Department of the Army awards $20.4M contract for St. Bernard Pump Stations, highlighting infrastructure resilience

Contract Overview

Contract Amount: $20,429,192 ($20.4M)

Contractor: CDM Constructors Inc.

Awarding Agency: Department of Defense

Start Date: 2007-05-18

End Date: 2008-12-13

Contract Duration: 575 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ST BERNARD PUMP STATIONS 2, 3 & 5

Place of Performance

Location: SAINT BERNARD, SAINT BERNARD County, LOUISIANA, 70085

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to CDM CONSTRUCTORS INC. for work described as: ST BERNARD PUMP STATIONS 2, 3 & 5 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $20.4 million addresses critical infrastructure needs. 3. The firm-fixed-price structure aims to control costs for the government. 4. The project involves heavy civil engineering construction, a sector vital for public works. 5. The duration of 575 days indicates a significant construction timeline. 6. The award to CDM Constructors Inc. represents a substantial investment in Louisiana's infrastructure.

Value Assessment

Rating: good

The contract value of $20.4 million for pump station construction appears reasonable for a project of this scope and complexity. Benchmarking against similar civil engineering projects would provide a more precise assessment, but the firm-fixed-price nature suggests an effort to establish a clear cost ceiling. The absence of extensive modifications or change orders, if applicable, would further indicate good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 6 bidders, the competition level suggests a healthy market interest in this type of federal construction work. This level of competition is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the residents and businesses of St. Bernard Parish, Louisiana, through improved flood control and water management infrastructure. The project delivers essential upgrades to pump stations 2, 3, and 5, enhancing their operational capacity and reliability. The geographic impact is concentrated in St. Bernard Parish, Louisiana, addressing specific local needs. The project likely supports local construction jobs and related industries during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Dependence on timely completion to ensure flood protection measures are in place.
Risk of contractor performance issues impacting project schedule or quality.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps to control costs and provides budget certainty.
The project addresses critical infrastructure needs, contributing to community resilience.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a critical component of the nation's infrastructure. This sector involves the construction of infrastructure projects such as highways, bridges, tunnels, and water systems. Spending in this area is often driven by government initiatives to maintain and upgrade public works, with significant federal investment typically seen across various agencies. Comparable spending benchmarks would involve analyzing other large-scale civil engineering projects awarded by the Department of Defense or other federal agencies like the Army Corps of Engineers.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement for this award, as 'sb' is false. However, the prime contractor, CDM Constructors Inc., may engage small businesses as subcontractors to fulfill project requirements. The extent of small business subcontracting would depend on the prime contractor's strategy and the availability of qualified small businesses for specialized tasks within the construction scope.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Federal Disaster Mitigation and Infrastructure Funding
Public Infrastructure Improvement Programs
Louisiana Coastal Protection and Restoration Authority Projects

Risk Flags

Potential for environmental challenges in coastal construction.
Risk of schedule delays due to weather or unforeseen site conditions.
Contractor performance monitoring is crucial for project success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to CDM CONSTRUCTORS INC.. ST BERNARD PUMP STATIONS 2, 3 & 5

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 $20.4 million.

What is the period of performance?

Start: 2007-05-18. End: 2008-12-13.

What is the track record of CDM Constructors Inc. on similar federal contracts?

A review of federal contract databases would be necessary to fully assess CDM Constructors Inc.'s track record on similar projects. Key indicators would include the number and value of past contracts in heavy civil engineering, particularly those involving water management or pump stations. Performance history, including any instances of contract modifications, disputes, or terminations, would provide further insight. Examining past performance evaluations, if publicly available, would also offer valuable context on their reliability and ability to deliver projects on time and within budget. Without specific data on their past performance, it is difficult to definitively assess their suitability beyond the fact that they were awarded this contract.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data indicates the awarded amount is $20,429,192.10. To assess if this represents good value, it would be crucial to compare this figure against the government's initial cost estimate or budget allocated for the St. Bernard Pump Stations project. If the awarded amount is significantly below the estimate, it could indicate successful competition or a conservative estimate. Conversely, if it is at or above the estimate, further analysis of the scope and market conditions would be needed. The absence of the original estimate in the provided data limits a direct comparison, but the fact that it was awarded under full and open competition with multiple bidders suggests the price was deemed acceptable within the competitive landscape.

What are the primary risks associated with the construction of pump stations in a coastal Louisiana environment?

Constructing pump stations in coastal Louisiana presents several significant risks. Environmental factors are paramount, including the potential for hurricanes and tropical storms that could disrupt construction or damage completed work. The soil conditions in deltaic regions can be unstable, leading to challenges in foundation work and potentially increasing costs. Furthermore, the high water table and susceptibility to flooding require specialized construction techniques and robust dewatering efforts. Compliance with stringent environmental regulations related to wetlands and water quality adds another layer of complexity. Finally, the logistics of transporting materials and equipment to potentially remote or flood-prone sites can also pose challenges.

How effective are firm-fixed-price contracts in managing costs for large-scale civil engineering projects like this?

Firm-fixed-price (FFP) contracts are generally considered effective for managing costs in large-scale civil engineering projects when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes most of the cost risk, agreeing to a set price regardless of their actual costs. This provides budget certainty for the government and incentivizes the contractor to control expenses and work efficiently. However, if unforeseen issues arise that significantly alter the scope or complexity (e.g., unexpected subsurface conditions), change orders can increase the total contract price. For projects with inherent uncertainties, other contract types like cost-plus-fixed-fee might be considered, but FFP is often preferred for its cost control potential when feasible.

What is the historical spending trend for similar infrastructure projects by the Department of the Army in Louisiana?

Analyzing historical spending trends for similar infrastructure projects by the Department of the Army in Louisiana would require access to detailed federal procurement data over several fiscal years. This would involve identifying contracts for civil works, flood control, and heavy construction within the state. Key metrics to examine would include the average contract value, the number of awards, and the types of contractors frequently engaged. Understanding these trends could reveal patterns in investment, identify periods of increased activity, and highlight the typical cost ranges for comparable projects. Without specific historical data, it's challenging to provide a precise trend analysis, but it's reasonable to assume that infrastructure spending in Louisiana, particularly related to flood control, is influenced by environmental factors and federal priorities.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT OF RESTORATION ACTIVITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W912P807R0004

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CDM Smith Inc. (UEI: 055990261)

Address: 555 17TH ST STE 1100, DENVER, CO, 80202

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,429,192

Exercised Options: $20,429,192

Current Obligation: $20,429,192

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline