DoD's $36.8M SOF Facility Contract Awarded to RQ Construction, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $36,782,800 ($36.8M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2018-04-05
End Date: 2021-12-17
Contract Duration: 1,352 days
Daily Burn Rate: $27.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PN76514 SOF SPECIAL TACTICS FACILITY PHASE 3 IGF::OT::IGF
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $36.8 million to RQ CONSTRUCTION, LLC for work described as: PN76514 SOF SPECIAL TACTICS FACILITY PHASE 3 IGF::OT::IGF Key points: 1. The contract awarded to RQ Construction, LLC for a Special Operations Forces facility represents a significant investment in infrastructure. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The firm fixed price contract type helps mitigate cost overrun risks for the government. 4. The project falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $36.8 million for a specialized facility appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment, but the firm fixed price structure suggests an effort to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple bidders were likely considered, fostering a competitive environment that should drive a fair market price. The definitive contract award mechanism is standard for this type of procurement.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently, securing the best value for the construction of critical Special Operations Forces facilities.
Public Impact
Enhances critical infrastructure for Special Operations Forces, supporting national security missions. The project's completion contributes to the modernization of military facilities. Economic impact through construction jobs and related services in North Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in complex construction projects.
- Dependency on contractor performance for timely completion.
Positive Signals
- Firm fixed price contract limits government cost risk.
- Full and open competition promotes market-based pricing.
- Awarded to a single entity, potentially streamlining project management.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, a broad category encompassing significant government spending on infrastructure. Benchmarks for similar large-scale military construction projects would be relevant for a detailed cost analysis.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The definitive contract award and firm fixed price structure suggest a degree of oversight in defining project scope and cost. However, ongoing monitoring of progress and quality would be essential for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Contractor performance risk impacting project timeline.
- Limited small business participation noted.
- Specialized nature of facility may limit competitive pool.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.8 million to RQ CONSTRUCTION, LLC. PN76514 SOF SPECIAL TACTICS FACILITY PHASE 3 IGF::OT::IGF
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 $36.8 million.
What is the period of performance?
Start: 2018-04-05. End: 2021-12-17.
What was the competitive landscape like for this specific type of specialized facility construction, and how did it influence the final price?
While 'full and open competition' was utilized, the specialized nature of a SOF facility might limit the number of truly qualified bidders. The final price would be influenced by the number of responsive bids received and the government's negotiation strategy. A higher number of qualified bidders typically leads to more competitive pricing, but unique requirements can sometimes constrain this.
What are the primary risks associated with the firm fixed price contract for this large-scale construction project, and how are they mitigated?
The primary risk with a firm fixed price contract is that the contractor may incur costs exceeding the agreed price, potentially leading to disputes or contractor default. Mitigation strategies include thorough pre-award planning, clear scope definition, robust contract clauses addressing changes, and diligent contractor performance monitoring to ensure adherence to specifications and timelines.
How effectively does this facility construction project align with the broader strategic goals of the Department of Defense and Special Operations Command?
The construction of a dedicated SOF facility directly supports the operational readiness and effectiveness of Special Operations Forces by providing necessary infrastructure. Its alignment with strategic goals depends on factors like location, technological integration, and capacity, which are not detailed here but are presumed to be addressed in the project's justification and requirements.
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: W912PM17R0001
Offers Received: 4
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: $36,807,800
Exercised Options: $36,782,800
Current Obligation: $36,782,800
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $31,973,815
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-04-05
Current End Date: 2021-12-17
Potential End Date: 2021-12-17 00:00:00
Last Modified: 2022-05-27
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