VA awards $37.7M design-build contract for Willamette National Cemetery expansion

Contract Overview

Contract Amount: $37,687,510 ($37.7M)

Contractor: Kiewit Infrastructure West CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-03-06

End Date: 2022-04-01

Contract Duration: 1,852 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

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

Place of Performance

Location: HAPPY VALLEY, CLACKAMAS County, OREGON, 97086

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37.7 million to KIEWIT INFRASTRUCTURE WEST CO. for work described as: IGF::OT::IGF WILLAMETTE NATIONAL CEMETERY TWO PHASE DESIGN- BUILD Key points: 1. Contract awarded to Kiewit Infrastructure West Co. for cemetery improvements. 2. Project scope includes design and construction phases for cemetery expansion. 3. Contract duration spans over 1800 days, indicating a significant project. 4. Firm Fixed Price contract type suggests cost certainty for the government. 5. The project falls under 'Other Heavy and Civil Engineering Construction' NAICS code. 6. Awarded by the Department of Veterans Affairs, serving veteran needs.

Value Assessment

Rating: good

The contract value of $37.7 million for a design-build project of this scale appears reasonable. Benchmarking against similar large-scale civil engineering and construction projects for federal agencies, the pricing is likely competitive given the comprehensive scope. The firm fixed-price structure provides cost control for the VA, although the long duration could introduce some risk if not managed effectively. The specific details of the design and construction elements would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of full and open competition generally leads to a more robust price discovery process and encourages contractors to offer competitive bids. The number of bidders (4) suggests a healthy level of interest in this type of federal construction project.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through competitive bidding, ensuring the government receives the best value for its investment.

Public Impact

Benefits veterans and their families by expanding burial capacity and facilities at Willamette National Cemetery. Delivers essential infrastructure improvements for national cemetery operations. Geographic impact is focused on Oregon, serving the needs of veterans in the region. Supports the construction and engineering workforce through job creation and economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1852 days) increases the potential for cost overruns or scope creep if not meticulously managed.
Firm Fixed Price contracts can sometimes lead to contractors cutting corners on quality if not adequately overseen.
The specific details of the 'design-build' scope require careful monitoring to ensure all requirements are met within budget.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing and a fair selection process.
Firm Fixed Price contract provides cost certainty for the Department of Veterans Affairs.
The project addresses a critical need for expanded veteran burial services.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which encompasses a wide range of infrastructure projects. The market for federal construction contracts is substantial, with agencies like the Department of Veterans Affairs consistently investing in facility upgrades and expansions. Comparable spending benchmarks for national cemetery improvements and expansions vary widely based on size and scope, but a $37.7 million award for a design-build project suggests a significant undertaking.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale design-build project, it is likely that Kiewit Infrastructure West Co. may engage subcontractors, potentially including small businesses, to fulfill specific aspects of the construction. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is not explicitly defined by this award alone.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified scope within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though detailed project progress and specific oversight activities may not always be publicly accessible.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Federal Civil Engineering and Construction Contracts
Design-Build Federal Projects

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Firm Fixed Price contracts require diligent oversight to ensure quality.
Design-build complexity necessitates strong project management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37.7 million to KIEWIT INFRASTRUCTURE WEST CO.. IGF::OT::IGF WILLAMETTE 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 $37.7 million.

What is the period of performance?

Start: 2017-03-06. End: 2022-04-01.

What is the historical spending pattern for Willamette National Cemetery improvements by the VA?

Analyzing historical spending for Willamette National Cemetery improvements by the Department of Veterans Affairs (VA) requires accessing detailed procurement data over several fiscal years. While this specific contract represents a significant investment of $37.7 million, understanding the VA's broader investment strategy for this cemetery would involve looking at smaller maintenance contracts, previous expansion phases, or other capital improvement projects. Without access to a comprehensive historical database for this specific cemetery, it's difficult to establish a precise spending pattern. However, the current award suggests a commitment to expanding its capacity, likely in response to increasing demand for veteran burial services in the region.

How does the $37.7 million contract value compare to similar VA cemetery expansion projects?

Comparing the $37.7 million contract value for the Willamette National Cemetery expansion to similar VA cemetery projects requires benchmarking against other national cemetery construction or expansion efforts. The VA manages numerous national cemeteries, and the scale and cost of expansion projects can vary significantly based on land availability, site complexity, and the scope of work (e.g., new columbarium walls, expanded grounds, infrastructure upgrades). A $37.7 million award for a design-build project indicates a substantial undertaking, likely encompassing significant infrastructure development. To provide a precise comparison, one would need to identify comparable projects awarded within a similar timeframe and with similar design-build components, factoring in inflation and regional cost differences.

What are the key performance indicators (KPIs) used to measure the success of this design-build contract?

Key Performance Indicators (KPIs) for a design-build contract like the one for Willamette National Cemetery typically focus on schedule adherence, cost control, quality of work, and safety. For the VA, success would be measured by the timely completion of both the design and construction phases within the firm fixed price of $37.7 million. Quality KPIs would involve ensuring the constructed facilities meet all specified standards and regulations for national cemeteries. Safety KPIs would track incident rates during construction. Post-completion, the ultimate success is measured by the cemetery's increased capacity and improved functionality to serve veterans and their families.

What is Kiewit Infrastructure West Co.'s track record with large federal design-build projects?

Kiewit Infrastructure West Co. has a significant track record of executing large-scale federal design-build projects across various sectors, including civil engineering, transportation, and infrastructure. They are a well-established contractor known for handling complex projects. Their past performance with agencies like the Department of Defense, Department of Transportation, and potentially others within the federal government would be a key factor in the VA's decision to award them this contract. A review of their contract history would likely reveal numerous projects completed on time and within budget, demonstrating their capability to manage the scope and risks associated with a project of this magnitude.

What are the potential risks associated with the long duration (1852 days) of this contract?

The long duration of 1852 days (approximately 5 years) for this design-build contract presents several potential risks. Firstly, there's an increased risk of cost escalation, even with a firm fixed price, if unforeseen conditions arise or if the contract doesn't adequately account for inflation over such an extended period. Secondly, project scope creep is a concern; changes or additions to the original design could significantly impact the timeline and budget if not managed rigorously. Thirdly, contractor performance can degrade over long periods if motivation wanes or key personnel change. Finally, the extended timeline increases the exposure to regulatory changes or evolving environmental standards that might necessitate design modifications.

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: VA101-16-R-0147

Offers Received: 4

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: $37,687,510

Exercised Options: $37,687,510

Current Obligation: $37,687,510

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline