VA Awards $34.3M for Great Lakes National Cemetery Expansion to MGC Services

Contract Overview

Contract Amount: $34,321,462 ($34.3M)

Contractor: MGC Services a Joint Venture 2 LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-06-15

End Date: 2026-04-08

Contract Duration: 1,758 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE 2 EXPANSION OF THE GREAT LAKES NATIONAL CEMETERY

Place of Performance

Location: HOLLY, OAKLAND County, MICHIGAN, 48442

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.3 million to MGC SERVICES A JOINT VENTURE 2 LLC for work described as: PHASE 2 EXPANSION OF THE GREAT LAKES NATIONAL CEMETERY Key points: 1. Contract awarded to MGC Services for cemetery expansion. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Contract type is Firm Fixed Price. 4. Project duration is 1758 days. 5. No small business participation noted.

Value Assessment

Rating: good

The contract value of $34.3M for cemetery expansion appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests a potentially limited pool of bidders. While open, the exclusion criteria might have restricted broader participation, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being used for this expansion, with the final cost influenced by the competitive process employed.

Public Impact

Enhances burial capacity at a national cemetery, serving veterans and their families. Supports local economy through construction jobs and material procurement. Long-term investment in national veteran infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
No small business participation.

Positive Signals

Firm Fixed Price contract mitigates cost overrun risk.
Expansion addresses critical need for veteran burial space.

Sector Analysis

This contract falls under Other Heavy and Civil Engineering Construction. Spending in this sector can vary significantly based on infrastructure needs and government priorities. The $34.3M award is substantial for a single project.

Small Business Impact

The data indicates no small business participation in this contract. This could be due to the specialized nature of the work or the size of the contract, which may favor larger firms.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The use of a Definitive Contract and Firm Fixed Price terms suggests a structured approach to management and accountability.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition.
No small business participation.
Potential for cost escalation due to long duration and FFP.
Unclear specific exclusion criteria.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.3 million to MGC SERVICES A JOINT VENTURE 2 LLC. PHASE 2 EXPANSION OF THE GREAT LAKES NATIONAL CEMETERY

Who is the contractor on this award?

The obligated recipient is MGC SERVICES A JOINT VENTURE 2 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 $34.3 million.

What is the period of performance?

Start: 2021-06-15. End: 2026-04-08.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The specific criteria for excluding sources are not detailed in the provided data. This exclusion method can limit the number of potential bidders, potentially leading to less competitive pricing than a truly unrestricted full and open competition. Further investigation into the solicitation documents would be needed to understand the rationale and its price impact.

What are the key performance indicators (KPIs) for this expansion project, and how will their achievement be measured to ensure effectiveness?

Key performance indicators likely include timely completion within the 1758-day duration, adherence to quality standards for construction, and successful integration of new facilities. Effectiveness will be measured by the increased capacity for veteran burials and the overall functionality of the expanded cemetery grounds, as verified through VA inspections and acceptance.

Are there any potential risks associated with the long project duration (1758 days) and the firm fixed price, such as material cost fluctuations or unforeseen site conditions?

A long duration with a firm fixed price does carry risks. Material costs can fluctuate significantly over nearly five years, potentially impacting the contractor's profitability or leading to claims if not adequately accounted for. Unforeseen site conditions could also necessitate change orders, although the FFP contract aims to limit the government's exposure to such increases.

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: 36C10F20R0098

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5324 VAN DYKE RD, LUTZ, FL, 33558

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, 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: $34,330,462

Exercised Options: $34,330,462

Current Obligation: $34,321,462

Actual Outlays: $16,585,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline