VA awards $2.7M contract for National Shrine Project at NMCP, with a 730-day performance period

Contract Overview

Contract Amount: $2,716,039 ($2.7M)

Contractor: Moderno Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2026-09-30

Contract Duration: 730 days

Daily Burn Rate: $3.7K/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: FY24 NATIONAL SHRINE PROJECT AT NMCP

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96813

State: Hawaii Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.7 million to MODERNO INC for work described as: FY24 NATIONAL SHRINE PROJECT AT NMCP Key points: 1. Contract value appears reasonable for a specialized construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm fixed price, which transfers risk to the contractor. 4. Project duration of two years is standard for significant construction efforts. 5. The project falls under 'Other Heavy and Civil Engineering Construction', a broad category. 6. The awardee, MODERNO INC, is a new entity in federal contracting based on available data.

Value Assessment

Rating: good

The contract value of approximately $2.7 million for the National Shrine Project at NMCP seems within a reasonable range for specialized heavy and civil engineering construction. Without specific benchmarks for shrine construction, comparisons are difficult. However, the firm fixed-price nature of the contract indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. The contract duration of 730 days (two years) is typical for projects of this scale, allowing for adequate planning and execution.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, the use of full and open competition generally promotes a robust bidding environment, leading to better price discovery and potentially more innovative solutions.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering a wide range of qualified contractors.

Public Impact

The primary beneficiaries are likely the Department of Veterans Affairs and visitors to the National Shrine at the Naval Medical Center Portsmouth (NMCP). The project will deliver construction services for the National Shrine. The geographic impact is localized to the NMCP site in Portsmouth, Virginia. Workforce implications will include construction labor and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance history for the awardee, MODERNO INC, in federal contracting.
The specific nature of 'National Shrine Project' may involve unique requirements not easily benchmarked.
Potential for scope creep if project requirements are not rigidly defined and managed.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm fixed-price contract type shifts cost risk to the contractor.
Clear performance period (730 days) provides defined project timeline.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which encompasses a wide range of infrastructure projects. The federal government is a significant spender in this sector, funding everything from roads and bridges to specialized facilities. The market size for federal construction is substantial, with annual outlays often in the billions. This specific project, while niche, contributes to the overall federal investment in construction and facilities management.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The impact on the small business ecosystem is neutral unless MODERNO INC voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project-specific oversight mechanisms are not explicitly stated in the provided data.

Related Government Programs

Department of Veterans Affairs Construction Projects
Naval Medical Center Portsmouth Facilities
Federal Heavy and Civil Engineering Construction Contracts

Risk Flags

New Contractor Performance Risk
Potential for Scope Creep
Unforeseen Site Conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.7 million to MODERNO INC. FY24 NATIONAL SHRINE PROJECT AT NMCP

Who is the contractor on this award?

The obligated recipient is MODERNO 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 $2.7 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-30.

What is the track record of MODERNO INC with federal contracts?

Based on the provided data, MODERNO INC appears to be a new entrant or has a limited federal contracting history. The data does not indicate prior contracts, performance evaluations, or extensive experience with the federal government. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their full track record, including any past performance information, past claims, or litigation history. For a project of this nature, a contractor with a proven history of successful completion of similar construction projects would typically be preferred, making the lack of readily available history a point for careful consideration during performance monitoring.

How does the contract value compare to similar shrine construction projects?

Benchmarking the value of this $2.7 million contract for the National Shrine Project at NMCP against similar projects is challenging due to the specialized and potentially unique nature of shrine construction. Unlike standard building construction, shrine projects often involve specific architectural, historical, and spiritual considerations that can influence costs. Without access to a database of comparable shrine construction projects, a direct value-for-money assessment is difficult. However, the firm fixed-price nature of the contract suggests that the government has secured a defined cost, and the two-year duration is typical for significant construction efforts, implying a scope that justifies the investment.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance issues from MODERNO INC, given their seemingly limited federal contracting history. There's also a risk of scope creep if the project requirements are not meticulously managed, potentially leading to cost overruns if not adequately controlled within the firm fixed-price structure. Furthermore, unforeseen site conditions at the Naval Medical Center Portsmouth could present challenges. The firm fixed-price contract mitigates direct cost overrun risk for the government, but delays or quality issues could still arise, requiring active oversight and potential contract modifications or remedies.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs in projects where the scope of work is well-defined and the risks are understood. For the National Shrine Project at NMCP, the FFP structure places the responsibility for cost control and managing unforeseen expenses on the contractor, MODERNO INC. This benefits the government by providing cost certainty. However, the effectiveness hinges on the accuracy of the initial cost estimation and the contractor's ability to execute the work within that budget. If the contractor underestimated costs or encounters significant unexpected issues, they may seek to reduce quality or claim constructive changes, necessitating diligent government oversight.

What is the historical spending pattern for similar construction projects at NMCP or VA facilities?

Historical spending patterns for similar construction projects at Naval Medical Center Portsmouth (NMCP) or other Department of Veterans Affairs (VA) facilities would require a detailed analysis of past federal procurement data. This specific contract for the National Shrine Project is a unique undertaking. General construction spending at large federal facilities like NMCP can vary significantly year-to-year, depending on infrastructure needs, modernization efforts, and specific project funding allocations. Without access to historical data specific to NMCP or VA shrine-related construction, it's difficult to establish a precise spending pattern. However, federal construction budgets are typically substantial, reflecting ongoing maintenance, upgrades, and new facility development across the government.

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: SEALED BID

Solicitation ID: 36C78624B50290

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 41615 SYCAMORE ST, MURRIETA, CA, 92562

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $2,716,039

Exercised Options: $2,716,039

Current Obligation: $2,716,039

Actual Outlays: $846,416

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline