VA awards $78.5M contract for Tahoma National Cemetery Phase 3, with Seabee Construction Inc. as prime

Contract Overview

Contract Amount: $78,466,361 ($78.5M)

Contractor: Seabee Construction, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-31

End Date: 2027-06-15

Contract Duration: 957 days

Daily Burn Rate: $82.0K/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 TAHOMA NATIONAL CEMETERY PHASE 3 DEVELOPMENT

Place of Performance

Location: COVINGTON, KING County, WASHINGTON, 98042

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $78.5 million to SEABEE CONSTRUCTION, INC. for work described as: CONSTRUCTION OF TAHOMA NATIONAL CEMETERY PHASE 3 DEVELOPMENT Key points: 1. Contract value represents a significant investment in national cemetery infrastructure. 2. The definitive contract structure suggests a need for flexibility during project execution. 3. Fixed-price award indicates a degree of cost certainty for the government. 4. Project duration of 957 days points to a complex and lengthy construction undertaking. 5. The award to Seabee Construction, Inc. warrants examination of their past performance and capacity. 6. Geographic focus on Washington state highlights regional needs for veteran burial services.

Value Assessment

Rating: fair

The contract value of $78.5 million for cemetery construction appears substantial. Benchmarking against similar large-scale civil engineering projects would be necessary to determine if this represents good value. The firm fixed-price nature provides some cost control, but the long duration could introduce risks. Without specific cost breakdowns or comparisons to similar cemetery development projects, a definitive value assessment is challenging.

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 competition was sought, certain sources may have been excluded, potentially limiting the bidder pool. The presence of two bidders suggests some level of competition, but the exclusion of sources raises questions about the breadth of the competition and its impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price than if all potential sources had been included. Taxpayers may not have received the most competitive pricing possible.

Public Impact

Veterans and their families in Washington state will benefit from expanded burial capacity at Tahoma National Cemetery. The project will deliver essential infrastructure development for a national cemetery. The geographic impact is concentrated in Washington state, addressing regional demand. Construction activities will likely create employment opportunities for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the long project duration and definitive contract type.
Risk of contractor performance issues given the scale and complexity of the project.
Limited competition may have led to a suboptimal price for taxpayers.
Uncertainty regarding the specific reasons for excluding certain sources from the competition.

Positive Signals

Firm fixed-price award provides a degree of cost certainty.
Award to a single contractor streamlines project management.
The project addresses a critical need for veteran burial services.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to public infrastructure development. The market for large-scale construction projects, particularly for government facilities, is competitive but often involves specialized contractors. The value of this single contract is significant within its niche, contributing to the broader construction industry's activity in the Pacific Northwest.

Small Business Impact

The provided data does not indicate any small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting and project management offices. Accountability measures will be tied to the contract's performance milestones and adherence to the firm fixed-price terms. Transparency may be limited by the 'exclusion of sources' aspect of the competition, but contract award details are publicly available.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Federal Civil Engineering Contracts
Large-Scale Public Infrastructure Development

Risk Flags

Limited competition may impact price.
Long project duration increases risk of cost escalation.
Contract type (definitive) may allow for scope changes.
Justification for source exclusion needs review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $78.5 million to SEABEE CONSTRUCTION, INC.. CONSTRUCTION OF TAHOMA NATIONAL CEMETERY PHASE 3 DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is SEABEE CONSTRUCTION, INC..

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 $78.5 million.

What is the period of performance?

Start: 2024-10-31. End: 2027-06-15.

What is the track record of Seabee Construction, Inc. on similar government contracts, particularly in terms of performance, cost adherence, and safety?

A thorough review of Seabee Construction, Inc.'s past performance is crucial. This would involve examining their contract history with the federal government, specifically looking at projects of similar scale and complexity within the civil engineering and construction domains. Key metrics to assess include on-time completion rates, adherence to budget, quality of work, and any instances of disputes, claims, or contract terminations. Safety records and any reported incidents are also vital indicators of contractor reliability. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be essential for this analysis.

How does the awarded price of $78.5 million compare to industry benchmarks for similar cemetery construction projects of this scale?

Benchmarking the $78.5 million award requires detailed cost data and comparisons with similar projects. This would involve researching recent cemetery construction projects of comparable size and scope, considering factors like land development, infrastructure (roads, utilities), landscaping, and administrative facilities. Analyzing cost per acre or cost per burial space for similar projects can provide a valuable comparison point. Without access to detailed cost breakdowns or a database of comparable projects, it is difficult to definitively state whether this represents a competitive price. However, the firm fixed-price nature suggests the government sought to lock in costs.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and how might they impact project cost and quality?

The 'exclusion of sources' aspect of the competition introduces a significant risk by potentially limiting the number of qualified bidders. This can lead to reduced price competition, potentially resulting in a higher contract price than if a broader range of contractors had been allowed to bid. It also raises questions about the fairness and transparency of the procurement process. Furthermore, if the excluded sources were highly capable, the government might miss out on innovative solutions or specialized expertise, potentially impacting project quality or efficiency. Understanding the justification for excluding sources is critical to assessing these risks.

Given the 957-day duration, what are the primary factors contributing to the project timeline, and what are the associated risks for cost and schedule?

The 957-day duration (approximately 2.6 years) for the Tahoma National Cemetery Phase 3 development suggests a complex project involving extensive site work, infrastructure development, and potentially phased construction. Factors contributing to this timeline could include large-scale earthmoving, intricate utility installations, landscaping, and the construction of various cemetery structures. The primary risks associated with such a long duration include potential escalation of material and labor costs, unforeseen site conditions, weather delays, and potential changes in project requirements. Managing these risks effectively will be crucial for the contractor to adhere to the firm fixed-price contract and for the VA to ensure timely delivery of the completed cemetery.

What is the historical spending pattern for Tahoma National Cemetery development, and how does this $78.5 million award fit into that trend?

Analyzing historical spending for Tahoma National Cemetery development is key to contextualizing this award. This would involve reviewing past contracts awarded for previous phases of the cemetery's construction and expansion. Understanding the total investment over time, the types of services procured, and the average contract values for prior phases can reveal trends in development pace and cost. This $78.5 million award represents a significant single investment, likely indicating a major expansion phase. Comparing its value and scope to previous phases will help determine if it aligns with or deviates from historical spending patterns, potentially signaling accelerated development or increased project complexity.

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: 36C10F24R0011

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14777 SE CROSSCREEK CT, DAMASCUS, OR, 97089

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

Financial Breakdown

Contract Ceiling: $78,466,361

Exercised Options: $78,466,361

Current Obligation: $78,466,361

Actual Outlays: $43,292,358

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline