VA awards $4.7M for architectural services at Tahoma National Cemetery, with 4 bids received

Contract Overview

Contract Amount: $4,715,964 ($4.7M)

Contractor: Anderson Engineering of Minnesota, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-07-27

End Date: 2027-06-30

Contract Duration: 2,164 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAHOMA NATIONAL CEMETERY PHASE 3, KENT, WA

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55441

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.7 million to ANDERSON ENGINEERING OF MINNESOTA, LLC for work described as: TAHOMA NATIONAL CEMETERY PHASE 3, KENT, WA Key points: 1. Contract awarded for architectural services to support cemetery expansion. 2. Competition level indicates potential for fair pricing. 3. Fixed-price contract type helps manage cost certainty. 4. Contract duration spans over five years, suggesting a phased approach. 5. Services are critical for expanding national cemetery capacity. 6. Contractor has a presence in Minnesota, while the project is in Washington.

Value Assessment

Rating: good

The contract value of $4.7 million for architectural services appears reasonable given the scope of supporting a national cemetery expansion. Benchmarking against similar architectural contracts for large-scale public infrastructure projects would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific details on the deliverables and complexity, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be open, certain sources were excluded. Four bids were received, suggesting a moderate level of competition. The exclusion of sources might limit the pool of potential bidders and could potentially impact price discovery if highly competitive firms were excluded. Further details on the reasons for exclusion are needed for a complete assessment.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but the exclusion of certain sources might have prevented even more competitive pricing.

Public Impact

Veterans and their families will benefit from expanded burial and memorial services at Tahoma National Cemetery. Architectural services will support the design and planning for Phase 3 expansion. The project's geographic impact is focused on Kent, Washington, serving the region's veteran population. The contract supports the federal government's commitment to providing dignified final resting places for service members. The project may indirectly support local architectural and engineering jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if scope changes significantly during the long contract duration.
Geographic disparity between contractor location (MN) and project location (WA) could introduce logistical challenges or increased travel costs.
The 'exclusion of sources' in the competition method warrants further investigation to ensure maximum value for taxpayers.

Positive Signals

Fixed-price contract type provides cost certainty.
Multiple bids received indicate a degree of market interest and competition.
The contract supports a critical national need for veteran services.

Sector Analysis

This contract falls within the Architectural Services sector, a subset of the broader Architecture, Engineering, and Construction (AEC) industry. The AEC market is highly competitive, with significant government spending directed towards infrastructure and facility development. Federal spending on cemetery maintenance and expansion is a consistent area of investment to honor veterans. Comparable spending benchmarks would involve analyzing other large-scale public facility design contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, Anderson Engineering of Minnesota, LLC, is not explicitly identified as a small business in this context. There is no direct information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless subcontracting opportunities are pursued.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers. The fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency is facilitated by public contract databases, but detailed performance metrics and oversight reports are not readily available.

Related Government Programs

National Cemetery Administration Capital Improvements
Department of Veterans Affairs Construction Projects
Federal Architectural and Engineering Services
Public Infrastructure Design Contracts

Risk Flags

Potential for increased costs due to long contract duration.
Limited competition due to source exclusion.
Geographic distance between contractor and project site.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.7 million to ANDERSON ENGINEERING OF MINNESOTA, LLC. TAHOMA NATIONAL CEMETERY PHASE 3, KENT, WA

Who is the contractor on this award?

The obligated recipient is ANDERSON ENGINEERING OF MINNESOTA, 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 $4.7 million.

What is the period of performance?

Start: 2021-07-27. End: 2027-06-30.

What is the track record of Anderson Engineering of Minnesota, LLC with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal contract databases indicates that Anderson Engineering of Minnesota, LLC has received multiple federal awards, primarily for architectural and engineering services. While specific details on past performance with the VA are not provided in this summary, their history suggests experience with government projects. Further investigation into their performance ratings, past project scopes, and any past performance issues or commendations would be necessary for a comprehensive assessment of their track record. Understanding their experience with similar cemetery or large-scale public facility projects would also be beneficial.

How does the awarded price of $4.7 million compare to similar architectural services contracts for national cemeteries or large public facilities?

Benchmarking the $4.7 million award requires comparing it to contracts for similar architectural services on projects of comparable scale and complexity. National cemetery expansions often involve site planning, design of new burial areas, infrastructure (roads, utilities), and memorial structures. Without specific details on the scope of work for Tahoma National Cemetery Phase 3, a precise comparison is difficult. However, architectural services for large public facilities can range from a few percent to over ten percent of the total construction cost, depending on the project's complexity. A more detailed analysis would involve examining the contract's deliverables against the total estimated construction value it supports.

What are the specific risks associated with a five-year contract duration for architectural services?

A five-year duration for architectural services presents several potential risks. Firstly, there's the risk of scope creep, where the project's requirements may evolve significantly over time, potentially leading to change orders and increased costs, despite the fixed-price nature. Secondly, market conditions for materials and labor could change, impacting the feasibility or cost of later design phases if not adequately accounted for. Thirdly, there's a risk of contractor performance degradation over a long period, or key personnel leaving the project. Finally, evolving regulations or technological advancements might necessitate design revisions, adding complexity and potential delays.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the effectiveness of the competition?

This designation implies that the solicitation was initially intended for full and open competition, but certain potential sources were subsequently excluded. The reasons for exclusion are critical to understanding the impact on competition. If the exclusions were based on legitimate technical qualifications or specific requirements that only a subset of firms could meet, then the competition might still be effective. However, if the exclusions were arbitrary or overly restrictive, it could limit the number of bidders, potentially leading to less competitive pricing and reduced innovation. The fact that four bids were received suggests that a reasonable number of firms were still able to participate.

What is the historical spending pattern for architectural services at Tahoma National Cemetery or similar VA facilities?

Analyzing historical spending for architectural services at Tahoma National Cemetery or comparable VA facilities would provide context for the current $4.7 million award. This would involve examining past contracts for design, planning, and engineering services related to cemetery expansion or upgrades. Understanding the frequency and value of such contracts can reveal trends in VA's investment in its facilities and help assess whether the current award is consistent with past spending levels, adjusted for inflation and project scope. Significant deviations from historical patterns might warrant further investigation.

What are the potential implications of the contractor being based in Minnesota while the project is in Washington?

The geographic separation between the contractor's base in Minnesota and the project site in Washington (Tahoma National Cemetery) could have several implications. It may lead to increased travel and per diem costs for the contractor's personnel, which could be factored into the fixed-price bid. Logistical challenges related to site visits, coordination with local stakeholders, and managing on-site activities might also arise. While modern communication tools can mitigate some of these issues, the distance could potentially impact the responsiveness and efficiency of the architectural services, especially during critical on-site phases of the project.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13605 1ST AVE N STE 100, MINNEAPOLIS, MN, 55441

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,715,964

Exercised Options: $4,715,964

Current Obligation: $4,715,964

Actual Outlays: $1,042,510

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA101F17D2902

IDV Type: IDC

Timeline