DoD's $75M SEAL Team Facilities Contract Awarded to RQ Construction, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $74,997,266 ($75.0M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2018-09-13
End Date: 2021-07-30
Contract Duration: 1,051 days
Daily Burn Rate: $71.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF Q-892 AND Q-964 SOF SEAL TEAM OPERATIONS FACILITIES FOR SEAL TEAMS 1&3 AT NSW CC, CORONADO, CA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135
Plain-Language Summary
Department of Defense obligated $75.0 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF Q-892 AND Q-964 SOF SEAL TEAM OPERATIONS FACILITIES FOR SEAL TEAMS 1&3 AT NSW CC, CORONADO, CA Key points: 1. The contract awarded to RQ Construction, LLC for SEAL Team facilities represents a significant investment in specialized military infrastructure. 2. Competition was full and open, suggesting a robust price discovery process for this $75M contract. 3. The project's focus on specialized facilities for SEAL Teams presents unique construction challenges and potential risks. 4. The construction sector, particularly for government-funded institutional buildings, is subject to market fluctuations and material costs.
Value Assessment
Rating: good
The contract value of $75M for specialized facilities appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for achieving competitive pricing. This method allows all eligible contractors to bid, fostering a market-driven price discovery.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in constructing essential military facilities.
Public Impact
Enhances operational readiness and capabilities for elite SEAL Teams. Supports critical military infrastructure development within the Department of Defense. Potential for job creation in the construction sector within California. Ensures specialized training and housing facilities meet stringent military requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to specialized requirements.
- Construction delays impacting operational readiness.
- Scope creep in specialized facility development.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Experienced contractor likely selected through competitive process.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Government spending in this area often involves large, complex projects with stringent requirements, potentially leading to higher costs compared to standard commercial builds.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). While large contracts often go to larger firms, opportunities for small businesses may exist as subcontractors.
Oversight & Accountability
The Department of the Navy awarded this definitive contract. Oversight would typically involve contract management by the Navy and potentially review by DoD Inspector General offices for large-value contracts.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Specialized facility requirements may lead to cost overruns.
- Potential for construction delays impacting operational readiness.
- Contract awarded to a single entity (RQ Construction, LLC).
- Lack of small business participation directly on the prime contract.
- Geographic concentration of facilities in California.
Tags
commercial-and-institutional-building-co, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.0 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF Q-892 AND Q-964 SOF SEAL TEAM OPERATIONS FACILITIES FOR SEAL TEAMS 1&3 AT NSW CC, CORONADO, CA
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 $75.0 million.
What is the period of performance?
Start: 2018-09-13. End: 2021-07-30.
What is the estimated cost per square foot for these specialized SEAL Team facilities, and how does it compare to similar military or high-security construction projects?
The provided data does not include square footage, making a direct cost-per-square-foot calculation impossible. However, the total contract value of $75M for specialized facilities suggests a significant investment. Benchmarking against other high-security or specialized government construction projects would be necessary to assess if the per-unit cost is competitive, considering the unique requirements of SEAL Team operations.
What are the primary risks associated with constructing highly specialized facilities for elite military units like SEAL Teams, and how were these mitigated in the contract?
Key risks include the need for highly specialized designs, potential for scope creep as requirements evolve, and ensuring security during construction. Mitigation likely involved detailed SOWs, robust project management by the Navy, and potentially phased construction. The firm-fixed-price nature of the contract also shifts some cost risk to the contractor, incentivizing efficient execution.
How effectively does this contract contribute to the overall mission readiness and operational capabilities of SEAL Teams 1 and 3?
By providing dedicated, state-of-the-art facilities, this contract directly enhances the training, operational planning, and logistical support for SEAL Teams 1 and 3. This investment is crucial for maintaining their elite status and effectiveness in complex global operations, ensuring they have the necessary infrastructure to perform their demanding missions.
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: N6247317R0824
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: $74,997,266
Exercised Options: $74,997,266
Current Obligation: $74,997,266
Subaward Activity
Number of Subawards: 55
Total Subaward Amount: $56,414,166
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-13
Current End Date: 2021-07-30
Potential End Date: 2021-07-30 00:00:00
Last Modified: 2021-06-16
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