RQ Construction awarded $25.2M for building construction, with 19 bids received in a full and open competition

Contract Overview

Contract Amount: $25,218,679 ($25.2M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-29

End Date: 2017-10-19

Contract Duration: 1,116 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P-251(C) BASE BID TOC&MTOC

Place of Performance

Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF P-251(C) BASE BID TOC&MTOC Key points: 1. The contract value of $25.2 million represents a significant investment in infrastructure. 2. A high number of bidders (19) suggests a competitive market for this type of construction. 3. The firm-fixed-price contract type shifts risk to the contractor. 4. The contract duration of 1116 days indicates a substantial, long-term project. 5. The project falls under commercial and institutional building construction, a key sector for the Navy. 6. The award was made by the Department of the Navy, a major federal agency.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more specific data on the scope of work and location. However, the firm-fixed-price structure generally indicates a commitment to a set cost, which can be advantageous if the contractor manages costs effectively. The number of bids suggests that the pricing was likely competitive, but without a detailed cost breakdown or comparison to similar projects, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The receipt of 19 bids indicates a robust level of interest and a healthy competitive environment for this particular construction project. This broad competition is generally expected to drive down prices and ensure the government receives the best value.

Taxpayer Impact: The high number of bidders in this full and open competition suggests that taxpayers benefited from a competitive bidding process, likely resulting in a more favorable price than if the contract had been sole-sourced or competed among a limited pool of contractors.

Public Impact

The Department of the Navy benefits from the construction of necessary facilities. The project supports the development and maintenance of institutional and commercial buildings. The geographic impact is likely concentrated in Washington, where the contract was awarded. The construction workforce in the Washington area will be directly impacted by this project. The successful completion of this contract contributes to the Navy's operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in construction.
Risk of delays impacting project timelines and operational readiness.
Ensuring compliance with all building codes and environmental regulations.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Extensive competition suggests a well-defined scope and competitive pricing.
The contractor, RQ CONSTRUCTION, LLC, has a track record with federal contracts.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is vital for developing and maintaining the physical infrastructure of government agencies, including military branches like the Navy. Federal spending in this area is often driven by modernization efforts, capacity expansion, and the need for specialized facilities. The market size for federal construction is substantial, with significant annual outlays across various agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While RQ CONSTRUCTION, LLC is the prime contractor, there is potential for subcontracting opportunities for small businesses within the construction trades. The extent of small business participation would depend on the prime contractor's subcontracting plan and the availability of qualified small business subcontractors for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. The firm-fixed-price nature of the award places a significant responsibility on the contractor for cost control and adherence to specifications. Transparency is generally maintained through contract award databases, and any significant issues or disputes would likely be subject to review by the agency's Inspector General.

Related Government Programs

Military Construction
Naval Facilities Engineering Command Contracts
Department of Defense Infrastructure Projects
Federal Building Construction

Risk Flags

Contract Duration
Firm Fixed Price Risk
Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF P-251(C) BASE BID TOC&MTOC

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 $25.2 million.

What is the period of performance?

Start: 2014-09-29. End: 2017-10-19.

What is the specific scope of work for this building construction contract?

The provided data indicates the contract is for Commercial and Institutional Building Construction (NAICS 236220) awarded to RQ CONSTRUCTION, LLC by the Department of the Navy. However, the precise scope of work, such as whether it involves new construction, renovation, or specific types of facilities (e.g., administrative buildings, barracks, training centers), is not detailed in the summary data. Further investigation into the contract's statement of work would be necessary to understand the exact deliverables, specifications, and intended use of the constructed facilities.

How does the awarded amount of $25.2 million compare to similar Navy construction projects?

Comparing the $25.2 million award to similar Navy construction projects requires access to a broader dataset of federal contracts, specifically those within the same NAICS code (236220) and awarded by the Department of the Navy during a comparable timeframe. Without this comparative data, it is difficult to definitively state whether this contract represents a high, low, or average value. Factors such as project complexity, location, and specific requirements significantly influence contract values, making direct comparisons challenging without detailed project context.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, for construction contracts, KPIs would revolve around adherence to schedule, quality of workmanship, compliance with specifications and building codes, safety performance, and budget management. Performance measurement would likely involve regular site inspections, progress reports from the contractor, milestone reviews by the contracting officer's representative (COR), and potentially post-occupancy evaluations to ensure the facility meets its intended purpose.

What is RQ CONSTRUCTION, LLC's track record with federal contracts, particularly with the Department of the Navy?

RQ CONSTRUCTION, LLC has a history of receiving federal contracts. While the summary data shows this specific $25.2 million award, a deeper dive into federal procurement databases would reveal the full extent of their contract history, including awards from other agencies and the Department of the Navy. Analyzing their past performance, including contract values, types of projects, and any reported issues or successes, would provide a clearer picture of their reliability and experience in executing government projects.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

A firm-fixed-price (FFP) contract, while beneficial for cost certainty, carries inherent risks, especially for a project valued at $25.2 million over 1116 days. Key risks include potential cost overruns for the contractor if unforeseen site conditions, material price escalations, or scope creep occur, which could lead to contractor default or requests for equitable adjustments. For the government, the risk lies in potentially paying a premium if the initial price was set too high due to contractor uncertainty, or if the contractor cuts corners on quality to maintain profitability. Effective government oversight is crucial to mitigate these risks.

How has federal spending in commercial and institutional building construction trended over the past five years?

Federal spending in the Commercial and Institutional Building Construction sector (NAICS 236220) has generally remained robust, driven by the ongoing need to maintain, modernize, and expand government facilities across various agencies, including defense, civilian, and research institutions. While specific year-over-year trends can fluctuate based on budget appropriations, economic conditions, and national priorities, the overall demand for construction services by the federal government is a consistent component of federal outlays. Data from sources like the U.S. Census Bureau or specialized construction industry reports would provide precise figures on spending trends.

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: N4425513R4007

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3194 LIONSHEAD AVE, CARLSBAD, CA, 92010

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,218,679

Exercised Options: $25,218,679

Current Obligation: $25,218,679

Subaward Activity

Number of Subawards: 454

Total Subaward Amount: $275,125,898

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline