VA awards $13M design-build contract for cemetery improvements, raising value-for-money questions

Contract Overview

Contract Amount: $13,059,207 ($13.1M)

Contractor: Mactec Development Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-03-27

End Date: 2011-12-18

Contract Duration: 1,727 days

Daily Burn Rate: $7.6K/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: DESIGN-BUILD DEVELOPMENT AND CEMETERY IMPROVEMENTS AT THE BARRANCAS NATIONAL CEMETERY, PENSACOLA, FL PROJECT NO. 828CM2028.

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.1 million to MACTEC DEVELOPMENT CORPORATION for work described as: DESIGN-BUILD DEVELOPMENT AND CEMETERY IMPROVEMENTS AT THE BARRANCAS NATIONAL CEMETERY, PENSACOLA, FL PROJECT NO. 828CM2028. Key points: 1. The contract's value appears high relative to the scope, suggesting potential overspending. 2. Limited competition may have contributed to a less favorable price outcome. 3. The contractor has a history of federal contracts, but performance details are not readily available. 4. Project duration was extended, potentially increasing costs and impacting timely delivery. 5. The contract falls within the heavy and civil engineering construction sector. 6. Oversight mechanisms for this project are not detailed, impacting transparency.

Value Assessment

Rating: questionable

The $13.06 million contract for cemetery improvements at Barrancas National Cemetery seems high for the described scope. Benchmarking against similar design-build cemetery projects is difficult without more detailed project specifications. However, the duration of the contract (1727 days) and the firm-fixed-price nature suggest that the initial cost estimate may not have fully accounted for all project complexities or that the contractor secured a significant profit margin. The award amount exceeded the initial bid by $5.5 million, indicating a potential underestimation or scope expansion.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is an unusual designation. While it implies some level of competition, the exclusion of specific sources suggests limitations. Only five bids were received, which is a relatively low number for a project of this magnitude, potentially indicating barriers to entry or a lack of broad market interest. This limited competition could have reduced price pressure on the contractor.

Taxpayer Impact: The limited number of bidders suggests that taxpayers may not have benefited from the most competitive pricing possible, potentially leading to higher overall costs for the government.

Public Impact

Veterans and their families will benefit from improved cemetery facilities, ensuring dignified resting places. The project delivers design and construction services for cemetery infrastructure. The geographic impact is localized to Pensacola, Florida, specifically the Barrancas National Cemetery. The contract likely supported construction and engineering jobs within the local Florida economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to extended contract duration.
Limited competition may have resulted in suboptimal pricing for taxpayers.
Lack of detailed performance data makes it difficult to assess contractor efficiency.
The 'exclusion of sources' clause warrants further investigation into competitive fairness.

Positive Signals

The project addresses a critical need for cemetery infrastructure improvements.
A firm-fixed-price contract provides cost certainty once awarded.
The contractor, MACTEC DEVELOPMENT CORPORATION, has prior federal contracting experience.

Sector Analysis

This contract falls under the Heavy and Civil Engineering Construction sector, specifically related to cemetery development and improvements. This sector involves large-scale infrastructure projects. Comparable spending benchmarks for cemetery design-build projects are scarce due to their specialized nature. However, the scale of this project suggests it was a significant undertaking for the Department of Veterans Affairs, requiring specialized engineering and construction expertise.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of significant subcontracting opportunities for small businesses. The primary contractor, MACTEC DEVELOPMENT CORPORATION, is a large entity. This suggests that the direct impact on the small business ecosystem for this specific contract was likely minimal, with opportunities primarily flowing to larger construction firms or specialized subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a Department of Veterans Affairs contract, it would typically fall under the purview of the VA Office of Inspector General for audits and investigations. However, the specific reporting requirements, site inspections, and progress reviews are not specified, limiting a full assessment of transparency and accountability.

Related Government Programs

National Cemetery Administration Projects
Department of Veterans Affairs Construction Contracts
Design-Build Infrastructure Projects
Heavy and Civil Engineering Services

Risk Flags

Potential for cost overruns due to extended duration.
Limited competition may have led to suboptimal pricing.
Unclear justification for 'exclusion of sources' in competition.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.1 million to MACTEC DEVELOPMENT CORPORATION. DESIGN-BUILD DEVELOPMENT AND CEMETERY IMPROVEMENTS AT THE BARRANCAS NATIONAL CEMETERY, PENSACOLA, FL PROJECT NO. 828CM2028.

Who is the contractor on this award?

The obligated recipient is MACTEC DEVELOPMENT CORPORATION.

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 $13.1 million.

What is the period of performance?

Start: 2007-03-27. End: 2011-12-18.

What was the original estimated cost for the design-build development and cemetery improvements at Barrancas National Cemetery?

The provided data indicates the final award amount was $13,059,207.21. However, it does not explicitly state the original estimated cost. The bid information suggests that the initial bids received may have been significantly lower, as the award amount exceeded the 'bid' value by $5,497,000. This implies that either the initial estimates were much higher, or the winning bid was substantially higher than others, or there were significant negotiations and scope adjustments leading to the final award price. Further investigation into the bidding process and initial estimates would be necessary for a complete understanding.

How did the final award amount compare to the initial bids received for this project?

The data indicates that the final award amount was $13,059,207.21. The 'br' field, representing the bid received, is listed as 7562. This appears to be an incomplete or erroneous data point, as it is vastly lower than the award amount. However, the 'aw' field, 'DCA', likely refers to the awardee, MACTEC DEVELOPMENT CORPORATION. A more relevant comparison would be to understand the range of bids submitted. The significant difference between the listed 'bid' value and the award amount suggests either a data entry error for 'br' or a substantial increase in the contract value post-bid, possibly due to scope changes, contractor claims, or a highly competitive initial bidding process that led to a higher-than-expected winning bid.

What specific improvements were included in the $13 million contract for Barrancas National Cemetery?

The contract title, 'DESIGN-BUILD DEVELOPMENT AND CEMETERY IMPROVEMENTS AT THE BARRANCAS NATIONAL CEMETERY, PENSACOLA, FL PROJECT NO. 828CM2028,' indicates a broad scope of design and construction work. While specific details are not provided in the summary data, typical cemetery improvements can include site preparation, construction of new burial sections, columbarium niches, roadways, drainage systems, landscaping, irrigation, administrative facilities, and visitor amenities. The 'design-build' aspect means the contractor was responsible for both the architectural/engineering design and the physical construction of these elements.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

This contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' is somewhat contradictory. 'Full and open competition' implies that all responsible sources were permitted to submit a bid. However, 'after exclusion of sources' suggests that certain potential bidders were intentionally disqualified or not considered prior to the competition phase. This could be due to specific pre-qualification requirements, security concerns, or other justifiable reasons outlined in federal acquisition regulations. The practical effect is that while the competition was open to a broad range of eligible firms, it was not open to *all* potential firms, potentially limiting the pool of bidders and impacting the level of competition achieved.

How does the contract duration of 1727 days (approximately 4.7 years) impact the overall cost and value of this project?

A contract duration of 1727 days for cemetery improvements is exceptionally long and significantly impacts the overall cost and value. Extended durations increase indirect costs for both the contractor (e.g., project management, site overhead) and the government (e.g., contract administration, oversight). It also introduces risks related to inflation, material price fluctuations, and potential design obsolescence. For a firm-fixed-price contract, the contractor bears much of this risk, which is typically factored into the initial price. A long duration might indicate a very complex project, phased construction, or potentially inefficient project planning and execution, all of which can diminish the value proposition for taxpayers.

What is MACTEC DEVELOPMENT CORPORATION's track record with federal contracts, particularly with the Department of Veterans Affairs?

MACTEC DEVELOPMENT CORPORATION has a history of receiving federal contracts. While the provided data doesn't detail their performance history or specific relationship with the VA on past projects, their presence as a recipient of this $13 million contract suggests they are an established entity within the federal contracting space. A deeper dive into contract databases like FPDS or SAM.gov would reveal the number and value of contracts awarded to MACTEC, the agencies they've worked with, and potentially performance ratings or past performance information, which are crucial for assessing their reliability and suitability for such projects.

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

Solicitation ID: VA-786A-06-RP-0085

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amec PLC (UEI: 229533856)

Address: 1105 LAKEWOOD PARKWAY STE 300, ALPHARETTA, GA, 07

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

Financial Breakdown

Contract Ceiling: $13,059,207

Exercised Options: $13,059,207

Current Obligation: $13,059,207

Contract Characteristics

Cost or Pricing Data: YES

Timeline