DoD's $103M Fort Irwin EDR Water Treatment Plant project awarded to CDM Constructors Inc. after full and open competition

Contract Overview

Contract Amount: $102,878,710 ($102.9M)

Contractor: CDM Constructors Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-12

End Date: 2021-03-19

Contract Duration: 3,110 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD - EDR WATER TREATMENT AND SYSTEM DESIGN AND CONSTRUCTION ACTIVITIES INCLUDING BUT NOT LIMITED TO THE DESIGN BUILD OF A 6.0 MILLION GALLONS PER DAY (MGD) EDR WATER TREATMENT PLANT. THE PLANT WILL TREAT ALL CONTAMINANTS FOUND IN FORT IRWIN'S GROUND WATER IN ACCORDANCE WITH (IAW) FEDERAL AND STATE REQUIREMENTS (I.E.: ARSENIC, FLUORIDE, AND TOTAL DISSOLVED SOLIDS). THE PLANT WILL INCLUDE AN ELECTRO-DIALYSIS REVERSAL (EDR) SYSTEM AS PRIMARY TREATMENT. THE PROJECT ALSO INCLUDES THE CONSTRUCTION OF THE EDR FACILITY WITH PUMPS, EDR STACKS, FILTERS, AND AN EDR WASTE EQUALIZATION TANK. THE PLANT ALSO INCLUDES TREATMENT OF THE WASTE STREAM TO ACHIEVE 99.8% POTABLE WATER RECOVERY RATE WITH REJECT DISCHARGE TO EVAPORATION PONDS. CONSTRUCTION ALSO INCLUDES A 1 MILLION GALLON (MG) PRETREATMENT TANK AND A 1 MG CLEAR WELL TANK. PROJECT ALSO INCLUDES CONTROL BUILDING, CHEMICAL BUILDING, TREATED WATER PUMP STATION, PROCESS DRAIN PUMP STATION, STANDBY GENERATOR, PROCESS PIPING, AND SCADA. THE PROJECT INCLUDES SUPPORTING UTILITIES AND INFRASTRUCTURE UPGRADES TO THE WATER PLANT INCLUDE ELECTRIC SERVICE, SITE IMPROVEMENTS, COMMUNICATIONS, WATER, SEWER, GAS, STORM WATER DRAINAGE AND ANTITERRORISM MEASURES. COMMISSIONING OF THE WATER TREATMENT PLANT IS ALSO INCLUDED. THE WATER SYSTEM IMPROVEMENTS INCLUDE PIPELINES CONNECTING THE WATER PLANT TO BICYCLE LAKE BOOSTER STATION, REPLACEMENT OF EXPIRED PIPE AND EQUIPMENT, AND WATER SUPPLY /DISTRIBUTION SYSTEM EXPANSION. OTHER SYSTEM IMPROVEMENTS INCLUDE IMPROVEMENT OF FIRE FLOW, INSTALLATION OF A NEW WATER WELL AT LANGFORD LAKE AND CONNECTING IRWIN BASIN WELLS TO RAW WATER TRANSMISSION LINES. TANK CONSTRUCTION INCLUDES REHABILITATION OF EXISTING WELDED STEEL WATER STORAGE TANKS AND REPAIR/REPLACEMENT OF A 1 MG ABOVE GROUND WATER STORAGE TANK. SUSTAINABLE DESIGN AND DEVELOPMENT (SDD), ENERGY INDEPENDENCE AND SECURITY ACT (EISA) OF 2007, AND ENERGY POLICY ACT OF 2005 (EPACT05) FEATURES WILL BE INCLUDED.

