DoD's $45.6M Hangar Construction Contract Awarded to RQ Construction, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $45,626,827 ($45.6M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2019-01-30
End Date: 2021-10-29
Contract Duration: 1,003 days
Daily Burn Rate: $45.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF P256 18G MAINTENANCE HANGAR.
Place of Performance
Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278
Plain-Language Summary
Department of Defense obligated $45.6 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF P256 18G MAINTENANCE HANGAR. Key points: 1. The contract value of $45.6M for hangar construction is significant, requiring careful cost analysis. 2. Awarded under full and open competition, this suggests a competitive bidding process. 3. The project duration of 1003 days indicates a substantial construction undertaking. 4. The firm-fixed-price contract type shifts cost risk to the contractor.
Value Assessment
Rating: fair
The contract value of $45.6M for a maintenance hangar is substantial. Benchmarking against similar large-scale construction projects would be necessary to assess if this price is competitive, considering the firm-fixed-price nature which includes contractor risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by fostering a competitive environment.
Public Impact
Military readiness and operational capabilities are directly impacted by the successful completion of this maintenance hangar. Local economic impact is expected through job creation and subcontractor engagement during the construction phase. The successful construction of this facility supports the Department of the Navy's infrastructure needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite fixed-price.
- Contractor performance risk over the 1003-day duration.
- Ensuring compliance with all construction and environmental regulations.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm-fixed-price contract transfers significant cost risk to the contractor.
- Clear end date provides a defined project timeline.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure can vary significantly based on military modernization efforts and base infrastructure needs.
Small Business Impact
The data indicates that the prime contractor is RQ CONSTRUCTION, LLC. There is no explicit information on small business subcontracting participation in this data snippet.
Oversight & Accountability
Oversight would typically involve regular progress reviews, site inspections, and financial audits by the Department of the Navy to ensure contract compliance and timely completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Significant contract value.
- Long project duration (1003 days).
- Potential for unforeseen site conditions.
- Firm-fixed-price contract requires careful scope management.
Tags
commercial-and-institutional-building-co, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.6 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF P256 18G MAINTENANCE HANGAR.
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 $45.6 million.
What is the period of performance?
Start: 2019-01-30. End: 2021-10-29.
What is the benchmark cost per square foot for similar military maintenance hangars in the region, and how does this contract's pricing compare?
Benchmarking the cost per square foot against similar military maintenance hangars in Washington state is crucial. Factors like size, complexity, specialized equipment needs, and prevailing labor/material costs influence this metric. A comparison would reveal if the $45.6M award represents a competitive price or if there's potential for overpayment, especially considering the firm-fixed-price structure.
What are the primary risks associated with a 1003-day construction project for a specialized facility like a maintenance hangar, and how are they mitigated?
Key risks include unforeseen subsurface conditions, material price volatility, labor shortages, weather delays, and design changes. Mitigation strategies involve thorough site investigations, robust contingency planning, clear contract clauses for change orders, and strong project management oversight. The firm-fixed-price nature places the burden of managing many of these risks on the contractor.
How effectively does the firm-fixed-price contract structure ensure value for money given the long duration and potential for unforeseen issues in large construction projects?
The firm-fixed-price structure is intended to provide cost certainty and incentivize contractor efficiency. For a long-duration project, it effectively transfers the risk of cost overruns due to market fluctuations or execution challenges to the contractor. However, it can also lead to higher initial bids to cover contractor risk premiums, and requires careful scope definition to prevent costly change orders.
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: TWO STEP
Solicitation ID: N4425517R8002
Offers Received: 9
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: $45,626,827
Exercised Options: $45,626,827
Current Obligation: $45,626,827
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $32,761,214
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-01-30
Current End Date: 2021-10-29
Potential End Date: 2021-10-29 00:00:00
Last Modified: 2024-11-22
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