DoD's $33.3M Fitness Center Construction Awarded to RQ Construction, LLC in Florida

Contract Overview

Contract Amount: $33,324,061 ($33.3M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-06

End Date: 2026-05-28

Contract Duration: 1,360 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P832 CONSTRUCTION OF FITNESS CENTER

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.3 million to RQ CONSTRUCTION, LLC for work described as: P832 CONSTRUCTION OF FITNESS CENTER Key points: 1. Value appears reasonable given the scope of a large-scale fitness center construction project. 2. Full and open competition suggests a healthy market for construction services. 3. Project duration of 1360 days indicates a significant undertaking with potential for schedule risks. 4. Fixed-price contract type shifts risk to the contractor, potentially impacting final cost if unforeseen issues arise. 5. Geographic concentration in Florida may limit broader market participation. 6. The contract falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $33.3 million for a fitness center construction is substantial. Benchmarking against similar large-scale institutional building projects suggests this price is within a reasonable range, assuming quality materials and adherence to military specifications. The firm fixed-price nature indicates a commitment to a set cost, but the long duration could introduce unforeseen escalation factors that the contractor must absorb.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. With 4 bids received, this suggests a competitive environment that likely drove pricing towards market rates. The level of competition is generally positive for price discovery and ensuring the government receives a fair value.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by fostering a market-driven price for the construction services.

Public Impact

Military personnel stationed in Florida will benefit from improved fitness facilities. The project will deliver a new, modern fitness center, enhancing quality of life and readiness. The geographic impact is concentrated in Florida, specifically at the Navy installation where the center is being built. The construction will likely create numerous jobs in the local Florida workforce, including skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (1360 days) increases the risk of cost overruns due to inflation or unforeseen site conditions.
Firm Fixed Price contract, while beneficial for budget certainty, could lead to contractor cutting corners if margins are too tight.
Reliance on a single contractor for a multi-year project carries inherent performance risks.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm Fixed Price contract provides budget certainty for the government.
Contractor has experience in large-scale construction projects, as indicated by the contract value and scope.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The market for large-scale government construction projects is often competitive, with specialized firms capable of meeting stringent requirements. Comparable spending benchmarks for similar military facility constructions would typically range from tens to hundreds of millions of dollars, depending on size and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are embedded in the firm fixed-price contract terms, with penalties for delays or non-performance. Transparency is generally maintained through contract award databases, though specific project oversight details are typically internal to the agency.

Related Government Programs

Military Construction Projects
Naval Facilities Engineering Command Contracts
Department of Defense Facilities Management
Large-Scale Building Construction Contracts

Risk Flags

Long project duration increases risk of cost escalation and performance issues.
Firm Fixed Price contract may incentivize cost-cutting at the expense of quality if not closely monitored.
Potential for unforeseen site conditions impacting schedule and budget.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 million to RQ CONSTRUCTION, LLC. P832 CONSTRUCTION OF FITNESS CENTER

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 $33.3 million.

What is the period of performance?

Start: 2022-09-06. End: 2026-05-28.

What is the track record of RQ CONSTRUCTION, LLC in completing large-scale government construction projects on time and within budget?

RQ CONSTRUCTION, LLC has a history of undertaking significant construction projects, including those for government entities. A thorough review of their past performance, including contract awards, completion times, and any reported disputes or cost overruns, would be necessary to fully assess their reliability for this specific project. Analyzing data from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would provide insights into their ability to manage complex projects of this magnitude and adhere to contractual obligations.

How does the per-square-foot cost of this fitness center compare to similar recently constructed military fitness facilities?

To benchmark the per-square-foot cost, we would need the total square footage of the fitness center, which is not provided in the summary data. Assuming a typical size for a military fitness center of this value, the cost per square foot could be estimated. However, without the square footage, a direct comparison is difficult. Generally, costs can range significantly based on location, amenities, and specific construction requirements. A detailed analysis would involve obtaining the project's architectural plans and comparing its cost breakdown to similar projects awarded by the Department of Defense or other federal agencies over the past 2-3 years.

What are the primary risk indicators associated with a 1360-day construction project for a fitness center?

The primary risk indicators for a 1360-day (approximately 3.7 years) construction project include significant exposure to inflation for materials and labor, potential for unforeseen site conditions (e.g., soil issues, environmental concerns) that could lead to change orders, and the risk of contractor performance degradation over a long duration. Schedule slippage is also a major concern, which can be exacerbated by weather delays, permitting issues, or supply chain disruptions. The firm fixed-price nature, while intended to control costs, can become a risk if the contractor underestimated these long-term variables, potentially leading to disputes or quality compromises.

What is the expected impact of this fitness center construction on the local workforce and economy in Florida?

The construction of a $33.3 million fitness center is expected to have a positive impact on the local Florida workforce and economy. It will create numerous direct jobs for construction workers, including skilled trades such as electricians, plumbers, carpenters, and heavy equipment operators. Indirect job creation is also likely in supporting industries like material supply, equipment rental, and logistics. The influx of wages paid to these workers will further stimulate local businesses through increased consumer spending. The project duration suggests a sustained period of economic activity and employment opportunities.

How does the level of competition (4 bids) typically influence the final price for large federal construction contracts?

A full and open competition with four bids generally indicates a healthy market and sufficient interest from qualified contractors. This level of competition typically exerts downward pressure on pricing, as contractors are motivated to submit competitive bids to secure the contract. While four bids are a good indicator, the specific nature of the project and the qualifications required can influence how competitive the pricing truly is. In some specialized construction sectors, fewer than four highly qualified bidders might still result in competitive pricing if those bidders are eager for the work. However, generally, more bids lead to better price discovery and potentially lower costs for the government.

What are the potential long-term maintenance and operational costs associated with a newly constructed military fitness center?

The long-term maintenance and operational costs for a new military fitness center will depend on its size, the types of equipment installed, and the materials used in its construction. Typical operational costs include utilities (electricity, water, HVAC), staffing (trainers, maintenance personnel, administrative support), routine cleaning and janitorial services, and preventative maintenance for fitness equipment and building systems. Capital expenditures for major repairs or equipment replacement will also be a factor over the facility's lifespan. While the construction cost is significant, agencies must budget adequately for these ongoing operational expenses to ensure the facility remains functional and safe for users.

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: 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: $33,334,561

Exercised Options: $33,324,061

Current Obligation: $33,324,061

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $17,551,831

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