DoD Awards $56M Combat Support Facilities Contract to RQ Construction, LLC
Contract Overview
Contract Amount: $56,236,581 ($56.2M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2021-05-07
End Date: 2026-04-18
Contract Duration: 1,807 days
Daily Burn Rate: $31.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P997 COMBAT SERVICE SUPPORT FACILITIES
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $56.2 million to RQ CONSTRUCTION, LLC for work described as: P997 COMBAT SERVICE SUPPORT FACILITIES Key points: 1. Contract awarded to RQ Construction, LLC for combat support facilities. 2. Significant investment in infrastructure for the Department of the Navy. 3. Potential for cost overruns or schedule delays given the contract duration. 4. Sector focus on Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $56.2M for 1807 days suggests a moderate per-day cost. Benchmarking against similar construction projects of this scale is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Enhances military readiness and operational capabilities. Supports personnel and equipment through improved facilities. Potential for job creation in the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long, increasing risk of scope creep or unforeseen costs.
- No indication of small business participation.
- Firm Fixed Price contract may not fully account for material cost fluctuations.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense infrastructure needs.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a vital area for government infrastructure development. Benchmarks for similar projects would assess cost-effectiveness.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award. Further analysis would be needed to determine if subcontracting opportunities were provided.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The long duration of the contract necessitates diligent monitoring to ensure adherence to scope, budget, and schedule.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk.
- No small business participation noted.
- Potential for material cost volatility under FFP.
- Lack of detailed project scope for precise benchmarking.
Tags
commercial-and-institutional-building-co, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.2 million to RQ CONSTRUCTION, LLC. P997 COMBAT SERVICE SUPPORT FACILITIES
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 $56.2 million.
What is the period of performance?
Start: 2021-05-07. End: 2026-04-18.
What is the estimated cost per square foot for these combat support facilities, and how does it compare to industry benchmarks?
Without detailed project specifications like square footage or specific facility types, a precise cost per square foot benchmark is difficult. However, the total contract value of $56.2M over 1807 days suggests a significant investment. Comparing this to similar military construction projects, considering location and complexity, would be crucial for assessing value.
What are the primary risks associated with a 5-year Firm Fixed Price contract for construction, and what mitigation strategies are in place?
Key risks include material price escalation, unforeseen site conditions, and potential scope creep, all of which can strain a Firm Fixed Price contract. Mitigation strategies typically involve detailed initial planning, robust contingency funds, clear change order processes, and strong government oversight to manage risks effectively.
How will the effectiveness of these new combat support facilities be measured post-completion?
Effectiveness will likely be measured by their ability to support designated military operations, improve logistical efficiency, and enhance personnel welfare. Key performance indicators could include reduced maintenance downtime, faster deployment capabilities, and positive feedback from end-users within the military units utilizing the facilities.
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: $56,236,581
Exercised Options: $56,236,581
Current Obligation: $56,236,581
Actual Outlays: $17,464,333
Subaward Activity
Number of Subawards: 51
Total Subaward Amount: $33,283,073
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
Start Date: 2021-05-07
Current End Date: 2026-04-18
Potential End Date: 2026-04-18 00:00:00
Last Modified: 2026-01-09
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