DoD awards $94M construction contract to RQ Construction, LLC for Naval Base Coronado

Contract Overview

Contract Amount: $94,155,316 ($94.2M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-05

End Date: 2027-12-08

Contract Duration: 1,220 days

Daily Burn Rate: $77.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P821 SOF WARCOM OPS NBC DB CONSTRUCTION

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $94.2 million to RQ CONSTRUCTION, LLC for work described as: P821 SOF WARCOM OPS NBC DB CONSTRUCTION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating potential for future task orders. 3. The fixed-price nature of the contract shifts cost risk to the contractor. 4. The contract duration of 1220 days (approx. 3.3 years) suggests a significant, long-term project. 5. The project is located in California, a high-cost construction market. 6. The contract is for commercial and institutional building construction, a common category for defense infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total value of the IDIQ contract it falls under, or the scope of work for this particular order. However, the award amount of $94.1 million for a multi-year construction project indicates a substantial investment. Without comparable project data for similar facilities at Naval Base Coronado or other DoD installations, a precise value-for-money assessment is difficult. The firm-fixed-price contract type is generally favorable for the government as it caps costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates there were 3 bids received. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards. The number of bidders (3) provides some indication of market interest, though more information would be needed to assess if this represents robust competition for this specific type of construction.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers. This process helps prevent inflated costs that can occur when competition is limited.

Public Impact

The primary beneficiaries are the U.S. Navy personnel and operations at Naval Base Coronado, which will receive upgraded or new facilities. The contract will deliver commercial and institutional building construction services, likely involving the erection or renovation of buildings essential for base operations. The geographic impact is concentrated in Coronado, California, supporting local economic activity through construction jobs and material sourcing. The project will likely create numerous jobs in the construction sector, including skilled trades, project management, and support staff in the San Diego area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond the initial fixed-price agreement.
Dependence on a single contractor (RQ Construction, LLC) for a significant duration could lead to performance issues if not managed effectively.
Construction projects are inherently subject to delays due to weather, supply chain disruptions, or unforeseen site conditions.

Positive Signals

The firm-fixed-price contract type transfers most of the cost risk to the contractor.
Awarded under full and open competition, suggesting a competitive market and potentially better pricing.
The contractor, RQ Construction, LLC, has experience in large-scale construction projects, as indicated by their past performance.

Sector Analysis

The construction sector is a significant part of the U.S. economy, with federal government contracts forming a substantial segment. This contract falls within the Commercial and Institutional Building Construction category (NAICS 236220). The Department of Defense is a major client for construction services, investing heavily in infrastructure to support military readiness and operations. Comparable spending benchmarks would involve analyzing other large-scale DoD construction projects, particularly those for naval bases or similar operational facilities, to gauge cost-effectiveness.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and the small business status of the prime contractor is not specified (st: CA, likely means California, not small business). Therefore, there are no direct small business set-aside benefits from this prime contract. However, RQ Construction, LLC may engage small businesses as subcontractors to fulfill portions of the work, which would contribute to the small business ecosystem. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering departments, potentially involving contracting officers' representatives (CORs) and quality assurance personnel. The firm-fixed-price contract type simplifies some aspects of oversight by focusing on adherence to scope and schedule. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if fraud, waste, or abuse is suspected.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Military Construction
Base Realignment and Closure (BRAC) Projects
General Services Administration (GSA) Public Buildings Service Contracts

Risk Flags

Potential for scope creep if not managed tightly.
Risk associated with construction timelines and potential delays.
Dependence on contractor's financial stability and performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.2 million to RQ CONSTRUCTION, LLC. P821 SOF WARCOM OPS NBC DB CONSTRUCTION

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 $94.2 million.

What is the period of performance?

Start: 2024-08-05. End: 2027-12-08.

What is the specific scope of work for this $94.1 million delivery order?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' (NAICS 236220) at Naval Base Coronado, California. However, the precise details of the construction project—such as whether it involves new buildings, renovations, specific types of facilities (e.g., barracks, training centers, administrative buildings), or infrastructure upgrades—are not specified in the abbreviated data. A full review of the contract statement of work (SOW) would be necessary to understand the exact deliverables, specifications, and project objectives.

How does RQ Construction, LLC's past performance compare to other contractors for similar DoD construction projects?

Assessing RQ Construction, LLC's past performance requires accessing detailed contract performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS) and comparing them against industry benchmarks and the performance of other bidders on this specific solicitation. While the award suggests they met the government's criteria, a deeper dive into their track record on similar-sized or complex military construction projects would reveal their reliability, quality of work, adherence to schedule, and cost control. Without access to CPARS data or detailed historical project outcomes, a definitive comparison is not possible from the provided summary.

What is the total potential value of the IDIQ contract under which this delivery order was issued?

The provided data only specifies the value of this particular delivery order ($94.1 million) and its duration (1220 days). It does not reveal the total ceiling value or the overall scope of the parent indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts are designed to allow agencies to procure a range of supplies or services over a set period, with specific task orders or delivery orders defining the actual work and cost. Knowing the total IDIQ value is crucial for understanding the government's long-term commitment and the contractor's potential revenue stream.

What are the key performance indicators (KPIs) and milestones for this construction project?

Key performance indicators and milestones for a construction project of this magnitude typically include adherence to the project schedule, quality control standards, safety compliance, and completion of specific construction phases (e.g., foundation, structural, interior, exterior). The firm-fixed-price contract implies that meeting these milestones within the agreed-upon budget is paramount for the contractor. Specific KPIs would be detailed in the contract's statement of work and project management plan, likely overseen by the Naval Facilities Engineering Command (NAVFAC) or its designated representatives.

What is the historical spending trend for commercial and institutional building construction by the Department of the Navy at Naval Base Coronado?

Analyzing historical spending for similar construction projects at Naval Base Coronado by the Department of the Navy would provide context for the $94.1 million award. This would involve reviewing past contract awards for construction services at that specific base over several fiscal years. Such an analysis could reveal patterns in project types, average contract values, and the frequency of large-scale construction initiatives. Without access to historical contract databases filtered by agency, base, and service type, determining this trend is not feasible from the provided data.

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: 3

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: $94,155,316

Exercised Options: $94,155,316

Current Obligation: $94,155,316

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $27,231,845

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