VA awards $16.3M contract for South Florida National Cemetery development to KEVCON, INC

Contract Overview

Contract Amount: $16,297,324 ($16.3M)

Contractor: Kevcon, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2008-08-28

End Date: 2016-04-29

Contract Duration: 2,801 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE 1B DEVELOPMENT SOUTH FLORIDA NATIONAL CEMETERY.

Place of Performance

Location: LAKE WORTH, PALM BEACH County, FLORIDA, 33449

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.3 million to KEVCON, INC for work described as: PHASE 1B DEVELOPMENT SOUTH FLORIDA NATIONAL CEMETERY. Key points: 1. Contract awarded to KEVCON, INC. for cemetery development. 2. Total contract value is $16.3 million. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Sector is Construction, specifically Other Heavy and Civil Engineering Construction.

Value Assessment

Rating: fair

The contract value of $16.3 million for cemetery development appears within a reasonable range for large-scale construction projects. Benchmarking against similar VA cemetery projects or large civil engineering contracts would provide a clearer picture of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited competitive environment, potentially impacting price discovery. While not sole-source, it indicates fewer bidders than a truly open competition.

Taxpayer Impact: The $16.3 million expenditure supports the development of a national cemetery, providing a valuable public service. The efficiency of the procurement process and final cost will determine the ultimate taxpayer impact.

Public Impact

Enhances national cemetery capacity for veterans. Supports local construction jobs and economic activity in Florida. Ensures dignified burial services for servicemen and women.

Waste & Efficiency Indicators

Waste Risk Score: 58 / 10

Warning Flags

Limited competition method may have inflated costs.
Contract duration is significantly long (2801 days).
Small business participation is not indicated.

Positive Signals

Addresses a critical need for veteran burial sites.
Firm Fixed Price contract provides cost certainty.
Awarded by the Department of Veterans Affairs, a mission-critical agency.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is vital for public infrastructure development. Spending benchmarks for similar cemetery construction projects are not readily available but large civil engineering projects can range from millions to billions.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss=false, sb=false). This suggests the prime contractor is likely a larger entity, and opportunities for small businesses may have been limited.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The long duration and fixed-price nature suggest a need for diligent oversight to ensure quality and adherence to scope, especially given the limited competition.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Extended contract duration increases risk of inflation and scope creep.
No indication of small business subcontracting opportunities.
Potential for cost overruns if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.3 million to KEVCON, INC. PHASE 1B DEVELOPMENT SOUTH FLORIDA NATIONAL CEMETERY.

Who is the contractor on this award?

The obligated recipient is KEVCON, 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 $16.3 million.

What is the period of performance?

Start: 2008-08-28. End: 2016-04-29.

What specific factors led to the exclusion of sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The exclusion of sources likely stemmed from specific technical requirements, unique capabilities, or geographical limitations that narrowed the pool of eligible bidders. This limited competition can sometimes lead to higher prices compared to a broader, more open bidding process, as fewer firms are vying for the contract. Further investigation into the solicitation documents would clarify the exact reasons for exclusion and their pricing implications.

Given the 2801-day duration, what are the primary risks associated with cost escalation and scope creep for this fixed-price contract?

A long contract duration like 2801 days on a fixed-price basis presents significant risks for cost escalation due to inflation, material price fluctuations, and labor cost increases over time. Scope creep is also a risk, as changes or additions to the original requirements, if not managed strictly through change orders, can erode profit margins or lead to disputes. Robust contract management and change control processes are crucial to mitigate these risks.

How effectively does this contract contribute to the VA's mission of providing timely and dignified burial services for veterans, considering the procurement method and duration?

The contract's effectiveness hinges on its ability to deliver a functional and well-maintained cemetery within the allocated budget and timeframe. While the firm fixed price offers cost certainty, the limited competition and extended duration raise questions about potential inefficiencies or delays. The ultimate effectiveness will be measured by the timely completion of the cemetery and its long-term operational success in serving veterans and their families.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: VA-101-07-IB-0039

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 246 E GRAND AVE, ESCONDIDO, CA, 92025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,297,324

Exercised Options: $16,297,324

Current Obligation: $16,297,324

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline