Naval Air Station North Island Hangar Project Awarded to RQ Construction for $56M Under Full and Open Competition
Contract Overview
Contract Amount: $56,000,240 ($56.0M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-05
End Date: 2025-12-23
Contract Duration: 932 days
Daily Burn Rate: $60.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: X005 P897 AIRCRAFT MAINTENANCE HANGAR AT NAVAL AIR STATION NORTH ISLAND
Place of Performance
Location: CORONADO, SAN DIEGO County, CALIFORNIA, 92118
Plain-Language Summary
Department of Defense obligated $56.0 million to RQ CONSTRUCTION, LLC for work described as: X005 P897 AIRCRAFT MAINTENANCE HANGAR AT NAVAL AIR STATION NORTH ISLAND Key points: 1. The $56M contract for an aircraft maintenance hangar at NAS North Island was awarded to RQ Construction, LLC. 2. The project falls under Commercial and Institutional Building Construction, a sector with significant federal spending. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The duration of 932 days indicates a substantial construction timeline.
Value Assessment
Rating: good
The contract value of $56M for a large aircraft maintenance hangar appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military facilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for this significant infrastructure investment.
Public Impact
Enhances critical infrastructure at Naval Air Station North Island, supporting naval aviation readiness. Provides employment opportunities during the construction phase. The new hangar will likely improve maintenance capabilities and operational efficiency for aircraft stationed or visiting NAS North Island. Contributes to the local economy through construction activities and associated services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise during construction.
- Schedule delays could impact operational readiness if the hangar is critical for specific aircraft maintenance.
Positive Signals
- Firm Fixed Price contract mitigates cost escalation risk for the government.
- Full and open competition suggests a competitive award, likely resulting in a fair price.
- Award to an established contractor like RQ Construction, LLC, implies experience in similar projects.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, driven by the need for infrastructure development and modernization across various government agencies, particularly defense.
Small Business Impact
The data indicates that the prime contractor is RQ Construction, LLC, and the award was made under full and open competition. There is no specific information provided regarding small business subcontracting participation in this award.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including site inspections and progress reporting, would be in place to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule slippage due to the long duration.
- Complexity of aircraft maintenance hangar construction may lead to unforeseen challenges.
- Dependence on a single prime contractor for overall project delivery.
- Lack of explicit small business subcontracting goals in the provided data.
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 $56.0 million to RQ CONSTRUCTION, LLC. X005 P897 AIRCRAFT MAINTENANCE HANGAR AT NAVAL AIR STATION NORTH ISLAND
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 $56.0 million.
What is the period of performance?
Start: 2023-06-05. End: 2025-12-23.
What is the estimated cost per square foot for this hangar, and how does it compare to industry benchmarks for similar military aviation facilities?
Without the square footage, a precise cost per square foot cannot be calculated. However, the total award of $56M for a large aircraft maintenance hangar suggests a significant investment. Industry benchmarks for such specialized facilities can vary widely based on complexity, location, and specific requirements. A detailed cost breakdown would be needed for a robust comparison.
What are the key performance indicators (KPIs) being tracked for this project to ensure timely completion and quality standards are met?
While specific KPIs are not detailed in the provided data, typical KPIs for large construction projects include adherence to schedule milestones, quality control inspections, safety compliance rates, and budget management. The Department of the Navy would likely have established protocols for monitoring these aspects throughout the project lifecycle.
Are there any provisions in the contract for sustainable building practices or energy efficiency measures, and what is their potential impact on long-term operational costs?
The provided data does not specify any provisions for sustainable building practices or energy efficiency. However, modern military construction often incorporates such elements to reduce long-term operational costs and environmental impact. Further review of the contract details would be necessary to ascertain the inclusion and potential benefits of these features.
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: 6
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: $56,000,240
Exercised Options: $56,000,240
Current Obligation: $56,000,240
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $39,211,403
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: 2023-06-05
Current End Date: 2025-12-23
Potential End Date: 2025-12-23 00:00:00
Last Modified: 2025-12-23
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