VA awards $18.3M for Bronze Markers, with 3 contracts awarded under full and open competition

Contract Overview

Contract Amount: $18,330,513 ($18.3M)

Contractor: Matthews International Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2008-01-01

End Date: 2011-09-30

Contract Duration: 1,368 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 78995.66 (B1) BRONZE MARKERS - 3RD QTR

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15226

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.3 million to MATTHEWS INTERNATIONAL CORPORATION for work described as: 78995.66 (B1) BRONZE MARKERS - 3RD QTR Key points: 1. Spending on bronze markers is a niche but essential service for the VA. 2. The contract was awarded to Matthews International Corporation, a significant player in the memorialization industry. 3. The contract duration is substantial, spanning over three years, indicating a long-term need. 4. The award value is significant for this specific product category.

Value Assessment

Rating: good

The total award value of $18.3M over 1368 days suggests a reasonable price point for bronze markers, considering the specialized nature of the product and the supplier's expertise. Benchmarking against similar VA contracts for memorialization services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process likely contributed to achieving a fair market price for the bronze markers.

Taxpayer Impact: Taxpayers benefit from competitive bidding, ensuring that funds are used efficiently for essential services like veteran memorialization.

Public Impact

Ensures dignified memorialization for deceased veterans. Supports the Department of Veterans Affairs' mission to provide comprehensive care and benefits. Contributes to the upkeep and beautification of national cemeteries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in raw materials (bronze).
Dependence on a single supplier for a critical component.
Logistical challenges in delivery and installation across multiple locations.

Positive Signals

Long-term contract provides stability and predictability.
Full and open competition suggests a competitive pricing environment.
Firm fixed price contract mitigates cost overrun risks for the VA.

Sector Analysis

The procurement falls under the 'Cut Stone and Stone Product Manufacturing' sector, which is a specialized industrial category. Spending benchmarks for this sector are difficult to establish due to its niche nature, but the VA's consistent need for memorialization services suggests this is a recurring expenditure.

Small Business Impact

The data indicates that this contract was not awarded to a small business. While the primary contractor is a large corporation, opportunities for small businesses may exist further down the supply chain for raw materials or related services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The use of full and open competition and a firm fixed price contract are positive indicators of oversight and accountability in the procurement process.

Related Government Programs

Cut Stone and Stone Product Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration may expose to future price volatility.
Sole-source potential if competition is limited in future renewals.
Dependence on specific manufacturing expertise.
Potential for material cost fluctuations impacting long-term value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.3 million to MATTHEWS INTERNATIONAL CORPORATION. 78995.66 (B1) BRONZE MARKERS - 3RD QTR

Who is the contractor on this award?

The obligated recipient is MATTHEWS INTERNATIONAL CORPORATION.

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 $18.3 million.

What is the period of performance?

Start: 2008-01-01. End: 2011-09-30.

What is the historical cost trend for bronze markers procured by the VA?

Analyzing historical cost trends for bronze markers procured by the VA would provide valuable context for the current award. Understanding past pricing fluctuations, the impact of inflation, and any changes in material costs can help determine if the current $18.3M award represents a fair value over time. This analysis could also reveal if previous competitive bidding processes yielded better or worse pricing.

What are the specific quality standards and durability requirements for these bronze markers?

The specific quality standards and durability requirements for these bronze markers are crucial for assessing their long-term value and effectiveness. High-quality materials and manufacturing processes should ensure longevity and resistance to environmental factors, minimizing the need for premature replacement. Understanding these specifications helps justify the $18.3M expenditure and ensures the markers meet the solemn purpose of honoring veterans.

Are there any potential supply chain risks associated with sourcing bronze for these markers?

Potential supply chain risks for bronze sourcing could include price volatility of raw materials, geopolitical instability affecting mining or refining operations, and transportation disruptions. The VA should ensure that Matthews International Corporation has robust contingency plans to mitigate these risks, ensuring a consistent supply of markers. Diversification of suppliers or long-term material contracts could be explored to enhance supply chain resilience.

Industry Classification

NAICS: Manufacturing › Other Nonmetallic Mineral Product Manufacturing › Cut Stone and Stone Product Manufacturing

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1315 W LIBERTY AVE, PITTSBURGH, PA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,330,513

Exercised Options: $18,330,513

Current Obligation: $18,330,513

Parent Contract

Parent Award PIID: VA786P0328

IDV Type: IDC

Timeline