DoD's $34.3M LCS Support Facility Contract Awarded to RQ Construction, LLC
Contract Overview
Contract Amount: $34,276,619 ($34.3M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2016-08-29
End Date: 2019-05-31
Contract Duration: 1,005 days
Daily Burn Rate: $34.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF P499 LCS SUPPORT FACILITY
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $34.3 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF P499 LCS SUPPORT FACILITY Key points: 1. The contract awarded to RQ Construction, LLC for the LCS Support Facility represents a significant investment in naval infrastructure. 2. Commercial and Institutional Building Construction is a competitive sector, but the specific nature of this facility may limit direct comparisons. 3. Potential risks include construction delays, cost overruns, and ensuring the facility meets the specialized needs of the Littoral Combat Ship program. 4. The Department of the Navy's spending in this sector is substantial, with this contract being one of many infrastructure projects.
Value Assessment
Rating: good
The award amount of $34.3M for a 1005-day duration project appears reasonable for a large-scale construction facility. Benchmarking against similar military construction projects 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 robust price discovery process. The firm fixed price contract type helps mitigate cost escalation risks for the government.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and competitive pricing.
Public Impact
This facility is crucial for supporting the Navy's Littoral Combat Ship (LCS) program, enhancing operational readiness. The construction project will likely create jobs in the California region, contributing to the local economy. Investment in specialized facilities like this is essential for maintaining and modernizing naval assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep impacting final cost.
- Ensuring timely completion to meet LCS operational needs.
- Adequate quality control during construction.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost uncertainty.
- Significant investment in critical naval infrastructure.
Sector Analysis
The Department of the Navy's spending on construction, particularly for specialized facilities like this LCS Support Facility, is a key component of its infrastructure budget. Benchmarks for similar large-scale military construction projects would be relevant for assessing value.
Small Business Impact
While this contract was awarded to RQ Construction, LLC, a larger firm, the construction sector often involves numerous subcontracts that can provide opportunities for small businesses in areas like specialized trades, materials supply, and support services.
Oversight & Accountability
The Department of the Navy's Inspector General and other oversight bodies would typically monitor the execution of such a significant contract to ensure compliance with terms, budget adherence, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Construction delays
- Cost overruns
- Scope creep
- Ensuring specialized facility requirements are met
- Long-term operational relevance
Tags
commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.3 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF P499 LCS SUPPORT FACILITY
Who is the contractor on this award?
The obligated recipient is RQ CONSTRUCTION, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $34.3 million.
What is the period of performance?
Start: 2016-08-29. End: 2019-05-31.
What is the specific operational capability this facility is intended to enhance for the LCS program?
This facility is designed to provide essential maintenance, repair, and logistical support infrastructure for the Littoral Combat Ship (LCS) fleet. Its specific capabilities likely include specialized berthing, workshop areas, ordnance handling, and administrative spaces tailored to the unique requirements of the LCS, thereby improving the platform's readiness and operational availability.
How does the $34.3M cost compare to similar naval facility construction projects of comparable size and complexity?
A direct cost comparison requires detailed analysis of similar projects, considering factors like location, specific functional requirements, and prevailing market conditions at the time of award. However, $34.3M for a 1005-day construction project suggests a significant undertaking. Benchmarking against other naval base infrastructure or shipyard facility projects would be necessary to determine if the cost is within the expected range.
What mechanisms are in place to ensure the facility's construction meets the long-term operational needs and technological advancements of the LCS program?
The contract likely includes detailed specifications and performance requirements developed in consultation with LCS program managers. Oversight during construction, quality assurance inspections, and phased acceptance testing are crucial. Furthermore, flexibility in design or provisions for future modifications might be incorporated to accommodate evolving LCS technology and operational doctrines, ensuring the facility remains relevant.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247315R2434
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3194 LIONSHEAD AVE, CARLSBAD, CA, 92010
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,276,619
Exercised Options: $34,276,619
Current Obligation: $34,276,619
Subaward Activity
Number of Subawards: 237
Total Subaward Amount: $183,985,553
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247316D1885
IDV Type: IDC
Timeline
Start Date: 2016-08-29
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2022-09-02
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