VA awards $23.9M construction contract for Lincoln National Cemetery, with 5 bidders competing

Contract Overview

Contract Amount: $23,946,212 ($23.9M)

Contractor: Kepa Services Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-08-18

End Date: 2017-05-26

Contract Duration: 2,473 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION AT ABRAHAM LINCOLN NATIONAL CEMETERY

Place of Performance

Location: ELWOOD, WILL County, ILLINOIS, 60421

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.9 million to KEPA SERVICES INC. for work described as: CONSTRUCTION AT ABRAHAM LINCOLN NATIONAL CEMETERY Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics suggest fair pricing was achieved. 3. No immediate risk indicators are apparent from the contract details. 4. Contract duration was substantial, spanning over 6 years. 5. This contract falls within the heavy and civil engineering construction sector. 6. The award was made by the Department of Veterans Affairs to Kepa Services Inc.

Value Assessment

Rating: good

The contract value of $23.9 million for construction services at Abraham Lincoln National Cemetery appears to be within a reasonable range for a project of this scope and duration. The presence of five bidders indicates a healthy level of competition, which typically drives more favorable pricing. Benchmarking against similar large-scale cemetery construction projects would provide further insight, but the competitive award suggests a good faith effort to secure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources may have been excluded prior to the final award. With five bidders participating, the competition level was moderate, suggesting that the exclusion of sources did not unduly limit the bidding pool. This level of competition generally allows for price discovery and encourages competitive bids.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from a reasonably competitive price, avoiding the potential overpayment associated with sole-source or very limited competition scenarios.

Public Impact

The primary beneficiaries are veterans and their families who will utilize the expanded and improved facilities at Abraham Lincoln National Cemetery. The contract delivered essential construction services for cemetery infrastructure. The geographic impact is localized to Illinois, specifically the Abraham Lincoln National Cemetery. The contract supported jobs within the construction sector in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause warrants further investigation to understand the rationale and impact on competition.
The long contract duration (over 6 years) could introduce risks related to cost escalation or scope creep if not managed effectively.

Positive Signals

The award was made under full and open competition, indicating a broad solicitation process.
The presence of five bidders suggests a healthy interest and competitive environment for this contract.
The contract was awarded to a single firm, implying a clear point of responsibility for project delivery.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to cemetery development and maintenance. The market for such specialized construction can be niche, often involving government agencies as primary clients. Comparable spending benchmarks would typically involve other national cemetery expansion projects or large-scale public works infrastructure, where competition levels can vary significantly based on project complexity and contractor availability.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this specific contract may not have directly benefited small businesses through set-asides, the prime contractor, Kepa Services Inc., may engage small businesses as subcontractors. The overall impact on the small business ecosystem would depend on the subcontracting plans and opportunities created.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details are not provided in this data.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Heavy and Civil Engineering Construction Contracts
Federal Cemetery Infrastructure Development

Risk Flags

Potential for cost escalation due to long contract duration.
Risk of scope creep over the multi-year performance period.
Need to verify the rationale behind 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.9 million to KEPA SERVICES INC.. CONSTRUCTION AT ABRAHAM LINCOLN NATIONAL CEMETERY

Who is the contractor on this award?

The obligated recipient is KEPA SERVICES 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 $23.9 million.

What is the period of performance?

Start: 2010-08-18. End: 2017-05-26.

What was the specific nature of the construction work performed under this contract?

The contract, identified by NAICS code 237990, falls under 'Other Heavy and Civil Engineering Construction.' While the specific details of the construction are not provided, this classification suggests work related to infrastructure development. For Abraham Lincoln National Cemetery, this could encompass expansion of burial areas, construction of new columbarium walls, roads, drainage systems, maintenance facilities, or administrative buildings. The definitive contract award type implies a flexible agreement for services over a period, potentially covering various construction needs as they arose during the contract's extended duration.

How does the final award price compare to the initial estimated cost, if available?

The provided data does not include the initial estimated cost for this contract, making a direct comparison to the final award price of $23,946,212.49 impossible. However, the fact that the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with five bidders suggests that the final price was a result of competitive bidding. In competitive scenarios, award prices often reflect market realities and can be lower than initial estimates if the bidding environment is robust. Without the estimate, it's difficult to definitively assess value for money in this regard.

What is the track record of Kepa Services Inc. with federal contracts, particularly with the Department of Veterans Affairs?

Kepa Services Inc. has been awarded this specific contract by the Department of Veterans Affairs (VA). To assess their track record, a broader search of federal procurement databases would be necessary to identify other contracts awarded to Kepa Services Inc. across various agencies. Analyzing the value, duration, type, and performance history of these other contracts, especially any previous work with the VA, would provide a more comprehensive understanding of their experience, reliability, and past performance in fulfilling federal obligations. The current data only confirms one significant award.

What are the potential risks associated with a definitive contract lasting over 6 years?

Definitive contracts with long durations, such as the 2,473 days (over 6 years) for this construction project, carry inherent risks. One primary risk is cost escalation due to inflation or unforeseen changes in material and labor costs over an extended period. Scope creep is another significant risk, where the project's requirements may expand beyond the original agreement, leading to increased costs and delays if not managed meticulously. Furthermore, maintaining consistent oversight and ensuring contractor performance remains high over such a long timeframe can be challenging for the contracting agency. Changes in agency priorities or funding could also impact the project's continuity.

How does the competition level of 5 bidders compare to typical construction contracts of this magnitude?

A competition level of five bidders for a federal construction contract valued at nearly $24 million is generally considered moderate to good. For large-scale infrastructure and construction projects, the number of interested and capable bidders can vary widely. Factors such as the specialized nature of the work, geographic location, bonding requirements, and the overall health of the construction industry influence competition. While more bidders could potentially drive prices lower, five bidders suggest a sufficiently competitive market that likely prevented a sole-source situation and allowed for reasonable price discovery, indicating a fair outcome for taxpayers.

Were there any performance issues or contract modifications noted during the contract's lifecycle?

The provided data does not contain information regarding performance issues or contract modifications for this specific contract. Typically, such details would be found in contract modification logs or performance reports maintained by the contracting agency. Without access to these records, it is impossible to determine if the contract experienced delays, cost overruns, or significant changes to its scope or terms after the initial award. The 'definitive contract' type might imply flexibility for modifications, but their occurrence and nature are not specified here.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2300 N MAYFAIR RD STE 100, MILWAUKEE, WI, 53226

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Labor Surplus Area Firm, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,946,214

Exercised Options: $23,946,214

Current Obligation: $23,946,212

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline