DoD's $33.6M URC Operations Building contract awarded to RQ Construction, LLC

Contract Overview

Contract Amount: $33,626,512 ($33.6M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2018-08-30

End Date: 2022-11-04

Contract Duration: 1,527 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF X003 DB CONSTRUCTION - P988 - URC OPERATIONS BUILDIN

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $33.6 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF X003 DB CONSTRUCTION - P988 - URC OPERATIONS BUILDIN Key points: 1. Contract value of $33.6M for building construction. 2. Awarded to RQ Construction, LLC. 3. Department of Defense (Navy) is the contracting agency. 4. Project located in California, focusing on commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $33.6M for a 1527-day duration appears reasonable for a large-scale construction project. Benchmarking against similar commercial and institutional building construction contracts would provide a clearer assessment of its value.

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. This method typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contractors.

Public Impact

Construction of a significant operational building for the Navy. Potential impact on local employment and businesses in California. Ensures facility readiness for military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the DoD can fluctuate based on infrastructure needs and modernization efforts. Benchmarks for similar projects are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates the primary awardee is RQ CONSTRUCTION, LLC. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific delivery order.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve contract management personnel ensuring adherence to terms, quality, and schedule.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF X003 DB CONSTRUCTION - P988 - URC OPERATIONS BUILDIN

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 $33.6 million.

What is the period of performance?

Start: 2018-08-30. End: 2022-11-04.

What specific operational capabilities will the URC Operations Building support, and how does its design align with those needs?

The provided data lacks specifics on the URC Operations Building's function beyond its name. Understanding the intended use, such as housing specific equipment, personnel, or command functions, is crucial. A detailed analysis would require reviewing project specifications and architectural plans to assess if the design effectively meets the operational requirements and ensures long-term utility for the Navy.

Are there any identified risks associated with the long contract duration (1527 days) and potential cost overruns?

A duration of 1527 days (over 4 years) for a single delivery order presents inherent risks, including potential material cost escalation, labor market fluctuations, and changes in operational requirements. While a firm fixed price contract offers some cost certainty, significant unforeseen issues could still lead to change orders or disputes, impacting the final cost to taxpayers. Robust project management and contingency planning are vital.

How effectively did the full and open competition process ensure the best value and price for this significant construction project?

The 'full and open competition' designation suggests a robust bidding process, which generally promotes competitive pricing and allows the government to select the best value offer. However, without access to the bids received and the evaluation criteria, it's difficult to definitively assess the effectiveness. A review of the award decision documentation would be necessary to confirm that the chosen contractor offered the most advantageous terms for the government.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247316R3201

Offers Received: 2

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: $33,626,512

Exercised Options: $33,626,512

Current Obligation: $33,626,512

Actual Outlays: $564,119

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $19,960,485

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247317D0820

IDV Type: IDC

Timeline

Start Date: 2018-08-30

Current End Date: 2022-11-04

Potential End Date: 2022-11-04 00:00:00

Last Modified: 2024-02-26

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