Cadmus Group LLC awarded $3.86M contract for Philippine railway engineering services by USTDA
Contract Overview
Contract Amount: $3,855,486 ($3.9M)
Contractor: THE Cadmus Group LLC
Awarding Agency: United States Trade and Development Agency
Start Date: 2025-06-18
End Date: 2027-06-17
Contract Duration: 729 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PHILIPPINES - SUBIC-CLARK-MANILA-BATANGAS RAILWAY TA
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
United States Trade and Development Agency obligated $3.9 million to THE CADMUS GROUP LLC for work described as: PHILIPPINES - SUBIC-CLARK-MANILA-BATANGAS RAILWAY TA Key points: 1. Contract value appears reasonable for specialized engineering services in a developing infrastructure project. 2. Full and open competition suggests a potentially competitive bidding process, likely leading to fair pricing. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of two years aligns with typical engineering design and planning phases. 5. The contract supports a significant infrastructure initiative with potential long-term economic benefits for the Philippines. 6. Engineering services are critical for the successful planning and execution of complex rail projects.
Value Assessment
Rating: good
The contract value of $3.86 million for engineering services for the Subic-Clark-Manila-Batangas Railway project appears to be within a reasonable range for a project of this scope and complexity. Benchmarking against similar large-scale transportation infrastructure engineering contracts, the per-project cost for specialized design and planning can vary significantly, but this figure does not immediately suggest overpricing. The firm fixed-price nature of the award also provides cost certainty.
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. While the number of bidders is not specified, this method generally fosters a competitive environment, which is expected to drive down costs and ensure the government receives fair market value. The open nature of the competition suggests that the USTDA sought the best technical and price proposals available.
Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower overall project costs and assurance that the selected contractor offers the best value. Open competition reduces the risk of inflated pricing that can occur with less competitive solicitations.
Public Impact
The primary beneficiaries are the United States Trade and Development Agency (USTDA) and the Philippines, through the advancement of a critical transportation infrastructure project. The services delivered will include engineering expertise essential for the planning, design, and potentially the early implementation phases of the railway. The geographic impact is focused on the Subic-Claro-Manila-Batangas corridor in the Philippines, a key economic region. The contract supports specialized engineering jobs within the United States, likely within The Cadmus Group LLC's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if project requirements are not clearly defined and managed.
- Geopolitical risks associated with large infrastructure projects in developing nations.
- Dependency on the successful execution of subsequent phases of the railway project.
Positive Signals
- Firm fixed-price contract limits financial risk for the government.
- Award to an established firm (Cadmus Group) suggests a degree of reliability.
- Support for a high-priority infrastructure initiative aligns with U.S. foreign policy and economic development goals.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting large-scale infrastructure development. The market for such services is characterized by specialized firms capable of handling complex projects. Comparable spending benchmarks for engineering services on major transportation projects can range from a few million to tens of millions of dollars, depending on the project's scale, complexity, and the specific services required (e.g., feasibility studies, environmental impact assessments, detailed design).
Small Business Impact
The contract was awarded to The Cadmus Group LLC, a large business. There is no indication of a small business set-aside for this specific contract. Subcontracting opportunities for small businesses may exist within the broader scope of the railway project, but are not explicitly detailed in this award. The impact on the small business ecosystem is likely indirect, depending on whether Cadmus utilizes small business subcontractors.
Oversight & Accountability
Oversight will likely be managed by the United States Trade and Development Agency (USTDA) program managers responsible for the Philippines portfolio. Accountability measures are inherent in the firm fixed-price contract, requiring Cadmus to deliver specified services within the agreed budget. Transparency is generally maintained through USTDA's public reporting on its programs and awards. Inspector General jurisdiction would typically apply if fraud, waste, or abuse were suspected.
Related Government Programs
- US-Philippines Bilateral Relations
- Foreign Infrastructure Development
- Transportation Sector Development
- Engineering and Consulting Services
Risk Flags
- Potential for scope creep
- Geopolitical risks
- Dependency on subsequent project phases
Tags
engineering-services, transportation, infrastructure, asia, philippines, ustda, definitive-contract, firm-fixed-price, full-and-open-competition, cadmus-group-llc, international-development
Frequently Asked Questions
What is this federal contract paying for?
