Naval Base Coronado Fitness Center MACC contract awarded to RQ Construction, LLC for over $43.6M

Contract Overview

Contract Amount: $43,610,370 ($43.6M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2012-08-07

End Date: 2015-08-26

Contract Duration: 1,114 days

Daily Burn Rate: $39.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COMMERCIAL&INSTITUTIONAL SOUTH II MACC- P 705 FITNESS CENTER AT NAVAL BASE CORONADO.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $43.6 million to RQ CONSTRUCTION, LLC for work described as: COMMERCIAL&INSTITUTIONAL SOUTH II MACC- P 705 FITNESS CENTER AT NAVAL BASE CORONADO. Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Project duration of 1114 days indicates a significant construction timeline. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project falls under the broad category of Commercial and Institutional Building Construction. 6. Awarded by the Department of the Navy, indicating a defense-related infrastructure need.

Value Assessment

Rating: good

The contract value of approximately $43.6 million for the Naval Base Coronado Fitness Center is within a reasonable range for a large-scale construction project. Benchmarking against similar large institutional building projects, especially those on military bases, suggests this price is competitive. The firm fixed-price structure further supports value by locking in costs, though the final cost is dependent on the scope of work delivered. Without specific details on the facility's size and amenities, a precise per-square-foot comparison is difficult, but the overall expenditure aligns with expectations for such a facility.

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 a bid. The presence of 8 bids suggests a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions, which is beneficial for the government in securing the best value.

Taxpayer Impact: The full and open competition process likely resulted in a more favorable price for taxpayers by driving down bids. It also ensures that the government is not limited to a single provider, promoting fairness and efficiency in public spending.

Public Impact

Service members and personnel stationed at Naval Base Coronado will benefit from improved fitness facilities. The project delivers a new fitness center, enhancing quality of life and readiness. The geographic impact is localized to Coronado, California, specifically on the naval base. The construction project likely involved a significant number of skilled laborers and tradespeople, supporting the local construction workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects, although mitigated by fixed-price contract.
Ensuring timely completion within the 1114-day duration is crucial to avoid extended disruption.
Quality control and adherence to specifications are paramount for long-term facility usability.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty for the government.
The project addresses a clear need for improved infrastructure at a major naval installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of facilities such as schools, hospitals, government buildings, and recreational centers. Spending in this area is often driven by government infrastructure needs, public facility upgrades, and private development. Comparable spending benchmarks would involve analyzing other large-scale construction projects for federal agencies, particularly within the Department of Defense, focusing on similar facility types and project scopes.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. While the prime contractor is RQ Construction, LLC, there is no explicit information on subcontracting goals for small businesses. Further investigation would be needed to determine if subcontracting opportunities were offered to small businesses and their 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 facilities management departments. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified work within budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Base Construction Projects
Department of Defense Facilities
Military Base Infrastructure
Fitness and Recreation Facilities Construction
Large-Scale Building Contracts

Risk Flags

Potential for cost overruns if scope changes significantly.
Risk of delays impacting facility availability.
Ensuring quality of construction meets long-term durability standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.6 million to RQ CONSTRUCTION, LLC. COMMERCIAL&INSTITUTIONAL SOUTH II MACC- P 705 FITNESS CENTER AT NAVAL BASE CORONADO.

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 $43.6 million.

What is the period of performance?

Start: 2012-08-07. End: 2015-08-26.

What is the track record of RQ Construction, LLC on similar federal contracts?

RQ Construction, LLC has a history of securing and performing on federal construction contracts, particularly with the Department of Defense. Their portfolio often includes projects on military installations, ranging from barracks and training facilities to administrative buildings and infrastructure upgrades. Analyzing their past performance on similar-sized projects, adherence to schedules, and quality of work on previous government contracts would provide a clearer picture of their reliability and capability for this specific fitness center project. Reviewing past performance evaluations and any documented disputes or contract modifications would be essential for a comprehensive assessment.

How does the cost per square foot of this fitness center compare to similar facilities?

To compare the cost per square foot, we would need the total square footage of the completed fitness center. Assuming a typical large fitness facility might range from 50,000 to 100,000 square feet, the cost per square foot would be between approximately $872 and $436. This range is on the higher end for standard commercial construction but could be justified by specialized military-grade facilities, extensive equipment installation, and the complexities of construction on a secure military base. Benchmarking against other recently constructed military fitness centers or large recreational facilities would provide a more accurate comparison.

What are the primary risks associated with a firm fixed-price construction contract of this magnitude?

The primary risks with a firm fixed-price contract of this magnitude ($43.6M) revolve around the contractor's ability to accurately estimate all costs and unforeseen conditions. While the price is fixed, risks include potential disputes over scope changes, unforeseen site conditions (e.g., soil issues, hazardous materials), material price escalations beyond what was reasonably anticipated, and labor shortages. The government's risk is primarily that the contractor may cut corners on quality to maintain profitability if margins are too thin, or that the initial price might have been inflated due to contractor risk aversion. Robust contract administration and clear specifications are crucial to mitigate these risks.

What is the historical spending trend for fitness and recreational facilities at Naval Base Coronado?

Analyzing historical spending trends for fitness and recreational facilities at Naval Base Coronado would require accessing historical contract databases and budget allocations specific to the base. This would involve looking at previous awards for similar facilities, renovations, or upgrades over the past 5-10 years. Understanding this trend would help determine if the $43.6M award represents a significant increase or decrease in investment for such amenities, whether it aligns with a planned upgrade cycle, or if it's an outlier due to specific needs or facility obsolescence. Without direct access to this granular historical data, it's difficult to provide a precise trend analysis.

How does the number of bidders (8) impact the potential value for money achieved?

A total of 8 bidders for this contract suggests a competitive marketplace for this type of construction work. Generally, a higher number of bids leads to greater price discovery and can drive down the offered prices as contractors compete to win the award. This increased competition increases the likelihood that the government receives a fair market price and potentially better value through innovation or more efficient project execution. Conversely, if the bids were clustered very closely, it might indicate collusion or a lack of true differentiation among bidders, though 8 is a healthy number that typically fosters competition.

What are the implications of the 1114-day duration for project management and cost?

A duration of 1114 days (approximately 3 years) for a fitness center construction project of this scale implies a complex build, potentially involving multiple phases, significant site work, or integration with existing base infrastructure. This extended timeline increases the risk of inflation impacting material and labor costs, even under a fixed-price contract if escalation clauses are present or if change orders become necessary due to delays. It also means prolonged disruption to base operations and a longer period before the facility's benefits are realized. Effective project management is critical to ensure adherence to schedule milestones and to control indirect costs associated with the extended duration.

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: 8

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: $44,555,370

Exercised Options: $44,555,370

Current Obligation: $43,610,370

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247310D5409

IDV Type: IDC

Timeline