VA awards $2.37M for cemetery improvements, highlighting construction needs in New Mexico

Contract Overview

Contract Amount: $2,371,729 ($2.4M)

Contractor: Ameritech Contracting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-24

End Date: 2026-05-11

Contract Duration: 441 days

Daily Burn Rate: $5.4K/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: BURIAL EXPANSION & CEMETERY IMPROVEMENTS

Place of Performance

Location: FORT BAYARD, GRANT County, NEW MEXICO, 88036

State: New Mexico Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to AMERITECH CONTRACTING LLC for work described as: BURIAL EXPANSION & CEMETERY IMPROVEMENTS Key points: 1. Contract value of $2.37 million addresses critical infrastructure needs for national cemeteries. 2. Ameritech Contracting LLC secured the award, indicating a competitive landscape for construction services. 3. The definitive contract structure suggests a need for ongoing or phased work over its duration. 4. Fixed-price terms provide cost certainty for the government, mitigating budget risks. 5. The contract's focus on building construction points to a broader trend in infrastructure investment. 6. Performance is expected in New Mexico, potentially impacting local construction employment.

Value Assessment

Rating: good

The contract value of $2.37 million for cemetery improvements appears reasonable given the scope of construction and the duration of the contract (441 days). Benchmarking against similar VA cemetery improvement projects would provide a more precise value-for-money assessment. However, the firm fixed-price nature suggests that the contractor has assumed the primary cost risk, which is generally favorable for the government. The award to Ameritech Contracting LLC, a single entity, implies a focused selection process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, or the initial solicitation may have had limitations. With 4 bidders, the competition level indicates a moderate interest in the opportunity. This level of competition is generally sufficient to promote price discovery and encourage competitive pricing, though not as robust as full and open competition without exclusions.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from competitive pricing, avoiding the potential overruns associated with sole-source or highly restricted procurements. However, the exclusion of certain sources might have limited the ultimate cost savings achievable.

Public Impact

Veterans and their families will benefit from improved and expanded cemetery facilities, ensuring dignified final resting places. The contract will deliver essential construction services for cemetery infrastructure, potentially including new burial spaces, roads, or maintenance facilities. The geographic impact is focused on New Mexico, supporting the VA's commitment to maintaining national cemeteries across the country. The project is expected to create or sustain jobs within the construction sector in New Mexico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in construction projects if initial requirements are not precisely defined.
Reliance on a single contractor for a multi-year project introduces performance risk.
The 'exclusion of sources' clause warrants further investigation to ensure no viable competitors were unfairly barred.

Positive Signals

Firm fixed-price contract provides cost certainty and limits government financial exposure.
Definitive contract structure allows for phased execution and potential adjustments within defined parameters.
Award to a single contractor suggests a thorough vetting process and confidence in their capabilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area often supports infrastructure development, maintenance, and expansion of government facilities. The VA's National Cemetery Administration relies heavily on construction services to maintain and expand its burial grounds, which are critical for honoring service members. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by federal agencies for similar infrastructure projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Ameritech Contracting LLC is the prime contractor. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The absence of a small business set-aside suggests that the competition was open to all qualified offerors, and the prime contractor may not be obligated to subcontract to small businesses unless specified in the contract terms or through broader agency goals.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA). As a definitive contract, it likely involves specific delivery orders or task orders that will be monitored for performance, quality, and adherence to schedule. The firm fixed-price nature provides a degree of financial oversight by locking in costs. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

National Cemetery Administration Construction Projects
VA Infrastructure Modernization
Federal Building and Grounds Maintenance
Department of Defense Cemetery Improvements

Risk Flags

Potential for cost overruns if scope is not well-defined.
Performance risk associated with a single contractor.
Need to verify the justification for 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to AMERITECH CONTRACTING LLC. BURIAL EXPANSION & CEMETERY IMPROVEMENTS

Who is the contractor on this award?

The obligated recipient is AMERITECH CONTRACTING 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 $2.4 million.

What is the period of performance?

Start: 2025-02-24. End: 2026-05-11.

What is the historical spending pattern of the Department of Veterans Affairs on cemetery improvements and construction?

The Department of Veterans Affairs (VA) consistently allocates significant funds towards the maintenance, expansion, and improvement of its national cemeteries. Historical data indicates a steady investment in infrastructure to accommodate the growing needs of veterans and their families. Spending in this category can fluctuate year-to-year based on specific capital improvement projects, land acquisition for new cemeteries, and the modernization of existing facilities. For instance, major expansion projects or the establishment of new national cemeteries can lead to substantial increases in obligated funds. The VA's budget justification documents and annual reports often detail these expenditures, providing insights into trends and priorities within the National Cemetery Administration. Analyzing past contract awards for similar construction services can reveal average contract values, durations, and the types of services most frequently procured, such as grounds maintenance, columbarium construction, and infrastructure upgrades.

How does the awarded price of $2.37 million compare to similar VA cemetery improvement contracts?

To accurately benchmark the $2.37 million award for cemetery improvements, a comparative analysis with similar contracts is necessary. This involves identifying contracts with comparable scopes of work (e.g., new construction, expansion, major renovations), geographic locations (if regional cost variations are significant), and contract types (e.g., firm-fixed-price). Factors such as the size of the cemetery, the specific improvements required (e.g., adding burial plots, constructing new facilities, upgrading infrastructure), and the duration of the contract all influence pricing. Without direct access to a database of comparable VA cemetery improvement contracts, a precise comparison is challenging. However, for large-scale construction projects involving significant infrastructure development, a multi-million dollar award is not uncommon. The firm-fixed-price nature of this contract suggests that the contractor has absorbed potential cost fluctuations, which is a positive indicator for value if the work is completed satisfactorily.

What are the primary risks associated with a definitive contract for construction services, and how are they mitigated?

Definitive contracts, while offering flexibility, can introduce several risks in construction projects. One primary risk is scope creep, where the project's requirements expand beyond the initial agreement, potentially leading to cost overruns and schedule delays. This is mitigated through clear and detailed statements of work, robust change order processes, and diligent project management. Another risk is contractor performance; if the selected contractor lacks the necessary expertise or resources, the project quality and timeline can suffer. This is addressed during the pre-award phase through thorough vetting of bidders' past performance, financial stability, and technical capabilities. For this specific contract, the firm-fixed-price (FFP) structure is a key mitigation strategy, as it places the financial risk of cost overruns primarily on the contractor, incentivizing efficient project execution and cost control. Regular progress reviews and quality assurance checks by the VA also serve to mitigate performance and quality risks.

What does the competition level ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') imply for the effectiveness of price discovery and potential savings?

The competition level 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies a moderately competitive environment. While the intent is to allow all responsible sources to submit offers, the 'exclusion of sources' clause indicates that certain potential bidders may have been disqualified or were not solicited for specific, justifiable reasons (e.g., lack of specific qualifications, prior performance issues, or proprietary technology). With four bidders, there was sufficient competition to foster price discovery and encourage competitive pricing, likely resulting in a fair market price. However, the exclusion of some sources might have limited the overall pool of competitors, potentially reducing the downward pressure on prices compared to a truly unrestricted full and open competition. Taxpayers generally benefit from this level of competition as it prevents sole-source markups, but the potential for greater savings might have been forgone if the excluded sources were highly competitive.

What is Ameritech Contracting LLC's track record with federal construction contracts, particularly with the VA?

Information regarding Ameritech Contracting LLC's specific track record with federal construction contracts, especially with the Department of Veterans Affairs (VA), would typically be available through federal procurement databases such as the Federal Procurement Data System (FPDS) or SAM.gov. A review of these systems would reveal the number of contracts awarded to the company, their values, the agencies involved, and performance ratings if publicly available. Examining past performance on similar construction projects, particularly those involving institutional or government facilities, would provide insight into their capabilities, reliability, and adherence to contract terms. Without direct access to this detailed historical data, it's difficult to provide a specific assessment of their track record. However, being awarded a definitive contract by the VA suggests they met the minimum qualifications and were deemed capable of performing the required services.

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: 36C78624B0044

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 318 MAIN ST, BERLIN, CT, 06037

Business Categories: Category Business, 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: $2,371,729

Exercised Options: $2,371,729

Current Obligation: $2,371,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline