DoD Awards $45.8M MILCON Facility to RQ Construction, LLC via Full and Open Competition
Contract Overview
Contract Amount: $45,764,003 ($45.8M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-20
End Date: 2019-12-27
Contract Duration: 1,193 days
Daily Burn Rate: $38.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF MILCON Q920; DB SOF LOGSU ONE OPERATIONS FACILITY #2 AT NBC, CA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135
Plain-Language Summary
Department of Defense obligated $45.8 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF MILCON Q920; DB SOF LOGSU ONE OPERATIONS FACILITY #2 AT NBC, CA Key points: 1. The contract is for a significant military construction project, indicating substantial government investment in infrastructure. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The project duration of 1193 days points to a complex and lengthy construction undertaking. 4. The award value of $45.8M places this contract within a notable spending bracket for construction projects.
Value Assessment
Rating: good
The award value of $45.8M for a large-scale military construction facility appears reasonable given the project's scope and duration. Benchmarking against similar large-scale institutional building construction contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a wide range of qualified contractors to bid. This method is expected to yield fair market value.
Taxpayer Impact: Taxpayer funds are being utilized for essential military infrastructure, with the competitive bidding process aimed at ensuring efficient use of these funds.
Public Impact
Enhances military operational capabilities through improved facilities. Supports local economy through construction jobs and material sourcing. Potential for long-term infrastructure development in California.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration may lead to cost overruns if not managed effectively.
- Potential for unforeseen site conditions impacting schedule and budget.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract provides cost certainty.
- Project supports critical military infrastructure needs.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense is substantial, driven by the need for modern and secure facilities to support military operations and personnel.
Small Business Impact
While the prime contractor is RQ CONSTRUCTION, LLC, the contract does not indicate specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation as subcontractors.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including site inspections and progress reporting, are expected to be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long project duration increases risk of delays and cost escalation.
- Lack of explicit small business participation data.
- Potential for scope creep if requirements are not clearly defined.
- Dependence on specific site conditions in California.
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 $45.8 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF MILCON Q920; DB SOF LOGSU ONE OPERATIONS FACILITY #2 AT NBC, CA
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 $45.8 million.
What is the period of performance?
Start: 2016-09-20. End: 2019-12-27.
What is the estimated cost per square foot for this facility, and how does it compare to industry benchmarks for similar military construction projects?
Without specific square footage data, a precise cost per square foot cannot be calculated. However, the total award of $45.8M over 1193 days for a significant facility suggests a substantial investment. Benchmarking would require detailed project specifications and comparable project data within the DoD or similar institutional construction.
What are the primary risks associated with a project of this scale and duration, and what mitigation strategies are in place?
Key risks include potential construction delays due to weather, material shortages, or unforeseen site conditions, which could lead to cost overruns. Mitigation strategies likely involve robust project management, contingency planning, detailed site investigations prior to construction, and clear communication channels between the government and the contractor.
How effectively does this facility upgrade contribute to the operational readiness and long-term strategic goals of the Special Operations Forces it serves?
The construction of a dedicated operations facility is designed to enhance the efficiency, security, and capabilities of Special Operations Forces. By providing modern infrastructure tailored to their specific needs, it directly supports operational readiness and contributes to the achievement of long-term strategic objectives by ensuring forces have the necessary environment to train and operate effectively.
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: N6247312R0263
Offers Received: 5
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: $45,764,003
Exercised Options: $45,764,003
Current Obligation: $45,764,003
Subaward Activity
Number of Subawards: 170
Total Subaward Amount: $87,955,838
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247315D2428
IDV Type: IDC
Timeline
Start Date: 2016-09-20
Current End Date: 2019-12-27
Potential End Date: 2019-12-27 00:00:00
Last Modified: 2019-10-22
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