VA awards $20.4M contract for Marion National Cemetery land expansion to KMC Solutions, LLC

Contract Overview

Contract Amount: $20,383,000 ($20.4M)

Contractor: KMC Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2028-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NUMBER 817CM3025 NEW LAND EXPANSION AT MARION NATIONAL CEMETERY

Place of Performance

Location: MARION, GRANT County, INDIANA, 46953

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.4 million to KMC SOLUTIONS, LLC for work described as: PROJECT NUMBER 817CM3025 NEW LAND EXPANSION AT MARION NATIONAL CEMETERY Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. The duration of the contract is 1095 days, indicating a medium-term project. 4. The project is located in Indiana, potentially impacting local employment and businesses. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction. 6. The awardee, KMC Solutions, LLC, is a new entity in federal contracting based on available data. 7. The contract value of $20.4 million falls within a moderate spending range for construction projects.

Value Assessment

Rating: fair

The contract value of $20.4 million for land expansion at a national cemetery appears to be within a reasonable range for heavy civil engineering construction projects of this nature. Without specific benchmarks for cemetery expansion projects, a direct comparison is difficult. However, the firm-fixed-price structure helps mitigate cost overruns. The number of bids received (6) suggests some level of market interest, but further analysis would be needed to determine if this represents optimal value for money.

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,' which is a standard competitive procedure. Six bids were received, indicating a moderate level of competition for this project. While six bidders suggest that multiple companies were interested and capable of performing the work, it is not exceptionally high for a federal contract of this size. The level of competition is generally positive for price discovery and ensuring a fair market price.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source award. The presence of six bidders suggests that the Department of Veterans Affairs received multiple proposals, increasing the likelihood of securing the best value.

Public Impact

The primary beneficiaries are veterans and their families who will have expanded burial space at the Marion National Cemetery. The project will deliver expanded land for cemetery operations, potentially including new burial plots and associated infrastructure. The geographic impact is localized to Marion, Indiana, and the surrounding region. The contract is expected to create or sustain jobs in the construction sector within Indiana. The expansion ensures the long-term capacity of a significant national cemetery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

KMC Solutions, LLC appears to be a relatively new entity in federal contracting, raising questions about their past performance and capacity for large-scale projects.
The 'exclusion of sources' clause in the competition type warrants further investigation to understand if any qualified bidders were intentionally excluded.
The specific scope of 'land expansion' is broad and could encompass various complexities not detailed in the summary data.

Positive Signals

The contract was awarded through full and open competition, indicating a commitment to a fair and transparent procurement process.
The firm-fixed-price contract type provides budget certainty for the government, minimizing the risk of cost overruns.
The project addresses a critical need for expanded burial space at a national cemetery, ensuring future capacity.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to land development and infrastructure. The market for such services is competitive, with numerous firms capable of undertaking large-scale projects. Federal spending in this sector often involves infrastructure improvements, facility expansions, and land management for government agencies. Benchmarks for similar land expansion projects at national cemeteries would provide a more precise comparison, but the $20.4 million figure suggests a significant undertaking.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, KMC Solutions, LLC, may choose to subcontract portions of the work to small businesses as part of their overall project management strategy. The impact on the small business ecosystem will depend on KMC Solutions' subcontracting practices.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs (VA) contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency is facilitated through the federal procurement data system where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Heavy and Civil Engineering Construction Contracts
Federal Land Management Projects

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor's limited federal contracting history may pose performance risks.
Scope definition clarity for 'land expansion' needs verification.
Ensuring competitive pricing despite 'exclusion of sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.4 million to KMC SOLUTIONS, LLC. PROJECT NUMBER 817CM3025 NEW LAND EXPANSION AT MARION NATIONAL CEMETERY

Who is the contractor on this award?

The obligated recipient is KMC SOLUTIONS, 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 $20.4 million.

What is the period of performance?

Start: 2025-09-30. End: 2028-09-29.

What is the track record of KMC Solutions, LLC in performing federal construction contracts, particularly those of similar size and scope?

Based on the provided data, KMC Solutions, LLC appears to be a relatively new entrant into the federal contracting space. Detailed historical performance data, including past projects, client satisfaction, and any past performance issues, is not readily available from this summary. Further investigation into federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain their experience with similar-sized projects, their on-time and on-budget performance history, and any relevant certifications or qualifications. The lack of extensive public track record for a contract of this magnitude warrants careful monitoring of their performance throughout the project lifecycle.

How does the awarded amount of $20.4 million compare to similar land expansion projects at national cemeteries or other federal facilities?

Directly comparable data for 'land expansion at national cemeteries' is not publicly available in a standardized format. However, $20.4 million is a substantial sum for a construction project. For context, other large-scale civil engineering projects for federal agencies, such as infrastructure upgrades or new facility construction, can range from tens to hundreds of millions of dollars. The specific scope of work, geographic location (which affects labor and material costs), and the complexity of the terrain at Marion National Cemetery would heavily influence the final price. A more precise benchmark would require analyzing similar VA construction projects or land development contracts awarded by agencies like the Army Corps of Engineers.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential delays in project completion, unforeseen site conditions (e.g., geological issues, environmental concerns), and potential cost increases if the firm-fixed-price contract has poorly defined scope or contingencies. Given that KMC Solutions, LLC may have limited federal contracting experience, there's a risk related to their capacity to manage a project of this scale. Mitigation strategies likely involve robust project management by the VA, clear contract specifications, regular site inspections, and performance monitoring. The firm-fixed-price structure itself is a risk mitigation tool for the government, capping the total expenditure.

How effective is the 'full and open competition after exclusion of sources' method in ensuring the best value for taxpayers in this specific instance?

The 'full and open competition after exclusion of sources' method is a standard procurement approach designed to maximize competition while allowing for specific exclusions if justified. In this case, receiving six bids suggests that the competition was reasonably robust, likely leading to competitive pricing. The effectiveness for taxpayers hinges on whether the exclusion of certain sources (if any were indeed excluded and why) prevented potentially better offers. Without knowing the specifics of the exclusion, it's presumed to be a valid procedural step. The key is that multiple capable vendors were allowed to bid, fostering price discovery and ensuring the government wasn't locked into a limited choice.

What is the historical spending pattern of the Department of Veterans Affairs for cemetery expansion or similar construction projects?

The Department of Veterans Affairs (VA) consistently invests in the maintenance and expansion of its national cemeteries to meet the needs of veterans. Historical spending patterns show regular allocations for construction, land acquisition, and infrastructure improvements across its cemetery system. While specific figures for 'land expansion' projects vary significantly based on cemetery size, location, and scope, the VA's overall capital budget includes substantial amounts for such endeavors. Analyzing VA's annual budget requests and contract award databases would reveal trends in spending on cemetery infrastructure, indicating whether this $20.4 million award aligns with historical investment levels for comparable projects.

What are the potential workforce implications of this $20.4 million construction contract in Indiana?

A contract of this magnitude is likely to generate employment opportunities within the construction sector in Indiana. This includes direct jobs for skilled tradespeople (e.g., heavy equipment operators, laborers, engineers, project managers) and indirect jobs in supporting industries such as material supply, equipment rental, and transportation. The duration of the contract (nearly three years) suggests sustained employment for the project's duration. The specific number of jobs created will depend on the project's phasing and the extent of subcontracting. Local economic development agencies may track such projects for their impact on regional employment figures.

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: 36C78625B0035

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4410 CLAIBORNE SQ E STE 334, HAMPTON, VA, 23666

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, 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: $20,383,000

Exercised Options: $20,383,000

Current Obligation: $20,383,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline