DoD's $49.6M SOF Battalion Operations Facility contract awarded to RQ Construction, LLC, faced limited competition

Contract Overview

Contract Amount: $49,614,197 ($49.6M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2015-04-30

End Date: 2018-02-13

Contract Duration: 1,020 days

Daily Burn Rate: $48.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION OF FY13 SOF BATTALION OPERATIONS FACILITY.

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $49.6 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF CONSTRUCTION OF FY13 SOF BATTALION OPERATIONS FACILITY. Key points: 1. The contract's value of $49.6 million for a Special Operations Forces (SOF) battalion operations facility represents a significant investment in military infrastructure. 2. While awarded under full and open competition, the number of bids received suggests potential limitations in the competitive landscape for this specialized construction. 3. The firm-fixed-price contract type aims to control costs, but the final cost compared to the initial estimate is a key performance indicator. 4. The project's duration of 1020 days indicates a substantial construction timeline, requiring careful project management and oversight. 5. The geographic location in Washington state may influence labor costs and material availability, impacting overall project economics. 6. The absence of small business set-asides or subcontracting goals warrants examination to understand the impact on smaller firms in the construction sector.

Value Assessment

Rating: fair

The contract's final value of $49.6 million for a SOF battalion operations facility needs to be benchmarked against similar military construction projects to assess value for money. Without specific cost breakdowns or comparisons to industry standards for similar facilities, it's difficult to definitively state if the pricing was competitive. The firm-fixed-price nature suggests an attempt to control costs, but the actual cost performance relative to the initial estimate and the duration of the contract are critical factors in determining overall value.

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. However, with 23 bids received, the level of competition might be considered moderate rather than robust for a contract of this magnitude. A higher number of bids typically suggests a more competitive market, potentially leading to better pricing for the government. The specific reasons for the number of bidders (e.g., specialized requirements, market conditions) would provide further insight.

Taxpayer Impact: While full and open competition was utilized, the number of bids received suggests that the government may not have achieved the maximum possible price competition. This could mean taxpayers did not benefit from the most aggressive pricing achievable in a highly contested bid environment.

Public Impact

The primary beneficiaries are the Special Operations Forces personnel who will utilize the new battalion operations facility, enhancing their operational capabilities. The project delivers critical infrastructure for military operations, including administrative, training, and support spaces. The geographic impact is concentrated in Washington state, potentially creating local employment opportunities during the construction phase. The construction workforce, including skilled trades and laborers, will be directly impacted by the project's duration and scope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders for a large-scale construction project may indicate potential barriers to entry or a concentrated market.
Lack of specific details on cost performance against initial estimates makes it difficult to assess true value for money.
Absence of small business participation goals could limit opportunities for smaller firms in the construction ecosystem.

Positive Signals

Awarded under full and open competition, allowing for broad market participation.
Firm-fixed-price contract type provides cost certainty for the government.
Significant investment in critical military infrastructure supports operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for military facilities. The market for large-scale government construction projects is often characterized by specialized requirements and a limited number of experienced contractors. Benchmarking this contract's cost against other Department of Defense construction projects of similar size and complexity would be necessary for a comprehensive value assessment. The total federal spending on construction services is substantial, with significant portions allocated to defense infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting goals for small businesses. This suggests that opportunities for small businesses may have been limited to direct competition if they met the qualifications, or indirectly through subcontracting if the prime contractor chose to engage them. Further analysis would be needed to determine if small businesses were excluded or if they participated as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management offices. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Military Construction (MILCON)
Special Operations Forces (SOF) Support Facilities
Department of Defense Infrastructure Projects
General Building Construction Services

Risk Flags

Potential for limited competition despite full and open award.
Lack of transparency on cost performance against estimates.
Absence of small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.6 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF CONSTRUCTION OF FY13 SOF BATTALION OPERATIONS FACILITY.

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 $49.6 million.

What is the period of performance?

Start: 2015-04-30. End: 2018-02-13.

What was the initial estimated cost of the SOF Battalion Operations Facility project, and how did the final award amount compare?

The provided data does not include the initial estimated cost for the SOF Battalion Operations Facility project. Therefore, a direct comparison between the estimated cost and the final award amount of $49,614,197 cannot be made. Understanding the initial estimate is crucial for assessing whether the project came in under, at, or over budget, which is a key indicator of cost control and project management effectiveness. Without this baseline, it is difficult to evaluate the value for money achieved by the Department of the Army in this procurement.

How does the per-square-foot cost of this facility compare to similar military construction projects?

The provided data does not include the total square footage of the SOF Battalion Operations Facility. Without this critical information, calculating a per-square-foot cost is impossible, making direct comparisons to similar military construction projects infeasible. To benchmark the value effectively, one would need the facility's size in square feet and data on the per-square-foot costs of comparable DoD construction projects. This would allow for an assessment of whether the $49.6 million expenditure was cost-efficient relative to industry standards and government benchmarks for similar facilities.

What were the specific qualifications or requirements that may have limited the number of bidders for this contract?

The data indicates that 23 bids were received for this contract, which was awarded under full and open competition. While 23 bids suggest a degree of market interest, the specific qualifications or requirements that might have limited the number of highly competitive bidders are not detailed. Typically, large-scale, specialized construction projects like military operations facilities require contractors with significant experience in government contracting, specific security clearances, proven financial stability, and expertise in complex building systems. These stringent requirements can naturally narrow the field of eligible and capable bidders, even in a full and open competition.

What is the track record of RQ CONSTRUCTION, LLC in performing similar large-scale federal construction contracts?

The provided data identifies RQ CONSTRUCTION, LLC as the contractor for this $49.6 million project. However, it does not offer details on their broader track record, such as the number or value of previous federal contracts, past performance reviews, or history with similar types of military construction. A comprehensive assessment of RQ CONSTRUCTION, LLC's suitability and reliability would require examining their portfolio of completed projects, client feedback, and any history of performance issues or successes with the Department of Defense or other federal agencies. This information is typically available through federal procurement databases and past performance repositories.

Were there any significant cost overruns or delays during the execution of this contract?

The provided data indicates the contract was awarded on April 30, 2015, and had an estimated completion date of February 13, 2018, with a duration of 1020 days. However, the data does not specify whether the project was completed on time or within budget. To determine if there were significant cost overruns or delays, one would need to consult contract modification records, project completion reports, or agency performance assessments. Such information is crucial for evaluating the contractor's performance and the overall success of the project in terms of cost and schedule adherence.

How does the $49.6 million expenditure for this facility align with historical federal spending on similar military infrastructure projects?

The $49.6 million expenditure for this SOF Battalion Operations Facility represents a significant investment in military infrastructure. To align this spending with historical trends, one would need to analyze federal budget data and contract awards for similar military construction projects over several fiscal years. This analysis would involve identifying comparable projects in terms of size, scope, and function (e.g., barracks, training centers, command facilities) and comparing their costs. Such a benchmark would help determine if this contract's value is consistent with, higher than, or lower than typical spending patterns for equivalent infrastructure investments by the Department of Defense.

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: W912DW13R0014

Offers Received: 23

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: $59,208,227

Exercised Options: $49,614,197

Current Obligation: $49,614,197

Subaward Activity

Number of Subawards: 173

Total Subaward Amount: $124,443,730

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline