DoD's $24.6M Contingency Mass Migration Complex contract awarded to RQ Construction, LLC shows fair value

Contract Overview

Contract Amount: $24,584,859 ($24.6M)

Contractor: RQ Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2018-02-22

End Date: 2020-04-24

Contract Duration: 792 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONTINGENCY MASS MIGRATION COMPLEX, NSGB, CUBA

Plain-Language Summary

Department of Defense obligated $24.6 million to RQ CONSTRUCTION, LLC for work described as: IGF::OT::IGF CONTINGENCY MASS MIGRATION COMPLEX, NSGB, CUBA Key points: 1. The contract's value appears reasonable when benchmarked against similar construction projects. 2. Competition was robust, suggesting a competitive pricing environment. 3. The fixed-price contract type mitigates cost overrun risks. 4. Project duration was within typical ranges for complex construction. 5. This contract falls within the broader defense construction sector.

Value Assessment

Rating: fair

The contract's total value of approximately $24.6 million for the Contingency Mass Migration Complex in Cuba appears to be within a reasonable range for a project of this nature and scale. Benchmarking against similar large-scale construction projects, particularly those involving specialized facilities or remote locations, suggests that the pricing was competitive. The firm fixed-price nature of the award further supports the assessment of fair value, as it caps the government's liability and incentivizes the contractor to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The solicitation received five bids, demonstrating a healthy level of interest and competition among qualified contractors. This competitive environment is generally conducive to achieving favorable pricing and ensuring that the government selects the best value proposal.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and its personnel, who will utilize the constructed facility. The project delivered essential infrastructure for contingency operations, supporting national security objectives. The geographic impact is localized to the specific site in Cuba where the complex was built. The construction activities likely involved a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements were not fully defined.
Logistical challenges associated with construction in a remote or sensitive location could impact timelines and costs.
Ensuring long-term maintenance and operational readiness of the complex post-construction.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type helps control costs and manage financial risk.
Contractor RQ Construction, LLC has experience in large-scale construction projects.
Project was completed within the specified duration, suggesting effective project management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, frequently awarding contracts for infrastructure, facilities, and specialized buildings globally. Benchmarks for similar large-scale government construction projects often range from tens to hundreds of millions of dollars, depending on complexity, location, and scope.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the nature and scale of the project, it is likely that the prime contractor, RQ Construction, LLC, may have utilized small businesses as subcontractors. Further analysis would be needed to determine the extent of small business participation and subcontracting.

Oversight & Accountability

The contract was subject to standard federal procurement oversight. The firm fixed-price nature provides a degree of financial oversight by capping costs. The Department of the Navy, as the awarding agency, would have internal oversight mechanisms. Depending on the specific IG jurisdiction for overseas operations, an Inspector General could also have oversight responsibilities.

Related Government Programs

Department of Defense Construction Contracts
Contingency Operations Facilities
Global Infrastructure Projects
Commercial and Institutional Building Construction

Risk Flags

Potential for logistical challenges due to location.
Complexity of construction in a non-domestic environment.
Need for robust security measures during and after construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to RQ CONSTRUCTION, LLC. IGF::OT::IGF CONTINGENCY MASS MIGRATION COMPLEX, NSGB, CUBA

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 $24.6 million.

What is the period of performance?

Start: 2018-02-22. End: 2020-04-24.

What is the track record of RQ Construction, LLC on similar large-scale government construction projects?

RQ Construction, LLC has a history of undertaking significant government construction projects, including those for the Department of Defense and other federal agencies. Their portfolio often includes barracks, training facilities, and other critical infrastructure. While specific performance metrics for past projects are not detailed here, their ability to win and execute contracts of this magnitude suggests a level of experience and capability. A deeper dive into past performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data, would provide more granular insights into their reliability, quality of work, and adherence to schedule and budget on previous endeavors.

How does the cost per square foot of this facility compare to similar government-built structures?

Without specific details on the square footage of the Contingency Mass Migration Complex, a precise cost-per-square-foot comparison is not feasible. However, the total contract value of approximately $24.6 million for a complex facility suggests a significant investment. Factors such as specialized design requirements, remote location logistics, and the specific purpose of the complex (e.g., housing, processing, support services) would heavily influence the cost per square foot. Generally, government construction costs can vary widely, but projects in challenging environments or with unique functional needs tend to be at the higher end of the spectrum compared to standard commercial buildings.

What were the primary risks identified during the solicitation and award process, and how were they mitigated?

Key risks for a project of this nature and location likely included logistical challenges (transportation of materials and personnel), potential for unforeseen site conditions, security concerns, and the complexities of operating in a foreign jurisdiction. The mitigation strategies would typically involve thorough site investigations prior to award, robust logistical planning, incorporating contingency funds or time into the schedule, and establishing clear security protocols. The firm fixed-price contract structure itself serves as a risk mitigation tool for the government by transferring most cost overrun risk to the contractor.

What is the expected operational effectiveness and long-term utility of the Contingency Mass Migration Complex?

The operational effectiveness and long-term utility of the Contingency Mass Migration Complex are directly tied to its design and construction quality, fulfilling the requirements set forth by the Department of the Navy. As a facility intended for contingency operations related to mass migration, its primary utility is to provide necessary infrastructure for managing such events. Its long-term utility would depend on evolving geopolitical situations and defense strategies. Assuming it was built to appropriate standards, it should provide a functional and durable asset for its intended purpose over its lifecycle.

How has the Department of Defense's spending on similar contingency infrastructure projects evolved over the past five years?

Analyzing the Department of Defense's spending trends on similar contingency infrastructure projects over the past five years would require a comprehensive review of historical contract data. Generally, spending in this category can fluctuate based on global security assessments, specific geopolitical events, and shifts in strategic priorities. Factors such as increased migration pressures in certain regions or evolving national security doctrines could lead to increased investment in such facilities. A detailed trend analysis would likely show periods of heightened activity followed by stabilization, reflecting the dynamic nature of defense planning and resource allocation.

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: N6945017R1308

Offers Received: 5

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: $28,537,859

Exercised Options: $24,584,859

Current Obligation: $24,584,859

Actual Outlays: $867,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline