VA awards $6.76M for Riverside National Cemetery design, with 4 bidders competing

Contract Overview

Contract Amount: $6,763,861 ($6.8M)

Contractor: Anderson Engineering of Minnesota, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-06

End Date: 2027-02-19

Contract Duration: 743 days

Daily Burn Rate: $9.1K/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: RIVERSIDE NATIONAL CEMETERY PHASE 6 DESIGN DEVELOPMENT

Place of Performance

Location: MARCH ARB, RIVERSIDE County, CALIFORNIA, 92518

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.8 million to ANDERSON ENGINEERING OF MINNESOTA, LLC for work described as: RIVERSIDE NATIONAL CEMETERY PHASE 6 DESIGN DEVELOPMENT Key points: 1. Value for money appears reasonable given the scope of engineering services for a major cemetery expansion. 2. Competition dynamics indicate a healthy level of interest from qualified firms. 3. Risk indicators are moderate, primarily related to project timeline adherence and potential scope creep. 4. Performance context suggests a need for detailed design to ensure efficient construction. 5. Sector positioning places this within the government's infrastructure and facilities management domain.

Value Assessment

Rating: good

The contract value of $6.76 million for design development seems aligned with typical costs for large-scale engineering projects of this nature. Benchmarking against similar cemetery expansion projects or large federal design contracts would provide a more precise value assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if the scope is well-defined.

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 broad, specific sources were excluded. With 4 bidders, the competition level suggests a reasonable number of interested parties, which generally supports price discovery. However, the exclusion of certain sources warrants further investigation to ensure no qualified firms were unfairly prevented from bidding.

Taxpayer Impact: A competitive process with multiple bidders helps ensure the government secures services at a fair market price, maximizing taxpayer value. The exclusion of sources, if not justified by specific technical requirements or past performance, could potentially limit competition and lead to higher costs for taxpayers.

Public Impact

The primary beneficiaries are veterans and their families who will have access to expanded burial and memorial spaces. The services delivered include crucial design and engineering plans for Phase 6 of the Riverside National Cemetery expansion. The geographic impact is concentrated in Riverside, California, enhancing local federal cemetery capacity. Workforce implications include employment opportunities for engineers, architects, and support staff involved in the design process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep during the design development phase if requirements are not clearly defined and managed.
Risk of delays if coordination with other project phases or stakeholders is not effectively managed.
Dependency on the contractor's technical expertise and ability to deliver accurate and constructible designs.

Positive Signals

Firm-fixed-price contract structure incentivizes cost control by the contractor.
Multiple bidders (4) suggest a competitive market for these specialized engineering services.
The contract is for design development, a critical early phase that can mitigate construction risks if done well.

Sector Analysis

This contract falls within the Architecture and Engineering Services sector, a critical component of the construction and infrastructure industry. The market for federal design services is competitive, with numerous firms capable of undertaking large-scale public projects. Spending in this sector is often driven by infrastructure upgrades, facility maintenance, and new construction initiatives across various government agencies. Comparable spending benchmarks would involve analyzing other large federal design contracts for similar facilities or infrastructure projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver the specified design services. Transparency is generally maintained through federal procurement databases, though detailed internal project management oversight is not publicly visible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Potential for scope creep
Risk of schedule delays
Contractor performance risk
Adequacy of competition due to source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.8 million to ANDERSON ENGINEERING OF MINNESOTA, LLC. RIVERSIDE NATIONAL CEMETERY PHASE 6 DESIGN DEVELOPMENT

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 $6.8 million.

What is the period of performance?

Start: 2025-02-06. End: 2027-02-19.

What is the track record of Anderson Engineering of Minnesota, LLC with the Department of Veterans Affairs and similar federal agencies?

A review of federal procurement data would be necessary to fully assess Anderson Engineering of Minnesota, LLC's track record. Specifically, one would look for past performance ratings on similar design and engineering contracts, particularly those awarded by the Department of Veterans Affairs or other agencies involved in large-scale infrastructure or facility development. Examining contract completion history, any instances of disputes or performance issues, and client feedback would provide insight into their reliability and capability. Understanding their experience with firm-fixed-price contracts and their ability to manage complex projects within budget and schedule are key factors in evaluating their suitability for this award.

How does the awarded amount compare to the estimated cost or independent government cost estimate for this design development phase?

Without access to the Independent Government Cost Estimate (IGCE) or the agency's internal budget for this specific design development phase, a direct comparison is challenging. However, the fact that the contract was awarded under 'Full and Open Competition After Exclusion of Sources' with 4 bidders suggests that the awarded price of $6.76 million was deemed fair and reasonable by the Department of Veterans Affairs. A detailed analysis would involve comparing this figure to historical data for similar cemetery expansion design projects, considering factors like project complexity, scope of services, and prevailing market rates for engineering expertise in California. If the awarded price is significantly below or above industry averages for comparable projects, it would warrant further scrutiny.

What are the primary risks associated with the design development phase for a cemetery expansion, and how are they mitigated in this contract?

Key risks in cemetery design development include scope creep, inaccurate site assessments, unforeseen environmental or geological conditions, and coordination challenges with future construction phases. This contract, being firm-fixed-price, places the financial risk of scope creep and unforeseen conditions largely on the contractor, provided the initial scope is well-defined. Mitigation strategies typically involve rigorous requirements definition, detailed site surveys, geotechnical investigations, and clear communication protocols between the design team and the VA. The contract's duration (743 days) also allows ample time for thorough design work, potentially reducing errors that could lead to construction issues.

What is the expected impact of this Phase 6 expansion on the overall capacity and service life of Riverside National Cemetery?

Phase 6 of the Riverside National Cemetery expansion is designed to address increasing demand for burial and memorial services for veterans and their families in Southern California. While the specific capacity increase and extended service life are not detailed in the provided data, such expansions are typically undertaken to ensure the cemetery can continue to serve the veteran population for several decades. The design development phase is critical for determining the optimal layout, number of plots, columbarium niches, and supporting infrastructure (roads, utilities, administrative facilities) to maximize capacity and operational efficiency, thereby extending the cemetery's functional lifespan.

How has federal spending on cemetery infrastructure and design services trended in recent years, and does this contract align with those trends?

Federal spending on cemetery infrastructure, including design and construction services, has generally seen consistent investment, driven by the ongoing need to provide dignified burial spaces for veterans and the aging of the veteran population. The Department of Veterans Affairs (VA) is a primary steward of this spending. Trends often reflect priorities in maintaining existing facilities, expanding capacity at high-demand locations like Riverside, and incorporating modern design elements for efficiency and aesthetics. This $6.76 million contract for design development aligns with the VA's continuous efforts to upgrade and expand its national cemetery system, suggesting it is part of a broader, ongoing investment strategy rather than an isolated expenditure.

Industry Classification

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

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

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, DoT Certified Disadvantaged Business Enterprise, 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: $9,009,795

Exercised Options: $6,763,861

Current Obligation: $6,763,861

Actual Outlays: $1,178,783

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10F23D0005

IDV Type: IDC

Timeline