DoD Awards $60M Solid Waste Facility Contract to RQ Construction, LLC
Contract Overview
Contract Amount: $59,960,875 ($60.0M)
Contractor: RQ Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-19
End Date: 2024-04-20
Contract Duration: 1,675 days
Daily Burn Rate: $35.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOLID WASTE FACILITY, NS GUANTANAMO BAY
Plain-Language Summary
Department of Defense obligated $60.0 million to RQ CONSTRUCTION, LLC for work described as: SOLID WASTE FACILITY, NS GUANTANAMO BAY Key points: 1. Contract awarded for solid waste facility construction at Guantanamo Bay. 2. RQ Construction, LLC secured the $59.96M definitive contract. 3. Full and open competition was utilized for this procurement. 4. The contract spans nearly five years, indicating a significant project duration.
Value Assessment
Rating: good
The contract value of $59.96M for a solid waste facility over nearly five years appears reasonable given the scope and location. Benchmarking against similar large-scale construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment.
Public Impact
Ensures critical waste management infrastructure at a key military installation. Supports operational readiness and environmental compliance at Guantanamo Bay. Provides long-term employment opportunities during the construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1675 days) could lead to cost overruns if not managed effectively.
- Fixed-price contract may not fully account for unforeseen material cost increases.
- Sole contractor for a remote location could limit future competitive options.
Positive Signals
- Awarded through full and open competition, indicating a fair process.
- Definitive contract provides clarity on scope and terms.
- Supports essential infrastructure for national security.
Sector Analysis
This contract falls within the construction sector, specifically related to infrastructure development. Spending benchmarks for large-scale waste management facilities can vary significantly based on location, scale, and specific technological requirements.
Small Business Impact
The contract was awarded to RQ Construction, LLC, which is not identified as a small business. There is no indication of small business set-aside or subcontracting goals in the provided data.
Oversight & Accountability
The definitive contract structure and full and open competition suggest a degree of oversight. However, the long duration necessitates ongoing monitoring to ensure performance and cost control.
Related Government Programs
- Water and Sewer Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost escalation due to long contract duration.
- Risk of unforeseen logistical challenges in a remote location.
- Limited visibility into operational costs and long-term effectiveness.
- Fixed-price contract may not fully insulate against material cost volatility.
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 $60.0 million to RQ CONSTRUCTION, LLC. SOLID WASTE FACILITY, 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 $60.0 million.
What is the period of performance?
Start: 2019-09-19. End: 2024-04-20.
What is the projected operational cost and lifespan of the solid waste facility post-construction?
The provided data focuses solely on the construction phase and does not include details on the operational costs or expected lifespan of the solid waste facility. Further analysis would be required to assess the long-term value and sustainability of this infrastructure investment beyond the initial build.
Are there any identified risks associated with constructing a facility in the unique environment of Guantanamo Bay?
Construction in Guantanamo Bay may present unique logistical challenges, potential environmental considerations specific to the island, and security requirements. While full and open competition was used, the remote location could impact labor availability and material transport, potentially influencing costs and timelines if not adequately mitigated.
How does the per-square-foot construction cost compare to similar solid waste facilities in comparable geographic or operational contexts?
Without specific details on the facility's size, capacity, and technological components, a direct per-square-foot cost comparison is difficult. However, the total contract value of $59.96M over 1675 days suggests a substantial project. Benchmarking against similar military or large-scale municipal waste facility projects would be necessary for a precise assessment.
Industry Classification
NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures 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: N6945019R0501
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: $59,960,875
Exercised Options: $59,960,875
Current Obligation: $59,960,875
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $12,342,968
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-19
Current End Date: 2024-04-20
Potential End Date: 2024-04-20 00:00:00
Last Modified: 2023-09-29
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