DoD's $240M Hurricane Florence Recovery Contract Awarded to RQ-WM Jordan JV for North Carolina Construction
Contract Overview
Contract Amount: $239,682,586 ($239.7M)
Contractor: Rq-Wm Jordan JV
Awarding Agency: Department of Defense
Start Date: 2020-08-31
End Date: 2027-06-09
Contract Duration: 2,473 days
Daily Burn Rate: $96.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HURRICANE FLORENCE RECOVERY MILCON PACKAGE 3
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547
Plain-Language Summary
Department of Defense obligated $239.7 million to RQ-WM JORDAN JV for work described as: HURRICANE FLORENCE RECOVERY MILCON PACKAGE 3 Key points: 1. The contract is for construction services related to Hurricane Florence recovery efforts. 2. RQ-WM Jordan JV is the prime contractor for this significant rebuilding project. 3. The project spans multiple years, indicating a substantial and long-term recovery need. 4. The award falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $239.7 million is substantial for a recovery effort. Benchmarking against similar large-scale construction contracts would be necessary to fully assess pricing, but the firm-fixed-price structure suggests an attempt at cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the best value is sought. The definitive contract type suggests a clear scope of work was established prior to award.
Taxpayer Impact: Taxpayer funds are being utilized for essential post-disaster recovery and infrastructure rebuilding, aiming to restore affected areas and communities.
Public Impact
Supports long-term recovery and rebuilding efforts in North Carolina following Hurricane Florence. Provides critical infrastructure and facility repairs, enhancing community resilience. Creates construction jobs and stimulates economic activity in the affected region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2027 end date) may present risks if scope or costs change significantly.
- Reliance on a single prime contractor for a large recovery package.
Positive Signals
- Full and open competition likely led to competitive pricing.
- Firm-fixed-price contract provides cost certainty for the government.
- Focus on disaster recovery addresses critical community needs.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing a wide range of building projects. Spending in this sector can fluctuate based on economic conditions and specific needs like disaster recovery.
Small Business Impact
The provided data does not indicate specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Navy is the contracting agency, responsible for oversight. The long duration and significant value necessitate robust oversight to ensure contract compliance, quality of work, and adherence to budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration extends to June 2027, posing potential risks for cost escalation or scope creep.
- Large contract value concentrated with one prime contractor.
- Potential for unforeseen challenges in disaster recovery environments.
- Dependence on specific construction materials and labor availability.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $239.7 million to RQ-WM JORDAN JV. HURRICANE FLORENCE RECOVERY MILCON PACKAGE 3
Who is the contractor on this award?
The obligated recipient is RQ-WM JORDAN JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $239.7 million.
What is the period of performance?
Start: 2020-08-31. End: 2027-06-09.
What is the projected cost per square foot or per unit of repair/rebuilding, and how does it compare to industry benchmarks for similar recovery projects?
Without specific details on the scope of work (e.g., square footage repaired, number of units rebuilt, specific facility types), a precise per-unit cost benchmark is difficult to establish. However, the total contract value of $239.7 million for a multi-year recovery effort suggests significant investment. Comparing this to similar post-hurricane rebuilding projects, considering regional labor and material costs, would be crucial for a thorough value assessment.
What are the key performance indicators (KPIs) for this contract, and how will the government measure contractor performance and project success over its multi-year duration?
Key performance indicators likely include adherence to schedule, quality of construction, safety compliance, and budget management. The government will likely use regular progress reports, site inspections, and milestone completion reviews to track performance. Given the long duration, periodic reviews and potential contract modifications will be essential to ensure the project remains on track and meets evolving recovery needs.
How will the effectiveness of this contract in achieving long-term community resilience and recovery be evaluated beyond the completion of construction activities?
Effectiveness will be evaluated by assessing the durability and functionality of the rebuilt infrastructure, the extent to which it withstands future environmental stressors, and the overall impact on community recovery metrics such as economic stability and resident well-being. Post-occupancy evaluations and community feedback mechanisms can provide insights into the long-term success and resilience achieved.
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: N4008519R9253
Offers Received: 12
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, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $239,905,586
Exercised Options: $239,682,586
Current Obligation: $239,682,586
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $100,403,952
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-31
Current End Date: 2027-06-09
Potential End Date: 2027-06-09 00:00:00
Last Modified: 2025-08-29
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