Navy awards $28.6M runway repair contract to RQ Construction, LLC, with 4 bids received

Contract Overview

Contract Amount: $28,590,888 ($28.6M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-07

End Date: 2023-09-04

Contract Duration: 454 days

Daily Burn Rate: $63.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR CAMP DAVIS SOUTH RUNWAY (200041)

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $28.6 million to RQ CONSTRUCTION, LLC for work described as: REPAIR CAMP DAVIS SOUTH RUNWAY (200041) Key points: 1. The contract's firm-fixed-price structure aims to control costs for runway repairs. 2. Competition was robust with 4 bids, suggesting potential for competitive pricing. 3. The duration of 454 days indicates a significant scope of work for the runway. 4. This award falls under the broad category of commercial and institutional building construction. 5. The contract's value is substantial within the context of infrastructure repair projects.

Value Assessment

Rating: good

The contract value of $28.6 million for runway repair appears reasonable given the 454-day duration and the nature of airfield infrastructure work. Benchmarking against similar runway repair projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps mitigate cost overruns for the government, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with four bids received. This level of competition is generally positive, indicating that multiple capable contractors were aware of and interested in the opportunity. The presence of four bidders suggests a healthy market for this type of construction service and likely contributed to a more competitive pricing environment.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the runway repair services.

Public Impact

Naval Air Station Oceana personnel and aircraft operations will benefit from improved runway infrastructure. The project delivers essential repair and maintenance services to a critical military aviation facility. The geographic impact is concentrated in Virginia Beach, North Carolina, where the Naval Air Station is located. The contract supports jobs in the construction sector, particularly within commercial and institutional building construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the 454-day duration and complexity of runway repairs.
Ensuring the quality of repairs meets stringent military aviation standards is crucial.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive market.
Award to an established contractor like RQ Construction, LLC, may indicate a track record of performance.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on infrastructure repair for military aviation facilities. The market for large-scale airfield construction and repair is specialized, often dominated by a few experienced firms capable of handling the unique requirements and security protocols. The value of this single contract is significant, but it represents a fraction of overall federal spending on military infrastructure maintenance and upgrades.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While RQ Construction, LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were utilized in the subcontracting process and to what extent.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics may not always be publicly detailed.

Related Government Programs

Military Base Infrastructure Repair
Airfield Pavement Maintenance
Naval Facilities Engineering Command Contracts
Department of Defense Construction Projects

Risk Flags

Potential for schedule overruns due to project duration.
Ensuring adherence to stringent military aviation standards for repair quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to RQ CONSTRUCTION, LLC. REPAIR CAMP DAVIS SOUTH RUNWAY (200041)

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 $28.6 million.

What is the period of performance?

Start: 2022-06-07. End: 2023-09-04.

What is the track record of RQ Construction, LLC in performing similar large-scale airfield repair projects for the Department of Defense?

RQ Construction, LLC has a history of performing significant construction projects, including those for the Department of Defense. While specific details on past airfield repair projects of this exact scale are not provided in the summary data, their experience in commercial and institutional building construction suggests a capacity for complex projects. A deeper dive into their contract history with federal agencies, particularly the Navy and Air Force, would reveal their performance on similar infrastructure work, including on-time delivery, budget adherence, and quality of execution. Their ability to win this $28.6 million contract indicates they met the qualifications set forth by the Navy for this requirement.

How does the awarded price of $28.6 million compare to the estimated cost or benchmark for similar runway repair projects?

Without access to the government's cost estimates or a database of comparable runway repair projects with detailed cost breakdowns, a precise benchmark is difficult. However, the firm-fixed-price nature of the contract suggests the government sought to establish a definitive cost upfront. The presence of four bids indicates market competition, which typically drives prices towards a competitive equilibrium. The duration of 454 days suggests a substantial scope of work, making a direct price comparison challenging without normalizing for project complexity, materials, and specific repair needs. Further analysis would require access to historical data on similar airfield repair contracts awarded by the Navy or other branches of the DoD.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential schedule delays due to weather, unforeseen site conditions, or contractor performance issues, given the 454-day duration. Ensuring the quality and durability of the runway repairs to meet stringent military aviation standards is another critical risk. Mitigation strategies likely include the firm-fixed-price contract, which incentivizes the contractor to manage costs and schedule effectively. The Navy's oversight, including regular progress reviews and quality assurance inspections, will be crucial. The selection of RQ Construction, LLC, presumably based on their qualifications and past performance, also serves as a risk mitigation factor. Clear contract specifications and performance metrics are essential for managing these risks.

How effective is the firm-fixed-price contract type in ensuring value for money for this runway repair project?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and risks can be reasonably anticipated. For a project like runway repair, where the physical work is tangible, FFP provides cost certainty for the government and incentivizes the contractor to control costs and manage the schedule efficiently to maximize profit. This reduces the risk of cost overruns for the government compared to cost-reimbursement contracts. However, the effectiveness hinges on the thoroughness of the initial scope definition; if significant unforeseen issues arise that require substantial changes, the FFP structure can sometimes lead to costly change orders if not managed carefully.

What is the historical spending pattern for runway repair and maintenance at Naval Air Station Oceana or similar facilities?

Historical spending data for runway repair and maintenance at specific facilities like Naval Air Station Oceana is typically found in detailed budget reports and contract award databases. While this summary does not provide that historical context, federal agencies like the Department of the Navy allocate significant funds annually towards maintaining and upgrading military infrastructure, including airfields. Spending patterns can fluctuate based on the age of the facilities, the intensity of use, and the availability of congressional appropriations. Contracts for major runway overhauls, like this one, are often awarded periodically rather than annually, interspersed with smaller maintenance tasks. Understanding the frequency and cost of past major repairs at Oceana would provide context for the current $28.6 million award.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4008519R9048

Offers Received: 4

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: $28,590,888

Exercised Options: $28,590,888

Current Obligation: $28,590,888

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $22,914,202

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