KAR Contracting LLC

KAR Contracting LLC, a Service-Disabled Veteran-Owned Small Business based in Prichard, West Virginia, operates exclusively as a prime contractor delivering construction, renovation, and facility-maintenance services to the Department of Veterans Affairs, with a secondary footprint in military construction through the Department of the Air Force and Army Corps of Engineers. The company holds SBA certifications as both a Veteran-Owned Small Business and SDVOSB (expiring August 11, 2026) and is self-certified as a small disadvantaged business. KAR Contracting competes predominantly under SDVOSB set-asides on VA platforms, though it receives awards without set-aside designation when competing within SDVOSB-reserved vehicles.

KAR Contracting's capability portfolio centers on electrical infrastructure upgrades, HVAC system replacements, plumbing and water-line repairs, roof replacements, fire protection system work, and medical facility renovations at VA medical centers across the mid-Atlantic region. Primary NAICS coding reflects Commercial and Institutional Building Construction (236220) and Plumbing, Heating, and Air-Conditioning Contractors (238220), with secondary exposure to Electrical Contractors (238210) and roofing. Representative work includes a $12.95 million definitive contract awarded July 9, 2026, for electrical infrastructure upgrade at the Hershel Woody Williams VA Medical Center in Huntington, West Virginia (SDVOSB set-aside, ultimate completion July 13, 2031); a $15.8 million delivery order for Building 1S renovation at the same facility (December 1, 2025, completion November 21, 2027); a $980 thousand laboratory waiting area renovation; and multiple emergency water-line and HVAC repair orders ranging from sub-$20 thousand to $8.9 million.

Customer concentration is extreme and presents existential recompete risk. Veterans Integrated Service Network 5 (VISN 5) accounts for 172 awards (81% of total awards) and $740.2 million of the company's $754.2 million combined potential value—a 98 percent concentration on a single VA regional network. The next-largest customers, Army Corps of Engineers Nashville District ($5.3 million) and Fish and Wildlife Service Region 5 ($2.1 million), are negligible by comparison. Within that VISN 5 footprint, KAR Contracting holds two master IDIQ vehicles: a $300 million SDVOSB-set-aside Multiple Award Task Order Contract (VISN5 Construction 2022-2028) awarded February 22, 2023, running through February 22, 2028, and a $35 million SDVOSB-set-aside MATOC II contract (NCO 5) awarded April 28, 2025, running through April 27, 2030. These two vehicles anchor the company's prime position; recent delivery orders flow from them. Four additional VA parent vehicles (Indefinite Delivery Contracts VA24914D0023, 36C24518D0153, VA249C0319, and 36C24518D0009) collectively account for 69 task orders and $38.8 million in combined potential value, suggesting either blanket purchase agreements or additional standing task-order vehicles within VISN 5.

Activity has been irregular year-to-year—11 awards in 2022, 9 in 2023, 5 in 2024, 11 in 2025, and 2 in 2026 (as of July 9)—making trajectory ambiguous. The recompete cliff is severe: only 2 awards with ultimate completion dates in the next twenty-four months carry combined potential value of $15.8 million, suggesting that a majority of KAR Contracting's standing delivery orders and task orders under the master IDIQs will reach completion and face recompete between mid-2026 and early 2027 when the $300 million VISN 5 Construction vehicle expires. This creates both renewal opportunity and competitive vulnerability concentrated in a single contracting office.

KAR Contracting operates as a 100 percent prime contractor with no subcontractor role in the award portfolio. Service Contract Inventory data reflects minimal penetration into SCI-reportable (above $150 thousand threshold) service contracts: only $6.9 million invoiced across FY2022–FY2024, with activity appearing only in FY2024 at 1.1 FTEs across six prime records. This low SCI footprint is consistent with a company whose primary work—facility construction and renovation—sits in goods and fixed-price construction contracts falling below or outside SCI's service-contract definition. The hourly rate spectrum on SCI records shows median government-paid rates around $681.88/hr with senior labor pricing through $2,241.16/hr, and an average 19 percent sub-hours share across reported prime contracts suggests the company partners with specialized mechanical, electrical, or plumbing subs for portions of larger renovation projects while maintaining direct control of project delivery and labor.

KAR Contracting's footprint is functionally confined to VISN 5 construction contracting in the mid-Atlantic (West Virginia, Maryland, Washington D.C.). Secondary military and civil-works work (Air Force, Army Corps of Engineers) appears episodic and underdeveloped relative to the VA concentration, creating narrow customer diversity and high recompete dependency on a single VA regional network.

General Construction, Electrical, Plumbing, HVAC, Site work and Site Utilities, Painting and Drywall, Landscaping, Hydraulic Repair, Welding