Naval Submarine Base Kings Bay awarded $116M for hurricane repairs, with 3 bids received

Contract Overview

Contract Amount: $116,264,142 ($116.3M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-22

End Date: 2026-05-15

Contract Duration: 1,331 days

Daily Burn Rate: $87.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HURRICANE ELSA REPAIRS TO TRF BUILDINGS B4026, B4027 AND B4028, NAVAL SUBMARINE BASE KINGS BAY, GA

Place of Performance

Location: KINGS BAY, CAMDEN County, GEORGIA, 31547

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $116.3 million to RQ CONSTRUCTION, LLC for work described as: HURRICANE ELSA REPAIRS TO TRF BUILDINGS B4026, B4027 AND B4028, NAVAL SUBMARINE BASE KINGS BAY, GA Key points: 1. Contract value of $116.26 million for hurricane repairs to three buildings at Naval Submarine Base Kings Bay. 2. The contract was awarded to RQ CONSTRUCTION, LLC, with a duration of 1331 days. 3. This represents a significant investment in infrastructure resilience for a key naval facility. 4. The fixed-price contract type aims to control costs and provide predictability. 5. The project addresses critical repairs following Hurricane Elsa, ensuring operational readiness. 6. The award falls under the Commercial and Institutional Building Construction category.

Value Assessment

Rating: good

The contract value of $116.26 million for hurricane repairs appears reasonable given the scope of work involving three buildings at a major naval base. While specific cost breakdowns are not provided, the firm fixed-price nature of the contract suggests an effort to manage expenses. Benchmarking against similar large-scale construction and repair projects at military installations would provide further context on value for money. The awarded amount is within the expected range for substantial infrastructure repair projects of this magnitude.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Three bids were received, suggesting a moderate level of competition for this significant project. While three bidders is not a large number, it is sufficient to establish a competitive baseline and allow for price discovery. The agency's decision to use full and open competition is a positive indicator for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the competitive process, which helps ensure that the government is not overpaying for essential infrastructure repairs. The presence of multiple bidders drives down costs compared to a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Navy and its personnel stationed at Naval Submarine Base Kings Bay, Georgia, who will have access to repaired and functional facilities. The services delivered include the repair of Buildings B4026, B4027, and B4028, crucial for the base's operational capabilities. The geographic impact is localized to Naval Submarine Base Kings Bay, Georgia. The project will likely involve a workforce of construction professionals, tradespeople, and support staff, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise beyond the scope of initial assessments.
Contract duration of over three years could be subject to delays due to weather or supply chain disruptions.
Reliance on a single contractor for a large-scale, critical repair project.

Positive Signals

Firm fixed-price contract structure helps mitigate cost escalation risks.
Awarded under full and open competition, indicating a competitive bidding process.
Project addresses critical infrastructure needs, enhancing base resilience and operational readiness.
Contractor RQ CONSTRUCTION, LLC has experience in large-scale construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure at government facilities, including military bases. The market for such services is competitive, with numerous firms capable of undertaking large-scale projects. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per building for similar repair and renovation projects at other Department of Defense installations.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is not detailed, though large prime contractors are often encouraged or required to utilize small businesses for a portion of their subcontracting work on federal projects.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of the Navy, likely through contracting officers and project managers responsible for ensuring compliance with contract terms and quality standards. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the specified repairs within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for scrutiny of the awarded amount and contractor.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Military Construction Projects
Hurricane and Disaster Recovery Contracts
Department of Defense Infrastructure Modernization

Risk Flags

Potential for schedule delays
Unforeseen site conditions
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $116.3 million to RQ CONSTRUCTION, LLC. HURRICANE ELSA REPAIRS TO TRF BUILDINGS B4026, B4027 AND B4028, NAVAL SUBMARINE BASE KINGS BAY, GA

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 $116.3 million.

What is the period of performance?

Start: 2022-09-22. End: 2026-05-15.

What is the track record of RQ CONSTRUCTION, LLC in performing similar large-scale government construction contracts?

RQ CONSTRUCTION, LLC has a history of performing significant construction projects, including those for government and military clients. While specific details on past performance for hurricane repair or similar building envelope restoration are not provided in this summary, their ability to win a contract of this magnitude suggests they possess the necessary experience, bonding capacity, and technical expertise. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous projects, would be necessary for a comprehensive assessment of their track record. Federal procurement databases and past performance questionnaires are typically used to evaluate this aspect during the bidding process.

How does the awarded amount compare to the estimated cost or budget for these repairs?

The provided data indicates an awarded amount of $116,264,141.92. Without access to the government's independent government cost estimate (IGCE) or the contractor's detailed proposal, it is challenging to definitively assess how the awarded amount compares to the budget. However, the fact that the contract was awarded under full and open competition with three bids suggests that the awarded price was deemed fair and reasonable by the contracting officer. The difference between the highest and lowest bids, if available, could also provide insight into the competitive landscape and potential for cost savings.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to unforeseen structural damage beyond initial assessments, project delays caused by weather or supply chain issues, and contractor performance issues. Mitigation strategies include the firm fixed-price contract type, which shifts cost overrun risk to the contractor. The contract duration of 1331 days (approximately 3.6 years) necessitates robust project management and scheduling to minimize delays. The government's oversight, including inspections and progress monitoring, aims to ensure quality and timely completion. The selection of RQ CONSTRUCTION, LLC through a competitive process also implies a level of confidence in their ability to manage these risks.

What is the expected impact of these repairs on the operational readiness of Naval Submarine Base Kings Bay?

The repairs are critical for restoring and maintaining the operational readiness of Naval Submarine Base Kings Bay. Buildings B4026, B4027, and B4028 likely house essential functions, personnel, or equipment. By addressing hurricane damage, the project ensures that these facilities are safe, functional, and can support the base's mission without interruption. This investment in infrastructure resilience is vital for national security, particularly for a strategic asset like a submarine base.

What has been the historical spending trend for building construction and repair at Naval Submarine Base Kings Bay?

Analyzing historical spending trends for building construction and repair at Naval Submarine Base Kings Bay would require access to historical contract data for the specific installation. This would involve reviewing contract awards over several fiscal years, categorizing them by type (new construction, repair, renovation), and summing the values. Such an analysis could reveal patterns in investment, identify periods of significant infrastructure upgrades or damage recovery, and provide context for the current $116 million award. Without specific historical data, it's difficult to determine if this award represents a typical or unusually large expenditure for the base.

Are there any specific performance metrics or deliverables outlined in the contract that will be used to measure success?

While the summary does not detail specific performance metrics, federal construction contracts typically include requirements for adherence to building codes, industry standards (e.g., those set by the American Institute of Architects or specific military construction criteria), and project specifications. Deliverables would include completed repairs to the specified buildings, ensuring structural integrity, weatherproofing, and functionality. Performance will likely be monitored through regular site inspections, progress reports, and final acceptance testing. Failure to meet these standards could result in contract modifications, withholding of payment, or other remedies.

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: N6945020R0097

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: $116,264,142

Exercised Options: $116,264,142

Current Obligation: $116,264,142

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $45,718,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945021D0060

IDV Type: IDC

Timeline