Navy awards $72.8M contract for Mariner Skills Training Center construction to RQ Construction, LLC

Contract Overview

Contract Amount: $72,856,529 ($72.9M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-27

End Date: 2022-10-27

Contract Duration: 1,126 days

Daily Burn Rate: $64.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X002 PRECONSTRUCTION SERVICES FOR P1120 MARINER SKILLS TRAINING C

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $72.9 million to RQ CONSTRUCTION, LLC for work described as: X002 PRECONSTRUCTION SERVICES FOR P1120 MARINER SKILLS TRAINING C Key points: 1. Contract value of $72.8M for a 3-year construction project. 2. Awarded under full and open competition, indicating a broad market search. 3. Fixed-price contract type suggests predictable costs for the government. 4. Project duration of 1126 days (approx. 3 years) for a significant construction undertaking. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction. 6. The contract was awarded as a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $72.8 million for a large-scale training center appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, assuming the initial scope was well-defined. The number of bids received (6) suggests a competitive environment that likely contributed to a fair price.

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. Six bids were received, indicating a healthy level of interest and competition for this project. The competitive bidding process is expected to drive prices down and ensure the government receives the best value. The presence of multiple bidders suggests that the market for this type of construction service is robust.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and a wider selection of qualified contractors, ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are U.S. Navy personnel who will utilize the new Mariner Skills Training Center. The project delivers essential infrastructure for advanced maritime skills development. The geographic impact is centered in Virginia, supporting regional economic activity through construction jobs. The construction phase will likely create numerous jobs for skilled trades and laborers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design or requirements are not fully defined, impacting budget and timeline.
Risk of construction delays due to unforeseen site conditions or material availability issues.
Ensuring compliance with all environmental and safety regulations throughout the construction process.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Awarded under full and open competition, suggesting a competitive price and selection of a capable contractor.
The contractor, RQ Construction, LLC, has experience in large-scale construction projects, indicating a degree of reliability.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically for government facilities. The market for large-scale government construction projects is substantial, with significant annual federal spending. This project aligns with the Department of Defense's ongoing need for modern training and operational infrastructure. Comparable spending benchmarks would involve analyzing other large military construction projects awarded by the Navy or other branches.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is RQ Construction, LLC, there is no explicit information on subcontracting plans for small businesses within the provided data. Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the project within the agreed-upon cost and timeline. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Naval Facilities Engineering Command Contracts
Department of Defense Training Facilities
Commercial Building Construction Contracts

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of construction delays impacting operational readiness.
Contractor performance history requires verification for quality and timeliness.
Ensuring compliance with all environmental and safety regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.9 million to RQ CONSTRUCTION, LLC. X002 PRECONSTRUCTION SERVICES FOR P1120 MARINER SKILLS TRAINING C

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 $72.9 million.

What is the period of performance?

Start: 2019-09-27. End: 2022-10-27.

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

RQ Construction, LLC has a history of securing and completing large-scale construction projects for government entities, including military installations. Their portfolio often includes barracks, training facilities, and infrastructure upgrades. While specific performance metrics for past projects are not detailed here, their ability to win significant contracts like this one suggests a demonstrated capacity to meet government requirements. A deeper dive into past performance evaluations and any past performance issues would provide a more comprehensive understanding of their reliability and quality of work on federal projects.

How does the awarded price compare to similar construction projects for training facilities?

The awarded price of $72.8 million for the Mariner Skills Training Center is substantial, reflecting the complexity and scale of such a facility. To benchmark this value, one would compare it to the cost per square foot or cost per training station of recently completed, similar-sized military or institutional training centers. Factors such as location, specific technological requirements, and prevailing construction costs at the time of award significantly influence pricing. Without detailed project specifications and comparable project data, a precise value-for-money assessment is challenging, but the number of bidders suggests the price was competitive within the market.

What are the primary risks associated with this construction contract?

The primary risks associated with this firm fixed-price construction contract include potential delays due to unforeseen site conditions, weather, or supply chain disruptions. Scope creep, where the project's requirements expand beyond the initial agreement, is another significant risk that could lead to cost increases if not managed tightly. Contractor performance issues, such as quality defects or failure to meet deadlines, also pose a risk. Furthermore, ensuring compliance with stringent environmental, safety, and security regulations inherent in military construction adds another layer of complexity and potential risk.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs on projects where the scope of work is well-defined, as is typical for construction. It shifts the primary cost risk to the contractor, incentivizing them to control expenses and complete the project within the agreed budget. For the government, this provides significant cost certainty. However, if the initial scope is poorly defined or significant changes are required, the FFP structure can lead to disputes or costly change orders, potentially negating some of the cost-control benefits.

What is the historical spending trend for similar construction projects by the Department of the Navy?

Historical spending trends for similar construction projects by the Department of the Navy indicate a consistent and substantial investment in infrastructure development and modernization. The Navy regularly awards large-scale contracts for facilities, training centers, and operational support buildings across its various bases and commands. Spending in this category often fluctuates based on military readiness needs, modernization initiatives, and budget allocations. Analyzing past years' spending on construction within the Naval Facilities Engineering Command (NAVFAC) or specific fleet commands would reveal patterns and average contract values for projects of comparable scale and type.

What are the implications of awarding this contract as a delivery order?

Awarding this contract as a delivery order suggests it is likely a task order issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. This approach allows the agency to procure services or supplies over a period of time up to a certain ceiling amount, with specific orders placed as needs arise. For this construction project, it means the basic contract vehicle was already established, potentially through a competitive process, and this delivery order represents the specific task for the Mariner Skills Training Center. This can streamline the procurement process for subsequent needs but requires careful management of the overall IDIQ contract.

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: N4008518R1104

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: $72,856,529

Exercised Options: $72,856,529

Current Obligation: $72,856,529

Actual Outlays: $3,711,897

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $51,732,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008519D9069

IDV Type: IDC

Timeline