VA awards $48.1M design-build contract for Riverside National Cemetery improvements to Kiewit Infrastructure West Co

Contract Overview

Contract Amount: $48,091,690 ($48.1M)

Contractor: Kiewit Infrastructure West CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-03-08

End Date: 2022-11-17

Contract Duration: 2,080 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF RIVERSIDE NATIONAL CEMETERY TWO PHASE DESIGN - BUILD

Place of Performance

Location: MARCH ARB, RIVERSIDE County, CALIFORNIA, 92518

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $48.1 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: IGF::OT::IGF RIVERSIDE NATIONAL CEMETERY TWO PHASE DESIGN - BUILD Key points: 1. The contract value of $48.1 million is substantial for a cemetery infrastructure project. 2. Kiewit Infrastructure West Co. is a large, established construction firm, indicating significant competition for such projects. 3. The project involves heavy civil engineering, a sector with inherent risks related to site conditions and material costs. 4. This falls under the Construction sector, specifically heavy and civil engineering.

Value Assessment

Rating: fair

The contract's firm fixed price structure aims to control costs. However, the large value and extended duration (2080 days) present potential for cost overruns if unforeseen issues arise. Benchmarking against similar large-scale cemetery or civil engineering projects would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a definitive contract implies a single award after competition, which can be efficient but requires careful monitoring to ensure the best value was secured.

Taxpayer Impact: Taxpayer funds are being used for significant infrastructure improvements at a national cemetery, aiming to provide lasting public benefit. The competitive award process is intended to ensure efficient use of these funds.

Public Impact

Enhances a national cemetery, providing improved facilities and services for veterans and their families. Supports local employment and economic activity through construction jobs and material sourcing. Long-term infrastructure investment ensures the continued functionality and dignity of a national memorial site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to project scale and duration.
Risk of unforeseen site conditions impacting schedule and budget.
Contract type (definitive) requires close oversight to ensure continued value.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.
Project addresses critical infrastructure needs for veterans.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is characterized by large-scale projects, complex logistics, and significant capital investment. Spending benchmarks for similar national cemetery or large public works projects would provide context for the $48.1 million award.

Small Business Impact

While the prime contractor is Kiewit Infrastructure West Co., a large entity, the contract details do not specify the extent of small business subcontracting. Further analysis would be needed to determine the impact on small businesses.

Oversight & Accountability

The Department of Veterans Affairs awarded this contract, and oversight would typically involve contract management teams monitoring progress, costs, and adherence to specifications. The Inspector General's office may also conduct audits.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for scope creep impacting budget and schedule.
Contractor's ability to manage complex logistics and multiple subcontractors.
Environmental compliance and permitting challenges.
Long project duration increases exposure to economic fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $48.1 million to KIEWIT INFRASTRUCTURE WEST CO.. IGF::OT::IGF RIVERSIDE NATIONAL CEMETERY TWO PHASE DESIGN - BUILD

Who is the contractor on this award?

The obligated recipient is KIEWIT INFRASTRUCTURE WEST CO..

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 $48.1 million.

What is the period of performance?

Start: 2017-03-08. End: 2022-11-17.

What specific improvements are included in the $48.1 million contract, and how do they align with the long-term needs of Riverside National Cemetery?

The contract details do not specify the exact improvements. However, a $48.1 million design-build contract for a national cemetery typically encompasses major infrastructure upgrades such as expansion of burial areas, columbarium construction, road improvements, utility system modernization, and landscaping. These improvements are crucial for accommodating future needs and maintaining the dignity and functionality of the cemetery.

Given the firm fixed price, what mechanisms are in place to manage potential cost increases due to unforeseen site conditions or material price volatility?

Firm fixed price contracts generally place the risk of unforeseen conditions and price volatility on the contractor. However, contracts often include clauses for equitable adjustments if significant, unforeseen site conditions are encountered or if specific material price escalations are explicitly addressed. Robust project management and contingency planning by the VA are essential.

How does the performance of Kiewit Infrastructure West Co. on similar large-scale civil engineering projects inform the risk assessment for this contract?

Kiewit Infrastructure West Co. has a strong track record in large-scale infrastructure projects, suggesting a lower risk profile regarding execution capability. However, the specific risks associated with cemetery construction, such as environmental regulations and historical preservation, require tailored assessment. Past performance data on similar projects would be the best indicator of effectiveness.

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: TWO STEP

Solicitation ID: VA101F-17-C-2879

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peter Kiewit Sons Inc

Address: 2200 COLUMBIA HOUSE BLVD, VANCOUVER, WA, 98661

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

Financial Breakdown

Contract Ceiling: $48,091,690

Exercised Options: $48,091,690

Current Obligation: $48,091,690

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline