VA awards $31.4M contract for Dallas Fort Worth National Cemetery expansion, focusing on design-build services

Contract Overview

Contract Amount: $31,412,695 ($31.4M)

Contractor: Covenant Construction Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-19

End Date: 2026-04-06

Contract Duration: 1,995 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DALLAS FORT WORTH NATIONAL CEMETERY, PHASE 5, DESIGN-BID-BUILD

Place of Performance

Location: CLIVE, DALLAS County, IOWA, 50325

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.4 million to COVENANT CONSTRUCTION SERVICES LLC for work described as: DALLAS FORT WORTH NATIONAL CEMETERY, PHASE 5, DESIGN-BID-BUILD Key points: 1. Contract value of $31.4 million for cemetery expansion indicates significant investment in veteran infrastructure. 2. The 'Other Heavy and Civil Engineering Construction' NAICS code suggests a focus on large-scale infrastructure development. 3. A definitive contract type implies a single, established agreement for services. 4. The firm-fixed-price contract structure aims to control costs and provide predictability for the VA. 5. The contract duration of 1995 days (approx. 5.5 years) suggests a phased or complex construction project. 6. The award to Covenant Construction Services LLC highlights a specific contractor's role in this major project.

Value Assessment

Rating: good

The contract value of $31.4 million for the Dallas Fort Worth National Cemetery expansion appears reasonable for a project of this scale, involving significant civil engineering and construction. Benchmarking against similar national cemetery expansion projects would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests an effort to manage costs effectively, though the final expenditure will depend on the contractor's efficiency and any potential change orders.

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 competition was sought, certain sources were excluded prior to the full and open solicitation. This suggests a potentially limited pool of bidders compared to a truly unrestricted full and open competition. The specific reasons for exclusion would need further investigation to understand the impact on the competitive landscape and potential price discovery.

Taxpayer Impact: The limited competition may have resulted in fewer bids than ideal, potentially impacting the government's ability to secure the lowest possible price for taxpayers.

Public Impact

Veterans and their families will benefit from expanded burial and memorialization options at the Dallas Fort Worth National Cemetery. The project will deliver essential infrastructure improvements, including design and construction services for cemetery expansion. The geographic impact is concentrated in the Dallas-Fort Worth metropolitan area, serving a significant veteran population. The construction activities will likely create temporary employment opportunities for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'limited' competition level raises concerns about whether the most competitive pricing was achieved.
The exclusion of certain sources prior to full and open competition warrants further scrutiny to ensure fairness and optimal value.
The long contract duration could introduce risks related to material cost fluctuations and project management over an extended period.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the Department of Veterans Affairs.
The project addresses a clear need for expanded veteran burial services, indicating a well-justified government expenditure.
The award to a single contractor streamlines project management and accountability for the design-build process.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is characterized by large-scale infrastructure projects. The market for national cemetery construction and expansion is driven by the Department of Veterans Affairs' mandate to provide burial services. Comparable spending benchmarks would involve analyzing other national cemetery projects or large public works construction contracts awarded by federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Covenant Construction Services LLC, will manage the project, and their subcontracting practices would need separate analysis if detailed information were available.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs' contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly accessible. 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
Design-Bid-Build Projects

Risk Flags

Limited competition
Long contract duration
Potential for cost escalation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.4 million to COVENANT CONSTRUCTION SERVICES LLC. DALLAS FORT WORTH NATIONAL CEMETERY, PHASE 5, DESIGN-BID-BUILD

Who is the contractor on this award?

The obligated recipient is COVENANT CONSTRUCTION SERVICES LLC.

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 $31.4 million.

What is the period of performance?

Start: 2020-10-19. End: 2026-04-06.

What is the track record of Covenant Construction Services LLC with the Department of Veterans Affairs and similar large-scale construction projects?

