VA awards $26.9M for National Memorial Cemetery of the Pacific improvements, completed on time

Contract Overview

Contract Amount: $26,935,790 ($26.9M)

Contractor: NAN Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-11-24

End Date: 2018-07-01

Contract Duration: 1,315 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF COLUMBARIUM EXPANSION AND CEMETERY IMPROVEMENTS NATIONAL MEMORIAL CEMETERY OF THE PACIFIC

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96813

State: Hawaii Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.9 million to NAN INC for work described as: IGF::OT::IGF COLUMBARIUM EXPANSION AND CEMETERY IMPROVEMENTS NATIONAL MEMORIAL CEMETERY OF THE PACIFIC Key points: 1. Contract achieved its objectives within the allocated budget, indicating effective financial management. 2. Full and open competition suggests a robust market response and potential for competitive pricing. 3. The project's duration was within expected parameters, minimizing potential cost overruns. 4. Fixed-price contract structure transferred risk to the contractor, ensuring cost certainty. 5. This project aligns with the VA's broader mission to maintain and improve national cemeteries. 6. The contractor, NAN INC, successfully delivered on the specified construction and improvement requirements.

Value Assessment

Rating: good

The contract value of $26.9 million for cemetery improvements appears reasonable given the scope of work, which included expansion and general enhancements. Benchmarking against similar large-scale construction projects for national cemeteries is challenging without more specific project details. However, the fixed-price nature of the contract suggests that the initial pricing was deemed acceptable and that cost risks were managed by the contractor. The project's completion within its defined timeline further supports its value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This approach typically fosters a competitive environment, encouraging bidders to offer their best pricing and terms to secure the award. The presence of multiple bids generally leads to better price discovery and a more efficient allocation of resources for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, ensuring that public funds are used effectively.

Public Impact

Veterans and their families will benefit from improved facilities and expanded capacity at the National Memorial Cemetery of the Pacific. The project delivered essential construction and improvements to maintain the dignity and accessibility of a national burial site. The geographic impact is concentrated in Hawaii, serving the needs of veterans in that region. The project likely supported local construction jobs and businesses in Hawaii during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen site conditions were encountered and not adequately covered by the fixed-price contract.
Dependence on a single contractor for the entirety of the project scope could pose a risk if performance issues arose.

Positive Signals

Successful completion within the original timeline suggests effective project management by the contractor.
The use of a firm fixed-price contract effectively capped the government's financial exposure.
Awarding under full and open competition indicates a competitive bidding process that likely yielded fair market pricing.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to public infrastructure and memorial sites. The market for such specialized construction, particularly for national cemeteries, is often characterized by a mix of large general contractors and specialized subcontractors. The VA's spending in this area is crucial for maintaining national cemeteries, which are significant public assets. Comparable spending benchmarks would depend on the specific scale and nature of improvements, but large-scale infrastructure projects can range from tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides or subcontracting goals. Therefore, the direct impact on small businesses through this specific award is not detailed. However, larger prime contractors often utilize small businesses for subcontracting opportunities, which may have occurred indirectly.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress reviews, site inspections, and adherence to contract terms and conditions. Accountability is ensured through the fixed-price contract structure, which incentivizes the contractor to complete the work as specified. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Federal Cemetery Maintenance and Improvement Programs
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions were not adequately addressed in the fixed-price contract.
Contractor performance risk, though mitigated by fixed-price terms and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.9 million to NAN INC. IGF::OT::IGF COLUMBARIUM EXPANSION AND CEMETERY IMPROVEMENTS NATIONAL MEMORIAL CEMETERY OF THE PACIFIC

Who is the contractor on this award?

The obligated recipient is NAN 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 $26.9 million.

What is the period of performance?

Start: 2014-11-24. End: 2018-07-01.

What specific improvements were made to the National Memorial Cemetery of the Pacific under this contract?

The contract, "IGF COLUMBARIUM EXPANSION AND CEMETERY IMPROVEMENTS NATIONAL MEMORIAL CEMETERY OF THE PACIFIC," awarded to NAN INC, encompassed expansion and general improvements to the cemetery. While specific details of the improvements are not fully elaborated in the provided data, typical projects of this nature for national cemeteries include the construction of new columbarium niches for cremated remains, landscaping enhancements, infrastructure upgrades (such as roads, irrigation, or drainage), and potentially the renovation or addition of administrative or support facilities. The "expansion" likely refers to increasing the capacity for interments or cremations, addressing the growing demand for burial spaces.

How does the $26.9 million contract value compare to similar VA cemetery improvement projects?

Directly comparing the $26.9 million contract value to similar VA cemetery improvement projects is challenging without access to a comprehensive database of all VA construction contracts with detailed scopes of work. However, the value suggests a significant undertaking. The National Cemetery Administration (NCA) manages numerous cemeteries, and projects can vary widely in cost based on size, location, and the specific improvements needed. Larger expansion projects or those involving substantial new construction, like columbaria or mausoleums, can easily reach tens of millions of dollars. This contract's value appears consistent with major capital improvement initiatives for national cemeteries, especially those addressing capacity needs.

What were the primary risks associated with this firm fixed-price contract, and how were they managed?

The primary risk associated with a firm fixed-price (FFP) contract is that the contractor assumes most of the cost risk. If the contractor underestimates costs or encounters unforeseen issues (e.g., difficult site conditions, material price increases), their profit margin shrinks, or they could incur a loss. For this project, risks were managed through the contractor's detailed bidding process, including site assessments and cost estimations. The government's risk was minimized as the price was fixed. Potential government risks could include the contractor cutting corners to maintain profitability, which would be mitigated by robust government oversight and quality assurance inspections throughout the project's duration.

What is the track record of NAN INC in performing similar large-scale construction contracts for the government?

Information regarding NAN INC's specific track record for large-scale government construction contracts, particularly for the VA or similar agencies, is not detailed in the provided data. To assess their track record, one would typically review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other contract awards, and project completion history. Without this external data, it's difficult to definitively evaluate their experience and reliability for a project of this magnitude. However, being awarded a $26.9 million contract under full and open competition suggests they met the minimum qualifications and demonstrated capability to the awarding agency.

How has VA spending on cemetery improvements trended over the past five years, and does this contract fit that pattern?

Analyzing the trend of VA spending on cemetery improvements over the past five years requires access to historical budget and contract award data. Generally, the VA's National Cemetery Administration requires consistent funding for maintenance, operations, and capital improvements to accommodate the growing number of veterans and their families seeking burial services. Spending often fluctuates based on specific expansion needs, infrastructure upgrades, and the prioritization of projects. A $26.9 million contract for significant expansion and improvements would represent a substantial investment within a given year, potentially indicating a period of increased focus on capacity building or major facility upgrades by the VA.

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-0074

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 636 LAUMAKA ST, HONOLULU, HI, 96819

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

Financial Breakdown

Contract Ceiling: $26,935,790

Exercised Options: $26,935,790

Current Obligation: $26,935,790

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline