DoD's $16.5M Mountain Home Cemetery Expansion contract awarded to Valiant Construction LLC shows fair value

Contract Overview

Contract Amount: $16,467,376 ($16.5M)

Contractor: Valiant Construction LLC

Awarding Agency: Department of Defense

Start Date: 2021-08-30

End Date: 2025-12-25

Contract Duration: 1,578 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOUNTAIN HOME NATIONAL CEMETERY EXPANSION - CONSTRUCTION PHASE, JOHNSON CITY, TN.

Place of Performance

Location: MOUNTAIN HOME, WASHINGTON County, TENNESSEE, 37684

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to VALIANT CONSTRUCTION LLC for work described as: MOUNTAIN HOME NATIONAL CEMETERY EXPANSION - CONSTRUCTION PHASE, JOHNSON CITY, TN. Key points: 1. The contract's fixed-price nature provides cost certainty for the government. 2. Competition was robust, with 8 bidders vying for the project, suggesting a healthy market. 3. The project duration of nearly 4 years indicates a significant undertaking. 4. The contract is a definitive contract, often used for complex projects. 5. The project is located in Tennessee, potentially impacting the local construction workforce. 6. The absence of small business set-aside suggests larger firms were expected to bid.

Value Assessment

Rating: good

The contract's firm fixed-price structure is generally favorable for cost control. Benchmarking against similar cemetery construction projects is difficult without more specific cost breakdowns, but the overall value appears reasonable given the scope and duration. The award to Valiant Construction LLC, a company with experience in similar projects, suggests a degree of confidence in their ability to deliver within the awarded amount. Further analysis would require detailed cost-to-competitor data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, certain sources were excluded. With 8 bidders, the competition level appears healthy, which typically drives better pricing. The exclusion of specific sources, however, warrants further investigation to ensure it did not unduly limit competition or lead to a suboptimal price.

Taxpayer Impact: A competitive bidding process with multiple bidders generally benefits taxpayers by encouraging lower prices and better value. The exclusion of certain sources, if not justified, could potentially increase costs for taxpayers.

Public Impact

The primary beneficiaries are the veterans and their families who will have expanded burial space at Mountain Home National Cemetery. The services delivered include construction of new burial areas, infrastructure, and potentially related facilities. The geographic impact is concentrated in Johnson City, Tennessee, with potential positive effects on the local economy and construction labor market. The project will likely create or sustain jobs for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause requires careful scrutiny to ensure it was justified and did not stifle competition.
The long duration of the contract (nearly 4 years) increases the risk of cost overruns or delays if not managed effectively.
Lack of specific details on the exclusion criteria makes it difficult to fully assess potential impacts on competition.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
A healthy number of bidders (8) suggests significant interest and a competitive market for this type of construction.
The award to Valiant Construction LLC, presumably a qualified bidder, indicates a selection based on merit.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to infrastructure development for national cemeteries. The market for such specialized construction can be niche, often involving government agencies as primary clients. Comparable spending benchmarks would typically be found within the Department of Veterans Affairs' or Department of Defense's cemetery expansion and maintenance budgets, as well as general civil engineering construction cost indices.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the scope and nature of the work were deemed more suitable for larger, established construction firms. The impact on the small business ecosystem is likely minimal for this specific contract, though larger prime contractors may engage small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and project managers. Accountability measures would include adherence to the contract terms, performance milestones, and quality control. Transparency is generally maintained through contract award databases, but detailed project-specific oversight reports are not always publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Cemetery Administration Construction Projects
Department of Veterans Affairs Capital Investments
Department of Defense Military Construction Projects
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for scope creep due to long contract duration.
Risk of unforeseen site conditions impacting cost and schedule.
Justification for 'exclusion of sources' needs review.
Dependence on local labor and material availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to VALIANT CONSTRUCTION LLC. MOUNTAIN HOME NATIONAL CEMETERY EXPANSION - CONSTRUCTION PHASE, JOHNSON CITY, TN.

Who is the contractor on this award?

The obligated recipient is VALIANT CONSTRUCTION LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.5 million.

What is the period of performance?

Start: 2021-08-30. End: 2025-12-25.

What is the track record of Valiant Construction LLC on similar government contracts?

Valiant Construction LLC has a history of performing construction services for government entities. While specific details on past cemetery expansion projects are not immediately available in this data snippet, their experience likely includes large-scale civil engineering and construction projects. A deeper dive into their contract history with agencies like the Army Corps of Engineers or the National Cemetery Administration would reveal their performance on comparable projects, including any past performance issues, award trends, and the types of contracts they typically secure. This information is crucial for assessing their capability to successfully execute the Mountain Home National Cemetery Expansion.

How does the awarded amount compare to similar cemetery expansion projects?

Direct comparison of the $16.5 million award for the Mountain Home National Cemetery Expansion to similar projects is challenging without a standardized cost metric and detailed project scopes. Cemetery expansion projects vary significantly based on land topography, required infrastructure (roads, drainage, utilities), landscaping complexity, and the volume of burial plots to be created. Factors like local labor costs, material prices, and the specific requirements of the National Cemetery Administration also influence pricing. To benchmark effectively, one would need to analyze projects of similar scale and complexity, ideally within the same geographic region or with similar environmental conditions, and adjust for inflation and differing service inclusions.

What are the primary risks associated with this definitive contract?

As a definitive contract, this project carries inherent risks typical of large-scale construction. Key risks include potential cost overruns due to unforeseen site conditions (e.g., geological issues, environmental remediation needs), delays in material procurement or labor availability, and scope creep if project requirements evolve. The long duration (nearly four years) amplifies these risks, increasing exposure to market fluctuations in material costs and labor rates. Effective risk mitigation will depend on robust project management, contingency planning, clear communication channels between the contractor and the government, and diligent oversight to ensure adherence to the schedule and budget.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring taxpayer value is contingent on the justification for the exclusion. If the exclusion is based on legitimate technical requirements, security concerns, or past performance issues that genuinely limit the pool of qualified bidders, it can still lead to competitive pricing among the remaining eligible firms. However, if the exclusion is arbitrary or overly broad, it can stifle competition, potentially leading to higher prices and reduced value for taxpayers. The presence of 8 bidders suggests that sufficient competition remained, but understanding the specific reasons for exclusion is critical to a full assessment of value.

What is the historical spending trend for cemetery expansion projects by the Department of the Army?

Historical spending trends for cemetery expansion projects by the Department of the Army, particularly through the National Cemetery Administration (NCA), generally show consistent investment in maintaining and expanding burial spaces for veterans. While specific annual figures fluctuate based on identified needs and available appropriations, there has been a sustained effort to address capacity issues across the national cemetery system. This contract represents a significant investment within that broader trend. Analyzing past NCA budgets and capital improvement plans would provide a clearer picture of the scale and frequency of such expansion projects over time.

Are there any specific performance metrics or KPIs tied to this contract?

The provided data does not explicitly detail specific Key Performance Indicators (KPIs) or performance metrics for this contract. However, as a construction contract, performance is typically measured against adherence to the project schedule, quality of workmanship, compliance with technical specifications, safety standards, and budget management. The definitive contract structure likely includes clauses for inspections, milestones, and acceptance criteria. The government contracting officer would be responsible for monitoring these aspects, and any deviations could trigger contractual remedies. Detailed performance metrics are usually outlined in the contract's statement of work or performance work statement.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912P521B0008

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4124 WAHL STREET BLVD, LOUISVILLE, KY, 40218

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,467,376

Exercised Options: $16,467,376

Current Obligation: $16,467,376

Actual Outlays: $6,820,381

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline