VA awards $24.7M for Western New York National Cemetery expansion, highlighting construction needs

Contract Overview

Contract Amount: $24,655,346 ($24.7M)

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

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-16

End Date: 2026-01-24

Contract Duration: 831 days

Daily Burn Rate: $29.7K/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: CONSTRUCTION OF THE WESTERN NEW YORK NATIONAL CEMETERY PHASE 1C EXPANSION PROJECT

Place of Performance

Location: CORFU, GENESEE County, NEW YORK, 14036

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.7 million to GLOBAL URBAN ENTERPRISES, L.L.C. for work described as: CONSTRUCTION OF THE WESTERN NEW YORK NATIONAL CEMETERY PHASE 1C EXPANSION PROJECT Key points: 1. Contract addresses critical infrastructure development for veteran services. 2. Competition level suggests a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration indicates a significant, multi-year construction effort. 5. Geographic focus on New York highlights regional veteran support initiatives.

Value Assessment

Rating: good

The contract value of $24.7 million for cemetery expansion appears reasonable given the scope of a Phase 1C project. Benchmarking against similar large-scale construction projects for national cemeteries would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost overruns, which is a positive indicator for fiscal responsibility. However, without detailed cost breakdowns or comparisons to similar projects' per-square-foot costs, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that all responsible prospective contractors 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 bids typically leads to more robust price discovery and potentially lower prices for the government. The specific reasons for excluding other sources, if any, are not detailed here.

Taxpayer Impact: The full and open competition, despite only two bidders, provides a baseline for price comparison and encourages future competition. Taxpayers benefit from the assurance that the contract was not awarded without a fair chance for multiple companies to compete.

Public Impact

Benefits veterans and their families by expanding burial space and facilities at the Western New York National Cemetery. Delivers essential construction services for a significant public infrastructure project. Geographic impact is concentrated in the Western New York region, serving local veteran communities. Workforce implications include job creation for construction workers and related trades in the area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays due to weather, material availability, or labor issues.
Ensuring quality of construction meets long-term durability standards for a national cemetery.

Positive Signals

Firm fixed-price contract helps mitigate budget uncertainty.
Full and open competition, even with limited bidders, promotes accountability.
Project addresses a clear and documented need for expanded veteran burial capacity.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for government construction projects, particularly for national infrastructure like cemeteries, is substantial. This project represents a specific investment in veteran affairs infrastructure, distinct from general commercial or residential building. Comparable spending benchmarks would involve analyzing other large-scale public works projects or similar cemetery development contracts awarded by federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was awarded to Global Urban Enterprises, L.L.C., and there is no indication of small business set-asides or subcontracting requirements being explicitly mentioned in this summary. Further investigation into the contractor's subcontracting plan would be necessary to determine the extent of small business involvement. The absence of specific SMB provisions could limit opportunities for smaller firms in this particular project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs (VA) contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract type, which places the onus on the contractor to deliver within budget. Transparency is facilitated by public contract databases, though detailed project progress reports may not be publicly available. The VA Office of Inspector General may conduct audits or investigations if specific concerns regarding performance or financial integrity arise.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Federal Public Building Construction
Veteran Burial Benefits Programs

Risk Flags

Limited competition (2 bidders)
Potential for schedule delays
Risk of unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.7 million to GLOBAL URBAN ENTERPRISES, L.L.C.. CONSTRUCTION OF THE WESTERN NEW YORK NATIONAL CEMETERY PHASE 1C EXPANSION PROJECT

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 $24.7 million.

What is the period of performance?

Start: 2023-10-16. End: 2026-01-24.

What is the historical spending pattern for the Western New York National Cemetery expansion projects?

Analyzing historical spending for the Western New York National Cemetery expansion requires examining previous contract awards related to this facility. The current contract, valued at approximately $24.7 million, represents Phase 1C. To understand the full historical context, one would need to identify and aggregate the costs of prior phases (Phase 1A, 1B, etc.) and any associated planning, design, or land acquisition expenses. This would reveal the total investment in the cemetery's development over time and identify any trends in project costs or scope. Without access to specific historical contract data for this cemetery, it's difficult to provide precise figures, but federal cemetery construction typically involves multi-phase developments over several years, with costs escalating due to inflation and expanded requirements.

How does the per-unit cost of this cemetery expansion compare to similar federal construction projects?

A precise per-unit cost comparison for this $24.7 million cemetery expansion is challenging without knowing the specific deliverables (e.g., number of burial plots, square footage of facilities, type of infrastructure). However, federal construction projects, especially those involving specialized facilities like national cemeteries, often have higher per-unit costs than standard commercial buildings due to stringent design, material, and security requirements. For instance, if this contract covers the development of 10,000 new burial plots and associated infrastructure, the cost per plot would be approximately $2,470. Comparing this figure to the cost per plot for other recently awarded national cemetery expansion contracts, or even large-scale public works projects, would reveal if this project is within the expected range. Factors like geographic location (labor and material costs), site complexity, and the specific amenities included significantly influence these comparisons.

What are the primary risks associated with this specific construction contract?

The primary risks associated with this construction contract include potential cost overruns due to unforeseen site conditions, such as difficult soil, underground obstructions, or environmental remediation needs, which are common in large-scale civil engineering and construction projects. Schedule delays are another significant risk, stemming from factors like adverse weather impacting outdoor work, supply chain disruptions affecting material delivery, or labor shortages in skilled trades. Furthermore, ensuring the long-term quality and durability of the construction is critical for a national cemetery; any defects or premature failures could lead to substantial repair costs and reputational damage. The firm fixed-price nature of the contract shifts much of the financial risk to the contractor, but disputes over scope changes or unforeseen conditions can still lead to claims and delays.

What is the track record of Global Urban Enterprises, L.L.C. with federal construction contracts?

Global Urban Enterprises, L.L.C. has a track record of performing federal construction contracts, as evidenced by this award from the Department of Veterans Affairs. To fully assess their track record, a review of their past performance ratings on federal contracts (e.g., through the Contractor Performance Assessment Reporting System - CPARS), the types and values of previous contracts, and any history of disputes or contract terminations would be necessary. Their experience with similar projects, particularly those involving institutional or public infrastructure, would be a key indicator of their capability. A positive performance history suggests a lower risk of project failure, while a history of issues might warrant closer scrutiny of their current project management and execution capabilities.

How does the competition level (2 bidders) impact the value for taxpayers?

A competition level with only two bidders, as seen in this contract award, presents a mixed picture for taxpayer value. On one hand, having multiple bidders ensures some level of price discovery and prevents a sole-source situation where costs could be inflated. The government can leverage the competition to negotiate a better price than if only one company was considered. However, a more robust competition, typically involving three or more bidders, generally leads to more aggressive pricing and a wider range of innovative solutions. With only two bidders, there's a risk that the winning bid might not represent the absolute best value achievable, potentially leading to higher costs for taxpayers than if the field had been broader. The specific nature of the project and the availability of qualified contractors in the region also play a role in determining the effective level of competition.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: 36C10F23R0012

Offers Received: 2

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: $27,605,346

Exercised Options: $24,655,346

Current Obligation: $24,655,346

Actual Outlays: $23,776,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline