VA awards $20M for gravesite development, with Laguna Construction Company securing the fixed-price contract

Contract Overview

Contract Amount: $20,042,093 ($20.0M)

Contractor: Laguna Construction Company, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2004-03-15

End Date: 2008-04-30

Contract Duration: 1,507 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRAVESITE DEVELOPMENT

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.0 million to LAGUNA CONSTRUCTION COMPANY, INC for work described as: GRAVESITE DEVELOPMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 3. Contract duration of 1507 days indicates a long-term project with sustained effort. 4. The award amount of approximately $20 million represents a significant investment in infrastructure. 5. No small business set-aside was utilized, indicating the primary awardee was not a small business. 6. The contract falls under 'Other Heavy and Civil Engineering Construction', a broad category.

Value Assessment

Rating: fair

Benchmarking gravesite development contracts is challenging due to the specialized nature of the work and varying project scopes. The firm fixed-price structure is generally favorable for cost control. However, without specific details on the scope of work, deliverables, and comparable project costs, a definitive value-for-money assessment is difficult. The contract's duration suggests a substantial project, and the award amount aligns with significant infrastructure development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. With 3 bidders, the competition level appears moderate. This suggests that while there was some competition, it may not have been as robust as in scenarios with a larger number of bids, potentially impacting the final price achieved.

Taxpayer Impact: A moderate level of competition can lead to a reasonably competitive price for taxpayers, but a higher number of bidders might have driven the price down further.

Public Impact

The primary beneficiaries are veterans and their families who will have access to developed gravesite facilities. Services delivered include heavy and civil engineering construction, likely involving site preparation, landscaping, and infrastructure for burial sites. The geographic impact is centered in Colorado, as indicated by the 'sn' field. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Long contract duration could lead to scope creep or changes in requirements over time.
Limited competition may have resulted in a higher-than-optimal price.

Positive Signals

Firm fixed-price contract mitigates cost uncertainty for the government.
Full and open competition provides a baseline for fair pricing.
Contractor's experience in heavy and civil engineering construction is likely a positive factor.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of infrastructure projects. The market for such services is generally large and competitive, driven by government and private sector needs for development and maintenance. Comparable spending benchmarks would depend heavily on the specific type of gravesite development and its scale, but the $20 million award suggests a significant undertaking.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This indicates that the primary awardee, Laguna Construction Company, Inc., is likely not a small business. There is no explicit information on subcontracting plans for small businesses, which could represent missed opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs (VA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified work within the agreed price. Transparency is generally provided through contract award databases, though detailed project oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Veterans Affairs Cemetery Development Projects
Federal Construction Contracts
Heavy and Civil Engineering Services
Infrastructure Development

Risk Flags

Long contract duration increases risk of scope creep and unforeseen cost increases.
Moderate number of bidders may indicate less competitive pricing than ideal.
Lack of small business set-aside may limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.0 million to LAGUNA CONSTRUCTION COMPANY, INC. GRAVESITE DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is LAGUNA CONSTRUCTION COMPANY, 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 $20.0 million.

What is the period of performance?

Start: 2004-03-15. End: 2008-04-30.

What is the track record of Laguna Construction Company, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

Laguna Construction Company, Inc. has a history of federal contracting. While specific details of their track record with the VA would require a deeper dive into federal procurement databases, their ability to win a $20 million contract suggests they have experience and capability. Analyzing past performance reviews, past performance on similar projects, and any history of contract disputes or awards would provide a clearer picture of their reliability and effectiveness as a federal contractor. Their success in securing this contract indicates they met the VA's requirements for this significant gravesite development project.

How does the $20 million award compare to typical gravesite development projects funded by the VA or other federal agencies?

The $20 million award for gravesite development is a substantial sum, suggesting a large-scale project. Typical gravesite development projects can vary widely in cost depending on factors such as the size of the cemetery, the complexity of the terrain, the scope of landscaping, the need for new infrastructure (roads, utilities, columbarium walls), and the number of burial plots to be created. Smaller projects might range from a few hundred thousand to a few million dollars. A $20 million contract indicates a significant expansion or development of a major national or state veterans cemetery, likely involving extensive civil engineering and construction work over an extended period.

What are the primary risks associated with a firm fixed-price contract for a project of this duration and scope?

The primary risk with a firm fixed-price contract, especially for a long-duration project like this (1507 days), is that the contractor may incur costs exceeding the agreed-upon price due to unforeseen circumstances. While the contractor assumes most of the financial risk, significant issues like unexpected subsurface conditions (rock, groundwater), material price escalations beyond what was reasonably anticipated, or labor shortages could strain the contractor's ability to complete the project profitably. For the government, the risk is that the contractor might cut corners on quality or scope to maintain profitability if costs rise unexpectedly, necessitating close oversight to ensure contract compliance and quality standards are met.

What specific performance metrics or deliverables are likely being tracked for this gravesite development contract?

For a gravesite development contract, key performance metrics and deliverables would likely include adherence to project schedules, quality of construction (e.g., proper grading, drainage, landscaping, structural integrity of any built elements like roads or walls), compliance with environmental regulations, and completion of specific phases of development (e.g., site preparation, plot layout, infrastructure installation). Deliverables would encompass completed burial sections, functional access roads and pathways, completed utility connections, and final landscaping. The VA would likely require regular progress reports, site inspections, and potentially milestone payments tied to the successful completion of defined project stages.

How has federal spending on veterans' cemetery development evolved over the past decade, and does this contract align with trends?

Federal spending on veterans' cemetery development has generally seen consistent investment, driven by the commitment to honor service members and provide burial options. The Department of Veterans Affairs (VA) National Cemetery Administration (NCA) manages a network of cemeteries and continuously invests in expansion and maintenance. Spending trends are influenced by factors such as the aging veteran population, the need to establish new cemeteries in underserved regions, and the upkeep of existing facilities. A $20 million contract for development aligns with the ongoing need for significant infrastructure projects to accommodate the growing demand for burial spaces and maintain the dignity of national cemeteries. Specific year-over-year spending data would be needed to confirm precise alignment with trends, but the scale suggests a project addressing a notable need.

What is the potential impact of Laguna Construction Company, Inc. being the sole awardee on price discovery and market competition?

When a single contractor is the sole awardee of a significant contract, it can have implications for price discovery and market competition. In this case, while the contract was awarded under 'full and open competition' with three bidders, the fact that only one company, Laguna Construction Company, Inc., ultimately won the award means that the price was determined by the bids submitted by those three entities. If the number of bidders had been higher, or if there had been more intense competition among the three, the final negotiated price might have been lower. The sole awardee status means that taxpayers are relying on the competitiveness of the initial bidding process to ensure a fair price, rather than ongoing competition driving further price reductions.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: I-40 WEST EXIT 114, LAGUNA, NM, 02

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,042,093

Exercised Options: $20,042,093

Current Obligation: $20,042,093

Timeline