DoD awards $18.8M for Energy Project Generator Installation to RQ Construction, LLC
Contract Overview
Contract Amount: $18,768,212 ($18.8M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2021-06-09
End Date: 2026-06-18
Contract Duration: 1,835 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: X003 P-1049 DB V-10, 20, 24 & 3 ENERGY PROJECT, INSTALL GENERATOR
Place of Performance
Location: WALLOPS ISLAND, ACCOMACK County, VIRGINIA, 23337
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.8 million to RQ CONSTRUCTION, LLC for work described as: X003 P-1049 DB V-10, 20, 24 & 3 ENERGY PROJECT, INSTALL GENERATOR Key points: 1. Significant investment in energy infrastructure for the Department of Defense. 2. RQ Construction, LLC, a private entity, secured the contract. 3. The contract involves a long-term project spanning over 4 years. 4. Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The contract value of $18.8M for a generator installation project appears substantial. Benchmarking against similar energy infrastructure 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, suggesting a robust price discovery process. However, the specific number of bids received and their variance would provide a clearer picture of the competitive landscape.
Taxpayer Impact: Taxpayer funds are being utilized for a critical energy infrastructure upgrade, aiming for long-term operational efficiency and resilience.
Public Impact
Enhances energy resilience and operational capability for a Department of Defense facility. Supports the transition towards more sustainable and reliable energy sources. Potential for job creation within the construction sector during the project duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 4 years) may introduce cost escalation risks.
- Reliance on a single awardee for a critical infrastructure project.
Positive Signals
- Awarded through full and open competition.
- Focus on energy security and modernization.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically related to energy infrastructure. Spending benchmarks in this area are highly project-specific, but large-scale generator installations for federal facilities typically represent significant capital investments.
Small Business Impact
The contract was awarded to RQ Construction, LLC, a private entity. There is no indication in the provided data whether this award specifically benefited small businesses or if small business subcontracting was a requirement.
Oversight & Accountability
The Department of the Navy awarded this contract. Standard oversight mechanisms for federal construction projects, including site inspections and progress reporting, would be in place to ensure accountability and adherence to contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- Potential for sole-source reliance if follow-on work is needed.
- Limited visibility into specific performance metrics and competitive bid details.
- Dependence on a single contractor for critical infrastructure.
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 $18.8 million to RQ CONSTRUCTION, LLC. X003 P-1049 DB V-10, 20, 24 & 3 ENERGY PROJECT, INSTALL GENERATOR
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 $18.8 million.
What is the period of performance?
Start: 2021-06-09. End: 2026-06-18.
What is the specific energy need this generator project addresses, and what are the projected long-term cost savings or operational benefits?
The specific energy need likely relates to ensuring continuous power supply for critical operations, potentially mitigating risks associated with grid instability or outages. Projected benefits could include reduced reliance on external power sources, improved energy security, and potentially lower energy costs through more efficient generation or backup capabilities, though precise figures require further analysis of the project's scope and technology.
Given the 4-year duration, what measures are in place to manage potential cost overruns due to inflation or material price fluctuations?
The contract is firm-fixed-price, which generally shifts the risk of cost overruns to the contractor. However, contract clauses may exist for specific unforeseen circumstances. Robust project management, regular progress reviews, and potentially contingency planning by the contractor are crucial for managing risks over such an extended period.
How does the performance of RQ Construction, LLC on previous federal contracts compare to industry standards, and what is the basis for their selection in this full and open competition?
Information on RQ Construction, LLC's past performance is not provided. In a full and open competition, selection is typically based on a combination of factors including price, technical approach, past performance, and other evaluation criteria outlined in the solicitation. A thorough review of their bid against these criteria would have determined their suitability for this project.
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: 3
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: $18,768,212
Exercised Options: $18,768,212
Current Obligation: $18,768,212
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $8,814,493
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
Start Date: 2021-06-09
Current End Date: 2026-06-18
Potential End Date: 2026-06-18 00:00:00
Last Modified: 2025-10-16
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