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $102.9 million to CDM CONSTRUCTORS INC. for work described as: DESIGN BUILD - EDR WATER TREATMENT AND SYSTEM DESIGN AND CONSTRUCTION ACTIVITIES INCLUDING BUT NOT LIMITED TO THE DESIGN BUILD OF A 6.0 MILLION GALLONS PER DAY (MGD) EDR WATER TREATMENT PLANT. THE PLANT WILL TREAT ALL CONTAMINANTS FOUND IN FORT IRWIN'S GROUND WATER IN ACCORDANCE… Key points: 1. The contract addresses critical water treatment needs for Fort Irwin, California, focusing on arsenic, fluoride, and total dissolved solids removal. 2. A 6.0 MGD Electro-Dialysis Reversal (EDR) system is the core technology, designed for high potable water recovery and waste stream treatment. 3. The project includes comprehensive design and construction, encompassing the EDR facility, pumps, filters, and waste equalization tanks. 4. The fixed-price contract structure aims to control costs for the government, with a duration of over 8 years. 5. This significant investment in water infrastructure highlights the Department of Defense's commitment to operational readiness and environmental compliance. 6. The project's success hinges on effective EDR system performance and integration with existing water supply infrastructure.

Value Assessment

Rating: good

The contract value of approximately $103 million for a 6.0 MGD EDR water treatment plant appears reasonable given the complexity and scope of the project. EDR systems are advanced and can be costly to implement. Benchmarking against similar large-scale military water infrastructure projects would provide a more precise value assessment. The firm-fixed-price nature of the contract suggests an effort to manage cost overruns, but the long duration could introduce risks if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive better pricing and innovation. The presence of 5 bids suggests a healthy level of interest from qualified contractors in this specialized area of water treatment infrastructure.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring the government receives the best value for its investment.

Public Impact

Serves the personnel and operations at Fort Irwin, California, by ensuring a reliable and compliant source of potable water. Delivers essential water treatment services, removing contaminants like arsenic and fluoride to meet federal and state standards. The project's geographic impact is localized to Fort Irwin, a critical Army training facility in California. Supports construction and engineering jobs during the design and build phases. Enhances the long-term sustainability and operational capability of a key military installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (over 8 years) increases the risk of cost escalation and potential scope creep if not managed diligently.
Reliance on specialized EDR technology may present challenges in maintenance and long-term operational expertise.
Potential for unforeseen groundwater conditions at Fort Irwin could impact construction timelines and costs.
Ensuring the 99.8% potable water recovery rate requires precise engineering and ongoing performance monitoring.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive bidding process that likely secured favorable pricing.
The project addresses a critical need for safe and compliant drinking water at a major military installation.
Inclusion of waste stream treatment and high recovery rate demonstrates a commitment to environmental sustainability.

Sector Analysis

The water and sewer infrastructure construction sector is vital for public and military facilities, involving significant capital investment. This contract falls within the broader construction industry, specifically focusing on specialized water treatment technologies like EDR. The market for advanced water treatment solutions is growing due to increasing regulatory demands and aging infrastructure. Comparable spending benchmarks would typically be found in large municipal water projects or other major federal facility upgrades.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature and large scale of the project, it is likely that prime contractors would be larger firms with extensive experience in design-build water treatment facilities. Subcontracting opportunities may exist for specialized components or labor, but the primary awardee is a large business. The impact on the small business ecosystem is likely indirect, through potential subcontracting roles.

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. The firm-fixed-price nature provides some cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Water and Wastewater Treatment Facilities
Environmental Compliance Contracts
Department of Defense Infrastructure Modernization

Risk Flags

Long-term project duration
Reliance on specialized technology
Potential for concentrated waste stream management challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $102.9 million to CDM CONSTRUCTORS INC.. DESIGN BUILD - EDR WATER TREATMENT AND SYSTEM DESIGN AND CONSTRUCTION ACTIVITIES INCLUDING BUT NOT LIMITED TO THE DESIGN BUILD OF A 6.0 MILLION GALLONS PER DAY (MGD) EDR WATER TREATMENT PLANT. THE PLANT WILL TREAT ALL CONTAMINANTS FOUND IN FORT IRWIN'S GROUND WATER IN ACCORDANCE WITH (IAW) FEDERAL AND STATE REQUIREMENTS (I.E.: ARSENIC, FLUORIDE, AND TOTAL DISSOLVED SOLIDS). THE PLANT WILL INCLUDE AN ELECTRO-DIALYSIS REVERSAL (EDR) SYSTEM AS PRIMARY TREATMENT. THE PROJECT ALSO INCLUDES THE CONST

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 $102.9 million.

