Navy Awards $34.8M Design-Build Contract to RQ Construction for P-4639 and P-4638
Contract Overview
Contract Amount: $34,834,859 ($34.8M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-27
End Date: 2025-02-02
Contract Duration: 1,224 days
Daily Burn Rate: $28.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: X005 DESIGN-BUILD CONTRACT FOR BOTH P-4639 AND P-4638. P4638 WILL
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547
Plain-Language Summary
Department of Defense obligated $34.8 million to RQ CONSTRUCTION, LLC for work described as: X005 DESIGN-BUILD CONTRACT FOR BOTH P-4639 AND P-4638. P4638 WILL Key points: 1. The contract value of $34.8 million is significant for commercial and institutional building construction. 2. RQ Construction, LLC secured this award under full and open competition. 3. The project involves design-build services for two distinct facilities, P-4638 and P-4639. 4. The contract duration is 1224 days, indicating a substantial, long-term project.
Value Assessment
Rating: good
The contract value of $34.8 million appears reasonable for a design-build project of this scope. Benchmarking against similar large-scale construction contracts would provide a more precise assessment.
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. This method typically leads to more competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
This project will likely create construction jobs in North Carolina. The facilities being built will support naval operations, enhancing military readiness. The design-build approach aims to streamline the construction process and potentially reduce overall project time and cost.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-duration construction projects.
- Ensuring quality control throughout the design and build phases.
- Coordination challenges between design and construction teams.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type helps control costs.
- Design-build approach can lead to efficiencies.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is influenced by government infrastructure needs and economic conditions. The $34.8 million award is a substantial investment within this category.
Small Business Impact
The data indicates this contract was awarded to RQ Construction, LLC. There is no specific information provided regarding subcontracting opportunities for small businesses on this particular award.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The firm fixed price structure and defined delivery dates provide a framework for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long project duration increases risk of cost escalation.
- Complexity of managing two distinct facilities under one contract.
- Potential for unforeseen site conditions impacting schedule and budget.
- Reliance on contractor's ability to manage design and construction integration.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to RQ CONSTRUCTION, LLC. X005 DESIGN-BUILD CONTRACT FOR BOTH P-4639 AND P-4638. P4638 WILL
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: 2021-09-27. End: 2025-02-02.
What is the estimated cost savings achieved through the design-build approach compared to traditional design-bid-build methods for similar naval projects?
Design-build can offer cost savings by integrating design and construction phases, reducing the potential for change orders and delays. For similar naval projects, savings can range from 5-15% depending on project complexity and effective integration. This approach allows for early contractor involvement in value engineering and constructability reviews, leading to more efficient resource allocation and a streamlined procurement process.
What are the key performance indicators (KPIs) being used to assess the risk of cost overruns and schedule delays for this 1224-day contract?
Key risk indicators for this long-duration contract likely include detailed schedule milestones, budget variance analysis, and quality control reports. The Department of the Navy would monitor progress against baseline schedules and budgets, track the number and impact of change orders, and assess the contractor's performance on quality assurance. Proactive risk mitigation strategies, such as regular progress meetings and independent cost reviews, are crucial for managing potential overruns and delays.
How will the effectiveness of the completed facilities (P-4639 and P-4638) be measured post-construction to ensure they meet operational requirements?
Effectiveness will be measured through post-occupancy evaluations and operational performance testing. This includes verifying that the facilities meet all specified functional requirements, adhere to safety standards, and support the intended naval operations efficiently. User feedback, maintenance records, and energy performance data will also contribute to assessing the long-term effectiveness and value of the construction.
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: $34,834,859
Exercised Options: $34,834,859
Current Obligation: $34,834,859
Actual Outlays: $3,107,137
Subaward Activity
Number of Subawards: 45
Total Subaward Amount: $17,810,986
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: 2021-09-27
Current End Date: 2025-02-02
Potential End Date: 2025-02-02 00:00:00
Last Modified: 2025-09-24
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