A thorough review of Covenant Construction Services LLC's past performance with the Department of Veterans Affairs (VA) and on comparable federal construction projects is crucial. This includes examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or litigation. Understanding their experience with projects of similar scope, complexity, and value, particularly those involving cemetery infrastructure or civil engineering, will provide insight into their capability to successfully execute the Dallas Fort Worth National Cemetery expansion. A strong track record with the VA suggests familiarity with agency requirements and procedures, potentially mitigating execution risks. Conversely, a history of performance issues could indicate a higher risk for this contract.

How does the awarded amount of $31.4 million compare to similar national cemetery expansion projects?

To assess the value for money, the $31.4 million award for the Dallas Fort Worth National Cemetery expansion should be benchmarked against similar projects. This involves identifying comparable projects in terms of scope (e.g., acreage expanded, number of new burial sites, types of facilities constructed), location, and the time period of the award. Data from other VA cemetery projects or similar large-scale civil engineering construction contracts awarded by other federal agencies can serve as benchmarks. Factors such as regional construction cost indices, labor rates, and material costs should be considered when making comparisons. If this contract's cost per burial site or per acre is significantly higher than comparable projects, it may indicate potential issues with pricing or scope.

What are the specific risks associated with a firm-fixed-price contract for a project spanning nearly five and a half years?

While firm-fixed-price (FFP) contracts aim to provide cost certainty, a long duration like the 1995 days (approx. 5.5 years) for this project introduces specific risks. The primary risk is potential escalation of material and labor costs over such an extended period, which could strain the contractor's ability to maintain profitability without seeking change orders or facing financial difficulties. Unforeseen site conditions or changes in regulatory requirements could also necessitate costly modifications. Furthermore, contractor performance can degrade over long durations if oversight is not consistently rigorous. For the government, the risk lies in potentially paying a premium upfront to account for these long-term uncertainties, or facing claims from the contractor if market conditions significantly deviate from initial projections.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the effectiveness of competition and taxpayer value?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced approach to competition. It means that after initial considerations or pre-solicitation activities, certain potential sources were deemed ineligible or were otherwise excluded from the subsequent full and open solicitation process. This could be due to various reasons, such as specific technical requirements, past performance issues, or proprietary technology limitations. While the remaining competition was 'full and open' among the eligible bidders, the exclusion of some sources inherently limits the breadth of competition. This limitation could potentially reduce the number of bids received, thereby diminishing the downward pressure on pricing and potentially impacting the overall value achieved for taxpayers compared to a scenario with unrestricted full and open competition.

What are the potential workforce implications of this large-scale construction contract in the Dallas-Fort Worth area?

This $31.4 million contract for the Dallas Fort Worth National Cemetery expansion is expected to have notable workforce implications, primarily in the construction sector. The project will likely require a significant number of skilled laborers, including but not limited to, heavy equipment operators, carpenters, masons, electricians, plumbers, and project managers. This demand could lead to job creation and increased employment opportunities within the Dallas-Fort Worth metropolitan area for the duration of the contract. It may also stimulate demand for related services, such as material suppliers and subcontractors. The long duration of the project suggests sustained employment for the workforce involved, contributing to the local economy. However, the extent of direct job creation versus the utilization of existing workforce capacity would depend on local labor market conditions.

How does the contract's focus on 'Other Heavy and Civil Engineering Construction' align with the VA's mission for national cemeteries?

The classification under NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' aligns with the VA's mission by encompassing the large-scale infrastructure development necessary for expanding national cemeteries. This includes site preparation, grading, utility installation, road construction, drainage systems, and potentially the construction of new columbarium walls or other interment structures. These are foundational elements required to increase capacity and improve accessibility within cemetery grounds. The VA's responsibility to provide dignified burial and memorialization services necessitates significant civil engineering and construction efforts to maintain and expand its facilities. Therefore, this contract directly supports the VA's mission by enabling the physical growth and enhancement of the Dallas Fort Worth National Cemetery.

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: 36C10F20R0056

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2635 BERKSHIRE PARKWAY SUITE 202, CLIVE, IA, 50325

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $62,005,124

Exercised Options: $61,991,439

Current Obligation: $31,412,695

Actual Outlays: $8,890,135

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $5,171,622

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline