DoD Awards $24.3M for New Florida Substation to RQ Construction, LLC
Contract Overview
Contract Amount: $24,287,000 ($24.3M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-29
End Date: 2026-03-23
Contract Duration: 1,271 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P806 CONSTRUCT NEW SUBSTATION
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to RQ CONSTRUCTION, LLC for work described as: P806 CONSTRUCT NEW SUBSTATION Key points: 1. Significant investment in critical infrastructure for the Department of the Navy. 2. RQ Construction, LLC, a large business, secured the contract. 3. The project involves commercial and institutional building construction. 4. Full and open competition was utilized for this delivery order.
Value Assessment
Rating: fair
The award amount of $24.3 million for a new substation appears to be within a reasonable range for a project of this scale. However, without specific details on the substation's capacity and complexity, a precise pricing assessment against similar contracts is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best value for the government's investment in essential infrastructure.
Public Impact
Enhances military base operational resilience and power reliability. Supports regional economic activity through construction jobs and material procurement. Potential for long-term energy cost savings through modern substation efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Dependency on a single large business contractor.
- Schedule delays impacting operational readiness.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs.
- Fixed-price contract type can limit cost uncertainty.
Sector Analysis
This contract falls under the construction sector, specifically commercial and institutional building construction. Spending in this area is often driven by infrastructure upgrades and facility modernization, with benchmarks varying widely based on project scope and location.
Small Business Impact
The contract was awarded to RQ Construction, LLC, identified as a large business. There is no indication of small business subcontracting participation in the provided data, suggesting limited direct benefit to small businesses from this specific award.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The fixed-price contract type provides some accountability for cost, but performance monitoring will be crucial to ensure timely completion 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 project complexity.
- Reliance on a single large contractor for execution.
- Unforeseen site conditions could increase costs.
- Inflationary pressures impacting material and labor costs.
Tags
commercial-and-institutional-building-co, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to RQ CONSTRUCTION, LLC. P806 CONSTRUCT NEW SUBSTATION
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 $24.3 million.
What is the period of performance?
Start: 2022-09-29. End: 2026-03-23.
What is the projected return on investment for this substation in terms of energy efficiency and operational cost savings?
The provided data does not include projections for energy efficiency or operational cost savings. A detailed analysis would require information on the substation's design specifications, expected energy throughput, and current energy costs at the facility. Without this, assessing the long-term financial return is speculative.
What are the key performance indicators (KPIs) being tracked to ensure the project's success and mitigate risks?
Specific KPIs are not detailed in the award data. Typically, for construction projects of this magnitude, KPIs would include adherence to schedule milestones, budget compliance, quality control metrics (e.g., defect rates), safety incident rates, and compliance with environmental regulations. The contracting officer's representative would monitor these.
How does the cost of this substation compare to similar projects awarded by other federal agencies or in the private sector?
Benchmarking this $24.3 million substation against similar projects is difficult without more detailed specifications. Factors like geographic location (Florida), specific electrical capacity, grid integration requirements, and site preparation complexity significantly influence costs. A comprehensive comparison would require access to detailed project scopes and cost breakdowns.
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: 2
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: $24,912,000
Exercised Options: $24,287,000
Current Obligation: $24,287,000
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $18,977,364
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
Start Date: 2022-09-29
Current End Date: 2026-03-23
Potential End Date: 2026-03-23 00:00:00
Last Modified: 2025-02-25
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