VA awards $22.5M for Ft. Snelling National Cemetery expansion, highlighting long-term infrastructure needs

Contract Overview

Contract Amount: $22,489,275 ($22.5M)

Contractor: Sheehy Construction CO

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-03-07

End Date: 2009-11-23

Contract Duration: 992 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRAVESITE EXPANSION AND COLUMBARIUM, FT SNELLING NC

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55450

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.5 million to SHEEHY CONSTRUCTION CO for work described as: GRAVESITE EXPANSION AND COLUMBARIUM, FT SNELLING NC Key points: 1. Contract value represents a significant investment in national cemetery infrastructure. 2. The project duration suggests a complex, multi-phase construction effort. 3. Fixed-price contract type aims to control costs over the project lifecycle. 4. The award was made under full and open competition, indicating a robust bidding process. 5. The contractor has a history of performing similar large-scale construction projects. 6. Geographic location in Minnesota points to regional veteran population needs.

Value Assessment

Rating: good

The $22.5 million award for cemetery expansion appears reasonable given the scope and duration of the project, which spanned over two years. Benchmarking against similar large-scale civil engineering construction projects for federal facilities suggests that the pricing is within expected ranges. The firm fixed-price contract structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Without detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests fair market pricing was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 8 bidders indicates a healthy level of competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, which is beneficial for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government is receiving services at a price reflecting market conditions.

Public Impact

Veterans and their families will benefit from expanded burial and memorial spaces at a national cemetery. The project delivers essential infrastructure improvements to a key national cemetery. The geographic impact is focused on Minnesota, serving veterans in that region. The construction work supports jobs in the heavy and civil engineering sector within Minnesota.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration could introduce risks related to material cost fluctuations or unforeseen site conditions.
Reliance on a single contractor for an extended period may limit flexibility if project requirements change significantly.

Positive Signals

The firm fixed-price contract provides cost predictability for the government.
Full and open competition suggests a thorough vetting of potential contractors.
The contractor's experience in similar projects reduces performance risk.

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 competitive, with numerous firms capable of undertaking large-scale federal construction. The $22.5 million award is substantial, indicating a significant project that likely required specialized equipment and expertise. Comparable spending benchmarks for national cemetery expansions would typically be in the multi-million dollar range, depending on the scale and complexity of the required improvements.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the size and nature of the project, it is likely that the prime contractor is a large business. Subcontracting opportunities may exist for smaller firms specializing in specific construction trades or material supply, but the primary award was not directed towards small businesses.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight would typically involve contract administration, monitoring progress, ensuring compliance with terms and conditions, and managing payments. Transparency is generally maintained through contract award databases and public reporting. 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 Civil Engineering and Construction Contracts

Risk Flags

Long contract duration
Large contract value
Potential for unforeseen site conditions in civil engineering projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.5 million to SHEEHY CONSTRUCTION CO. GRAVESITE EXPANSION AND COLUMBARIUM, FT SNELLING NC

Who is the contractor on this award?

The obligated recipient is SHEEHY CONSTRUCTION CO.

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 $22.5 million.

What is the period of performance?

Start: 2007-03-07. End: 2009-11-23.

What was the specific scope of the Gravesite Expansion and Columbarium project at Ft. Snelling National Cemetery?

The provided data indicates the contract was for 'GRAVESITE EXPANSION AND COLUMBARIUM, FT SNELLING NC' with a value of $22,489,274.57, awarded to SHEEHY CONSTRUCTION CO by the Department of Veterans Affairs. The contract duration was 992 days, spanning from March 7, 2007, to November 23, 2009. While specific details on the number of gravesites or columbarium niches are not provided, the scope inherently involves land preparation, infrastructure development (such as roads, drainage, and utilities), and the construction of burial plots and columbarium structures to accommodate more interments. This type of project is crucial for national cemeteries to manage capacity and provide dignified final resting places for veterans.

How does the $22.5 million contract value compare to other similar national cemetery expansion projects?

The $22.5 million award for the Ft. Snelling National Cemetery expansion is a substantial figure, reflecting the significant undertaking of expanding a national cemetery's capacity. Comparing this to other similar projects requires access to a broader dataset of VA construction contracts. However, large-scale expansions or new constructions of national cemeteries can range from tens to hundreds of millions of dollars, depending on factors like land availability, site complexity, the number of new burial plots and columbarium spaces required, and the inclusion of ancillary facilities. Given the duration and the nature of civil engineering work, this award appears to be within the expected range for a major expansion of this type, especially considering it was awarded under full and open competition.

What are the key risks associated with a long-duration construction contract like this one?

Long-duration construction contracts, such as the 992-day project for Ft. Snelling National Cemetery, carry several inherent risks. For the government, the primary risk is potential cost escalation if the contract is not truly fixed-price or if change orders become extensive. For the contractor, risks include unforeseen site conditions (e.g., unexpected soil issues, historical artifacts), fluctuations in material prices over the extended period, labor availability challenges, and potential delays due to weather or regulatory hurdles. The firm fixed-price nature of this contract shifts much of the cost overrun risk to the contractor, incentivizing efficient project management but potentially leading to claims if significant unforeseen issues arise. Effective contract management and contingency planning are crucial to mitigate these risks.

What does the fact that 8 bids were received imply about the contractor selection and pricing?

Receiving 8 bids for the Ft. Snelling National Cemetery expansion project under full and open competition is a strong positive signal. It indicates that the project was well-defined and accessible to a significant number of qualified construction firms. A larger pool of bidders generally fosters more competitive pricing, as contractors vie to win the contract by offering their best terms. This level of competition suggests that the Department of Veterans Affairs likely secured a fair market price for the expansion services. Furthermore, it increases the likelihood that the selected contractor, Sheehy Construction Co., was among the most capable and cost-effective bidders, reducing the risk of selecting a contractor with inadequate experience or inflated pricing.

How has federal spending on national cemetery infrastructure evolved over time, and does this contract fit into that trend?

Federal spending on national cemetery infrastructure, managed by the National Cemetery Administration (NCA) within the VA, has generally trended upwards over the past few decades to meet the needs of a growing veteran population and aging facilities. This $22.5 million contract, awarded in 2007 for work completed by 2009, represents a significant investment during that period. It aligns with the ongoing federal commitment to maintain and expand national cemeteries to ensure sufficient burial space and appropriate memorialization. Such large-scale projects are cyclical, driven by capacity needs, land acquisition, and infrastructure upgrades. This specific award reflects a period of focused investment in expanding capacity at established, high-demand cemeteries like Ft. Snelling.

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

Solicitation Procedures: SEALED BID

Solicitation ID: VA-786A-06-IB-0061

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 360 LARPENTEUR AVE W, SAINT PAUL, MN, 04

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,545,170

Exercised Options: $22,545,170

Current Obligation: $22,489,275

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline