VA awards $35M cemetery expansion contract to Veteran Design & Construction Inc. for Florida site

Contract Overview

Contract Amount: $35,027,206 ($35.0M)

Contractor: Veteran Design & Construction Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-01-18

End Date: 2025-04-22

Contract Duration: 1,190 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CAPE CANAVERAL NATIONAL CEMETERY EXPANSION PHASE 2.

Place of Performance

Location: MIMS, BREVARD County, FLORIDA, 32754

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.0 million to VETERAN DESIGN & CONSTRUCTION INC for work described as: CAPE CANAVERAL NATIONAL CEMETERY EXPANSION PHASE 2. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1190 days indicates a significant, long-term project. 3. Fixed-price contract type may offer cost certainty for the government. 4. The project aims to expand national cemetery capacity, directly benefiting veterans and their families. 5. The award to a single contractor, Veteran Design & Construction Inc., warrants scrutiny for potential performance risks. 6. Geographic focus on Florida suggests a localized impact on veteran services in the region.

Value Assessment

Rating: good

The contract value of $35,007,205.85 for cemetery expansion appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for national cemeteries would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the Department of Veterans Affairs. However, without specific cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on predefined criteria. The presence of 4 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors. The exclusion of certain sources warrants further investigation to ensure it did not unduly limit competition.

Taxpayer Impact: The full and open competition, despite potential source exclusions, likely resulted in a fair market price for taxpayers. The presence of multiple bidders generally drives down costs compared to sole-source or limited competition scenarios.

Public Impact

Veterans and their families in Florida will benefit from expanded burial capacity at Cape Canaveral National Cemetery. The project will deliver expanded cemetery grounds, columbarium, and potentially other facilities to accommodate future needs. The geographic impact is concentrated in Florida, serving the state's veteran population. Construction activities will likely create temporary employment opportunities in the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for performance delays given the multi-year duration and complexity of large construction projects.
Reliance on a single prime contractor, Veteran Design & Construction Inc., could pose risks if the contractor faces financial or operational challenges.
The 'exclusion of sources' clause in the competition type requires further review to ensure no viable contractors were unfairly barred.

Positive Signals

The firm fixed-price contract type provides budget certainty for the VA.
Awarding to a contractor with 'Veteran' in its name may align with VA's mission, though performance is the key metric.
The project addresses a critical need for veteran burial space, ensuring dignified final resting places.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, a vital industry supporting infrastructure development. The market for national cemetery expansion is driven by demographic trends and the government's commitment to honoring veterans. Spending in this sector is often characterized by large-scale projects requiring specialized expertise and significant capital investment. Comparable spending benchmarks would involve analyzing other large federal construction contracts, particularly those for public infrastructure or memorial sites.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project, it is unlikely that significant subcontracting opportunities for small businesses will be mandated unless specified within the contract's terms. The primary focus appears to be on the prime contractor's ability to execute the expansion. Further review of subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Federal Infrastructure Development Contracts
Heavy and Civil Engineering Construction Services

Risk Flags

Potential for performance issues due to contractor's project scale experience.
Risk of delays impacting timely delivery of burial spaces.
Adequacy of competition level despite 'full and open' designation.
Long-term cost implications beyond initial contract award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.0 million to VETERAN DESIGN & CONSTRUCTION INC. CAPE CANAVERAL NATIONAL CEMETERY EXPANSION PHASE 2.

Who is the contractor on this award?

The obligated recipient is VETERAN DESIGN & CONSTRUCTION INC.

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 $35.0 million.

What is the period of performance?

Start: 2022-01-18. End: 2025-04-22.

What is the track record of Veteran Design & Construction Inc. on similar federal contracts?

A review of federal contract databases indicates that Veteran Design & Construction Inc. has been awarded contracts primarily within the construction and facilities maintenance domains. While specific details on past performance for projects of similar scale and complexity to the Cape Canaveral National Cemetery expansion are not immediately available in summary data, a deeper dive into their contract history, including past performance evaluations and any reported disputes or challenges, would be necessary for a comprehensive assessment. Understanding their experience with government projects, particularly those involving large-scale civil engineering or cemetery construction, is crucial for evaluating their capability to successfully execute this $35 million expansion.

How does the awarded price compare to industry benchmarks for cemetery expansion projects?

Directly comparing the $35 million contract value to specific industry benchmarks for cemetery expansion is challenging without detailed project specifications (e.g., acreage, types of facilities, specific construction elements like mausoleums or roads). However, the firm fixed-price nature of the contract suggests the Department of Veterans Affairs sought to establish a clear cost ceiling. General benchmarks for large civil engineering projects indicate that costs can vary significantly based on location, labor rates, material costs, and site conditions. A more precise comparison would require analyzing the unit costs of key components (e.g., cost per burial plot, cost per linear foot of road) against publicly available data for similar construction endeavors, potentially including other national cemetery projects or large public works.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions, weather, or contractor performance issues; cost overruns (though mitigated by the firm fixed-price structure); and potential quality control deficiencies. Mitigation strategies include the fixed-price contract, which shifts cost overrun risk to the contractor, and the VA's oversight mechanisms, including project management and quality assurance inspections. The duration of the contract (1190 days) also necessitates robust risk management planning by the contractor to address long-term material availability and labor force stability. The 'exclusion of sources' in the competition also presents a potential risk if it inadvertently excluded highly capable bidders.

What is the expected impact of this expansion on veteran burial capacity in Florida?

This expansion project at Cape Canaveral National Cemetery is designed to significantly increase the available burial plots and potentially other interment facilities, such as columbarium niches. The Department of Veterans Affairs aims to ensure sufficient capacity to meet the needs of Florida's veteran population for years to come. While the exact increase in capacity (e.g., number of plots or niches) is not detailed in the award summary, the substantial $35 million investment and the multi-year duration suggest a considerable enhancement. This directly addresses the growing demand for veteran burial spaces, ensuring that more veterans can be interred in a national cemetery, a key benefit and service provided by the VA.

How does this contract's value compare to historical VA spending on cemetery expansions?

Historical spending data for VA cemetery expansions can vary widely depending on the size and scope of each project. The $35 million awarded for the Cape Canaveral National Cemetery expansion phase 2 represents a significant investment. To provide a comparative context, one would need to analyze past VA cemetery projects, considering factors like inflation, the number of phases, and the specific facilities added (e.g., new sections, administrative buildings, maintenance facilities). Without access to a detailed historical database of VA cemetery construction costs, it's difficult to definitively state if this contract is higher or lower than average. However, large-scale infrastructure projects often run into tens of millions of dollars, making this award appear consistent with substantial capital investments in national cemeteries.

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: 36C10F20R0017

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5523 RESEARCH PARK DR STE 110, BALTIMORE, MD, 21228

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

Financial Breakdown

Contract Ceiling: $35,027,206

Exercised Options: $35,027,206

Current Obligation: $35,027,206

Actual Outlays: $15,958,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline