Navy awards $50M construction contract for Florida's Fourth Fleet relocation to RQ Construction, LLC

Contract Overview

Contract Amount: $50,019,756 ($50.0M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-17

End Date: 2027-11-29

Contract Duration: 1,230 days

Daily Burn Rate: $40.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RELOCATE US FOURTH FLEET TO B2480 NS MAYPORT, FL - DB RPF

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $50.0 million to RQ CONSTRUCTION, LLC for work described as: RELOCATE US FOURTH FLEET TO B2480 NS MAYPORT, FL - DB RPF Key points: 1. Contract value of $50M represents a significant investment in naval infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor for cost overruns. 4. Project duration of over three years indicates a substantial construction undertaking. 5. Location in Florida positions the project within a key naval hub.

Value Assessment

Rating: good

The contract value of $50,019,756 for commercial and institutional building construction appears reasonable given the scope of relocating a fleet command. Benchmarking against similar large-scale military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has secured a defined cost, though the contractor bears the risk of cost escalation.

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. With 6 bidders participating, the level of competition appears healthy, which typically leads to more competitive pricing and better value for the government. The number of bidders suggests a robust market response for this type of specialized construction.

Taxpayer Impact: A competitive bidding process for this substantial contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received a fair market value for the construction services.

Public Impact

The primary beneficiaries are the U.S. Navy and its personnel, who will gain updated facilities for the Fourth Fleet. The project will deliver new or renovated institutional buildings and associated infrastructure. The geographic impact is concentrated in Mayport, Florida, enhancing local naval operational capabilities. The construction project will likely create numerous jobs for skilled trades and support personnel in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the fleet's relocation timeline.
Risk of unforeseen site conditions requiring costly modifications.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Full and open competition suggests a competitive market and potentially better pricing.
Experienced contractor (RQ Construction, LLC) with a track record in large projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, with substantial annual spending on facilities and infrastructure. This project aligns with the government's ongoing efforts to modernize and maintain its military installations, ensuring operational readiness.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is RQ Construction, LLC, there is no explicit information on subcontracting goals for small businesses within this award notice. Further review of the contract details would be needed to assess potential subcontracting opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering departments. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported.

Related Government Programs

Naval Base Construction
Fleet Relocation Projects
Military Infrastructure Modernization
Department of Defense Facilities Management

Risk Flags

Potential for cost overruns despite fixed-price contract if unforeseen issues arise.
Risk of schedule delays impacting fleet operational readiness.
Ensuring quality control throughout a multi-year construction project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.0 million to RQ CONSTRUCTION, LLC. RELOCATE US FOURTH FLEET TO B2480 NS MAYPORT, FL - DB RPF

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 $50.0 million.

What is the period of performance?

Start: 2024-07-17. End: 2027-11-29.

What is RQ Construction, LLC's track record with large federal construction contracts, particularly for the Department of Defense?

RQ Construction, LLC has a significant history of securing and executing large-scale federal construction contracts, including numerous projects for the Department of Defense. Their portfolio often includes complex facilities, barracks, and infrastructure development. A review of their past performance indicates experience with projects of similar magnitude and complexity to the Fourth Fleet relocation. While specific details on past performance metrics like on-time delivery and budget adherence for all projects are not detailed here, their consistent award of substantial government contracts suggests a generally positive track record. Further due diligence would involve examining specific past performance evaluations and any reported issues on prior DoD projects.

How does the awarded amount of $50,019,756 compare to similar naval base construction projects?

Comparing the $50 million award for the Fourth Fleet relocation to similar naval base construction projects requires access to a comprehensive database of comparable contracts. However, for large-scale institutional and commercial building construction within military installations, this figure falls within a common range for significant infrastructure upgrades or new builds. Projects involving relocation of major command functions, including new facilities and infrastructure, often command budgets in the tens to hundreds of millions of dollars. Factors influencing cost include geographic location, specific facility requirements, and the complexity of integrating new structures with existing base infrastructure. Without specific comparable project data, it's difficult to definitively benchmark, but the amount is consistent with the scale of such a strategic naval undertaking.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project of this scale?

The primary risk associated with a firm fixed-price (FFP) contract for a multi-year construction project like the Fourth Fleet relocation is the potential for the contractor to incur significant losses if costs escalate beyond their projections. While FFP shifts cost overrun risk to the contractor, it can also incentivize them to cut corners on quality or safety if they face unexpected cost increases. For the government, the risk is that the contractor might struggle financially, leading to delays or project abandonment, or that the initial price, while fixed, might have been inflated due to the contractor's anticipation of potential cost increases. Robust oversight and clear contract specifications are crucial to mitigate these risks and ensure project success.

What is the expected impact of this contract on the local economy in Mayport, Florida?

This $50 million construction contract is expected to have a positive impact on the local economy in Mayport, Florida. The project will create numerous direct and indirect jobs, ranging from skilled construction labor (electricians, plumbers, carpenters) to project management, engineering, and administrative support. Local businesses supplying materials, equipment, and services to the prime contractor, RQ Construction, LLC, will also see increased demand. Furthermore, the influx of workers may boost local hospitality and retail sectors. The long-term impact includes enhanced naval operational capabilities at the base, potentially leading to increased stability and future economic activity related to the Navy's presence.

How does the competition level (6 bidders) influence the value for taxpayers on this contract?

A competition level of six bidders for this $50 million construction contract is generally considered healthy and beneficial for taxpayers. A larger number of bidders typically intensifies competition, driving down prices as contractors vie for the award. This increased competition helps ensure that the government is not overpaying for the services and that the final price reflects a reasonable market rate. It also encourages contractors to be more efficient and innovative to submit the most competitive bid. Conversely, a low number of bidders might indicate market limitations or potential collusion, leading to higher costs for the government and, consequently, taxpayers.

What are the potential challenges in relocating a fleet command and its associated infrastructure?

Relocating a fleet command and its associated infrastructure presents numerous challenges. These include ensuring continuity of operations during the transition, managing complex logistical requirements for personnel and equipment, and coordinating the construction or renovation of new facilities. Technical challenges involve integrating new systems with existing base infrastructure, adhering to strict security protocols, and meeting environmental regulations. Furthermore, managing the human element, such as relocating personnel and their families, requires careful planning and support. The project's success hinges on effective project management, clear communication between all stakeholders, and robust risk mitigation strategies to address unforeseen issues.

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: 6

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: $53,283,156

Exercised Options: $50,019,756

Current Obligation: $50,019,756

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $16,947,953

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