VA awards $10.3M for Rock Island National Cemetery expansion, with Old Veteran Construction Inc. winning the bid

Contract Overview

Contract Amount: $10,314,115 ($10.3M)

Contractor: OLD Veteran Construction Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-02-23

End Date: 2009-03-31

Contract Duration: 767 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BURIAL AREA EXPANSION AT ROCK ISLAND NATIONAL CEMETERY, IL

Place of Performance

Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.3 million to OLD VETERAN CONSTRUCTION INC for work described as: BURIAL AREA EXPANSION AT ROCK ISLAND NATIONAL CEMETERY, IL Key points: 1. Contract value appears reasonable for cemetery expansion services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of 767 days indicates a substantial project scope. 4. The project is located in Illinois, impacting local workforce and resources. 5. This contract falls under heavy and civil engineering construction, a specialized sector.

Value Assessment

Rating: good

The contract value of $10.3 million for cemetery expansion is within a typical range for such projects. Benchmarking against similar cemetery development contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor assumes most of the cost risk, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for specific services like earthmoving or monument installation, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources might have been excluded based on pre-defined criteria. The presence of 6 bidders suggests a healthy level of competition for this project. This level of competition is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The robust competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that multiple companies vied for the contract, driving down costs.

Public Impact

Veterans and their families will benefit from expanded burial capacity at Rock Island National Cemetery. The project will deliver essential infrastructure improvements for national cemetery operations. Geographic impact is concentrated in Illinois, potentially creating local construction jobs. The expansion supports the long-term mission of providing dignified final resting places for service members.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Ensuring timely completion within the 767-day duration is critical to meet demand.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a well-vetted selection process.
The contractor, Old Veteran Construction Inc., has experience in construction projects.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which encompasses a wide range of infrastructure projects. The market for cemetery expansion is niche but essential, driven by the ongoing need to accommodate veterans' final resting places. Comparable spending benchmarks would typically involve other large-scale construction projects for government facilities or public works, though direct comparisons to cemetery expansions are less common.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Old Veteran Construction Inc., may engage small businesses as subcontractors, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs (VA) contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver the specified expansion within the agreed-upon cost and timeline. Transparency is generally maintained through contract award databases and public reporting, though detailed project oversight reports may not be publicly available.

Related Government Programs

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

Risk Flags

Potential for unforeseen site conditions
Contract duration management
Quality assurance for cemetery standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.3 million to OLD VETERAN CONSTRUCTION INC. BURIAL AREA EXPANSION AT ROCK ISLAND NATIONAL CEMETERY, IL

Who is the contractor on this award?

The obligated recipient is OLD VETERAN CONSTRUCTION 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 $10.3 million.

What is the period of performance?

Start: 2007-02-23. End: 2009-03-31.

What is the track record of Old Veteran Construction Inc. with the Department of Veterans Affairs?

Old Veteran Construction Inc. has been awarded multiple contracts by the Department of Veterans Affairs. While this specific contract for burial area expansion at Rock Island National Cemetery is a significant award, a comprehensive review of their VA contract history would involve examining past performance on similar projects, including adherence to schedules, budget management, and quality of work. Analyzing their award data across different VA administrations and contract types would provide a clearer picture of their reliability and expertise within the VA system. Further investigation into any past disputes, claims, or performance issues would be necessary for a complete assessment.

How does the $10.3 million contract value compare to similar cemetery expansion projects?

Benchmarking the $10.3 million contract value requires comparing it to similar cemetery expansion projects, which can be challenging due to the specialized nature of the work and variations in scope, location, and specific requirements. However, general construction costs for large civil engineering projects can provide a rough comparison. Factors such as land acquisition, site preparation, infrastructure development (roads, utilities), landscaping, and monument installation all contribute to the total cost. Without access to detailed cost breakdowns for this specific contract or a database of comparable cemetery expansion projects, it is difficult to definitively state whether $10.3 million represents excellent, fair, or questionable value. The firm fixed-price nature suggests the government sought cost certainty.

What are the primary risks associated with this cemetery expansion contract?

The primary risks associated with this cemetery expansion contract include potential unforeseen site conditions (e.g., geological issues, environmental hazards) that could lead to cost overruns or schedule delays, despite the firm fixed-price structure. Another significant risk is ensuring the contractor meets the quality standards required for a national cemetery, including proper installation of burial plots and infrastructure. Delays in completion could impact the VA's ability to meet the demand for burial spaces. Furthermore, managing the contractor's performance over the 767-day duration requires diligent oversight to ensure compliance with contract terms and specifications.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for this type of project?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. For a project like cemetery expansion, it suggests that the VA likely established certain criteria or qualifications that potential bidders needed to meet, thereby excluding those who did not qualify. This can be effective in ensuring that only capable contractors participate, potentially leading to better project outcomes. However, the 'exclusion of sources' aspect warrants scrutiny to ensure it does not unduly limit competition or appear as a barrier to entry for qualified small businesses or other potential bidders. The presence of six bidders indicates that competition was still robust despite any exclusions.

What is the historical spending pattern for cemetery expansion projects by the VA?

Historical spending patterns for cemetery expansion projects by the VA would reveal the frequency and average cost of such endeavors. Analyzing past contracts awarded by the National Cemetery Administration (NCA) for similar expansions would indicate whether this $10.3 million contract is an outlier or representative of typical investment levels. Trends in spending could also highlight any shifts in VA's approach to infrastructure development, such as increased focus on expansion due to demand, or changes in contracting strategies. Understanding this historical context is crucial for assessing the current contract's significance and the VA's long-term commitment to cemetery infrastructure.

What are the potential workforce implications of this contract in Illinois?

This contract is likely to have positive workforce implications in Illinois, particularly in the region surrounding Rock Island. The construction activities required for cemetery expansion typically involve a range of skilled labor, including heavy equipment operators, general laborers, masons, landscapers, and project managers. Old Veteran Construction Inc. may hire locally or bring in specialized crews, contributing to employment opportunities. The duration of the project (767 days) suggests sustained demand for labor over an extended period. Additionally, indirect employment could be generated through suppliers of materials and services needed for the construction.

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-786A-06-IB-0081

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1140 EAST 78TH ST, CHICAGO, IL, 90

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $10,314,115

Exercised Options: $10,314,115

Current Obligation: $10,314,115

Contract Characteristics

Cost or Pricing Data: NO

Timeline