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Set-Asides

VA Awards $31 Million SDVOSB Set-Aside Contract to Renovate Fayetteville Hospital Sterile Processing

Blue Cord Design and Construction was the sole offeror on the service-disabled veteran-owned small business set-aside

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The Department of Veterans Affairs (VA) has obligated $30,995,241 to Blue Cord Design and Construction, LLC under contract 36C25626C0046, a firm-fixed-price award to renovate Sterile Processing Services (SPS) at a VA facility in Fayetteville, Arkansas. The contract was signed June 23, 2026, with a period of performance beginning June 30, 2026 and running through September 13, 2028 — described in the award record as 720 calendar days from notice to proceed — according to federal award data published on USAspending.gov.

The contract was set aside exclusively for service-disabled veteran-owned small businesses (SDVOSB) and was competed under solicitation 36C25626R0008 through VA's Network Contract Office 16. Despite the set-aside, the award record shows only one offer was received, a pattern set-aside procurements in specialized construction categories — hospital and infirmary renovation in particular — can see when the pool of qualified, bonded SDVOSB firms in a given trade and geography is limited.

The award is classified under NAICS code 236220 (Commercial and Institutional Building Construction) and product/service code Y1DA (Construction of Hospitals and Infirmaries). Sterile processing departments handle the cleaning, sterilization, and distribution of surgical instruments for a hospital, and renovations of this kind typically involve specialized mechanical, plumbing, and infection-control build-out requirements distinct from general commercial construction.

For small businesses pursuing VA construction set-asides, the single-offer outcome here is a data point worth watching: SDVOSB firms with a general contracting or design-build capability in specialized medical-facility construction, and with bonding capacity at this contract size, may find comparatively less competition on similarly scoped VA network office solicitations than in general commercial SDVOSB construction categories.

Source: USAspending.gov

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