United States Trade and Development Agency awarded $3.9 million to THE CADMUS GROUP LLC. PHILIPPINES - SUBIC-CLARK-MANILA-BATANGAS RAILWAY TA
Who is the contractor on this award?
The obligated recipient is THE CADMUS GROUP LLC.
Which agency awarded this contract?
Awarding agency: United States Trade and Development Agency (United States Trade and Development Agency).
What is the total obligated amount?
The obligated amount is $3.9 million.
What is the period of performance?
Start: 2025-06-18. End: 2027-06-17.
What is The Cadmus Group LLC's track record with large-scale international infrastructure projects, particularly in Southeast Asia?
The Cadmus Group LLC has a history of providing technical assistance and engineering services across various sectors, including energy, transportation, and infrastructure. While specific details on their involvement in large-scale railway projects in Southeast Asia are not immediately available from this contract data alone, their general expertise in engineering and project management suggests a capacity to handle such work. A deeper dive into their project portfolio and past performance reviews would be necessary to fully assess their track record in this specific niche and region. Their experience with government contracts, particularly with agencies like USTDA, indicates familiarity with federal procurement processes and reporting requirements.
How does the $3.86 million contract value compare to similar engineering contracts for major railway projects globally?
Benchmarking this $3.86 million contract requires comparing it to the engineering services component of similar railway projects. For large-scale, multi-billion dollar railway initiatives, the engineering and design phase can represent a significant portion of the overall budget, often running into hundreds of millions or even billions of dollars for extensive feasibility studies, environmental impact assessments, and detailed design work. However, this specific contract appears to be for a defined scope within the larger Subic-Clark-Manila-Batangas Railway project, possibly focusing on specific segments or initial planning stages. Therefore, comparing it directly to the total engineering budget of a massive undertaking might be misleading. It is more appropriate to compare it to contracts for similar specialized engineering services for specific project phases or components, where values can range from a few million to tens of millions, making the $3.86 million appear reasonable for its defined scope.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential delays in the overall railway project timeline, which could impact the need for these engineering services, and geopolitical instability in the region affecting project execution. Scope creep, where the requirements expand beyond the initial agreement, is another risk. Mitigation strategies include the firm fixed-price contract, which caps the government's financial exposure for the defined scope. The selection of The Cadmus Group LLC, presumably based on their qualifications and past performance, also serves as a risk mitigation factor. Clear contract management and communication protocols between USTDA and the contractor are crucial for addressing scope and timeline issues proactively.
What is the expected impact of these engineering services on the overall effectiveness and success of the Subic-Clark-Manila-Batangas Railway project?
These engineering services are foundational to the success of the railway project. They will likely involve detailed technical studies, design specifications, route planning, and potentially environmental and social impact assessments. High-quality engineering ensures that the railway is designed to be safe, efficient, cost-effective to operate, and environmentally sound. Poor engineering can lead to significant cost overruns, safety issues, operational inefficiencies, and project delays or failures. Therefore, the effectiveness of The Cadmus Group's work directly correlates with the project's ability to achieve its intended goals of improving transportation and economic connectivity in the Philippines.
How has USTDA's spending on similar engineering services contracts evolved over the past five years?
Analyzing USTDA's spending trends on engineering services requires access to historical contract databases and budget reports. Generally, agencies like USTDA allocate funds for technical assistance and feasibility studies to support infrastructure development in partner countries. Spending in this area can fluctuate based on the number and scale of projects being initiated or advanced. If USTDA is actively promoting major transportation initiatives like the Subic-Clark-Manila-Batangas Railway, it's plausible that spending on related engineering and consulting services would increase during those periods. A detailed analysis would involve aggregating contract data for engineering services awarded by USTDA over the specified timeframe to identify patterns and significant shifts in investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1131PL25RIQ31009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 N GLEBE RD STE 500, ARLINGTON, VA, 22203
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,855,486
Exercised Options: $3,855,486
Current Obligation: $3,855,486
Actual Outlays: $703,557
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-06-18
Current End Date: 2027-06-17
Potential End Date: 2027-06-17 00:00:00
Last Modified: 2026-02-09
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