Naval Submarine Base Kings Bay receives $123.7M for TRIDENT TRAINING FACILITY mechanical and electrical repairs

Contract Overview

Contract Amount: $123,741,179 ($123.7M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-08

End Date: 2027-08-30

Contract Duration: 1,452 days

Daily Burn Rate: $85.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TRIDENT TRAINING FACILITY (TTF)RECAPITALIZATION: MECHANICAL AND ELECTRICAL REPAIRS. 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 $123.7 million to RQ CONSTRUCTION, LLC for work described as: TRIDENT TRAINING FACILITY (TTF)RECAPITALIZATION: MECHANICAL AND ELECTRICAL REPAIRS. NAVAL SUBMARINE BASE, KINGS BAY GA Key points: 1. Contract awarded to RQ CONSTRUCTION, LLC for essential infrastructure upgrades. 2. Project scope includes mechanical and electrical repairs at the TRIDENT TRAINING FACILITY. 3. The contract duration spans over 1400 days, indicating a significant, long-term project. 4. This is a firm-fixed-price contract, providing cost certainty for the government. 5. The project is located at Naval Submarine Base, Kings Bay, Georgia. 6. The award represents a substantial investment in maintaining critical naval facilities.

Value Assessment

Rating: good

The contract value of $123.7 million for a large-scale recapitalization project at a major naval base appears reasonable. While specific benchmarks for similar facility recapitalizations are not provided, the firm-fixed-price nature of the contract suggests that the government has negotiated a definitive cost. The scope of work, encompassing mechanical and electrical repairs for a critical training facility, justifies the investment. Further analysis would require comparison with other large-scale construction and repair contracts for military installations.

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 contractors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market that drives down prices and encourages innovation, ensuring that government funds are used efficiently.

Public Impact

Naval personnel and trainees at the TRIDENT TRAINING FACILITY will benefit from improved and reliable infrastructure. The project ensures the continued operational readiness of critical naval training capabilities. The services delivered are essential for maintaining the functionality and safety of the facility. The geographic impact is concentrated at the Naval Submarine Base in Kings Bay, Georgia. The project will likely create or sustain jobs in the construction sector within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during extensive mechanical and electrical repairs.
Dependence on contractor performance for timely completion and quality of work.
Risk of disruption to base operations if construction activities are not managed effectively.

Positive Signals

Firm-fixed-price contract structure limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Award to a single contractor streamlines management and accountability for the project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on repairs and maintenance for government facilities. The market for large-scale construction and renovation projects for military installations is significant, often involving specialized contractors. Benchmarks for comparable spending would typically be found in other large federal construction awards, particularly those for Department of Defense infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, RQ CONSTRUCTION, LLC, is not explicitly identified as a small business in the provided data, the contract does not appear to have a small business subcontracting goal mandated. Further investigation into the prime contractor's size status and subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific contracting officers and project managers responsible for monitoring progress, quality, and adherence to terms. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor's performance. Transparency would be enhanced through regular reporting requirements and potential site visits. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) projects
Military Construction (MILCON) projects
Department of Defense Infrastructure Modernization
TRIDENT Training Facility Operations
Naval Submarine Base Kings Bay Maintenance

Risk Flags

Potential for schedule delays due to complexity of repairs.
Risk of unforeseen conditions in aging infrastructure.
Dependence on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $123.7 million to RQ CONSTRUCTION, LLC. TRIDENT TRAINING FACILITY (TTF)RECAPITALIZATION: MECHANICAL AND ELECTRICAL REPAIRS. 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 $123.7 million.

What is the period of performance?

Start: 2023-09-08. End: 2027-08-30.

What is the track record of RQ CONSTRUCTION, LLC in performing similar large-scale federal construction projects, particularly for the Department of Defense?

A review of federal contract databases and performance records would be necessary to assess RQ CONSTRUCTION, LLC's track record. Key indicators would include past performance ratings on similar projects, any history of contract disputes or terminations, and experience with the specific types of mechanical and electrical systems relevant to the TRIDENT TRAINING FACILITY. Understanding their capacity to manage large budgets and complex schedules is crucial. Without specific performance data, it is difficult to definitively assess their suitability beyond the fact that they were selected through a competitive process.

How does the awarded amount of $123.7 million compare to the estimated cost or budget for this specific recapitalization project?

The provided data indicates the awarded amount but does not include the initial estimated cost or the approved budget for the TRIDENT TRAINING FACILITY recapitalization. To assess value, a comparison between the awarded contract price and the government's independent government cost estimate (IGCE) or pre-solicitation estimates would be essential. If the awarded amount is significantly lower than the IGCE, it suggests strong competition and potentially good value. Conversely, if it is close to or exceeds estimates, further scrutiny of the bidding process and scope might be warranted.

What are the primary risks associated with the mechanical and electrical repairs at the TRIDENT TRAINING FACILITY, and how are they being mitigated?

Primary risks include the potential for unforeseen structural or system issues discovered during demolition and repair, leading to cost overruns and schedule delays. Aging infrastructure can harbor hidden defects. Additionally, the complexity of integrating new mechanical and electrical systems with existing base infrastructure poses a technical risk. Mitigation strategies typically involve thorough site investigations prior to bidding, contingency planning within the contract, robust project management oversight, and phased construction approaches to minimize disruption. The firm-fixed-price contract also incentivizes the contractor to manage these risks effectively.

What is the expected impact of these repairs on the operational effectiveness and training capacity of the TRIDENT TRAINING FACILITY?

The repairs are expected to significantly enhance the operational effectiveness and training capacity by ensuring the reliability and safety of critical systems. Modernized mechanical and electrical infrastructure will reduce the likelihood of system failures, which can disrupt training schedules and compromise facility functionality. Improved systems may also support advanced training technologies or increase energy efficiency. The project aims to modernize aging components, ensuring the facility can meet current and future naval training requirements, thereby directly supporting the readiness of submarine forces.

How has federal spending on similar naval facility recapitalization projects trended over the past five years?

Federal spending on naval facility recapitalization projects has generally been substantial, driven by the need to maintain aging infrastructure and adapt to evolving military requirements. Trends often show increased investment in areas critical to national security, such as submarine bases and training facilities. Factors influencing spending include budget appropriations, geopolitical priorities, and the lifecycle of existing infrastructure. Specific data on trends would require analysis of historical contract awards for similar projects across the Navy, looking at total obligated amounts, number of contracts, and average contract values over time.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

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: $123,741,179

Exercised Options: $123,741,179

Current Obligation: $123,741,179

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $22,168,263

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