VA's $47.8M monument contract awarded to VETERANS MONUMENT COMPANY, LLC for cut stone products

Contract Overview

Contract Amount: $47,830,600 ($47.8M)

Contractor: Veterans Monument Company, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-10-01

End Date: 2020-03-30

Contract Duration: 2,007 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IFG::OT::IGF (U1) BLANK

Place of Performance

Location: CALEDONIA, LOWNDES County, MISSISSIPPI, 39740

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47.8 million to VETERANS MONUMENT COMPANY, LLC for work described as: IFG::OT::IGF (U1) BLANK Key points: 1. Contract value appears reasonable given the scope of monument construction. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of over 5 years indicates a long-term need for these services. 4. The contract falls within the 'Cut Stone and Stone Product Manufacturing' NAICS code. 5. Fixed-price contract type helps mitigate cost overrun risks for the government. 6. Awarded to a single entity, VETERANS MONUMENT COMPANY, LLC.

Value Assessment

Rating: good

The contract value of approximately $47.8 million for monument construction and stone products over a period of roughly 5.5 years appears to be within a reasonable range for such projects. Benchmarking against similar large-scale memorial or construction projects would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded based on predefined criteria. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: The use of full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives fair market value for its expenditures.

Public Impact

Veterans and their families benefit from the creation of commemorative monuments. Services delivered include the manufacturing and potentially installation of cut stone products for monuments. The geographic impact is likely concentrated in the location where the monuments are erected, potentially nationwide depending on VA's projects. The contract supports jobs in the stone product manufacturing and construction industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' significantly narrowed the field.
Risk of price escalation if market conditions for stone products change significantly during the contract term.
Dependence on a single contractor for a significant portion of monument stone needs.

Positive Signals

Full and open competition, even with exclusions, aims for broad market participation.
Fixed-price contract provides cost certainty for the government.
Award to a company with 'VETERANS' in its name may align with VA's mission.

Sector Analysis

The contract falls under the 'Cut Stone and Stone Product Manufacturing' sector (NAICS 327991). This sector includes establishments primarily engaged in manufacturing concrete products, brick, stone, or related nonmetallic mineral products. The market size for monument construction can vary significantly based on government initiatives and public demand. This contract represents a specific procurement within the broader construction and manufacturing industries, likely serving a niche but important government need.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to businesses of all sizes, and VETERANS MONUMENT COMPANY, LLC, the awardee, is likely a larger entity or was selected based on best value. There is no explicit information on subcontracting requirements for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Construction Projects
National Cemetery Administration Programs
Federal Building and Monument Maintenance
Public Works and Infrastructure

Risk Flags

Limited Competition Potential
Long Contract Duration Risk
Material Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47.8 million to VETERANS MONUMENT COMPANY, LLC. IFG::OT::IGF (U1) BLANK

Who is the contractor on this award?

The obligated recipient is VETERANS MONUMENT COMPANY, 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 $47.8 million.

What is the period of performance?

Start: 2014-10-01. End: 2020-03-30.

What is the track record of VETERANS MONUMENT COMPANY, LLC with federal contracts, particularly with the Department of Veterans Affairs?

The provided data indicates that VETERANS MONUMENT COMPANY, LLC was awarded this specific definitive contract by the Department of Veterans Affairs. Further investigation into federal procurement databases (e.g., FPDS, SAM.gov) would be necessary to ascertain the company's complete federal contracting history, including past performance on other VA contracts or contracts with different agencies. This would involve reviewing prior awards, contract modifications, past performance reviews, and any documented issues or successes to build a comprehensive picture of their reliability and capability in fulfilling government requirements.

How does the awarded price compare to market rates for similar cut stone and monument manufacturing services?

A precise comparison to market rates requires detailed analysis of the specific stone types, complexity of design, manufacturing processes, and installation requirements. The contract value of $47.8 million over approximately 5.5 years, for 'Cut Stone and Stone Product Manufacturing,' suggests a significant project. Benchmarking would involve researching recent contracts for similar large-scale monument projects awarded by government agencies or large private entities, considering factors like per-square-foot costs for specialized stone, labor rates in the relevant geographic areas, and overhead costs. Without specific details on the project's scope and deliverables, a definitive market rate comparison is challenging.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential delays in material sourcing or manufacturing, quality control issues with specialized stone, and unforeseen site conditions if installation is included. The 'Firm Fixed Price' (FFP) contract type is a primary mitigation strategy, placing the financial risk of cost overruns on the contractor. The contract's duration (over 5 years) also necessitates robust quality assurance and performance monitoring by the VA to ensure ongoing compliance. Furthermore, the 'Full and Open Competition' process, even with exclusions, aims to select a capable contractor, and contract clauses likely address performance standards and remedies for non-compliance.

What is the historical spending pattern for cut stone and monument products by the Department of Veterans Affairs?

Historical spending data for this specific category by the VA would reveal trends in procurement volume and value over time. Analyzing past contracts under NAICS code 327991 or similar classifications related to construction materials and monument fabrication would indicate whether this $47.8 million award is an outlier, a continuation of a trend, or a significant increase in spending. Understanding this pattern helps assess the agency's consistent need for such products and the typical scale of its investments in related projects, potentially highlighting periods of increased activity or shifts in procurement strategies.

What does the 'after exclusion of sources' clause in the competition type imply for the bidding process and potential outcomes?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the competition was intended to be broad, certain potential bidders were intentionally excluded based on specific, documented criteria. This could be due to requirements for specialized expertise, past performance issues with certain firms, or specific security clearances. While it aims to ensure only qualified and suitable contractors participate, it inherently limits the pool of bidders compared to unrestricted full and open competition. This could potentially reduce the intensity of price competition, although the presence of two bidders indicates some level of market engagement.

Industry Classification

NAICS: Manufacturing › Other Nonmetallic Mineral Product Manufacturing › Cut Stone and Stone Product Manufacturing

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA786-14-R-0258

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 194 QUAIL RIDGE ROAD, CALEDONIA, MS, 39740

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $69,759,099

Exercised Options: $47,830,600

Current Obligation: $47,830,600

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline