DoD Awards $272M for Michelson Laboratory Complex Construction to RQ Construction, LLC
Contract Overview
Contract Amount: $272,114,907 ($272.1M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2021-06-24
End Date: 2025-12-28
Contract Duration: 1,648 days
Daily Burn Rate: $165.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P1904 - MICHELSON LABORATORY COMPLEX
Place of Performance
Location: ARVIN, KERN County, CALIFORNIA, 93203
Plain-Language Summary
Department of Defense obligated $272.1 million to RQ CONSTRUCTION, LLC for work described as: P1904 - MICHELSON LABORATORY COMPLEX Key points: 1. Significant investment in a major laboratory complex. 2. RQ Construction, LLC, a private entity, is the prime contractor. 3. The contract is a firm-fixed-price delivery order under a larger award. 4. Project duration spans over 4 years, indicating substantial scope.
Value Assessment
Rating: good
The $272 million award for the Michelson Laboratory Complex appears to be a substantial but potentially reasonable investment for a project of this scale and complexity. Benchmarking against similar large-scale institutional construction projects would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a delivery order under a previous award indicates a structured procurement approach.
Taxpayer Impact: Taxpayer funds are being utilized for the construction of a critical research facility, with the expectation of long-term value and capability enhancement.
Public Impact
Enhances research and development capabilities for the Department of the Navy. Supports scientific advancement and innovation within the defense sector. Creates construction jobs and economic activity in California. Potential for long-term operational efficiencies and cost savings through modern infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large-scale construction projects.
- Dependency on a single contractor for a significant duration.
- Scope creep could impact final cost and timeline.
Positive Signals
- Firm-fixed-price contract helps control costs.
- Full and open competition likely secured competitive pricing.
- Project addresses critical infrastructure needs for R&D.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar large-scale laboratory or research facility construction projects would typically be in the hundreds of millions of dollars, aligning with this award.
Small Business Impact
While the prime contractor is RQ Construction, LLC, a private entity, the contract details do not specify any subcontracting goals or set-asides for small businesses. Further investigation into subcontracting plans would be needed to assess small business participation.
Oversight & Accountability
The Department of the Navy, as the agency, is responsible for oversight. The firm-fixed-price nature of the contract provides some cost control, but ongoing monitoring of progress, quality, and adherence to schedule is crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to project scale and duration.
- Risk of schedule delays impacting operational readiness.
- Dependency on prime contractor's performance over several years.
- Need for robust quality assurance and inspection protocols.
- Ensuring adequate cybersecurity measures for sensitive research conducted within the complex.
Tags
commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $272.1 million to RQ CONSTRUCTION, LLC. P1904 - MICHELSON LABORATORY COMPLEX
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 $272.1 million.
What is the period of performance?
Start: 2021-06-24. End: 2025-12-28.
What is the projected return on investment for the Michelson Laboratory Complex in terms of scientific output and national security contributions?
The return on investment is expected to be significant, though difficult to quantify precisely. The complex will house advanced research facilities, enabling breakthroughs in critical defense technologies and scientific discovery. This enhanced capability directly contributes to national security by maintaining a technological edge and fostering innovation within the Department of the Navy's research and development efforts.
What are the primary risks associated with the long duration and fixed-price nature of this construction contract?
The primary risks include potential delays due to unforeseen site conditions, material shortages, or labor disputes, which could strain the fixed-price agreement. Scope creep, if not managed rigorously, could lead to change orders that increase costs. Additionally, the long duration necessitates sustained oversight to ensure quality and prevent contractor performance degradation over time.
How does the investment in this new laboratory complex align with current and future federal R&D priorities?
This investment aligns with federal priorities by providing state-of-the-art infrastructure necessary for cutting-edge research and development in areas critical to national defense and technological advancement. Modern facilities are essential for attracting top scientific talent and facilitating collaborative research, ensuring the nation remains competitive in key scientific and technological domains.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247319R1237
Offers Received: 4
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: $272,174,291
Exercised Options: $272,174,291
Current Obligation: $272,114,907
Actual Outlays: $178,007,166
Subaward Activity
Number of Subawards: 65
Total Subaward Amount: $184,433,304
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247321D1211
IDV Type: IDC
Timeline
Start Date: 2021-06-24
Current End Date: 2025-12-28
Potential End Date: 2025-12-28 00:00:00
Last Modified: 2026-01-15
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