What is the period of performance?

Start: 2012-09-12. End: 2021-03-19.

What is the track record of CDM Constructors Inc. on similar large-scale water treatment projects for the federal government?

Information on CDM Constructors Inc.'s specific track record for large-scale federal water treatment projects is not detailed in the provided data. However, their selection suggests they possess the necessary qualifications and experience. A deeper dive into their past performance, including client satisfaction, project completion history, and any past performance issues on similar contracts, would be beneficial for a comprehensive assessment. Reviewing federal procurement databases and past performance reviews would offer more insight into their capabilities and reliability in delivering complex infrastructure projects on time and within budget.

How does the cost per million gallons per day (MGD) for this EDR plant compare to similar advanced water treatment facilities?

The total contract value is approximately $103 million for a 6.0 MGD plant, equating to roughly $17.17 million per MGD. Benchmarking this figure requires comparison with other advanced water treatment technologies (like EDR) on large-scale projects, particularly those for military installations or municipalities. EDR systems are generally more expensive than conventional treatment methods due to their complexity and energy requirements. Without specific data on comparable EDR plant costs, it's difficult to definitively state if this is high or low. However, the figure should be evaluated against the specific contaminant removal requirements and the high recovery rate stipulated in the contract.

What are the primary risks associated with the long duration (over 8 years) of this design-build contract?

The extended duration of this contract presents several risks. Firstly, there's an increased potential for cost escalation due to inflation or unforeseen market changes in material and labor costs, even with a fixed-price contract, if scope changes or claims arise. Secondly, the risk of technological obsolescence increases over such a long period; while EDR is advanced, newer or more efficient technologies could emerge. Thirdly, maintaining consistent project oversight and stakeholder engagement over many years can be challenging. Finally, contractor performance and key personnel stability can fluctuate, potentially impacting project continuity and quality. Robust contract management and change control processes are crucial to mitigate these risks.

How effective is the EDR technology in treating the specific contaminants (arsenic, fluoride, TDS) mentioned for Fort Irwin's groundwater?

Electro-Dialysis Reversal (EDR) is a membrane-based technology that is generally effective in removing a wide range of dissolved contaminants, including arsenic, fluoride, and total dissolved solids (TDS). EDR operates by using an electric field to move ions across semi-permeable membranes. Its effectiveness for arsenic and fluoride removal is well-established, often achieving high removal efficiencies. The technology is also adept at reducing TDS. The contract's requirement for 99.8% potable water recovery suggests a high level of performance is expected and achievable with properly designed and operated EDR systems. The specific design for Fort Irwin's groundwater characteristics will be critical to its success.

What is the historical spending trend for water treatment infrastructure at Fort Irwin or similar Army installations?

Historical spending data for water treatment infrastructure at Fort Irwin or similar Army installations is not provided in the current data extract. However, federal agencies, including the Department of Defense, consistently invest in maintaining and upgrading critical infrastructure like water treatment facilities to ensure operational readiness and compliance with environmental regulations. Spending in this area is often driven by specific needs such as aging systems, new regulatory requirements, or capacity expansion. Analyzing past budgets and contract awards for Army Corps of Engineers or base infrastructure projects would reveal trends in investment for water systems.

What are the implications of the 99.8% potable water recovery rate on operational costs and waste management?

Achieving a 99.8% potable water recovery rate is a significant operational goal that implies a highly efficient water treatment process with minimal water loss. This high recovery rate directly translates to reduced overall water consumption and potentially lower raw water acquisition costs. However, it also means that the remaining 0.2% of the water stream, which constitutes the reject or waste, will be highly concentrated with the removed contaminants. This concentrated waste stream will require specific, and potentially costly, management and disposal strategies to meet environmental regulations, possibly involving evaporation ponds as mentioned. The operational costs will be influenced by the energy consumption of the EDR system and the management of this concentrated reject water.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures 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: W912PL12R0018

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 9220 CLEVELAND AVE STE 100, RANCHO CUCAMONGA, CA, 91730

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

Financial Breakdown

Contract Ceiling: $102,878,710

Exercised Options: $102,878,710

Current Obligation: $102,878,710

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline