Department of the Army awards $99.9M contract for dissolved oxygen injection systems, with CDM Constructors Inc. as the prime
Contract Overview
Contract Amount: $99,897,018 ($99.9M)
Contractor: CDM Constructors Inc
Awarding Agency: Department of Defense
Start Date: 2015-07-31
End Date: 2018-05-20
Contract Duration: 1,024 days
Daily Burn Rate: $97.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF SHEP DISSOLVED OXYGEN INJECTION SYSTEM
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31401
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $99.9 million to CDM CONSTRUCTORS INC for work described as: IGF::OT::IGF SHEP DISSOLVED OXYGEN INJECTION SYSTEM Key points: 1. Contract value of $99.9M indicates a significant investment in environmental infrastructure. 2. The award to CDM Constructors Inc. suggests a competitive procurement process. 3. The contract duration of 1024 days points to a substantial, multi-year project. 4. The North American Industry Classification System (NAICS) code 237990 categorizes this as heavy civil engineering construction. 5. The contract type is a definitive contract, implying a clear scope of work. 6. The pricing type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The contract was awarded in Georgia, indicating a specific geographic focus for the project.
Value Assessment
Rating: good
The contract value of approximately $99.9 million for dissolved oxygen injection systems represents a substantial investment. Benchmarking this against similar large-scale environmental engineering projects would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the government has secured a defined cost, transferring potential cost overruns to the contractor. The contract's duration of over 1000 days also implies a complex and lengthy undertaking, where efficient project management by the contractor will be key to delivering value.
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 bids. This suggests a robust bidding environment, likely leading to a more competitive price discovery process. The presence of 4 bids, as indicated by the 'no' field, further supports the notion of a competitive landscape, although the specific number of bidders doesn't inherently guarantee the best possible price without further analysis of bid competitiveness.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple contractors.
Public Impact
The primary beneficiaries are likely environmental protection agencies and potentially aquatic ecosystems that benefit from improved dissolved oxygen levels. The services delivered involve the construction and implementation of dissolved oxygen injection systems, crucial for water quality management. The contract's geographic impact is specified as Georgia (ST: GA, SN: GEORGIA). Workforce implications could include employment opportunities for construction workers, engineers, and project managers in the Georgia region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the firm fixed-price contract does not adequately account for unforeseen construction challenges.
- Dependence on the contractor's expertise and performance for successful system implementation and long-term functionality.
- Risk associated with the specific technology chosen for dissolved oxygen injection and its long-term effectiveness.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process that could lead to better pricing.
- Firm Fixed Price contract type shifts cost risk to the contractor, providing budget certainty for the government.
- The contract is for a definitive contract, implying a well-defined scope of work and deliverables.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically focusing on environmental infrastructure. The market for such projects is driven by regulatory requirements for water quality and environmental protection. Comparable spending benchmarks would involve analyzing other large-scale water treatment or environmental remediation projects undertaken by federal or state agencies. The size of this contract suggests it is a significant project within its specific niche.
Small Business Impact
The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This means the contract was not exclusively targeted towards small businesses. Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if CDM Constructors Inc. chooses to engage them, or through indirect competition if small businesses operate in related support services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified outcomes within the agreed budget. Transparency is generally facilitated through contract award databases and reporting requirements, though specific project-level oversight details are not provided.
Related Government Programs
- Environmental Infrastructure Projects
- Water Quality Management Systems
- Army Corps of Engineers Construction Contracts
- Heavy Civil Engineering Services
Risk Flags
- Potential for cost overruns under Firm Fixed Price if unforeseen issues arise.
- Contractor performance risk for complex environmental engineering project.
- Adequacy of competition level (4 bids) for optimal price discovery.
- Long-term effectiveness and maintenance costs of the injection system.
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, heavy-civil-engineering, georgia, environmental-infrastructure, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $99.9 million to CDM CONSTRUCTORS INC. IGF::OT::IGF SHEP DISSOLVED OXYGEN INJECTION SYSTEM
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 $99.9 million.
What is the period of performance?
Start: 2015-07-31. End: 2018-05-20.
What is the track record of CDM Constructors Inc. on similar federal contracts?
Information regarding CDM Constructors Inc.'s specific track record on similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations, contract history with the Department of Defense and other federal agencies, and any reported issues or successes on comparable environmental engineering or construction projects. This would help gauge their capacity, reliability, and experience in delivering complex infrastructure solutions within budget and schedule.
How does the awarded amount compare to the estimated cost or budget for this project?
The provided data does not include the government's estimated cost or budget for this project, making a direct comparison impossible. The awarded amount of $99,897,017.63 represents the final negotiated price. To assess value for money, one would need to compare this awarded price against independent cost estimates, historical spending on similar projects, or the range of bids received if that information were available. The firm fixed-price nature suggests the government aimed to secure a definitive cost.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Specific Key Performance Indicators (KPIs) and detailed performance measurement methodologies for this contract are not provided in the data. Typically, for construction contracts of this nature, KPIs would relate to project milestones, adherence to schedule, quality of workmanship, safety compliance, and final system performance (e.g., achieving specified dissolved oxygen levels). Performance would be monitored by the contracting officer's representative (COR) and documented through progress reports and inspections.
What is the historical spending pattern for dissolved oxygen injection systems by the Department of the Army?
The provided data snippet focuses on a single contract and does not offer historical spending patterns for dissolved oxygen injection systems by the Department of the Army. To analyze historical spending, one would need to query federal procurement databases for similar contracts over several fiscal years, identifying the total expenditure, frequency of awards, and trends in contract values and types. This would reveal whether this $99.9M award is an outlier or part of a consistent investment strategy.
What are the potential risks associated with the 'firm fixed price' contract type for this project?
The primary risk associated with a 'firm fixed price' (FFP) contract for a project like dissolved oxygen injection systems lies in the potential for the contractor to incur cost overruns if unforeseen issues arise during construction or implementation. While FFP shifts cost risk to the contractor, it can also incentivize them to cut corners on quality or scope if they are losing money, or to bid very high initially to buffer against unknown risks. The government's risk is paying a potentially inflated price or receiving substandard work if the contractor struggles.
How does the competition level (4 bids) impact the final price and potential for contractor innovation?
Having 4 bids in a 'full and open competition' generally suggests a healthy level of competition, which typically exerts downward pressure on pricing as contractors vie for the award. This competitive environment can lead to more favorable prices for the government compared to a sole-source or limited competition scenario. Regarding innovation, while competition can spur efficiency, the FFP nature of this contract might incentivize contractors to propose proven, lower-risk solutions rather than highly innovative ones, unless innovation is explicitly rewarded or required in the contract specifications.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: W912HN13R0018
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CDM Smith Inc. (UEI: 055990261)
Address: 2301 MAITLAND CENTER PKWY STE 300, MAITLAND, FL, 32751
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $99,897,018
Exercised Options: $99,897,018
Current Obligation: $99,897,018
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-31
Current End Date: 2018-05-20
Potential End Date: 2018-05-20 00:00:00
Last Modified: 2021-08-19
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