DoD's $54M P-880 Rotary Aircraft Facility contract awarded to RQ Construction, LLC

Contract Overview

Contract Amount: $53,980,886 ($54.0M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2012-07-03

End Date: 2016-01-21

Contract Duration: 1,297 days

Daily Burn Rate: $41.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P-880 ROTARY AIRCRAFT DEPOT MAINTENANCE FACILITY

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $54.0 million to RQ CONSTRUCTION, LLC for work described as: P-880 ROTARY AIRCRAFT DEPOT MAINTENANCE FACILITY Key points: 1. Contract value of $53.98M for aircraft depot maintenance facility construction. 2. Awarded under full and open competition, indicating broad market engagement. 3. Firm Fixed Price contract type suggests cost certainty for the government. 4. Project duration of 1297 days spans over three years. 5. Facility located in California, supporting regional defense infrastructure. 6. No small business set-aside or subcontracting noted, potentially limiting SMB participation.

Value Assessment

Rating: good

The contract value of $53.98 million for a commercial and institutional building construction project appears reasonable given the scope of a depot maintenance facility. Benchmarking against similar large-scale construction projects for military aviation infrastructure would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps manage cost risks for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. With 6 bidders participating, the competition level suggests a healthy market interest and provides the government with a range of pricing and technical solutions. This broad competition is generally expected to drive competitive pricing and innovation.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario, maximizing the value derived from the allocated funds.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, who will utilize the P-880 Rotary Aircraft Depot Maintenance Facility. The facility will provide essential maintenance, repair, and overhaul services for rotary-wing aircraft. The project's geographic impact is centered in California, potentially creating local construction jobs and economic activity. The construction phase will involve a workforce of skilled tradespeople, while the operational phase will require specialized aviation maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on a single contractor for a critical infrastructure project carries inherent performance risks.
Limited visibility into small business subcontracting opportunities may impact broader economic inclusion goals.

Positive Signals

Firm fixed-price contract provides cost predictability and limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process and potentially competitive pricing.
Award to RQ Construction, LLC, a known entity in large-scale construction, implies a degree of contractor capability.

Sector Analysis

The construction of specialized facilities like aircraft depot maintenance centers falls within the broader Defense Industrial Base and the construction sector. This contract represents a significant investment in military infrastructure, supporting the operational readiness of rotary-wing aircraft fleets. Comparable spending benchmarks would involve analyzing other large-scale military construction projects, particularly those focused on aviation support facilities, to gauge cost-effectiveness and market rates.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no explicit indication of significant small business subcontracting requirements. This suggests that the primary contract was awarded to a large business, and opportunities for small businesses would likely be through subcontracts awarded by RQ Construction, LLC. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments, ensuring compliance with contract terms and construction standards. Accountability measures are embedded in the firm fixed-price contract, linking payment to successful project completion. Transparency is facilitated through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Program
Aircraft Maintenance and Repair
Naval Facilities Engineering Command Contracts
Defense Logistics Agency Support Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns if scope changes
Dependence on contractor performance
Limited small business participation visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.0 million to RQ CONSTRUCTION, LLC. P-880 ROTARY AIRCRAFT DEPOT MAINTENANCE 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 $54.0 million.

What is the period of performance?

Start: 2012-07-03. End: 2016-01-21.

What is the track record of RQ Construction, LLC in completing similar large-scale government construction projects on time and within budget?

RQ Construction, LLC has a history of undertaking significant government contracts, including military construction projects. A detailed review of their past performance, including contract close-out data, past performance questionnaires, and any documented disputes or claims, would be necessary to fully assess their track record. Analyzing projects of similar scale and complexity, particularly those involving specialized facilities or aviation infrastructure, would provide the most relevant context for evaluating their capability to deliver the P-880 facility successfully. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be crucial for this analysis.

How does the awarded price of $53.98 million compare to industry benchmarks for constructing similar aircraft depot maintenance facilities?

Determining precise industry benchmarks for specialized facilities like aircraft depot maintenance centers is challenging due to unique design requirements, location-specific costs, and varying operational needs. However, a general comparison can be made by examining the cost per square foot or cost per unit of capacity (e.g., number of aircraft supported) for similar projects. Publicly available data on military construction projects or large commercial aviation MRO (Maintenance, Repair, and Overhaul) facilities could serve as a reference. Factors such as the complexity of specialized equipment installation, environmental controls, and security requirements significantly influence costs. Without specific comparable project data, a definitive value-for-money assessment based solely on the total contract value is limited.

What are the primary risks associated with the construction of this facility, and what mitigation strategies are in place?

Key risks include potential construction delays due to unforeseen site conditions, labor shortages, or material supply chain disruptions. Cost overruns, while mitigated by the firm fixed-price contract, could still occur if scope changes are introduced or if the initial cost estimates were inaccurate. Performance risks relate to the quality of construction and adherence to specifications. Mitigation strategies typically involve robust project management, detailed site investigations prior to construction, contingency planning, strong contractor oversight, and clear communication channels. The Department of the Navy would likely have established protocols for risk management and quality assurance throughout the construction lifecycle.

What is the expected impact of this facility on the operational readiness and efficiency of the Navy's rotary-wing aircraft fleet?

The P-880 Rotary Aircraft Depot Maintenance Facility is expected to significantly enhance the operational readiness and efficiency of the Navy's rotary-wing aircraft fleet by providing a dedicated, state-of-the-art location for complex maintenance, repair, and overhaul tasks. Centralizing these functions can lead to reduced turnaround times for aircraft, improved quality control, and potentially lower overall maintenance costs compared to dispersed or less specialized facilities. This improved maintenance capability ensures that aircraft are available for deployment and mission accomplishment, directly contributing to naval power projection and operational effectiveness.

How has spending on similar aircraft maintenance and depot facilities evolved over the past five years?

Spending on aircraft maintenance and depot facilities within the Department of Defense, and specifically the Navy, tends to be cyclical and driven by fleet modernization, aging aircraft sustainment needs, and strategic infrastructure investments. Over the past five years, there has likely been a continued focus on upgrading aging facilities and investing in capabilities to support new and upgraded aircraft platforms. Budgetary pressures, evolving threat landscapes, and technological advancements in maintenance practices can all influence spending patterns. Analyzing historical budget requests and contract awards for similar facilities would reveal trends in investment priorities and overall expenditure levels.

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: N6247309R1608

Offers Received: 6

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: $53,980,886

Exercised Options: $53,980,886

Current Obligation: $53,980,886

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247310D5409

IDV Type: IDC

Timeline