DoD's $68M Camp Lejeune construction contract awarded to RQ Construction, LLC, faced limited competition

Contract Overview

Contract Amount: $68,170,915 ($68.2M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2012-04-30

End Date: 2016-03-02

Contract Duration: 1,402 days

Daily Burn Rate: $48.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P1253 COMBAT ENGINEER BATTALION COMPLEX, MCB CAMP LEJEUNE, NC

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $68.2 million to RQ CONSTRUCTION, LLC for work described as: P1253 COMBAT ENGINEER BATTALION COMPLEX, MCB CAMP LEJEUNE, NC Key points: 1. The contract's value of $68.17 million was awarded under a firm-fixed-price structure, indicating defined cost expectations. 2. With 29 bids received, the competition level suggests a moderately contested market for this type of construction. 3. The contract duration of 1402 days points to a significant, long-term construction project. 4. Awarded by the Department of the Navy, this project falls under the broader defense sector's infrastructure development. 5. The project's location in North Carolina may have implications for regional construction employment and material sourcing.

Value Assessment

Rating: fair

Benchmarking the $68.17 million cost against similar large-scale military construction projects is challenging without more specific project details. However, the firm-fixed-price contract type suggests the government aimed to control costs. The number of bids (29) indicates a reasonable level of interest, which can contribute to price discovery, but a deeper analysis of the winning bid relative to the independent government cost estimate would be needed to fully assess value for money. The duration of 1402 days (nearly 4 years) implies a substantial undertaking, and the final cost should be evaluated against the initial estimates and any change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' meaning all responsible sources were permitted to submit bids. The presence of 29 bids suggests a healthy level of interest from the construction industry for this project. This relatively high number of bidders generally supports robust price discovery and increases the likelihood of a competitive price being offered to the government.

Taxpayer Impact: A competitive bidding process with 29 offers helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the U.S. Marine Corps personnel and operations at Camp Lejeune, North Carolina, who will utilize the new facilities. The contract delivered construction services for the P1253 Combat Engineer Battalion Complex. The geographic impact is concentrated in Jacksonville, North Carolina, supporting the local economy through construction jobs and related services. The project likely involved a significant number of construction workers, impacting the regional labor market for skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates did not fully account for the project's complexity and duration.
Risk of schedule delays given the multi-year timeline typical for large construction projects.
Quality control challenges inherent in large-scale construction projects requiring diligent oversight.

Positive Signals

Firm-fixed-price contract structure helps mitigate cost uncertainty for the government.
A high number of bids (29) suggests strong market interest and potential for competitive pricing.
Award to a single contractor (RQ CONSTRUCTION, LLC) allows for clear lines of responsibility and accountability for project completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports infrastructure development, military readiness, and public facilities. Comparable spending benchmarks would typically involve analyzing the cost per square foot or cost per project for similar military or government construction endeavors, considering regional labor and material costs.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside criterion (ss: false, sb: false). This suggests the primary competition was open to all responsible contractors, regardless of size. While RQ Construction, LLC, may engage small businesses as subcontractors, there is no explicit requirement or set-aside noted in the provided data. The impact on the small business ecosystem would depend on the subcontracting plans of the prime contractor.

Oversight & Accountability

Oversight for this Department of the Navy contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC) or a designated contracting officer's representative (COR). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified facilities. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Management
Combat Engineer Support Facilities

Risk Flags

Potential for cost overruns due to long project duration.
Limited insight into specific value-for-money assessment without cost-per-unit or estimate comparison.
Small business impact unclear without subcontracting data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.2 million to RQ CONSTRUCTION, LLC. P1253 COMBAT ENGINEER BATTALION COMPLEX, MCB CAMP LEJEUNE, NC

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 $68.2 million.

What is the period of performance?

Start: 2012-04-30. End: 2016-03-02.

What was the original estimated cost versus the final awarded cost for this project?

The provided data indicates a final awarded amount of $68,170,915.43. However, the original estimated cost is not available in this dataset. To assess the value and potential cost growth, a comparison between the initial estimate and the final award is crucial. This would involve reviewing pre-award documentation and any subsequent contract modifications. Without the original estimate, it's difficult to determine if the project came in under, at, or over budget relative to initial expectations.

How does the per-square-foot cost of this project compare to similar military construction projects in the Southeast region?

Determining the per-square-foot cost requires the total square footage of the P1253 Combat Engineer Battalion Complex, which is not provided in the data. Assuming this information were available, it could be benchmarked against similar projects managed by the Department of the Navy or other military branches in North Carolina and surrounding states. Factors like building type (barracks, training facilities, administrative), material costs, and labor rates in the specific region would influence this comparison. A higher or lower per-square-foot cost than benchmarks could indicate efficiency or potential issues with pricing or scope.

What is RQ Construction, LLC's track record with large federal construction contracts, particularly with the Department of Defense?

RQ Construction, LLC has a history of securing and performing on large federal construction contracts, including significant work for the Department of Defense. Analyzing their past performance ratings, any contract disputes, or past performance questionnaires (PPQs) would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Their experience with similar scope and scale projects, especially within military environments, is a key indicator of their capability to successfully execute contracts like the Camp Lejeune project.

Were there any significant contract modifications or change orders issued during the performance period of this contract?

The provided data does not detail contract modifications or change orders. A comprehensive review would require accessing the contract's official modification history. Significant changes could indicate unforeseen issues, scope creep, or adjustments to project requirements, potentially impacting the final cost and timeline. Analyzing these modifications is essential for understanding the project's evolution and whether the final cost accurately reflects the delivered scope.

What was the average duration for similar Combat Engineer Battalion Complex construction projects awarded by the DoD in the past five years?

The average duration for similar projects would require a comparative analysis of other Combat Engineer Battalion Complex or equivalent facility construction contracts awarded by the DoD. This contract's duration of 1402 days (approximately 3.8 years) is substantial. Benchmarking this against similar projects would help determine if it falls within the expected timeframe or if it experienced notable delays or was planned for an extended period due to complexity or phasing. Factors influencing duration include project size, complexity, site conditions, and funding availability.

How did the number of bids (29) influence the final contract price compared to contracts with fewer bidders?

A higher number of bids, such as the 29 received for this contract, generally correlates with increased competition, which tends to drive down prices. When multiple firms vie for a contract, they are incentivized to offer more competitive pricing to win the award. Conversely, contracts with fewer bidders, especially sole-source awards, often result in higher prices as the contractor faces less pressure to minimize their bid. Therefore, the 29 bids suggest a favorable outcome for price discovery and potentially a more cost-effective award for the government compared to a scenario with limited competition.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008511R4025

Offers Received: 29

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: $68,170,915

Exercised Options: $68,170,915

Current Obligation: $68,170,915

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline