VA awards $11.8M construction contract for Dayton National Cemetery, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $11,817,780 ($11.8M)

Contractor: Calvary Contracting Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-26

End Date: 2026-03-05

Contract Duration: 891 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES AT DAYTON NATIONAL CEMETERY

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45428

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.8 million to CALVARY CONTRACTING INC for work described as: CONSTRUCTION SERVICES AT DAYTON NATIONAL CEMETERY Key points: 1. Contract awarded to Calvary Contracting Inc. for construction services. 2. The contract has a firm fixed-price structure, indicating defined costs. 3. Competition was full and open after exclusion of sources, suggesting a competitive process. 4. The contract duration is 891 days, spanning over two years. 5. The project is located in Ohio, impacting local construction markets. 6. This award represents a significant investment in national cemetery infrastructure.

Value Assessment

Rating: good

The contract value of $11.8 million for construction services at a national cemetery appears reasonable given the scope and duration. Benchmarking against similar cemetery construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps manage cost risks for the government, assuming the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the number of bidders. The specific reasons for exclusion would be critical to understanding the true level of competition and its impact on price discovery.

Taxpayer Impact: While the exclusion of sources might have limited the bidder pool, the 'full and open' aspect suggests an effort to achieve competitive pricing. Taxpayers benefit from a structured procurement process, even with exclusions, provided the final price reflects market value.

Public Impact

Veterans and their families will benefit from improved facilities at Dayton National Cemetery. Construction services will enhance the infrastructure and aesthetic of the cemetery. The project will likely create temporary jobs in the local Ohio construction sector. Improved cemetery facilities contribute to the dignified commemoration of service members.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusions.
Risk of cost overruns if initial pricing did not fully account for all construction complexities.
Dependence on contractor performance for timely and quality completion within the fixed price.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to a single contractor simplifies management.
Project addresses a clear need for cemetery infrastructure improvement.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for cemetery construction and maintenance is specialized, often involving government contracts due to the nature of national cemeteries. The $11.8 million award is a substantial sum for a single project of this type, indicating a significant scope of work.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Calvary Contracting Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases, though specific project oversight details may not be publicly detailed.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Federal Construction Contracts
Commercial Building Construction Services

Risk Flags

Potential for limited competition due to source exclusions.
Contractor performance risk under firm fixed-price terms.
Need for detailed scope of work clarity to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.8 million to CALVARY CONTRACTING INC. CONSTRUCTION SERVICES AT DAYTON NATIONAL CEMETERY

Who is the contractor on this award?

The obligated recipient is CALVARY CONTRACTING 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 $11.8 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-03-05.

What is the track record of Calvary Contracting Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess Calvary Contracting Inc.'s track record. Key metrics to examine would include the number of previous federal awards, their total value, performance ratings on past contracts, and any history of contract disputes or terminations. Specifically, their experience with the Department of Veterans Affairs and similar construction projects at national cemeteries would be highly relevant. A positive history with the VA suggests familiarity with their requirements and processes, potentially reducing execution risk. Conversely, a history of performance issues could indicate a higher risk for this current contract.

How does the awarded price of $11.8 million compare to similar construction projects at national cemeteries?

Benchmarking this $11.8 million contract against similar construction projects at other national cemeteries is crucial for assessing value for money. Factors to consider include the scope of work (e.g., new construction, renovation, specific features like columbarium walls or roads), the geographic location (which impacts labor and material costs), and the contract duration. Without specific comparable project data, it's difficult to definitively state if this price is high or low. However, the firm fixed-price nature suggests the government sought cost certainty, implying the initial bid was deemed competitive at the time of award.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method presents a nuanced risk profile. While aiming for broad competition, the exclusion of specific sources inherently limits the bidder pool. The primary risk is that this exclusion may have inadvertently removed highly capable or cost-competitive bidders, potentially leading to a less optimal price for the government than if all potential sources were considered. Understanding the justification for these exclusions is vital. If the exclusions were based on legitimate technical requirements or past performance issues with certain contractors, the risk might be mitigated. However, if the exclusions were arbitrary, it could signal a less competitive outcome and potentially higher costs for taxpayers.

What is the expected impact of this construction project on the operational capacity and veteran services at Dayton National Cemetery?

This $11.8 million construction contract is expected to significantly enhance the operational capacity and services at Dayton National Cemetery. The specific improvements will depend on the detailed scope of work, but typically such projects involve expanding burial space, improving infrastructure like roads and drainage, constructing new facilities (e.g., chapels, administrative buildings, committal shelters), or upgrading existing structures. These enhancements are crucial for accommodating the needs of veterans and their families, ensuring dignified final resting places, and maintaining the cemetery's overall functionality and appearance. The project's duration of 891 days suggests a substantial undertaking aimed at long-term improvements.

How has federal spending on cemetery construction and maintenance evolved over the past five years, and where does this contract fit in?

Analyzing federal spending trends on cemetery construction and maintenance over the past five years would provide context for this $11.8 million award. Spending in this category is driven by the needs of the National Cemetery Administration (NCA) to expand capacity, maintain existing grounds, and upgrade facilities to serve the growing veteran population. Factors like budget allocations, infrastructure assessments, and the prioritization of specific cemetery needs influence annual spending. This $11.8 million contract represents a significant single investment, likely addressing a specific, substantial project at Dayton National Cemetery. Its size suggests it might be part of a larger, multi-year capital improvement plan or a response to a critical infrastructure need.

What are the potential implications of the firm fixed-price contract type on contractor performance and final cost?

A firm fixed-price (FFP) contract type, like the one awarded for the Dayton National Cemetery construction, places the primary risk of cost overruns on the contractor. This means Calvary Contracting Inc. is obligated to complete the project for the agreed-upon price, regardless of unforeseen expenses. This structure incentivizes the contractor to manage costs efficiently and perform diligently to avoid financial losses. For the government, it offers significant cost certainty, making budgeting more predictable. However, if the initial price was set too low due to aggressive bidding or inadequate cost estimation, the contractor might be tempted to cut corners on quality or scope, posing a risk to project outcomes. Robust government oversight is still necessary to ensure quality standards are met.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: SEALED BID

Solicitation ID: 36C78623B0033

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4125 GIBSON DR, TIPP CITY, OH, 45371

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, 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: $11,817,780

Exercised Options: $11,817,780

Current Obligation: $11,817,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline