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

State: California Government Spending

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

Positive Signals

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

Risk Flags

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: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION 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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