, it's difficult to definitively state if this award represents excellent, good, or fair value.

What measures are in place to ensure the effectiveness and timely completion of these construction projects, given the overseas location?

Effectiveness and timely completion are typically ensured through robust contract management, regular site inspections, and performance monitoring by the contracting officer's representative (COR). The firm fixed price nature of the contract incentivizes the contractor to complete the work within budget. However, the overseas location introduces potential risks like supply chain disruptions, geopolitical instability, and differing regulatory environments that require proactive risk mitigation strategies.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912GB21R0006

Offers Received: 5

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: $27,403,614

Exercised Options: $27,403,614

Current Obligation: $27,403,614

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-07-01

Current End Date: 2025-03-30

Potential End Date: 2025-03-30 00:00:00

Last Modified: 2024-08-11

More Contracts from CDM Constructors Inc.

View all CDM Constructors Inc. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending