DoD's $44.9M Camp Lejeune MILCON contract awarded to RQ Construction, LLC for hurricane recovery

Contract Overview

Contract Amount: $44,926,438 ($44.9M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-15

End Date: 2025-03-14

Contract Duration: 1,641 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HURRICANE FLORENCE RECOVERY MILCON PACKAGE 6, FACILITIES AT STONE BAY, 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 $44.9 million to RQ CONSTRUCTION, LLC for work described as: HURRICANE FLORENCE RECOVERY MILCON PACKAGE 6, FACILITIES AT STONE BAY, CAMP LEJEUNE, NC Key points: 1. Contract addresses critical infrastructure needs following Hurricane Florence. 2. Fixed-price contract type aims to control costs and manage risk. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. Project duration of 1641 days indicates a significant, long-term construction effort. 5. Geographic focus on North Carolina highlights regional recovery priorities. 6. Contractor has a history of large-scale federal construction projects.

Value Assessment

Rating: good

The contract value of $44.9 million for a MILCON package appears reasonable given the scope of hurricane recovery and facility construction at a major military installation. Benchmarking against similar large-scale military construction projects suggests that pricing is within expected ranges for this type of work. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

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 bids. The solicitation resulted in 5 bids, suggesting a healthy level of competition for this significant military construction project. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by leveraging market forces to secure the best possible price and value for the construction services required.

Public Impact

Benefits military personnel and their families by providing improved facilities at Camp Lejeune. Delivers essential infrastructure repairs and upgrades to support military readiness. Geographic impact is concentrated in Onslow County, North Carolina. Supports the construction workforce in North Carolina through job creation and economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in large-scale construction projects.
Risk of unforeseen site conditions impacting cost and timeline.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risks.
Award to an experienced contractor with a track record in federal construction.
Full and open competition likely secured competitive pricing.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The Department of Defense is a significant client in this sector, frequently awarding large contracts for military construction (MILCON) projects globally. The market for large-scale federal construction is competitive, with established firms often bidding on projects of this magnitude. Comparable spending benchmarks for similar MILCON projects can vary widely based on location, scope, and specific facility requirements.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, RQ Construction, LLC, is a large business, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this project.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not publicly detailed.

Related Government Programs

Hurricane Recovery Efforts
Military Construction (MILCON)
Naval Facilities Engineering Command (NAVFAC) Contracts
Camp Lejeune Infrastructure Projects

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of project delays impacting operational readiness.
Ensuring contractor compliance with all federal regulations and standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.9 million to RQ CONSTRUCTION, LLC. HURRICANE FLORENCE RECOVERY MILCON PACKAGE 6, FACILITIES AT STONE BAY, 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 $44.9 million.

What is the period of performance?

Start: 2020-09-15. End: 2025-03-14.

What is RQ Construction, LLC's track record with the Department of Defense?

RQ Construction, LLC has a substantial track record with the Department of Defense, having been awarded numerous contracts for various construction projects across different military branches and installations. Their portfolio includes a range of projects such as barracks, training facilities, and infrastructure upgrades. This experience suggests familiarity with federal acquisition regulations, military construction standards, and project management requirements specific to DoD environments. Their past performance on similar large-scale projects is a key indicator of their capability to execute the Camp Lejeune MILCON package effectively.

How does the awarded price compare to similar MILCON projects?

Comparing the $44.9 million award for this MILCON package requires detailed analysis of specific project characteristics, such as square footage, complexity of work, and location. However, based on general industry knowledge, large-scale military construction projects of this nature, especially those involving hurricane recovery and facility upgrades at a major base like Camp Lejeune, typically fall within this multi-million dollar range. The firm-fixed-price contract type aims to provide cost certainty, and the presence of 5 bids suggests the price was competitive within the market for such services.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions, weather impacts beyond the initial hurricane recovery scope, or contractor performance issues. Given the scale and duration (1641 days), managing the project schedule and ensuring quality control are critical. Environmental compliance during construction also presents a risk that needs careful management. The firm-fixed-price nature shifts cost overrun risk to the contractor, but significant delays could still impact the government's ability to utilize the facilities as intended.

How effective is the firm-fixed-price contract type for this type of project?

The firm-fixed-price (FFP) contract type is generally considered effective for construction projects where the scope of work is well-defined and risks can be reasonably anticipated. For this MILCON package aimed at hurricane recovery, FFP provides the government with cost certainty, protecting against unexpected price increases. It incentivizes the contractor to manage costs efficiently and complete the project within budget. However, if unforeseen complexities arise that significantly deviate from the original scope, it could lead to change orders or disputes, potentially impacting the overall value if not managed carefully.

What is the historical spending trend for similar MILCON projects at Camp Lejeune?

Historical spending trends for MILCON projects at Camp Lejeune, and military bases in general, show a consistent demand for infrastructure upgrades and repairs. Specific figures for similar hurricane recovery or facility modernization projects would require access to detailed historical contract data. However, it is common for the Department of Defense to allocate significant budgets annually for MILCON, with individual projects often ranging from tens to hundreds of millions of dollars, depending on the scope and strategic importance of the installation. This $44.9 million award aligns with the typical investment in maintaining and improving such critical military infrastructure.

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: N4008519R9048

Offers Received: 5

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, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,926,438

Exercised Options: $44,926,438

Current Obligation: $44,926,438

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $31,080,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008520D0034

IDV Type: IDC

Timeline