DoD Awards $36.75M Communications Facility Contract to QB Group LLC at Muñoz Air National Guard Base
Contract Overview
Contract Amount: $36,752,387 ($36.8M)
Contractor: QB Group LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-19
End Date: 2026-02-06
Contract Duration: 1,632 days
Daily Burn Rate: $22.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION CONTRACT FOR COMMUNICATIONS FACILITY AND CONTINGENCY RESPONSE FACILITY AT MUNOZ AIR NATIONAL GUARD BASE ISLA VERDE PUERTO RICO
Place of Performance
Location: CAROLINA, CAROLINA County, PUERTO RICO, 00979
Plain-Language Summary
Department of Defense obligated $36.8 million to QB GROUP LLC for work described as: DESIGN AND CONSTRUCTION CONTRACT FOR COMMUNICATIONS FACILITY AND CONTINGENCY RESPONSE FACILITY AT MUNOZ AIR NATIONAL GUARD BASE ISLA VERDE PUERTO RICO Key points: 1. The contract is for the design and construction of a communications and contingency response facility. 2. Awarded by the Department of the Navy, it falls under the Commercial and Institutional Building Construction NAICS code. 3. The contract value is $36,752,387.21, with a duration extending to February 2026. 4. This project aims to enhance critical infrastructure at Muñoz Air National Guard Base in Puerto Rico.
Value Assessment
Rating: good
The contract value of $36.75M for a facility of this nature appears reasonable. Benchmarking against similar construction projects for military bases would provide a more precise assessment, but the fixed-price nature suggests a degree of cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method is generally expected to yield competitive pricing and best value for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive bidding process that should drive down costs.
Public Impact
Enhances critical communication and response capabilities for the Air National Guard in Puerto Rico. Supports military readiness and operational effectiveness in the region. Provides economic stimulus through construction activities and employment in Puerto Rico. Represents a significant investment in federal infrastructure modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependency on timely material and labor availability in Puerto Rico.
- Risk of schedule delays impacting operational readiness.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type provides cost certainty.
- Strategic location for enhanced regional defense capabilities.
Sector Analysis
This contract falls within the construction sector, specifically for institutional buildings. Spending benchmarks for similar military construction projects vary widely based on scope, location, and specific requirements, but this award represents a substantial investment in critical infrastructure.
Small Business Impact
The data indicates that neither small business set-aside nor subcontracting goals were explicitly mentioned for this contract. Further investigation would be needed to determine if small businesses were involved in the bidding process or as subcontractors.
Oversight & Accountability
The Department of the Navy, as the awarding agency, is responsible for oversight. The firm fixed-price contract type provides a degree of accountability for the contractor to deliver within the agreed budget. Post-award monitoring will be crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep if requirements evolve.
- Contractor's past performance and financial stability.
- Adequacy of the site survey and geotechnical analysis.
- Compliance with environmental regulations during construction.
Tags
commercial-and-institutional-building-co, department-of-defense, pr, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.8 million to QB GROUP LLC. DESIGN AND CONSTRUCTION CONTRACT FOR COMMUNICATIONS FACILITY AND CONTINGENCY RESPONSE FACILITY AT MUNOZ AIR NATIONAL GUARD BASE ISLA VERDE PUERTO RICO
Who is the contractor on this award?
The obligated recipient is QB GROUP 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 $36.8 million.
What is the period of performance?
Start: 2021-08-19. End: 2026-02-06.
What is the estimated cost per square foot for this facility, and how does it compare to similar military construction projects?
Without specific square footage details, a precise cost per square foot cannot be calculated. However, the total award of $36.75M for a communications and contingency response facility suggests a significant investment. Benchmarking against similar projects would require access to detailed project specifications and cost breakdowns, which are not provided in the current data.
What are the primary risks associated with constructing a facility in Puerto Rico, and how are they being mitigated?
Key risks include potential impacts from hurricanes, seismic activity, and logistical challenges in material and labor sourcing. Mitigation strategies likely involve robust design standards, contingency planning for weather events, and careful supply chain management. The firm fixed-price contract also incentivizes the contractor to manage these risks effectively.
How will the effectiveness of this new facility be measured post-construction to ensure it meets operational requirements?
Effectiveness will likely be measured through post-occupancy evaluations, system testing, and user feedback from the Air National Guard personnel. Key performance indicators may include system uptime, response times during simulated contingencies, and overall reliability of communication links. The contract's completion criteria will also define initial effectiveness benchmarks.
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: N6945021R0004
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: CARR 833 KM 12.2, GUAYNABO, PR, 00969
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,848,574
Exercised Options: $36,752,387
Current Obligation: $36,752,387
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-19
Current End Date: 2026-02-06
Potential End Date: 2026-02-06 00:00:00
Last Modified: 2025-09-30
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)