VA awards $26.4M cemetery construction contract to C & C Contractors LLC, highlighting firm-fixed-price structure

Contract Overview

Contract Amount: $26,390,113 ($26.4M)

Contractor: C & C Contractors LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-01-30

End Date: 2023-07-31

Contract Duration: 1,643 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT CONSTRUCTION NAT'L CEMETERY OF THE ALLEGHENIES PHASE 3IGT::OT

Place of Performance

Location: BRIDGEVILLE, ALLEGHENY County, PENNSYLVANIA, 15017

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.4 million to C & C CONTRACTORS LLC for work described as: IGF::OT CONSTRUCTION NAT'L CEMETERY OF THE ALLEGHENIES PHASE 3IGT::OT Key points: 1. Contract awarded using full and open competition after exclusion of sources, suggesting a deliberate selection process. 2. The firm-fixed-price contract type generally offers cost certainty for the government. 3. The contract duration of 1643 days indicates a significant, long-term construction project. 4. The project is located in Pennsylvania, potentially impacting local construction workforce and businesses. 5. The National Cemetery of the Alleghenies Phase 3 project signifies ongoing investment in veteran memorial infrastructure. 6. The award to C & C Contractors LLC represents a substantial commitment to a single entity for this phase.

Value Assessment

Rating: good

The contract value of $26.4 million for Phase 3 of the National Cemetery of the Alleghenies construction appears reasonable for a project of this scale and duration. While direct comparisons are difficult without specific project scope details, large-scale civil engineering and construction projects for federal facilities often fall within this range. The firm-fixed-price structure suggests that the contractor assumed the majority of the cost risk, which can be beneficial for the government if managed effectively. Benchmarking against similar cemetery construction or large civil works projects would provide a more precise value 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 indicates that while the competition was intended to be open, specific sources were excluded prior to the solicitation. The number of bidders is not explicitly stated in the provided data, but the 'exclusion of sources' suggests a potentially narrowed field from the outset. This procurement method can sometimes lead to less competitive pricing if the exclusion criteria are not well-justified or if it significantly limits the pool of qualified bidders.

Taxpayer Impact: The exclusion of sources, even within a framework of open competition, warrants scrutiny to ensure that the government obtained the best possible value and that the exclusion criteria were justified and did not unduly restrict competition, potentially impacting taxpayer funds.

Public Impact

Veterans and their families will benefit from the expansion and improvement of the National Cemetery of the Alleghenies, providing enhanced burial and memorial services. The contract will facilitate the construction of essential infrastructure within the cemetery, likely including new burial sections, roadways, and support facilities. The project's geographic impact is concentrated in Pennsylvania, supporting the state's role in providing national cemeteries. The construction activities will likely create employment opportunities for skilled trades and laborers within the local Pennsylvania workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method raises questions about whether the full spectrum of potential bidders was considered, potentially limiting price discovery.
The long contract duration (1643 days) increases the risk of cost overruns due to unforeseen construction challenges or material price fluctuations, despite the firm-fixed-price structure.
Lack of specific details on the scope of 'Phase 3' makes it difficult to fully assess the value proposition and compare it to industry benchmarks.

Positive Signals

The use of a firm-fixed-price contract type provides cost certainty for the government, transferring most of the cost risk to the contractor.
The award to a single contractor for a significant phase of a national project suggests a potentially streamlined execution and management approach.
The project addresses a critical need for veteran burial spaces and memorialization, aligning with national priorities.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to public infrastructure development. The market for federal construction projects is substantial, with agencies like the Department of Veterans Affairs consistently investing in facilities. Comparable spending benchmarks would involve analyzing other large-scale civil engineering contracts awarded by federal agencies for infrastructure projects, such as road construction, utility upgrades, or other public works, considering factors like project complexity and location.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary focus was on securing a qualified contractor for a large-scale project, potentially through full and open competition. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal for this prime contract, but opportunities may arise through subcontracting if C & C Contractors LLC engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within the agreed price. Transparency is generally maintained through contract award databases and public reporting, although specific project oversight details are not provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Asset Fund
Federal Civil Engineering and Construction Contracts
Public Infrastructure Development Projects

Risk Flags

Potential for reduced competition due to source exclusion.
Risk of cost overruns or quality issues in long-duration FFP contracts.
Lack of detailed scope information for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.4 million to C & C CONTRACTORS LLC. IGF::OT CONSTRUCTION NAT'L CEMETERY OF THE ALLEGHENIES PHASE 3IGT::OT

Who is the contractor on this award?

The obligated recipient is C & C CONTRACTORS 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 $26.4 million.

What is the period of performance?

Start: 2019-01-30. End: 2023-07-31.

What specific construction activities are included in Phase 3 of the National Cemetery of the Alleghenies project?

The provided data does not detail the specific construction activities encompassed by Phase 3 of the National Cemetery of the Alleghenies project. However, given the nature of cemetery expansion and the 'Other Heavy and Civil Engineering Construction' NAICS code (237990), Phase 3 likely involves significant earthwork, site preparation, construction of new burial sections, installation of infrastructure such as roads, drainage systems, irrigation, and potentially new columbarium walls or administrative facilities. Further details would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in the provided summary data.

How does the $26.4 million award compare to previous phases or similar national cemetery construction projects?

Without specific data on previous phases of the National Cemetery of the Alleghenies or comparable national cemetery construction projects, a direct comparison of the $26.4 million award is challenging. However, the value suggests a substantial undertaking. Federal cemetery construction projects can vary widely in cost depending on land acquisition, site complexity, the number of burial plots to be developed, and the scope of supporting infrastructure. The Department of Veterans Affairs (VA) manages numerous cemetery projects, and their capital budgets often reflect multi-million dollar investments for expansions and new facilities. To benchmark effectively, one would need to analyze the scope, duration, and specific deliverables of other similar VA cemetery projects or large civil engineering contracts awarded by other federal agencies.

What are the potential risks associated with a firm-fixed-price contract for a project spanning over 1600 days?

While firm-fixed-price (FFP) contracts offer cost certainty to the government, a long duration of 1643 days (over 4.5 years) introduces specific risks. The primary risk is that the contractor may encounter unforeseen site conditions, material price escalations, or labor shortages that significantly increase their costs beyond initial estimates. If the FFP was set too low due to aggressive bidding or inadequate cost estimation by the contractor, they might face financial distress or attempt to cut corners on quality to maintain profitability. Conversely, if the FFP was set too high, the government may overpay. Effective contract administration, including monitoring progress and ensuring compliance with specifications, is crucial to mitigate these risks and ensure the project's successful completion within the agreed-upon price.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the bidding process and potential savings?

The term 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a procurement process where the solicitation was made available to all responsible sources, but certain potential sources were excluded prior to or during the solicitation process. This exclusion must be justified by the agency, often based on factors like past performance, technical capabilities, or specific requirements. While it aims for broad competition, the exclusion of sources can potentially limit the number of bidders, which might reduce competitive pressure and, consequently, the potential for significant cost savings compared to a truly unrestricted full and open competition. The justification for exclusion is key to understanding if this approach maximized value for taxpayers.

What is the significance of the NAICS code 237990 for this contract?

The North American Industry Classification System (NAICS) code 237990 designates 'Other Heavy and Civil Engineering Construction.' This classification is significant as it defines the primary business activity of the contractor and the nature of the work being performed. Contracts under this code typically involve the construction of infrastructure projects that are not elsewhere classified, such as highways, streets, bridges, tunnels, water and sewer systems, pipelines, and power line infrastructure. For the National Cemetery of the Alleghenies Phase 3, this NAICS code indicates the project involves substantial civil engineering work, likely including site development, grading, utility installation, and construction of large-scale physical structures integral to cemetery operations and expansion.

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: 36C10F18R0651

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 209 LYON ST, NOTASULGA, AL, 36866

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,390,113

Exercised Options: $26,390,113

Current Obligation: $26,390,113

Actual Outlays: $3,066,166

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline