DoD's $38.7M Guantanamo Bay Wharf Repair Contract Awarded to RQ Construction Under Full and Open Competition

Contract Overview

Contract Amount: $38,749,120 ($38.7M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2016-11-22

End Date: 2024-09-05

Contract Duration: 2,844 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF WHARF BRAVO STRUCTURAL REPAIRS - PHASE 1, NS GUANTANAMO BAY.

Plain-Language Summary

Department of Defense obligated $38.7 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF WHARF BRAVO STRUCTURAL REPAIRS - PHASE 1, NS GUANTANAMO BAY. Key points: 1. The contract value of $38.7M for structural repairs is significant for a single phase project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The long duration (2844 days) raises questions about project management and potential cost overruns. 4. The project falls under the Construction sector, specifically water and sewer infrastructure.

Value Assessment

Rating: fair

The contract value of $38.7M for structural repairs is substantial. Benchmarking against similar large-scale infrastructure projects would be necessary to fully assess its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure repairs at a naval base, which is a necessary government expenditure.

Public Impact

Ensures operational readiness of naval facilities at Guantanamo Bay. Supports critical infrastructure for water and sewer services. Potential for long-term economic impact through construction jobs and material sourcing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Extended contract duration raises concerns about efficiency and potential cost escalation.
  • Lack of specific performance metrics or milestones in the provided data.
  • Potential for unforeseen structural issues leading to scope changes and increased costs.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Addresses critical infrastructure needs for a key military installation.

Sector Analysis

This project falls within the construction sector, specifically focusing on water and sewer line infrastructure. Spending benchmarks for similar large-scale maritime or base infrastructure repairs would provide further context.

Small Business Impact

The data indicates the awardee is RQ CONSTRUCTION, LLC. It is unclear from the provided information whether small businesses were involved as subcontractors or if the prime contractor is a small business itself.

Oversight & Accountability

Oversight would typically involve regular progress reviews, quality assurance checks, and financial audits by the Department of the Navy to ensure the contractor meets contractual obligations and manages taxpayer funds effectively.

Related Government Programs

  • Water and Sewer Line and Related Structures Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Extended contract duration
  • Potential for scope creep
  • Complexity of structural repairs
  • Long-term maintenance costs

Tags

water-and-sewer-line-and-related-structu, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF WHARF BRAVO STRUCTURAL REPAIRS - PHASE 1, NS GUANTANAMO BAY.

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 $38.7 million.

What is the period of performance?

Start: 2016-11-22. End: 2024-09-05.

What is the primary driver for the extended contract duration of 2844 days for these structural repairs?

The extended duration may be attributed to the complexity of structural repairs on a wharf, potential phased execution to maintain operational access, or phased funding availability. Further details on the project's scope and phasing would clarify the rationale behind the long timeline and its impact on overall cost-effectiveness.

How does the awarded amount compare to industry benchmarks for similar wharf structural repair projects of this scale?

Without specific details on the scope of 'structural repairs' and the specific conditions of the wharf, a direct comparison to industry benchmarks is challenging. However, $38.7 million for a single phase suggests a significant undertaking. Benchmarking would require detailed project specifications, material costs, labor rates, and the extent of structural remediation needed.

What mechanisms are in place to ensure the effectiveness and long-term durability of the structural repairs given the project's long duration?

Effectiveness and durability are typically ensured through stringent quality assurance protocols, material testing, adherence to engineering specifications, and robust inspection schedules throughout the project lifecycle. The contract likely includes clauses for warranties and performance standards that the contractor must meet post-completion.

Industry Classification

NAICS: ConstructionUtility System ConstructionWater and Sewer Line and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6945016R1607

Offers Received: 2

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: $38,749,120

Exercised Options: $38,749,120

Current Obligation: $38,749,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2016-11-22

Current End Date: 2024-09-05

Potential End Date: 2024-09-05 00:00:00

Last Modified: 2024-06-20

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