Navy awards $97.2M contract for Trident Refit Facility expansion, highlighting construction sector activity

Contract Overview

Contract Amount: $97,220,769 ($97.2M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-09

End Date: 2027-07-29

Contract Duration: 1,358 days

Daily Burn Rate: $71.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRECONSTRUCTION SERVICES (ECI), P684 TRIDENT REFIT FACILITY (TRF) EXPANSION

Place of Performance

Location: KINGS BAY, CAMDEN County, GEORGIA, 31547

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $97.2 million to RQ CONSTRUCTION, LLC for work described as: PRECONSTRUCTION SERVICES (ECI), P684 TRIDENT REFIT FACILITY (TRF) EXPANSION Key points: 1. Contract awarded to RQ CONSTRUCTION, LLC for preconstruction services and expansion. 2. Project scope includes expansion of the Trident Refit Facility (TRF). 3. Contract type is Firm Fixed Price, indicating defined cost expectations. 4. Duration of the contract is 1358 days, spanning over three years. 5. Awarded under full and open competition, suggesting a broad bidder pool. 6. Geographic focus on Georgia (GA) for this significant infrastructure project.

Value Assessment

Rating: good

The contract value of $97.2 million for preconstruction services and facility expansion appears reasonable given the scope and duration. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The specific details of the bidding process and the number of proposals received would offer further insight into the strength of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through competitive bidding, ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of the Navy and its operations at the Trident Refit Facility. The project will deliver expanded infrastructure critical for naval operations and maintenance. Geographic impact is concentrated in Georgia, potentially creating local construction jobs. Workforce implications include employment opportunities for skilled trades and construction professionals in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large, multi-year construction projects.
Ensuring timely completion within the 1358-day duration is crucial for operational readiness.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awarded under full and open competition, suggesting competitive pricing.
Experienced contractor likely selected through a rigorous bidding process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is vital for developing and expanding critical infrastructure, including military facilities. The value of this contract is substantial, reflecting the complexity and scale of military base expansions. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by the Department of Defense for similar facility upgrades or new builds.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, large prime contractors are often required to subcontract portions of their work. The extent to which RQ CONSTRUCTION, LLC will engage small businesses as subcontractors will determine the broader impact on the small business ecosystem in Georgia.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm fixed-price contract type, which places cost responsibility on the contractor. Transparency can be assessed through publicly available contract award data and any associated performance reports. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) projects
Military Construction (MILCON) programs
Trident Refit Facility operations and maintenance
Department of Defense infrastructure modernization

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Supply chain disruptions impacting materials
Labor availability and cost fluctuations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.2 million to RQ CONSTRUCTION, LLC. PRECONSTRUCTION SERVICES (ECI), P684 TRIDENT REFIT FACILITY (TRF) EXPANSION

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 $97.2 million.

What is the period of performance?

Start: 2023-11-09. End: 2027-07-29.

What is the historical track record of RQ CONSTRUCTION, LLC with the Department of Defense?

A review of federal procurement data would be necessary to fully assess RQ CONSTRUCTION, LLC's historical performance with the Department of Defense. This would include examining past contract awards, their values, the types of services provided, and any reported performance issues or commendations. Understanding their experience with similar-sized projects and facility types, particularly within military contexts, is crucial for evaluating their capability to successfully execute the TRF expansion. A lack of extensive DoD contract history might indicate a higher risk, while a strong record would suggest a lower risk profile.

How does the awarded amount compare to similar facility expansion projects at other naval bases?

Benchmarking this $97.2 million contract against similar facility expansion projects at other naval bases requires access to detailed cost data for comparable projects. Factors such as project scope, complexity, geographic location (which influences labor and material costs), and the specific type of facility being expanded are critical for a fair comparison. Without specific data on comparable projects, it is difficult to definitively state whether this award represents excellent, good, or fair value. However, the firm fixed-price nature and full and open competition suggest an effort to secure competitive pricing.

What are the primary risks associated with a multi-year construction project of this magnitude?

The primary risks associated with a multi-year construction project of this magnitude include potential cost overruns (though mitigated by the FFP contract), schedule delays due to unforeseen site conditions, weather, or supply chain disruptions, and labor shortages. For this specific project at the Trident Refit Facility, security requirements and operational constraints of an active military installation could introduce additional complexities and risks. Ensuring robust project management, contingency planning, and clear communication channels between the Navy and RQ CONSTRUCTION, LLC are essential to mitigate these risks.

What is the expected impact of this expansion on the operational effectiveness of the Trident Refit Facility?

The expansion of the Trident Refit Facility is expected to enhance its operational effectiveness by providing updated or additional infrastructure necessary for the maintenance and refit of naval vessels, likely including the Trident submarine fleet. This could translate to improved efficiency in repair processes, increased capacity to handle multiple vessels, or the accommodation of new technologies and equipment. The specific benefits will depend on the precise nature of the expansion, such as the addition of new workshops, dry docks, or specialized support facilities. Ultimately, the goal is to ensure the facility can meet current and future naval readiness requirements.

How has federal spending on military construction in Georgia trended over the past five years?

Analyzing federal spending trends on military construction in Georgia over the past five years would require accessing historical federal procurement databases and filtering for construction contracts awarded by the Department of Defense and other relevant agencies within the state. This would involve identifying the total dollar value of such contracts, the types of projects undertaken (e.g., new facilities, upgrades, expansions), and the primary agencies involved. Such an analysis could reveal whether spending in this sector is increasing, decreasing, or remaining stable, providing context for the significance of the $97.2 million TRF expansion award.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6945023R0021

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: $193,713,369

Exercised Options: $191,406,609

Current Obligation: $97,220,769

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $9,019,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline