VA awards $5.17M contract to Skytek LLC for building renovations at VA facilities in Oregon

Contract Overview

Contract Amount: $5,171,038 ($5.2M)

Contractor: Skytek LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-02

End Date: 2026-10-19

Contract Duration: 412 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 692-22-105 RENOVATE SPACE IN BUILDINGS 217A AND 218A FOR MENTAL HEALTH

Place of Performance

Location: WHITE CITY, JACKSON County, OREGON, 97503

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.2 million to SKYTEK LLC for work described as: 692-22-105 RENOVATE SPACE IN BUILDINGS 217A AND 218A FOR MENTAL HEALTH Key points: 1. The contract focuses on construction services for building renovations. 2. Skytek LLC is the sole awardee under full and open competition. 3. The contract value is significant for a single construction project. 4. Potential risks include project delays and cost overruns common in construction.

Value Assessment

Rating: fair

The contract value of $5.17M for renovations appears within a reasonable range for commercial and institutional building construction projects of this scope. Benchmarking against similar VA or other federal construction contracts would provide a more 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 competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: Taxpayer funds are being used for essential facility upgrades, aiming to improve mental health spaces. The competitive award process is intended to ensure value for money.

Public Impact

Improved mental health facilities for veterans. Potential for job creation in the construction sector. Investment in aging federal infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation noted.
Fixed-price contract may not account for unforeseen construction issues.
Project duration is over a year, increasing risk exposure.

Positive Signals

Awarded under full and open competition.
Clear project scope for building renovations.
Contract awarded to a single entity for efficiency.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining and upgrading federal facilities. Benchmarks for similar renovation projects vary widely based on size, complexity, and location.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract award, as the 'sb' field is false. Opportunities for subcontracting to small businesses are not explicitly detailed in this summary.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, should be in place to ensure compliance and quality.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

No small business participation.
Long project duration (412 days).
Firm Fixed Price contract may not cover unforeseen issues.
Potential for cost overruns in construction.
Dependence on a single contractor (Skytek LLC).

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.2 million to SKYTEK LLC. 692-22-105 RENOVATE SPACE IN BUILDINGS 217A AND 218A FOR MENTAL HEALTH

Who is the contractor on this award?

The obligated recipient is SKYTEK 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 $5.2 million.

What is the period of performance?

Start: 2025-09-02. End: 2026-10-19.

What is the specific scope of work for the renovations in Buildings 217A and 218A, and how does it align with the $5.17M budget?

The provided data lacks specific details on the renovation scope. A thorough review of the contract's Statement of Work (SOW) is necessary to understand the exact improvements planned for Buildings 217A and 218A. This will allow for a better assessment of whether the $5.17M allocated budget is appropriate for the described tasks, considering materials, labor, and potential unforeseen conditions.

What are the key performance indicators (KPIs) for this contract, and how will Skytek LLC's performance be measured to mitigate risks of delays or quality issues?

The data does not specify the KPIs or performance metrics for this contract. Effective oversight would involve defining clear KPIs related to schedule adherence, quality of work, safety compliance, and budget management. Regular progress reviews and site inspections by the VA contracting officer's representative are crucial for monitoring performance and proactively addressing any deviations from the contract requirements.

How does the $5.17M contract value compare to industry benchmarks for similar mental health facility renovations of this scale and complexity?

Without detailed project specifications, a precise benchmark comparison is difficult. However, $5.17M for renovating two buildings for mental health purposes suggests a substantial project. Industry benchmarks for such renovations can range significantly based on factors like square footage, the extent of structural changes, specialized equipment installation, and regional labor costs. A detailed cost breakdown from the contractor would be needed for a robust comparison.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26025R0074

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5800 NE 88TH ST STE 104, VANCOUVER, WA, 98665

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

Financial Breakdown

Contract Ceiling: $5,171,038

Exercised Options: $5,171,038

Current Obligation: $5,171,038

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline