VA Awards $35.4M Sacramento Cemetery Expansion to SGC Services, LLC
Contract Overview
Contract Amount: $35,358,988 ($35.4M)
Contractor: SGC Services, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2019-01-25
End Date: 2021-05-31
Contract Duration: 857 days
Daily Burn Rate: $41.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF SACRAMENTO VALLEY NATIONAL CEMETERY PHASE II
Place of Performance
Location: DIXON, SOLANO County, CALIFORNIA, 95620
Plain-Language Summary
Department of Veterans Affairs obligated $35.4 million to SGC SERVICES, LLC for work described as: CONSTRUCTION OF SACRAMENTO VALLEY NATIONAL CEMETERY PHASE II Key points: 1. Contract awarded for cemetery expansion in California. 2. SGC Services, LLC is the primary contractor. 3. The contract falls under 'Other Heavy and Civil Engineering Construction'. 4. This is a firm fixed-price contract.
Value Assessment
Rating: good
The contract value of $35.4 million for cemetery construction appears reasonable given the scope. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests a limited competition, potentially impacting price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for a significant infrastructure project. The limited competition may have resulted in a higher price than if broader competition was pursued.
Public Impact
Enhances burial capacity at a national cemetery. Supports veterans and their families by providing dignified final resting places. Contributes to local economy through construction jobs and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Potential for cost overruns in large construction projects.
Positive Signals
- Addresses a clear need for veteran burial space.
- Firm fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is crucial for public infrastructure. Spending benchmarks for similar national cemetery expansions would be relevant for a detailed comparison.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were adequately pursued.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The firm fixed-price nature of the contract should help control costs, but monitoring progress and quality is essential.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition
- Potential for construction cost overruns
- Lack of small business participation noted
Tags
other-heavy-and-civil-engineering-constr, department-of-veterans-affairs, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $35.4 million to SGC SERVICES, LLC. CONSTRUCTION OF SACRAMENTO VALLEY NATIONAL CEMETERY PHASE II
Who is the contractor on this award?
The obligated recipient is SGC SERVICES, 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 $35.4 million.
What is the period of performance?
Start: 2019-01-25. End: 2021-05-31.
What was the rationale for excluding sources in the full and open competition?
The rationale for excluding sources in the full and open competition needs further investigation. Typically, such exclusions are based on specific technical requirements, past performance, or unique capabilities. Understanding this justification is key to assessing whether the limited competition was appropriate and if it potentially limited the government's ability to secure the best value.
What are the key performance indicators for this construction project and how are they being monitored?
Key performance indicators for this construction project likely include adherence to schedule, budget, quality standards, and safety regulations. The Department of Veterans Affairs should have a robust monitoring system in place, potentially involving site inspections, progress reports, and quality assurance checks, to ensure the project is delivered successfully and taxpayer funds are used effectively.
How does the final cost compare to the initial estimated cost for this cemetery expansion?
Comparing the final awarded cost of $35.4 million to the initial estimated cost is crucial for evaluating financial effectiveness. If the awarded amount is significantly higher than estimates, it warrants scrutiny into the bidding process and potential changes in project scope or market conditions. Conversely, if it's within estimates, it suggests good planning and negotiation.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C10F18R0581
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2213 SE COCHRAN DR, GRESHAM, OR, 97080
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $35,358,988
Exercised Options: $35,358,988
Current Obligation: $35,358,988
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2019-01-25
Current End Date: 2021-05-31
Potential End Date: 2021-05-31 00:00:00
Last Modified: 2022-10-06
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