IRS Security Upgrades at ECC Facility Cost $6.8M, Awarded to MC Dodd Construction LLC

Contract Overview

Contract Amount: $6,773,859 ($6.8M)

Contractor: MC Dodd Construction LLC

Awarding Agency: General Services Administration

Start Date: 2024-09-18

End Date: 2026-09-27

Contract Duration: 739 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SECURITY UPGRADES AT THE INTERNAL REVENUE SERVICE, ENTERPRISE COMPUTING CENTER (ECC) BUILDING IN KEARNEYSVILLE, WV.

Place of Performance

Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $6.8 million to MC DODD CONSTRUCTION LLC for work described as: SECURITY UPGRADES AT THE INTERNAL REVENUE SERVICE, ENTERPRISE COMPUTING CENTER (ECC) BUILDING IN KEARNEYSVILLE, WV. Key points: 1. Spending focuses on critical infrastructure security for the IRS's Enterprise Computing Center. 2. MC Dodd Construction LLC secured the contract through a full and open competition after exclusion of sources. 3. The project carries a risk of potential delays or cost overruns common in construction projects. 4. The sector is commercial building construction, supporting essential government IT operations.

Value Assessment

Rating: good

The contract value of $6.8M appears reasonable for a significant building construction project involving security upgrades. Benchmarking against similar GSA-awarded construction contracts for federal facilities would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests an initial broad solicitation followed by a narrowed down process. This approach can impact price discovery by limiting the pool of potential bidders, potentially leading to higher prices than a truly unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential security infrastructure upgrades to protect sensitive IRS data and operations.

Public Impact

Ensures the physical security of a critical IRS data processing facility. Supports the operational continuity of tax administration services. Creates construction jobs in Kearneysville, West Virginia. Enhances the resilience of federal IT infrastructure against physical threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition after source exclusion may impact price.
Construction projects are susceptible to delays and cost overruns.
Small business participation is not indicated.

Positive Signals

Addresses critical security needs for a vital government facility.
Awarded by GSA, a reputable federal procurement agency.
Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, supporting government IT infrastructure. Spending benchmarks for similar federal building construction projects vary widely based on scope and location, but $6.8M is a moderate investment for specialized facility upgrades.

Small Business Impact

The contract was not awarded to a small business (ss: false, sb: false). There is no indication of small business subcontracting goals within the provided data, suggesting limited direct impact on small businesses through this prime contract.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight would typically involve monitoring project progress, ensuring compliance with contract terms, and managing payments to MC Dodd Construction LLC.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Limited competition may lead to higher costs.
Potential for construction delays and cost overruns.
Lack of small business participation.
Scope of security upgrades not detailed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6.8 million to MC DODD CONSTRUCTION LLC. SECURITY UPGRADES AT THE INTERNAL REVENUE SERVICE, ENTERPRISE COMPUTING CENTER (ECC) BUILDING IN KEARNEYSVILLE, WV.

Who is the contractor on this award?

The obligated recipient is MC DODD CONSTRUCTION LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2024-09-18. End: 2026-09-27.

What specific security upgrades are included in this $6.8M contract, and how do they align with the IRS's overall cybersecurity and physical security strategy?

The provided data does not detail the specific security upgrades. A comprehensive understanding would require reviewing the contract's statement of work. These upgrades are crucial for protecting the Enterprise Computing Center, which houses sensitive taxpayer data and critical IT infrastructure, necessitating alignment with broader IRS security protocols to ensure robust protection against evolving threats.

What were the primary reasons for excluding certain sources during the 'full and open competition after exclusion of sources' process, and did this exclusion limit competitive pricing?

Excluding sources typically occurs when specific capabilities, past performance, or security clearances are required that only a subset of potential bidders possess. While this can ensure specialized expertise, it inherently limits the competitive landscape compared to an unrestricted full and open competition. The impact on pricing depends on the number of qualified bidders remaining and the market dynamics for those specific services.

How will the effectiveness of these security upgrades be measured and validated post-completion to ensure the IRS's ECC facility is adequately protected?

Effectiveness is typically measured through post-construction testing, security audits, and potentially penetration testing conducted by independent third parties or internal security teams. Validation would involve verifying that the installed systems meet specified security standards and perform as intended under various simulated threat scenarios, ensuring the facility's enhanced protection against physical and cyber intrusions.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PD0324R0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1380 FLESHMAN MILL RD, NEW OXFORD, PA, 17350

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,785,896

Exercised Options: $6,773,859

Current Obligation: $6,773,859

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PD0321D0004

IDV Type: IDC

Timeline