Navy Awards $74.9M Airfield Improvement Contract to RQ Construction, LLC
Contract Overview
Contract Amount: $74,869,809 ($74.9M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-30
End Date: 2026-08-16
Contract Duration: 1,082 days
Daily Burn Rate: $69.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P1027 AIRFIELD IMPROVEMENT, NORFOLK VA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $74.9 million to RQ CONSTRUCTION, LLC for work described as: P1027 AIRFIELD IMPROVEMENT, NORFOLK VA Key points: 1. Significant investment in critical infrastructure for naval operations. 2. RQ Construction, LLC, a large business, secured the contract. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Construction sector spending is substantial, with airfield improvements being a key area.
Value Assessment
Rating: fair
The contract value of $74.9 million for airfield improvements appears substantial. Benchmarking against similar large-scale airfield construction projects would be necessary to definitively assess its value.
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 generally leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential military infrastructure upgrades, aiming for long-term operational benefits.
Public Impact
Enhances operational readiness and safety at Norfolk Naval Station. Supports local economy through construction jobs and related services. Long-term asset for national defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Large contract value increases risk exposure.
- Potential for unforeseen site conditions impacting cost and schedule.
- Reliance on a single large business contractor.
Positive Signals
- Full and open competition promotes competitive pricing.
- Firm fixed price contract limits cost escalation risk for the government.
- Strategic investment in critical defense infrastructure.
Sector Analysis
This contract falls within the broader construction sector, specifically commercial and institutional building construction. Airfield construction is a specialized and capital-intensive segment, often involving significant government investment.
Small Business Impact
The contract was awarded to RQ Construction, LLC, a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
Standard oversight for large Department of Defense construction projects is expected, including regular progress reviews and quality assurance checks to ensure compliance with contract terms and specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep
- Contractor performance risk
- Unforeseen site conditions
- Schedule delays
- Budget overruns
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 $74.9 million to RQ CONSTRUCTION, LLC. P1027 AIRFIELD IMPROVEMENT, NORFOLK VA
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 $74.9 million.
What is the period of performance?
Start: 2023-08-30. End: 2026-08-16.
What is the historical performance of RQ Construction, LLC on similar large-scale airfield projects?
Assessing RQ Construction's past performance on comparable airfield improvement projects is crucial. Reviewing their track record for on-time delivery, budget adherence, and quality of work on similar contracts can provide insights into their capability to execute this project successfully and mitigate potential risks.
Are there specific environmental or geological factors at Norfolk Naval Station that could impact the airfield improvement project's cost or timeline?
Understanding potential environmental or geological challenges unique to the Norfolk Naval Station site is vital. Factors like soil conditions, groundwater levels, or proximity to sensitive ecosystems could necessitate specialized construction techniques or mitigation efforts, potentially affecting project costs and the overall schedule.
How will the effectiveness of these airfield improvements be measured post-completion?
The effectiveness of the airfield improvements should be evaluated based on predefined metrics. Key performance indicators could include reduced aircraft turnaround times, improved safety incident rates, enhanced operational capacity, and the overall structural integrity and longevity of the upgraded airfield 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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008521R2507
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,194,420
Exercised Options: $74,869,809
Current Obligation: $74,869,809
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $25,570,145
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008521D0081
IDV Type: IDC
Timeline
Start Date: 2023-08-30
Current End Date: 2026-08-16
Potential End Date: 2026-08-16 00:00:00
Last Modified: 2025-11-04
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