Naval Station Norfolk Runway Repairs Awarded for $38.5M Under Full and Open Competition
Contract Overview
Contract Amount: $38,507,858 ($38.5M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-06
End Date: 2025-10-26
Contract Duration: 781 days
Daily Burn Rate: $49.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LF AREA RUNWAY AND BULKHEAD REPAIRS AT NAVAL STATION NORFOLK, NORFOLK, VA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.5 million to RQ CONSTRUCTION, LLC for work described as: LF AREA RUNWAY AND BULKHEAD REPAIRS AT NAVAL STATION NORFOLK, NORFOLK, VA Key points: 1. Significant investment in critical naval infrastructure at a major East Coast base. 2. Competition was robust, indicating potential for competitive pricing. 3. Risk is moderate, tied to project duration and potential for unforeseen site conditions. 4. Construction sector spending is substantial, with this contract representing a notable portion.
Value Assessment
Rating: good
The contract value of $38.5M for runway and bulkhead repairs appears reasonable given the scope and duration. Benchmarking against similar large-scale airfield construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove price discovery. This method is generally expected to yield fair and reasonable prices.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for infrastructure investments.
Public Impact
Ensures operational readiness of naval aviation at a key installation. Supports local economy through construction jobs and related services. Improves safety and efficiency of flight operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (781 days) increases risk of cost overruns or delays.
- Potential for unforeseen subsurface conditions impacting cost and schedule.
- Reliance on a single awardee for a critical infrastructure project.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost escalation risk for the government.
- Strategic investment in vital military infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is substantial, driven by both public and private infrastructure needs. Benchmarks for similar airfield repair projects are essential for detailed cost analysis.
Small Business Impact
While the prime contractor is RQ CONSTRUCTION, LLC, the contract does not indicate specific small business subcontracting goals. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy awarded this delivery order under a larger contract vehicle. Oversight will be crucial to monitor progress, manage risks, and ensure adherence to the firm fixed price.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long project duration.
- Potential for unforeseen site conditions.
- Single awardee for critical infrastructure.
- Lack of explicit small business subcontracting goals.
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 $38.5 million to RQ CONSTRUCTION, LLC. LF AREA RUNWAY AND BULKHEAD REPAIRS AT NAVAL STATION NORFOLK, 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 $38.5 million.
What is the period of performance?
Start: 2023-09-06. End: 2025-10-26.
What is the historical cost performance of RQ CONSTRUCTION, LLC on similar large-scale construction projects?
Assessing RQ CONSTRUCTION, LLC's past performance on comparable projects is vital. Reviewing their track record for on-time completion, budget adherence, and quality of work on previous large airfield or infrastructure contracts can provide insight into their capability and reliability. This historical data helps predict the likelihood of successful project execution and identify potential risk factors.
How do the unit costs for specific repair elements compare to industry benchmarks?
Comparing the unit costs for specific repair elements, such as per square foot of runway repair or linear foot of bulkhead work, against established industry benchmarks is crucial. This analysis helps determine if the pricing is competitive and reflects fair market value. Significant deviations from benchmarks could indicate potential overpricing or, conversely, exceptional value.
What are the contingency plans for potential delays or cost increases due to unforeseen site conditions?
Given the nature of construction, especially on established bases, unforeseen site conditions are a common risk. Understanding the contingency plans, including any pre-negotiated allowances or change order procedures, is essential. This clarifies how the government will manage potential schedule delays or cost escalations, ensuring project continuity and fiscal responsibility.
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: $38,507,858
Exercised Options: $38,507,858
Current Obligation: $38,507,858
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $23,900,017
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: 2023-09-06
Current End Date: 2025-10-26
Potential End Date: 2025-10-26 00:00:00
Last Modified: 2025-11-21
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