VA Awards $40.9M Fort Logan Cemetery Expansion to SGC Services, LLC

Contract Overview

Contract Amount: $40,886,136 ($40.9M)

Contractor: SGC Services 2, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-30

End Date: 2026-08-25

Contract Duration: 1,030 days

Daily Burn Rate: $39.7K/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: FORT LOGAN NATIONAL CEMETERY, PHASE 1A EXPANSION

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80236

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40.9 million to SGC SERVICES 2, LLC for work described as: FORT LOGAN NATIONAL CEMETERY, PHASE 1A EXPANSION Key points: 1. Significant investment in national cemetery infrastructure. 2. Competition method suggests potential for price discovery. 3. Firm Fixed Price contract type mitigates cost overrun risk. 4. Construction sector spending benchmark analysis needed.

Value Assessment

Rating: good

The award of $40.9M for cemetery expansion appears reasonable given the scope. Benchmarking against similar large-scale civil engineering projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact the extent of price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for a critical national infrastructure project, aiming to provide expanded services for veterans.

Public Impact

Enhances burial capacity and services at a key national cemetery. Supports veterans and their families by preserving national burial grounds. Potential for job creation in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted optimal pricing.
Contract duration is substantial, requiring ongoing monitoring.
No small business participation noted.

Positive Signals

Firm Fixed Price contract limits cost escalation.
Addresses a clear need for expanded cemetery services.
Awarded by the Department of Veterans Affairs, an agency focused on veteran welfare.

Sector Analysis

This project falls within the heavy and civil engineering construction sector. Spending benchmarks for similar cemetery expansion or large-scale civil projects are relevant for assessing value.

Small Business Impact

The data indicates no small business participation in this contract. Further investigation into opportunities for subcontracting with small businesses would be beneficial.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The firm fixed price contract and defined scope provide a basis for accountability, but performance monitoring is crucial.

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
Long contract duration
Potential for scope creep if not managed tightly

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40.9 million to SGC SERVICES 2, LLC. FORT LOGAN NATIONAL CEMETERY, PHASE 1A EXPANSION

Who is the contractor on this award?

The obligated recipient is SGC SERVICES 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 $40.9 million.

What is the period of performance?

Start: 2023-10-30. End: 2026-08-25.

What is the estimated cost per acre or burial plot for this expansion compared to similar projects?

Benchmarking the cost per acre or burial plot against comparable national cemetery expansion projects is essential for a precise value assessment. Without this comparative data, it's difficult to definitively state if the $40.9M represents optimal value for the taxpayer. Further analysis would require access to project-specific unit costs and data from similar VA or state veteran cemetery projects.

What specific factors led to the exclusion of sources in the competition, and how did this impact the final price?

The exclusion of sources suggests specific criteria or circumstances limited the pool of eligible bidders. Understanding these factors is crucial for assessing potential risks to price competition. If the exclusion was due to highly specialized requirements, the price might be justified. However, if it unnecessarily restricted competition, it could have led to a higher-than-optimal price for taxpayers.

How will the effectiveness of the expansion be measured to ensure it meets the long-term needs of veterans?

Effectiveness will likely be measured by the successful completion of the expansion within the defined scope, schedule, and budget, and its subsequent utilization to meet burial needs. Key performance indicators could include the number of new plots created, the timeliness of interment services, and user satisfaction surveys from veteran families. Ongoing VA oversight will be critical to ensure the project's long-term utility.

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: 36C10F23R0013

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14777 SE CROSSCREEK CT, DAMASCUS, OR, 97089

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $40,886,136

Exercised Options: $40,886,136

Current Obligation: $40,886,136

Actual Outlays: $24,155,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline