DoD's $34.8M Camp Lejeune HIMARS Facility Contract Awarded to RQ Construction, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $34,789,169 ($34.8M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-13

End Date: 2024-01-18

Contract Duration: 1,253 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DB P-1495, 5TH BATTALION, 10TH MARINES, HIGH MOBILITY ARTILLERY ROCKET SYSTEM, MCB, CAMP LEJEUNE

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $34.8 million to RQ CONSTRUCTION, LLC for work described as: DB P-1495, 5TH BATTALION, 10TH MARINES, HIGH MOBILITY ARTILLERY ROCKET SYSTEM, MCB, CAMP LEJEUNE Key points: 1. The contract for the 5th Battalion, 10th Marines HIMARS facility at Camp Lejeune represents a significant investment in military infrastructure. 2. RQ Construction, LLC secured this large contract through a full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price contract type aims to control costs, but the duration and final cost warrant monitoring for potential overruns. 4. This project falls within the Commercial and Institutional Building Construction sector, a common area for government spending.

Value Assessment

Rating: fair

The award amount of $34.8 million for a 1253-day duration (approximately 3.5 years) needs comparison with similar military construction projects. Without specific benchmarks for HIMARS facilities or comparable institutional buildings, assessing value is difficult. The contract's duration suggests a complex project, potentially justifying the cost if scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value. The existence of 10 bids (no) suggests a healthy level of interest and competition.

Taxpayer Impact: Taxpayer funds are being utilized for essential military infrastructure development. The competitive award process aims to ensure efficient use of these funds, but ongoing oversight is crucial to prevent cost escalations.

Public Impact

Enhances operational readiness for the 5th Battalion, 10th Marines by providing dedicated facilities for High Mobility Artillery Rocket Systems. Supports military personnel and operations at Camp Lejeune, North Carolina, a key Marine Corps base. Contributes to the local economy through construction jobs and related services in North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is lengthy (1253 days), increasing risk of cost escalation or scope creep.
Lack of specific unit cost benchmarks makes value assessment challenging.
No small business participation noted (sb: false).

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm fixed-price contract type helps control costs.
Project supports critical military operational needs.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Government spending in this sector is substantial, covering a wide range of facilities from administrative buildings to specialized operational structures like this HIMARS facility. Benchmarks for similar military construction projects are essential for a thorough value assessment.

Small Business Impact

The data indicates no specific small business participation in this contract (sb: false). While awarded under full and open competition, opportunities for small businesses to subcontract or participate directly were not explicitly captured or mandated in this award notice.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve contracting officers, project managers, and potentially inspectors general to ensure compliance with contract terms, quality standards, and budget adherence throughout the project lifecycle.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration increases risk.
Lack of specific cost benchmarks hinders value analysis.
No small business participation noted.
Potential for scope creep over the extended timeline.
Firm Fixed Price contract can be disadvantageous if unforeseen issues arise requiring significant changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.8 million to RQ CONSTRUCTION, LLC. DB P-1495, 5TH BATTALION, 10TH MARINES, HIGH MOBILITY ARTILLERY ROCKET SYSTEM, MCB, CAMP LEJEUNE

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 $34.8 million.

What is the period of performance?

Start: 2020-08-13. End: 2024-01-18.

How does the final cost compare to the initial estimated cost or similar projects?

The provided data shows the awarded amount ($34.8M) but lacks initial estimates or comparable project costs. A detailed review would require accessing pre-award documentation and market research reports. Comparing this project's cost per square foot or per functional unit against industry benchmarks for military construction is crucial for a definitive value assessment.

What are the primary risks associated with the long contract duration?

The 1253-day duration presents risks such as potential material cost fluctuations, labor availability changes, and the possibility of evolving operational requirements necessitating scope adjustments. Furthermore, extended project timelines can increase the likelihood of unforeseen site conditions or environmental challenges, potentially leading to change orders and cost overruns.

How effectively does this facility support the operational mission of the 5th Battalion, 10th Marines?

The facility's effectiveness is directly tied to its design and construction quality, ensuring it meets the specific needs for HIMARS deployment, maintenance, and personnel support. While the contract award suggests a recognized need, a post-occupancy evaluation would be necessary to confirm its contribution to operational readiness and efficiency.

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: TWO STEP

Solicitation ID: N4008519R9156

Offers Received: 10

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: $42,310,469

Exercised Options: $34,789,169

Current Obligation: $34,789,169

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $27,470,689

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline