VA awards $20.2M for Tahoma National Cemetery improvements, with 12 bids received

Contract Overview

Contract Amount: $20,246,738 ($20.2M)

Contractor: US Builders Group Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-04-30

End Date: 2017-03-15

Contract Duration: 1,780 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE 2 GRAVESITE DEVELOPMENT&CEMETERY IMPROVEMENTS TAHOMA NATIONAL CEMETERY KENT, WA

Place of Performance

Location: COVINGTON, KING County, WASHINGTON, 98042

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.2 million to US BUILDERS GROUP INC. for work described as: PHASE 2 GRAVESITE DEVELOPMENT&CEMETERY IMPROVEMENTS TAHOMA NATIONAL CEMETERY KENT, WA Key points: 1. Contract value represents a significant investment in national cemetery infrastructure. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Definitive contract type indicates a long-term agreement for services. 4. Firm fixed-price structure aims to control costs for the government. 5. Project duration of nearly five years suggests a complex scope of work. 6. Award to US Builders Group Inc. warrants review of their past performance. 7. Geographic focus on Washington state highlights regional infrastructure needs.

Value Assessment

Rating: good

The contract value of $20.2 million for cemetery improvements appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for national cemeteries would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the Department of Veterans Affairs. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 12 bids received. This indicates a robust bidding process where multiple qualified contractors had the opportunity to compete. A higher number of bidders generally suggests a healthy market and can lead to more competitive pricing as contractors vie for the award. The extensive competition likely benefited the government by driving down costs and ensuring a wider pool of potential solutions.

Taxpayer Impact: The strong competition in this procurement is beneficial for taxpayers, as it increases the likelihood of securing the best possible price for the cemetery improvements and ensures that public funds are used efficiently.

Public Impact

Veterans and their families will benefit from improved cemetery facilities at Tahoma National Cemetery. The project delivers essential infrastructure development and maintenance services. Geographic impact is concentrated in Kent, Washington, serving the region's veteran population. The construction work will likely create jobs in the local Washington workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-duration construction projects.
Ensuring contractor adherence to quality standards throughout the project lifecycle.
Managing potential delays due to unforeseen site conditions or weather.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive award.
Award to a single contractor for a defined scope can streamline execution.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to cemetery development and improvements. The market for such specialized construction can be niche, often involving firms with experience in public works and memorial sites. The value of this contract is substantial within this sub-sector, indicating a significant project for the Department of Veterans Affairs' infrastructure portfolio. Comparable spending benchmarks would involve looking at other large-scale cemetery construction or renovation projects undertaken by federal or state agencies.

Small Business Impact

The award was made under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, US Builders Group Inc., is not explicitly identified as a small business in the provided data, the contract's size and nature may offer subcontracting opportunities for small businesses in specialized trades. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified improvements. Transparency is generally maintained through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Federal Cemetery Infrastructure Development

Risk Flags

Long contract duration increases risk of cost escalation and performance issues.
Need to verify contractor's specific experience with cemetery construction.
Potential for unforeseen site conditions in civil engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.2 million to US BUILDERS GROUP INC.. PHASE 2 GRAVESITE DEVELOPMENT&CEMETERY IMPROVEMENTS TAHOMA NATIONAL CEMETERY KENT, WA

Who is the contractor on this award?

The obligated recipient is US BUILDERS GROUP 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 $20.2 million.

What is the period of performance?

Start: 2012-04-30. End: 2017-03-15.

What is the track record of US Builders Group Inc. on similar federal contracts, particularly those involving cemetery construction or large-scale civil engineering projects?

A review of US Builders Group Inc.'s contract history would be necessary to assess their performance on similar projects. Specifically, examining past awards for cemetery development, memorial construction, or large civil engineering undertakings would provide insight into their capabilities, on-time delivery record, and history of cost adherence. Analyzing past performance evaluations, if publicly available, would further illuminate their reliability and quality of work. Understanding their experience with the Department of Veterans Affairs or similar government agencies would also be a key factor in evaluating their suitability for this contract.

How does the awarded price of $20.2 million compare to independent cost estimates or benchmarks for similar cemetery improvement projects?

To benchmark the value of this $20.2 million contract, one would compare it against independent cost estimates or data from similar projects. This could involve consulting construction cost databases, analyzing bids from comparable projects awarded by other government agencies (like the Army Corps of Engineers for similar civil works), or reviewing cost-benefit analyses conducted by the VA prior to award. Factors such as location, specific scope of work (e.g., new construction vs. renovation, types of improvements), and prevailing market conditions for materials and labor would need to be considered for an accurate comparison. Without such comparative data, assessing whether the price represents excellent value is difficult.

What are the primary risks associated with a definitive contract of this duration (nearly five years) for cemetery improvements?

The primary risks associated with a definitive contract of nearly five years for cemetery improvements include potential cost escalation due to inflation over the long term, even with a fixed-price structure, if contingency planning is inadequate. There's also a risk of contractor performance degradation over an extended period, or changes in project requirements that necessitate costly modifications. Furthermore, unforeseen site conditions, environmental challenges, or regulatory changes could lead to significant delays and cost increases. The VA must maintain robust oversight and contract management to mitigate these long-term risks effectively.

How effective has the Department of Veterans Affairs been in managing large-scale construction contracts to ensure timely completion and quality outcomes?

The effectiveness of the Department of Veterans Affairs in managing large-scale construction contracts can be assessed by reviewing historical project data, including on-time completion rates, budget adherence, and the number of contract disputes or claims. Reports from the VA's Office of Inspector General (OIG) often provide insights into program management and oversight effectiveness. While the VA manages numerous successful projects, it has also faced challenges with large construction initiatives, sometimes experiencing delays and cost overruns. Continuous improvement in project management methodologies, risk assessment, and contractor oversight is crucial for ensuring successful outcomes.

What has been the historical spending trend for cemetery improvements and related infrastructure by the Department of Veterans Affairs over the past five to ten years?

Analyzing historical spending trends for cemetery improvements by the VA would involve examining annual budget allocations and actual expenditures for capital construction and maintenance at national cemeteries. This data, often found in VA budget justifications, Inspector General reports, and federal procurement databases (like FPDS-NG), would reveal patterns in investment levels. Trends might indicate periods of increased investment driven by growing veteran populations or aging infrastructure, versus periods of more modest spending. Understanding these patterns provides context for the current $20.2 million award and helps forecast future needs and potential funding priorities.

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: VA-101-11-RP-0182

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6465 FRENCH RD STE B, DETROIT, MI, 48213

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,246,738

Exercised Options: $20,246,738

Current Obligation: $20,246,738

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline