Navy lodge expansion contract awarded to RQ Construction for $31.3M, completed in 2012

Contract Overview

Contract Amount: $31,342,602 ($31.3M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2012-02-22

Contract Duration: 875 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEX NAVY LODGE EXPANSION AT NI

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to RQ CONSTRUCTION, LLC for work described as: NEX NAVY LODGE EXPANSION AT NI Key points: 1. The contract value of $31.3 million for a lodge expansion appears substantial, requiring careful benchmarking against similar construction projects. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process that could lead to favorable pricing. 3. The fixed-firm price contract type generally transfers risk to the contractor, which can be beneficial for the government if managed effectively. 4. The project duration of 875 days indicates a significant construction timeline, necessitating robust project management to ensure timely completion. 5. The absence of small business set-aside or subcontracting requirements warrants investigation into potential impacts on small business participation. 6. The contract was awarded by the Department of the Navy, indicating a focus on military infrastructure and support services.

Value Assessment

Rating: fair

The contract value of $31.3 million for a lodge expansion is a significant investment. Without specific details on the scope of work, such as square footage, number of rooms, or amenities, a precise value-for-money assessment is challenging. However, comparing this to similar military lodging construction projects, particularly those undertaken by the Department of the Navy in California, would be crucial. The firm-fixed-price structure suggests that the contractor bore the primary risk of cost overruns, which can be a positive indicator of value if the final cost aligns with market expectations for similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a basis for price comparison and negotiation. The government's ability to select the best value offer from these three is a positive aspect of the procurement process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Service members and their families stationed at or visiting the Naval base in California are the primary beneficiaries, gaining improved lodging facilities. The project delivered expanded and potentially modernized lodging infrastructure, enhancing the quality of life for military personnel. The geographic impact is localized to the specific Naval installation in California where the lodge was expanded. The construction workforce, likely including skilled trades and laborers, benefited from employment opportunities during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for all project complexities.
Risk of delays impacting the availability of improved lodging for service members.
Limited transparency on the specific performance metrics and quality of the completed expansion.
Lack of explicit small business subcontracting goals could limit opportunities for smaller firms.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type generally provides cost certainty for the government.
Project completed by RQ Construction, LLC, a known entity in the construction sector.
The expansion addresses a need for improved lodging infrastructure for military personnel.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for military construction is substantial, driven by the need to maintain and upgrade facilities supporting defense operations. This project represents a specific instance of federal investment in infrastructure, comparable to other government-funded building projects. Benchmarking against similar projects would involve analyzing cost per square foot, construction timelines, and the complexity of amenities provided.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that the prime contractor, RQ Construction, LLC, is likely not a small business. There is no explicit mention of subcontracting requirements for small businesses. This suggests that opportunities for small businesses may have been limited to direct subcontracting by the prime contractor, if any, or through the general market. Further investigation into the subcontracting plan, if available, would clarify the extent of small business participation.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is typically facilitated through contract award databases and public reporting, though detailed project-specific oversight reports may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Naval Facilities Engineering Command Contracts
Lodging and Hospitality Infrastructure
Department of Defense Construction Contracts

Risk Flags

Potential for cost overruns if initial estimates were inaccurate.
Risk of schedule delays impacting operational readiness.
Limited visibility into contractor performance metrics.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to RQ CONSTRUCTION, LLC. NEX NAVY LODGE EXPANSION AT NI

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 $31.3 million.

What is the period of performance?

Start: 2009-09-30. End: 2012-02-22.

What was the specific scope of work for the NEX Navy Lodge expansion, and how did it compare to the initial requirements?

The provided data indicates the project name as 'NEX NAVY LODGE EXPANSION AT NI' and its value at $31,342,602. However, specific details regarding the scope of work, such as the number of rooms added, square footage of the expansion, or specific amenities included (e.g., conference rooms, dining facilities), are not available in the provided data. To assess the project's success against its initial requirements, one would need access to the original contract statement of work (SOW), architectural plans, and any modifications or change orders issued during the contract period. Comparing the final delivered product to the SOW would reveal whether all objectives were met, if any deviations occurred, and the reasons behind them. This information is typically found in contract performance reports or project close-out documentation.

How did the final cost of $31.3 million compare to the initial estimated cost or budget for the lodge expansion?

The provided data shows the awarded amount as $31,342,602. There is no information available regarding the initial estimated cost or budget for this project. In a firm-fixed-price contract, the awarded amount is the agreed-upon price. However, understanding the relationship between the initial estimate and the awarded price is crucial for assessing procurement efficiency. A significant difference could indicate issues with the initial estimate, the bidding process, or the government's negotiation strategy. Without the initial estimate, it's impossible to determine if the $31.3 million represented a competitive price or a potential overpayment relative to expectations.

What were the key performance indicators (KPIs) for this contract, and did RQ Construction, LLC meet them?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. For construction projects of this nature, typical KPIs might include adherence to schedule, quality of workmanship, safety compliance, and budget management (though less critical for the government in a firm-fixed-price contract). To assess RQ Construction, LLC's performance, one would need to consult contract performance evaluations, inspection reports, or any formal feedback provided by the Department of the Navy. The contract award notice itself does not contain this level of detail. Without these performance metrics, it is difficult to definitively state whether the contractor met expectations beyond the basic completion of the project.

Were there any significant challenges or disputes encountered during the execution of this contract?

The provided data does not contain information about challenges or disputes encountered during the execution of the NEX Navy Lodge expansion contract. Construction projects, especially those of this magnitude and duration (875 days), can often face unforeseen issues such as weather delays, material shortages, site conditions, or design changes. These can lead to change orders, claims, or formal disputes between the contractor and the contracting agency. To identify any such issues, one would need to review contract modification logs, correspondence records, or any official dispute resolution documentation associated with this award. The absence of readily available information does not necessarily mean there were no challenges, but rather that such details are not part of this summary data.

How does the cost per square foot of this lodge expansion compare to similar projects in California or other Navy installations?

The provided data does not include the square footage of the lodge expansion, making a cost-per-square-foot analysis impossible. To perform such a comparison, one would need the total square footage of the expanded facility and potentially the square footage of the expansion itself. With that information, the cost per square foot ($31,342,602 / Total Sq Ft) could be calculated and benchmarked against industry standards for commercial and institutional building construction, particularly for hospitality-related facilities. Comparisons would ideally be made with similar projects in the same geographic region (California) and for similar clients (e.g., other Department of Defense lodging projects) to account for regional cost variations and specific requirements.

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: N6871105R4076

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3194 LIONSHEAD AVE, CARLSBAD, CA, 49

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $31,342,602

Exercised Options: $31,342,602

Current Obligation: $31,342,602

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247306D1060

IDV Type: IDC

Timeline