Penn Construction Group, Incorporated

Penn Construction Group, Incorporated, a service-disabled veteran-owned small business (SDVOSB) and self-certified small disadvantaged business headquartered in Fairfax Station, Virginia, provides architectural and engineering design services focused on mechanical, electrical, and plumbing infrastructure modernization for federal healthcare facilities, operating exclusively as a prime contractor on VA work. The vendor is minority-owned (Black American-owned) and holds active SDVOSB certification expiring November 19, 2026; it competes predominantly under SDVOSB set-asides across its prime footprint, though several recent task orders are full-and-open.

Penn Construction Group's federal footprint is heavily concentrated on Veterans Health Administration medical center modernization. The Department of Veterans Affairs Veterans Integrated Service Network 12 (VISN 12) accounts for 48 of 55 total awards (87% of the portfolio) and $33.3 million of the combined $35.1 million potential value. The remaining three VHA networks (VISNs 7, 10, and 15) and a VA Technology Acquisition Center award bring that concentration to 98% of awards and 100% of dollars. This customer concentration is extreme and deliberate — Penn Construction Group holds two significant single-award IDIQs with VISN 12: a $6 million architectural and engineering services contract awarded August 14, 2024, running through August 13, 2029, and a $5 million mechanical, electrical, and plumbing design services IDIQ for the Tomah VA Medical Center awarded August 24, 2022, running through August 23, 2027. A third $4 million IDIQ for MEP projects at the Jesse Brown VA Medical Center in Chicago anchors work in Illinois. Representative task orders under these vehicles include a $902,724 firm-fixed-price delivery order for a facility master plan at a Chicago VA location (April 3, 2026), a $679,135 delivery order for MEP design and construction period services at Tomah (September 23, 2024), a $517,276 delivery order for Metasys building automation system design at Tomah (April 6, 2023), a $432,902 order for cast iron fittings replacement design (May 11, 2023), and a $393,134 SDVOSB set-aside order for Legionella remediation design at Tomah (December 6, 2022). Recent 2026 work includes a $104,989 definitive contract with VISN 15 for PET/CT suite design at the Robert J. Dole VA Medical Center in Wichita, Kansas (April 20, 2026), and a $230,320 definitive contract with VISN 10 for nuclear medicine site preparation design at the Ann Arbor VA Medical Center (April 10, 2025).

Activity has declined markedly from a 2023 peak of ten awards to three awards in 2025 and two in 2026 (awards per year trending downward: six in 2022, ten in 2023, five in 2024, three in 2025, two in 2026). The vendor faces material recompete exposure — seven awards with ultimate completion dates in the next twenty-four months carry combined potential value of $2.7 million and will require competitive or sole-source recompete against established VA prime competitors. The three active VISN 12 IDIQs generate sustained task-order flow; however, the absence of awards outside the VA system, combined with the declining annual award count and the approaching expiration of the Tomah IDIQ (August 23, 2027), signals vulnerability to recompete loss and narrow customer diversification.

Service Contract Inventory data shows minimal SCI-reportable activity: $280 thousand in invoiced revenue in FY2024 across 0.9 FTEs, with zero dollars reported in FY2022 and FY2023. This low SCI footprint reflects Penn Construction Group's reliance on architectural and engineering design delivery orders (which do not consistently cross the $150,000 SCI reporting threshold on a per-FTE basis) rather than labor-intensive service contracts. SCI-captured hourly rates on prime work span from $124.53/hr (10th percentile) to $735.20/hr (90th percentile), with a median of $421.67/hr; the vendor performs all reported work with no subcontractor hours engaged. Penn Construction Group operates with a subsidiary, Penn Construction Group Inc., also registered as an SDVOSB and small disadvantaged business; the corporate structure does not indicate separation of capability or customer exposure between parent and subsidiary.