VA awards $30.7M design-build contract for new national cemetery in Nebraska

Contract Overview

Contract Amount: $30,748,029 ($30.7M)

Contractor: Archer Western Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-09-30

End Date: 2019-10-24

Contract Duration: 1,850 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD OF NEW NATIONAL CEMETERY IGF::OT::IGF

Place of Performance

Location: OMAHA, SARPY County, NEBRASKA, 68138

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30.7 million to ARCHER WESTERN CONSTRUCTION LLC for work described as: DESIGN-BUILD OF NEW NATIONAL CEMETERY IGF::OT::IGF Key points: 1. Contract awarded to Archer Western Construction LLC for a significant infrastructure project. 2. The project involves the design and construction of a new national cemetery. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The contract type is a definitive contract with a firm fixed price. 5. The duration of the contract was 1850 days, indicating a long-term project. 6. The project falls under the 'Other Heavy and Civil Engineering Construction' NAICS code. 7. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

The contract value of $30.7 million for a design-build national cemetery project appears to be within a reasonable range for such a significant undertaking. However, without specific benchmarks for cemetery construction or comparable design-build projects of this scale, a precise value-for-money assessment is challenging. The firm fixed-price structure offers cost certainty to the government, but the final cost is dependent on the contractor's ability to manage expenses within the agreed-upon price. Further analysis would require comparing this cost to similar cemetery construction projects or detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The solicitation resulted in 8 offers, suggesting a healthy level of interest and competition for this project. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition likely resulted in a more competitive bid, potentially saving taxpayer dollars compared to a sole-source or limited competition award. The presence of multiple bidders increases the likelihood that the awarded price reflects a fair market value.

Public Impact

The primary beneficiaries are veterans and their families who will have access to a new national cemetery. The project delivers essential infrastructure for national memorialization and burial services. The geographic impact is focused on Nebraska, providing a new burial site for the region. The construction phase will likely create jobs in the heavy and civil engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1850 days) could introduce risks related to material cost fluctuations or unforeseen site conditions.
Firm fixed price contracts can shift cost overrun risks to the contractor, but may also lead to higher initial bids to account for this risk.

Positive Signals

Full and open competition suggests a robust bidding process, potentially leading to a well-priced and well-executed contract.
The definitive contract structure provides a clear framework for the project's execution.
The project addresses a clear need for veteran burial services in Nebraska.

Sector Analysis

The construction sector, particularly heavy and civil engineering, is characterized by large-scale projects requiring specialized expertise. This contract fits within the broader federal spending on infrastructure and veterans' affairs. Comparable spending benchmarks would typically involve analyzing costs per acre or per burial plot for similar national cemetery projects, which are relatively infrequent. The NAICS code 237990 covers a wide range of non-residential heavy construction, making direct comparisons challenging without more specific project details.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into the contractor's subcontracting plan would be needed to assess any indirect benefits.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, which provide basic details of the contract. Specific oversight mechanisms would include regular progress reports, site inspections, and performance reviews.

Related Government Programs

National Cemetery Administration Projects
Department of Veterans Affairs Construction Contracts
Federal Infrastructure Projects
Design-Build Contracts

Risk Flags

Long contract duration
Firm Fixed Price (potential for contractor risk aversion leading to higher bids)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30.7 million to ARCHER WESTERN CONSTRUCTION LLC. DESIGN-BUILD OF NEW NATIONAL CEMETERY IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONSTRUCTION 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 $30.7 million.

What is the period of performance?

Start: 2014-09-30. End: 2019-10-24.

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

The Department of Veterans Affairs (VA) has a consistent, albeit cyclical, pattern of spending on national cemetery construction and expansion to meet the growing needs of the veteran population. While specific annual figures fluctuate based on project pipelines and funding appropriations, the VA's National Cemetery Administration (NCA) regularly undertakes projects to establish new cemeteries or expand existing ones. For instance, in the years leading up to and following this 2014 contract award, the VA was actively planning and executing several new cemetery projects across the country. Data from the Federal Procurement Data System (FPDS) shows numerous construction and design-build contracts awarded to various firms for cemetery development, ranging from site preparation and infrastructure installation to columbarium construction and landscaping. The total annual spending can vary significantly, from tens of millions to hundreds of millions of dollars, depending on the number and scale of active projects. This $30.7 million contract for the Nebraska cemetery represents a significant investment within a broader strategy to ensure adequate burial space for veterans nationwide.

How does the awarded price compare to similar design-build national cemetery projects?

Benchmarking the $30.7 million award for the Nebraska National Cemetery against similar design-build projects is challenging due to the unique nature and infrequent occurrence of full cemetery construction contracts. National cemeteries are complex projects involving extensive site development, infrastructure (roads, utilities), memorial structures, and landscaping, often on large tracts of land. The cost per acre or per planned burial plot can vary widely based on geography, site conditions, and the scope of facilities included. Without access to detailed cost breakdowns or data on comparable projects awarded around the same time, it's difficult to definitively state if this price was high or low. However, given the firm fixed-price nature and full and open competition, it suggests the VA sought competitive bids to achieve value. A more precise comparison would require analyzing the number of planned burial sites, acreage, and specific facility requirements of this project against other recently completed or planned national cemeteries.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Key performance indicators (KPIs) for a design-build contract like the Nebraska National Cemetery project typically focus on schedule adherence, cost control, quality of work, and safety. For this specific contract, KPIs would likely include: 1. On-time completion: Meeting the substantial completion date within the 1850-day duration. 2. Within-budget performance: Although a firm fixed price, managing costs to avoid claims or change orders that could impact the final expenditure. 3. Quality Assurance: Ensuring the constructed facilities meet all design specifications, building codes, and VA standards for durability and aesthetics. 4. Safety Record: Maintaining a low incident rate during the construction phase, adhering to all OSHA and project-specific safety protocols. 5. Design Compliance: Verifying that the final built facility accurately reflects the approved design documents and meets functional requirements for cemetery operations. Performance evaluations would likely involve regular site inspections, progress meetings, and review of contractor submittals and reports.

What is Archer Western Construction LLC's track record with the Department of Veterans Affairs?

Archer Western Construction LLC has a notable track record of working with the Department of Veterans Affairs (VA) on various construction projects. As a subsidiary of The Walsh Group, they have been involved in numerous federal and state infrastructure and building projects. Their experience with the VA includes a range of construction types, from healthcare facilities to administrative buildings and, as demonstrated by this contract, cemetery development. Analyzing their past performance with the VA, particularly on similar large-scale civil engineering or design-build projects, would provide insight into their reliability, quality of work, and ability to manage complex contracts. Publicly available contract databases often show award history, contract values, and sometimes performance ratings, which can be reviewed to assess their suitability and past success with the agency.

Were there any significant change orders or contract modifications issued during the life of this contract?

The provided data does not detail specific change orders or contract modifications for this $30.7 million design-build contract. However, for a project spanning 1850 days (approximately five years), it is common to encounter some level of contract modifications. These can arise from unforeseen site conditions, design clarifications, adjustments in scope due to evolving requirements, or material price escalations (though less likely with a firm fixed price unless specifically addressed). The absence of readily available modification data doesn't necessarily mean there were none, but rather that such details might require deeper access to contract files or specific reporting mechanisms beyond summary data. A thorough review would involve examining contract modification logs and associated documentation to understand any deviations from the original scope, schedule, or price.

What is the estimated capacity or number of burial plots planned for this new national cemetery?

The provided data summary does not specify the estimated capacity or the number of burial plots planned for the new national cemetery in Nebraska. This information is crucial for understanding the scale of the project and for performing meaningful cost-per-plot benchmarking. National cemeteries are designed to serve veterans and their families for decades, and their capacity is a key planning factor. Typically, cemetery development plans include projections for gravesites, cremation niches, and associated memorial areas. Without this data, it's difficult to assess the long-term value and service provision of this $30.7 million investment. Future analysis could seek project scope documents or VA planning reports that detail the intended capacity of the facility.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA101-14-R-0043

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,748,029

Exercised Options: $30,748,029

Current Obligation: $30,748,029

Subaward Activity

Number of Subawards: 872

Total Subaward Amount: $480,184,642

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline