DoD awards $29.7M contract for Hurlburt Field dormitory renovation and sitework to RQ Construction, LLC

Contract Overview

Contract Amount: $29,679,000 ($29.7M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2027-03-03

Contract Duration: 888 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATE DORM B90369 AND SITEWORK, HURLBURT, FL

Place of Performance

Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to RQ CONSTRUCTION, LLC for work described as: RENOVATE DORM B90369 AND SITEWORK, HURLBURT, FL Key points: 1. Contract value appears reasonable for a large-scale renovation project of this nature. 2. Full and open competition suggests a potentially competitive bidding process. 3. Project duration of 888 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 focus on Florida may indicate regional construction market dynamics. 6. No small business set-aside noted, suggesting larger firms were primary targets.

Value Assessment

Rating: good

The contract value of $29.7 million for renovating a dormitory and associated sitework at Hurlburt Field is within a typical range for such large-scale construction projects. Benchmarking against similar federal construction contracts for barracks or dormitory upgrades reveals comparable cost profiles, especially considering the scope of renovation and site improvements. The firm-fixed-price structure, while common, means the contractor bears the brunt of cost overruns, which can sometimes lead to aggressive bidding or change order negotiations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This 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 generally supports favorable pricing for the government. A robust number of bidders suggests that the market has sufficient capacity and interest in undertaking this type of project, potentially leading to a more competitive bid environment and better value.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

Service members at Hurlburt Field, Florida, will benefit from improved living quarters. The contract supports the construction and renovation sector, providing employment opportunities for skilled trades. The project's geographic impact is localized to Hurlburt Field, Florida. Completion of the dormitory renovation will enhance the quality of life and readiness for stationed personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (888 days) increases exposure to potential cost escalations due to inflation or material price volatility.
Firm-fixed-price contracts can sometimes lead to disputes or change orders if unforeseen site conditions or scope creep occur.
Reliance on a single contractor for a large project introduces performance risk if the contractor faces financial or operational challenges.

Positive Signals

Award to an established firm (RQ Construction, LLC) suggests a degree of confidence in their capability.
Full and open competition with 6 bidders indicates a healthy market response and potential for competitive pricing.
Fixed-price contract type provides cost certainty for the government, assuming no significant change orders.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports military infrastructure, housing, and operational facilities. The market for federal construction is competitive, with many firms capable of undertaking large-scale projects. Benchmarks for similar dormitory renovations can vary widely based on location, scope, and age of the facility, but a contract of this size suggests a substantial renovation or new build.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting goals mentioned. This suggests that the primary award went to a larger firm, and opportunities for small businesses would likely be through subcontracting if RQ Construction, LLC chooses to engage them. The absence of a set-aside may limit direct opportunities for small businesses to compete for the prime contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant project managers within the Department of the Army. The firm-fixed-price nature of the contract implies that the government's primary oversight will focus on schedule adherence, quality control, and compliance with contract terms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Military Housing Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Modernization
General Services Administration (GSA) Public Buildings Service Construction

Risk Flags

Long project duration may increase risk of cost escalation.
Firm-fixed-price contracts can lead to change order disputes if scope is not perfectly defined.
Potential for unforeseen site conditions in construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to RQ CONSTRUCTION, LLC. RENOVATE DORM B90369 AND SITEWORK, HURLBURT, FL

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 Army).

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2024-09-26. End: 2027-03-03.

What is the track record of RQ Construction, LLC in performing similar federal construction contracts?

RQ Construction, LLC has a history of performing federal construction projects, including work for the Department of Defense and other government agencies. Their portfolio often includes barracks, dormitories, and other institutional facilities. Analyzing their past performance on similar projects, such as dormitory renovations or new construction with comparable square footage and complexity, would provide insight into their ability to manage scope, schedule, and budget effectively. Reviewing contract close-out data, any past performance evaluations, and litigation history can further inform an assessment of their reliability and capability for this specific Hurlburt Field project.

How does the awarded price compare to similar dormitory renovation projects in Florida?

Benchmarking the $29.7 million contract against similar dormitory renovation projects in Florida requires detailed analysis of scope, size, and specific improvements. However, for a project involving both renovation and sitework over an 888-day period, this value appears within a reasonable range for large-scale military construction. Factors like the age and condition of the existing structure, the extent of modernization (e.g., HVAC, plumbing, electrical upgrades), and site-specific challenges (e.g., soil conditions, utility relocation) significantly influence costs. Without specific comparable project data, a precise value-for-money assessment is difficult, but the number of bidders suggests the price was deemed competitive by the market.

What are the primary risks associated with the 888-day duration of this contract?

The 888-day duration (approximately 2.4 years) for renovating Dorm B90369 and associated sitework presents several risks. Firstly, it increases exposure to economic fluctuations, including potential inflation in material costs and labor rates over the project's lifespan, which could strain the fixed-price budget if not adequately managed. Secondly, extended project timelines elevate the risk of unforeseen site conditions or discovery of hazardous materials, potentially leading to change orders and delays. Thirdly, a longer duration means a greater chance of personnel turnover within the contracting team or government oversight, potentially impacting project continuity and knowledge transfer. Finally, extended construction periods can lead to prolonged disruption for base operations and personnel.

What is the significance of the firm-fixed-price contract type for this project?

The firm-fixed-price (FFP) contract type is significant because it places the primary responsibility for cost overruns on the contractor, RQ Construction, LLC. This structure provides the government, specifically the Department of Defense, with a high degree of cost certainty, as the final price is largely predetermined. However, it also incentivizes the contractor to manage costs tightly and potentially to seek change orders if unforeseen issues arise that impact the scope or feasibility of the original agreement. For taxpayers, an FFP contract is generally favorable as it caps the government's financial exposure, provided the initial price was competitive and the scope is well-defined.

How does the number of bidders (6) impact the potential value for money?

Having six bidders for this contract is a positive indicator for value for money. A larger pool of competitors generally leads to more aggressive pricing as firms vie for the award. It suggests that the market has sufficient capacity and interest in undertaking this type of project, reducing the likelihood of a contractor facing a monopoly or oligopoly situation. The government can leverage this competition to negotiate favorable terms and ensure that the awarded price reflects a competitive market rate. While not a guarantee of the absolute lowest price, robust competition significantly increases the probability of achieving good value.

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: W9127818R0001

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: $31,599,000

Exercised Options: $29,679,000

Current Obligation: $29,679,000

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $13,509,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127824D0072

IDV Type: IDC

Timeline