VA awards $46.1M for Florida National Cemetery expansion, a definitive contract with MGC Services

Contract Overview

Contract Amount: $46,114,254 ($46.1M)

Contractor: MGC Services a Joint Venture LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-27

End Date: 2024-06-03

Contract Duration: 2,076 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FLORIDA NATIONAL CEMETERY - PHASE IV EXPANSION

Place of Performance

Location: BUSHNELL, SUMTER County, FLORIDA, 33513

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $46.1 million to MGC SERVICES A JOINT VENTURE LLC for work described as: IGF::OT::IGF FLORIDA NATIONAL CEMETERY - PHASE IV EXPANSION Key points: 1. Contract value represents a significant investment in national cemetery infrastructure. 2. The definitive contract structure suggests a clear scope and established pricing. 3. Competition level indicates a potentially robust market for similar construction services. 4. Project duration of over 2000 days points to a large-scale, complex undertaking. 5. Fixed-price contract type aims to control costs for the government. 6. Geographic focus on Florida highlights regional needs for veteran services.

Value Assessment

Rating: good

The contract value of $46.1 million for cemetery expansion appears reasonable given the scale and duration of the project. Without specific benchmarks for similar national cemetery expansions, a direct comparison is difficult. However, the fixed-price nature of the contract suggests that the initial pricing was determined to be fair and reasonable by the Department of Veterans Affairs. The contract's duration of over 2000 days indicates a substantial scope of work, which typically correlates with higher overall costs.

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 offers. The presence of two bidders suggests a moderate level of competition for this specific project. While two bidders are better than one, a higher number of competitors could potentially drive prices down further and offer a wider range of solutions. The agency's decision to proceed with a definitive contract after this competition implies they found the offers to be acceptable.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better value. Even with two bidders, the competitive process helps ensure the government is not overpaying.

Public Impact

The primary beneficiaries are veterans and their families in Florida who will gain access to expanded burial and memorial services. The project delivers essential infrastructure improvements to the Florida National Cemetery. Geographic impact is concentrated in Florida, addressing regional demand for veteran burial plots. The contract supports jobs in the heavy and civil engineering construction sector within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extensive construction period.
Risk of schedule delays given the long duration and complexity of civil engineering projects.
Ensuring consistent quality control over a multi-year construction project can be challenging.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a thorough vetting of potential contractors.
The definitive contract structure implies a well-defined scope of work.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to public infrastructure development. The North American Industry Classification System (NAICS) code 237990 covers other heavy and civil engineering construction. Spending in this sector is often driven by government initiatives for infrastructure improvement and expansion. Comparable spending benchmarks would typically involve other large-scale public works projects, such as road construction, utility infrastructure, or other government facility expansions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). MGC Services A Joint Venture LLC is the prime contractor. There is no explicit information on subcontracting plans for small businesses within the provided data. The absence of a small business set-aside suggests that the competition was open to all eligible firms, and the prime contractor may or may not have a significant small business subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The definitive contract structure implies regular reporting and milestone reviews. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Federal Infrastructure Development
Heavy and Civil Engineering Construction Contracts

Risk Flags

Long project duration increases exposure to market fluctuations and potential scope creep.
Limited competition (2 bidders) may reduce price optimization for taxpayers.
Potential for unforeseen site conditions in civil engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $46.1 million to MGC SERVICES A JOINT VENTURE LLC. IGF::OT::IGF FLORIDA NATIONAL CEMETERY - PHASE IV EXPANSION

Who is the contractor on this award?

The obligated recipient is MGC SERVICES A JOINT VENTURE LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $46.1 million.

What is the period of performance?

Start: 2018-09-27. End: 2024-06-03.

What is the historical spending pattern of the Department of Veterans Affairs on cemetery expansion projects?

The Department of Veterans Affairs (VA) consistently invests in the expansion and maintenance of national cemeteries to meet the growing demand for veteran burial services. Historical spending data reveals a pattern of multi-year capital improvement projects, often awarded through competitive bidding processes. These projects can range from modest upgrades to significant expansions like the Florida National Cemetery project. For instance, in recent fiscal years, the VA has allocated substantial funds towards new cemetery construction and the expansion of existing facilities across the country. These investments are driven by demographic trends, including the aging veteran population and the increasing number of service members. Analyzing past awards for similar cemetery expansions, including their scope, duration, and final costs, would provide a clearer benchmark for the $46.1 million awarded to MGC Services A Joint Venture LLC.

How does the cost per square foot or per acre for this cemetery expansion compare to similar projects?

Determining a precise cost per square foot or per acre for this cemetery expansion is challenging without detailed project specifications regarding land acquisition, site preparation, landscaping, and infrastructure development (e.g., roads, utilities, administrative buildings). The provided data focuses on the total contract value of $46.1 million for a definitive contract awarded to MGC Services A Joint Venture LLC for the Florida National Cemetery - Phase IV Expansion. To benchmark this, one would need to compare it against other VA cemetery expansion projects or similar large-scale civil engineering construction projects that include extensive site development. Factors such as local labor costs, material prices, environmental regulations, and the specific scope of work (e.g., number of new burial plots, columbarium walls, memorial features) significantly influence per-unit costs. A comprehensive analysis would require access to detailed project breakdowns and comparable contract data.

What is the track record of MGC Services A Joint Venture LLC with the Department of Veterans Affairs?

Information regarding the specific track record of MGC Services A Joint Venture LLC with the Department of Veterans Affairs (VA) is not detailed in the provided data snippet. However, the award of a $46.1 million definitive contract for a significant infrastructure project like the Florida National Cemetery Phase IV Expansion suggests that the joint venture likely possesses relevant experience and capabilities that met the VA's requirements during the full and open competition process. To assess their track record thoroughly, one would typically review their past performance on similar government contracts, including their history with the VA, client satisfaction ratings, on-time delivery, and adherence to budget. Databases like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting systems (CPARS) would be primary sources for such an evaluation.

What are the key performance indicators (KPIs) used to measure the success of this cemetery expansion project?

Key Performance Indicators (KPIs) for a cemetery expansion project like this typically focus on successful completion within defined parameters. These would likely include adherence to the project schedule (measured by milestones and final completion date), staying within the firm fixed-price budget of $46.1 million, and meeting quality standards for all construction and landscaping work. Specific KPIs might also involve the number of new burial sites created, the functionality of new infrastructure (roads, drainage, utilities), and compliance with environmental and safety regulations. The Department of Veterans Affairs would establish these KPIs in the contract statement of work, and performance would be monitored by contracting officers and project managers throughout the contract duration.

How does the competition level (2 bidders) for this contract potentially impact taxpayer value?

A competition level with two bidders, as indicated for this $46.1 million contract, presents a mixed picture for taxpayer value. On one hand, having more than one bidder ensures some level of price discovery and prevents a sole-source situation, which is generally beneficial for taxpayers. It implies that MGC Services A Joint Venture LLC's offer was competitive. On the other hand, a higher number of bidders typically leads to more aggressive pricing and potentially better value. With only two bidders, there's a possibility that the competition was not as robust as it could have been, potentially leaving some room for higher-than-optimal pricing. The VA's evaluation process would have determined if the price offered by the selected contractor was fair and reasonable under the circumstances.

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: VA101-17-R-0415

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5324 VAN DYKE RD, LUTZ, FL, 33558

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $46,213,854

Exercised Options: $46,213,854

Current Obligation: $46,114,254

Actual Outlays: $6,438,187

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline