VA Awards $25.5M for Western NY National Cemetery Construction, Facing Limited Competition

Contract Overview

Contract Amount: $25,464,915 ($25.5M)

Contractor: Global Urban Enterprises, L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-18

End Date: 2024-12-15

Contract Duration: 1,154 days

Daily Burn Rate: $22.1K/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: WESTERN NEW YORK NATIONAL CEMETERY PHASE 1B CONSTRUCTION

Place of Performance

Location: CORFU, GENESEE County, NEW YORK, 14036

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25.5 million to GLOBAL URBAN ENTERPRISES, L.L.C. for work described as: WESTERN NEW YORK NATIONAL CEMETERY PHASE 1B CONSTRUCTION Key points: 1. Significant investment in national cemetery infrastructure. 2. Competition was limited despite initial full and open intent. 3. Potential for cost overruns given the contract duration and fixed-price nature. 4. Construction sector is highly sensitive to material and labor costs.

Value Assessment

Rating: fair

The award of $25.5 million for construction appears reasonable given the scope. However, the lack of robust competition and the extended duration raise concerns about potential price escalations beyond initial estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a deviation from a purely open process. This limited competition may have impacted price discovery and potentially led to a higher final price than if broader competition had been maintained.

Taxpayer Impact: Taxpayer funds are being used for a critical infrastructure project. While necessary, the limited competition raises questions about maximizing value for money.

Public Impact

Ensures dignified burial for veterans in Western New York. Supports local economy through construction jobs and related services. Addresses growing need for national cemetery capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Extended contract duration
Firm Fixed Price on a long-term project

Positive Signals

Addresses critical veteran infrastructure need
Supports local employment

Sector Analysis

The construction sector is experiencing volatility in material and labor costs. Projects of this scale require careful management to mitigate risks associated with inflation and supply chain disruptions.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this project. Robust oversight is crucial to ensure quality, adherence to schedule, and cost control, especially given the contract's duration and limited competition.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to long duration and fixed price
Limited competition may have inflated price
Lack of small business award
Contract awarded after exclusion of sources

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25.5 million to GLOBAL URBAN ENTERPRISES, L.L.C.. WESTERN NEW YORK NATIONAL CEMETERY PHASE 1B CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is GLOBAL URBAN ENTERPRISES, L.L.C..

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 $25.5 million.

What is the period of performance?

Start: 2021-10-18. End: 2024-12-15.

What specific factors led to the exclusion of sources after initial full and open competition?

The specific reasons for excluding sources after the initial full and open competition phase are not detailed in the provided data. Typically, such exclusions might stem from contractor qualifications, bid responsiveness, or strategic sourcing decisions by the agency. Understanding these factors is crucial for assessing the integrity of the procurement process and its impact on competition.

How will the firm-fixed-price contract mitigate risks associated with the 1154-day duration and potential market fluctuations?

A firm-fixed-price contract aims to transfer risk to the contractor, providing cost certainty for the government. However, for a project spanning over three years, significant market fluctuations in labor and materials could strain the contractor, potentially leading to claims for equitable adjustments or impacting project quality if not managed proactively. The VA's oversight will be critical.

What is the projected impact of this construction project on the local economy in Western New York?

This $25.5 million construction project is expected to have a positive impact on the local economy in Western New York. It will create numerous jobs in the construction trades and related fields, stimulate demand for local suppliers and services, and contribute to the region's economic activity during the project's duration. The long-term benefit includes enhanced veteran services.

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: 36C10F21R0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6605 PITTSFORD PALMYRA RD STE E10, FAIRPORT, NY, 14450

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

Financial Breakdown

Contract Ceiling: $25,464,915

Exercised Options: $25,464,915

Current Obligation: $25,464,915

Actual Outlays: $10,014,938

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline