Naval Station Norfolk Renovation Awarded to RQ Construction for $64.3M Under Full and Open Competition
Contract Overview
Contract Amount: $64,354,061 ($64.4M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2028-04-17
Contract Duration: 1,298 days
Daily Burn Rate: $49.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BID-BUILD BUILDING CEP-201 RENOVATION, NAVAL STATION NORFOLK, NORFOLK, VIRGINIA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $64.4 million to RQ CONSTRUCTION, LLC for work described as: DESIGN-BID-BUILD BUILDING CEP-201 RENOVATION, NAVAL STATION NORFOLK, NORFOLK, VIRGINIA Key points: 1. Significant contract value of $64.3 million for building renovation. 2. Awarded via full and open competition, suggesting market availability. 3. Potential risks include project duration and fixed-price contract in a dynamic environment. 4. Construction sector spending is substantial, with this contract representing a portion of DoD's infrastructure investment.
Value Assessment
Rating: good
The contract value of $64.3 million appears reasonable for a large-scale building renovation at a major naval installation. Benchmarking against similar DoD construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple contractors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades at a critical naval facility. Competitive bidding aims to ensure efficient use of these funds.
Public Impact
Enhances operational readiness and living conditions at Naval Station Norfolk. Supports local economy through construction jobs and related services. Represents investment in aging military infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (1298 days) increases risk of cost overruns or scope creep.
- Firm fixed price contract may not adequately account for unforeseen material cost increases.
- Potential for delays impacting military operations or personnel.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs.
- Contract value is substantial, indicating significant project scope.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in construction, particularly for defense infrastructure, is a significant component of the overall federal budget, often influenced by modernization needs and geopolitical factors.
Small Business Impact
While the prime contractor is RQ Construction, LLC, the contract details do not specify any small business subcontracting goals or participation. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The long duration and fixed-price nature warrant close monitoring to ensure adherence to schedule and budget, and to manage potential risks.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk.
- Firm fixed price contract may not account for inflation.
- Potential for scope creep or change orders.
- Dependence on a single contractor for a large project.
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 $64.4 million to RQ CONSTRUCTION, LLC. DESIGN-BID-BUILD BUILDING CEP-201 RENOVATION, NAVAL STATION NORFOLK, NORFOLK, VIRGINIA
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 $64.4 million.
What is the period of performance?
Start: 2024-09-27. End: 2028-04-17.
What is the historical cost performance of RQ Construction, LLC on similar federal contracts?
Assessing RQ Construction's past performance on comparable federal projects is crucial for evaluating the likelihood of successful project completion within budget and schedule. Reviewing contract closeout data, past performance questionnaires, and any documented disputes or claims can provide insights into their reliability and efficiency in managing large-scale construction endeavors.
How will the firm fixed price contract mitigate risks associated with potential material cost fluctuations over the 1298-day performance period?
The firm fixed price contract places the risk of cost increases on the contractor. However, for a project of this duration, RQ Construction likely incorporated significant contingency into their bid to account for potential material price volatility. The government's risk is primarily that the contractor may cut corners on quality or scope to maintain profitability if costs escalate unexpectedly.
What specific renovation activities are included in the CEP-201 project, and how do they align with the Navy's long-term infrastructure strategy?
Understanding the specific scope of the CEP-201 renovation is key to assessing its value. If the project addresses critical modernization needs, enhances energy efficiency, or improves force protection, it aligns well with strategic infrastructure goals. Conversely, if it's primarily cosmetic or doesn't address pressing functional requirements, its long-term value might be questionable.
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: $82,221,081
Exercised Options: $64,354,061
Current Obligation: $64,354,061
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $29,591,619
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: 2024-09-27
Current End Date: 2028-04-17
Potential End Date: 2029-06-10 00:00:00
Last Modified: 2025-09-23
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