DoD's $29.1M Information Operations Readiness Center contract awarded to RQ Construction, LLC

Contract Overview

Contract Amount: $29,130,329 ($29.1M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-06

End Date: 2015-08-27

Contract Duration: 720 days

Daily Burn Rate: $40.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CC-1010-IORC - CONSTRUCT INFORMATION OPERATIONS READINESS CENTER, JOINT BASE LEWIS-MCCHORD, WA

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF CC-1010-IORC - CONSTRUCT INFORMATION OPERATIONS READINESS CENTER, JOINT BASE LEWIS-MCCHORD, WA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, providing cost certainty. 3. Performance period spanned 720 days, indicating a medium-term construction project. 4. The contract was awarded to RQ Construction, LLC, a company with prior federal contract experience. 5. The project was located at Joint Base Lewis-McChord, WA, a significant military installation. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns or comparable project data. The total award amount of $29.1 million for a construction project of this nature (Information Operations Readiness Center) appears within a reasonable range for a definitive contract of 720 days duration. However, a more granular analysis of the per-square-foot cost, material expenses, and labor rates would be necessary to definitively assess value for money against industry standards or similar government construction projects.

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. The presence of 14 bids suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition for this construction project likely resulted in a more cost-effective outcome for taxpayers by driving down prices through competitive bidding.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at Joint Base Lewis-McChord, WA, who will utilize the new Information Operations Readiness Center. The contract delivered a critical infrastructure facility to support information operations. The geographic impact is localized to Joint Base Lewis-McChord, Washington. The project likely involved a significant number of construction workers and subcontractors, contributing to local employment in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, though mitigated by firm-fixed-price contract.
Dependence on contractor's ability to meet schedule and quality standards for timely facility operationalization.
Risk associated with the specific nature of an 'Information Operations Readiness Center' requiring specialized construction considerations.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Project located at a major military installation, suggesting strategic importance.
Contract duration of 720 days allows for structured project execution.

Sector Analysis

The construction sector is a significant component of federal spending, particularly for infrastructure development and facility upgrades at military bases. This contract falls under the Commercial and Institutional Building Construction category (NAICS 236220). Federal construction spending is often driven by modernization needs, force protection requirements, and the expansion of operational capabilities. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar government or commercial facilities built in the same region and timeframe.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). While the prime contractor, RQ Construction, LLC, may be a small business itself, the contract was not specifically designated for small business set-aside. This means that subcontracting opportunities for small businesses would depend on the prime contractor's procurement practices and the availability of qualified small business subcontractors for specialized construction trades.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting officer and the relevant Army contracting command. Quality assurance representatives would likely monitor construction progress and adherence to specifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases like FPDS-NG, though detailed project-specific oversight reports are not always publicly available.

Related Government Programs

Military Construction Projects
Base Realignment and Closure (BRAC) Facilities
Department of Defense Infrastructure Modernization
Information Technology Infrastructure Construction

Risk Flags

Construction Project Risk
Firm-Fixed-Price Contract Risk
Schedule Adherence
Quality Control in Construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF CC-1010-IORC - CONSTRUCT INFORMATION OPERATIONS READINESS CENTER, JOINT BASE LEWIS-MCCHORD, WA

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 $29.1 million.

What is the period of performance?

Start: 2013-09-06. End: 2015-08-27.

What is the track record of RQ Construction, LLC in securing and completing federal contracts, particularly within the Department of Defense?

RQ Construction, LLC has a history of securing federal contracts, primarily within the Department of Defense and other agencies involved in construction and infrastructure projects. Analysis of federal procurement data indicates multiple awards to the company over several years. Their project portfolio often includes barracks, training facilities, and other base infrastructure. While specific performance metrics for each contract are not always publicly detailed, the company's continued success in winning bids suggests a generally satisfactory performance record. However, a deeper dive into past performance reviews, any contract disputes, or termination for default instances would be necessary for a comprehensive assessment of their track record.

How does the awarded amount of $29.1 million compare to the estimated cost or budget for constructing an Information Operations Readiness Center of this size and scope?

Determining the precise value comparison requires access to the original contract solicitation estimates or internal government budget documents, which are not publicly available. However, the award amount of $29.1 million for a 720-day construction project can be benchmarked against industry cost indices and data for similar institutional buildings. Factors such as the specific technological requirements for an 'Information Operations Readiness Center,' the complexity of the site, and prevailing labor and material costs in Washington state would influence the final price. Without detailed project specifications (e.g., square footage, specialized equipment integration), a definitive comparison to estimated costs is speculative. The fact that it was awarded under full and open competition with 14 bids suggests the price was competitive within the market.

What are the primary risk indicators associated with this specific construction contract, and how were they potentially mitigated?

Key risk indicators for this construction contract include potential construction delays due to weather or unforeseen site conditions, cost overruns if the firm-fixed-price contract did not adequately account for all contingencies, and ensuring the facility meets the specialized requirements for 'Information Operations.' Mitigation strategies likely involved thorough site investigations prior to bidding, detailed specifications in the contract, robust project management by the contractor, and oversight by the government's contracting officer's representative (COR). The firm-fixed-price nature of the contract shifts much of the cost overrun risk to the contractor, incentivizing efficient project execution. The 720-day duration also provides a defined timeframe, allowing for structured planning and execution.

What was the historical spending pattern for similar Information Operations Readiness Centers or related facilities within the Department of Defense prior to this contract?

Historical spending on Information Operations Readiness Centers specifically is not easily isolated as a distinct category in public federal spending databases. However, spending on military construction projects, particularly those supporting C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) and related operational facilities, has been substantial and ongoing. The Department of Defense consistently invests in upgrading and building infrastructure to support evolving mission requirements, including those related to information warfare and cyber operations. Analyzing broader categories like 'Military Construction, Army' or specific facility types like 'Command and Control Facilities' would provide context for the scale of investment in similar capabilities over time.

How does the competition level (14 bidders) for this contract potentially impact the final price and quality of the delivered facility?

A high level of competition, as indicated by 14 bidders for this contract, generally benefits the government by fostering a more competitive bidding environment. This typically drives down prices as contractors strive to offer the most attractive bid to secure the award. Furthermore, a larger pool of bidders increases the likelihood that a highly qualified contractor with the best technical approach and capacity will submit a winning proposal. This can translate into higher quality construction and a greater likelihood of meeting project timelines and specifications. The robust competition suggests that the market had sufficient capacity and interest to undertake this project, potentially leading to better value for taxpayer dollars.

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: TWO STEP

Solicitation ID: W912DW13R0003

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3194 LIONSHEAD AVE, CARLSBAD, CA, 92010

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,130,329

Exercised Options: $29,130,329

Current Obligation: $29,130,329

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $18,679,654

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline