Department of Veterans Affairs Contract Awards

The Department of Veterans Affairs has recently awarded several high-value contracts focusing on construction and healthcare staffing. Notably, KAR Contracting LLC secured a $300 million Multiple Award Indefinite Delivery Contract (IDC) for construction services, emphasizing the VA's reliance on Service Disabled Veteran Owned Small Businesses (SDVOSBs). Additionally, Laredo Technical Services, Inc. received a $7.6 million IDIQ contract to provide medical lab technicians in Texas, reflecting ongoing needs for specialized healthcare personnel.

Market Analysis

• The VA awarded multiple Construction Multiple Award Task Order Contracts (MATOCs) at the Clement J. Zablocki VA Medical Center, splitting work among firms including U.S. Vet General Contracting, Industrial Maintenance Services Inc., and Progressive Construction Services LLC. These contracts are indefinite delivery/indefinite quantity (IDIQ) vehicles designed to streamline construction task orders.
• KAR Contracting LLC's $300 million IDC contract stands out as the largest recent award, targeting broad construction services and leveraging its SDVOSB status under NAICS codes likely in the 236220 (Commercial and Institutional Building Construction) category.
• Healthcare staffing contracts remain a key procurement area, with Laredo Technical Services, Inc. awarded a $7.6 million IDIQ contract for medical lab technicians in Temple, TX, indicating the VA's continued outsourcing of specialized clinical support roles.

Frequently Asked Questions

Which contract vehicles does the VA use for construction services?

The VA primarily uses Multiple Award Task Order Contracts (MATOCs) and Multiple Award Indefinite Delivery Contracts (IDCs) for construction projects. These vehicles allow multiple contractors to compete for task orders, providing flexibility and efficiency in managing facility upgrades and repairs.

Are there set-asides for small or veteran-owned businesses in VA construction contracts?

Yes, the VA frequently awards contracts to Service Disabled Veteran Owned Small Businesses (SDVOSBs). For example, KAR Contracting LLC, an SDVOSB, received a $300 million IDC for construction services, demonstrating the agency's commitment to veteran-owned firms.

What NAICS codes are relevant for VA construction and healthcare staffing contracts?

Construction contracts typically fall under NAICS 236220 (Commercial and Institutional Building Construction). Healthcare staffing contracts, such as those for medical lab technicians, often align with NAICS 621399 (Offices of All Other Miscellaneous Health Practitioners) or 561320 (Temporary Help Services).

Which agencies within the VA are the primary buyers for these contracts?

The Veterans Health Administration (VHA) is the main buyer for healthcare staffing contracts, while the Office of Facilities Management handles construction contracts. The Clement J. Zablocki VA Medical Center is a notable site with multiple active MATOCs.

How competitive are VA construction MATOCs?

VA construction MATOCs are awarded to multiple contractors, enabling competition at the task order level. This approach encourages participation from a range of firms, including small and veteran-owned businesses, but incumbents often have an advantage due to established performance records.