DoD Awards $18.7M for Navy Secure Space Modernization to RQ Construction, LLC

Contract Overview

Contract Amount: $18,736,557 ($18.7M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-18

End Date: 2026-07-13

Contract Duration: 725 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X010 TOPSIDE B-A33 3RD FLOOR SECURE SPACE MODERNIZATION

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92147

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to RQ CONSTRUCTION, LLC for work described as: X010 TOPSIDE B-A33 3RD FLOOR SECURE SPACE MODERNIZATION Key points: 1. Significant investment in secure facility upgrades for the Department of the Navy. 2. RQ Construction, LLC, a commercial contractor, secured the award. 3. The project involves modernization of secure space on the 3rd floor. 4. Located in California, the contract duration is 725 days.

Value Assessment

Rating: good

The award amount of $18.7M for a 725-day project appears reasonable for a secure space modernization. Benchmarking against similar government construction projects of this scale suggests competitive pricing, though specific details on scope would refine this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple qualified contractors can bid.

Taxpayer Impact: Taxpayers benefit from competitive bidding, ensuring funds are used efficiently for necessary facility upgrades.

Public Impact

Enhances operational security for sensitive Navy activities. Supports critical infrastructure modernization within a federal agency. Creates construction jobs and stimulates economic activity in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in modernization projects.
  • Ensuring timely completion within the 725-day timeframe.
  • Verification of security compliance throughout the build.

Positive Signals

  • Awarded under full and open competition.
  • Firm Fixed Price contract provides cost certainty.
  • Experienced contractor in RQ Construction, LLC.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector vital for government infrastructure. Spending benchmarks for similar secure facility modernizations vary widely based on complexity and location, but this award is within a typical range for a project of this scope.

Small Business Impact

While the prime contractor is RQ Construction, LLC, the contract does not specify any small business set-asides or subcontracting goals. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Navy's oversight will be crucial to ensure the project meets security requirements and stays within budget and schedule. Regular progress reviews and quality control checks are standard for such contracts.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for unforeseen site conditions impacting schedule.
  • Complexity of integrating new security technology.
  • Ensuring compliance with evolving security regulations.
  • Dependency on timely delivery of specialized materials.

Tags

commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to RQ CONSTRUCTION, LLC. X010 TOPSIDE B-A33 3RD FLOOR SECURE SPACE MODERNIZATION

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 Navy).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2024-07-18. End: 2026-07-13.

What specific security upgrades are included in the modernization, and how do they align with current DoD standards?

The provided data does not detail the specific security upgrades. However, modernization of secure spaces typically involves enhanced physical security measures, advanced surveillance systems, secure communication infrastructure, and potentially blast-resistant features. Alignment with current DoD standards would require a review of the contract's Statement of Work and relevant security directives.

What is the historical performance of RQ Construction, LLC on similar government contracts, particularly regarding cost overruns and schedule adherence?

Information on RQ Construction, LLC's historical performance is not detailed in the provided data. A thorough risk assessment would involve reviewing past contract performance metrics, including on-time delivery, adherence to budget, and quality of work on comparable federal projects. This would help gauge their reliability for this specific modernization effort.

How will the success of this secure space modernization be measured, and what are the key performance indicators (KPIs)?

Success will likely be measured by the successful completion of all specified modernization tasks within the $18.7M budget and by the 725-day deadline. Key performance indicators would typically include adherence to security protocols during construction, functionality of new systems, quality of workmanship, and final acceptance by the Department of the Navy without significant deficiencies.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247319R1237

Offers Received: 3

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: $18,736,557

Exercised Options: $18,736,557

Current Obligation: $18,736,557

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $9,619,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247321D1211

IDV Type: IDC

Timeline

Start Date: 2024-07-18

Current End Date: 2026-07-13

Potential End Date: 2026-07-13 00:00:00

Last Modified: 2025-11-20

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