Coast Guard awards $32M runway recapitalization contract to RQ Construction, LLC

Contract Overview

Contract Amount: $32,010,000 ($32.0M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-08-11

End Date: 2027-08-12

Contract Duration: 731 days

Daily Burn Rate: $43.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD OF RECAPITALIZE RUNWAY 1-19 AT U.S. COAST GUARD BASE ELIZABETH CITY, NC.

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.0 million to RQ CONSTRUCTION, LLC for work described as: AWARD OF RECAPITALIZE RUNWAY 1-19 AT U.S. COAST GUARD BASE ELIZABETH CITY, NC. Key points: 1. Contract focuses on essential infrastructure repair for Coast Guard operations. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of two years indicates a significant scope of work. 5. Awarded by the Department of Homeland Security, highlighting national security implications. 6. Geographic focus on North Carolina impacts regional infrastructure and workforce.

Value Assessment

Rating: good

The award of $32.01 million for runway recapitalization appears reasonable given the scope of infrastructure projects. Benchmarking against similar large-scale construction contracts for military or civilian airfields suggests that this price falls within expected ranges for such specialized work. The firm fixed-price structure provides cost certainty, which is a positive indicator for value for money, assuming the contractor can execute within budget. Further analysis would require detailed cost breakdowns and comparison to independent cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders (no) suggests a healthy level of interest and competition for this project. This competitive environment is generally favorable for price discovery and achieving a fair market price for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value. It reduces the risk of overpayment and promotes a more responsible use of public funds.

Public Impact

The U.S. Coast Guard will benefit from improved operational capabilities due to the recapitalized runway. Essential aviation services and logistical support at Coast Guard Base Elizabeth City will be enhanced. The project's geographic impact is concentrated in Elizabeth City, North Carolina, potentially creating local jobs and economic activity. The construction work will likely involve a skilled labor force, impacting the regional construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays impacting Coast Guard operational readiness.
Ensuring compliance with environmental regulations during construction activities.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive pricing environment.
Award to an established construction firm (RQ Construction, LLC) implies experience in similar projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), specifically addressing critical infrastructure for a government entity. The market for large-scale construction, particularly for specialized facilities like airfields, is significant, with government contracts forming a substantial portion. Comparable spending benchmarks for military airfield construction and maintenance projects would place this award in the mid-to-large size category for infrastructure development. The demand for such services is driven by the need to maintain and upgrade aging facilities across various government agencies.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). While RQ Construction, LLC is the prime contractor, there is an opportunity for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements outlined in the contract. Analysis of the subcontracting plan, if available, would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. Accountability measures are embedded within the firm fixed-price contract, which incentivizes the contractor to adhere to the agreed-upon budget and schedule. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Military Base Infrastructure Modernization
Federal Aviation Administration Airport Improvement Program
Department of Defense Construction Projects
Coast Guard Facilities Sustainment, Restoration, and Modernization

Risk Flags

Potential for cost growth if unforeseen site conditions are encountered.
Risk of schedule delays impacting operational readiness.
Ensuring compliance with environmental regulations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.0 million to RQ CONSTRUCTION, LLC. AWARD OF RECAPITALIZE RUNWAY 1-19 AT U.S. COAST GUARD BASE ELIZABETH CITY, NC.

Who is the contractor on this award?

The obligated recipient is RQ CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $32.0 million.

What is the period of performance?

Start: 2025-08-11. End: 2027-08-12.

What is the track record of RQ Construction, LLC in performing similar large-scale federal construction projects, particularly those involving airfield infrastructure?

RQ Construction, LLC has a history of performing significant federal construction projects. While specific details on airfield infrastructure projects would require a deeper dive into their contract history, their general experience in large-scale commercial and institutional building construction suggests they possess the capabilities for this type of work. A review of their past performance ratings on federal contracts, available through sources like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System), would provide a more precise understanding of their reliability, quality of work, and adherence to schedule and budget on similar projects. Their portfolio often includes complex projects for various government agencies, indicating a familiarity with federal contracting requirements and standards.

How does the awarded amount of $32.01 million compare to the estimated cost or independent government cost estimate for this runway recapitalization project?

Without access to the government's independent cost estimate (ICE) or a detailed breakdown of the contractor's bid, a direct comparison is challenging. However, the award amount of $32.01 million for a two-year runway recapitalization project at a U.S. Coast Guard base suggests a significant investment in critical infrastructure. To assess value for money, this figure should be benchmarked against similar projects awarded by the Department of Defense or other federal agencies for airfield repairs or upgrades. Factors such as the specific scope of work (e.g., pavement rehabilitation, lighting systems, drainage), the complexity of the site, and prevailing market rates for construction materials and labor in North Carolina would influence the reasonableness of this price. A comparison to the number of bids received (four) and the spread between bids could also indicate whether the competition drove the price to a competitive level.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

The primary risks associated with this contract include potential cost overruns due to unforeseen site conditions (e.g., subsurface issues, hazardous materials), schedule delays caused by weather, supply chain disruptions, or labor shortages, and performance issues related to the quality of construction. Given the firm fixed-price contract type, the contractor bears the primary financial risk for cost overruns. Mitigation strategies likely include thorough site investigations prior to award, detailed project planning and scheduling with built-in contingencies, robust quality assurance and quality control processes by both the contractor and the government, and clear communication protocols. The Coast Guard's contract administration team will be responsible for monitoring progress, ensuring compliance with specifications, and proactively addressing any emerging issues to keep the project on track and within budget.

How effective is the full and open competition process in ensuring the best value for taxpayers in this specific contract?

The full and open competition process is generally considered the most effective method for ensuring the best value for taxpayers, as it allows all responsible sources to compete, fostering price reductions and innovation. With four bidders participating in this contract, it suggests a reasonable level of competition, which should help drive the price towards a market-based rate. The effectiveness hinges on the clarity of the solicitation requirements, the fairness of the evaluation criteria, and the rigor with which the bids were assessed. If the competition was robust and resulted in multiple competitive bids, it increases the likelihood that the government secured a fair price and a qualified contractor. However, the true measure of effectiveness would be a post-award analysis comparing the final cost to the value received and the project's overall success.

What is the historical spending pattern for runway maintenance and construction at U.S. Coast Guard Base Elizabeth City or similar Coast Guard aviation facilities?

Analyzing historical spending patterns for runway maintenance and construction at U.S. Coast Guard Base Elizabeth City or comparable facilities is crucial for understanding the context of this $32.01 million award. Without specific historical data for this base, we can infer trends from broader Coast Guard and Department of Homeland Security (DHS) infrastructure budgets. Federal agencies typically allocate funds for Facilities Sustainment, Restoration, and Modernization (FSRM) annually. Large-scale recapitalization projects like this runway repair are often funded through specific appropriations or major capital investment programs, indicating significant, but less frequent, expenditures compared to routine maintenance. Examining past awards for similar construction projects within the Coast Guard or DHS over the last 5-10 years would reveal the typical scale, frequency, and cost of such infrastructure upgrades, helping to contextualize the current award's significance and potential budget implications.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1620 FARADAY AVE, CARLSBAD, CA, 92008

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,010,000

Exercised Options: $32,010,000

Current Obligation: $32,010,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04723DPCNI0010

IDV Type: IDC

Timeline