Department of the Navy awards $22.7M engineering services contract to M.C. Dean, Inc. for Mount Whitney CNO availability

Contract Overview

Contract Amount: $22,669,657 ($22.7M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-16

End Date: 2018-01-31

Contract Duration: 502 days

Daily Burn Rate: $45.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: (IGF::OT::IGF) MOUNT WHITNEY LCC-20 FY17 CNO AVAIL WITH CANES

Plain-Language Summary

Department of Defense obligated $22.7 million to M. C. DEAN, INC. for work described as: (IGF::OT::IGF) MOUNT WHITNEY LCC-20 FY17 CNO AVAIL WITH CANES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee, which can incentivize cost control but also carries inherent risk. 3. The duration of 502 days indicates a significant project timeline. 4. The award amount represents a substantial investment in naval engineering services. 5. The specific service relates to CNO availability for the Mount Whitney, a critical naval asset. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: fair

The contract value of $22.7 million for a 502-day availability period for a naval vessel appears within a reasonable range for complex engineering services. However, without specific benchmarks for Mount Whitney CNO availabilities or comparable vessel refits, a precise value-for-money assessment is challenging. The Cost Plus Incentive Fee structure means the final cost could deviate from the initial estimate, impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specialized engineering service. While competition is present, the specific nature of naval vessel availability may limit the pool of qualified bidders.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

Naval operations are supported through the engineering services provided for the Mount Whitney. The project ensures the continued operational readiness of a key naval asset. The contract supports the U.S. Navy's fleet maintenance and modernization efforts. The geographic impact is primarily on naval facilities and shipyards where the work is performed. The contract likely supports a specialized engineering and technical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to cost overruns if not closely monitored.
The specific technical requirements for CNO availability may be complex and prone to unforeseen issues.
Dependence on a single contractor for critical availability periods can pose a risk.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract aims to ensure the operational readiness of a significant naval asset.
M.C. Dean, Inc. is a known entity in the engineering and construction sector.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related infrastructure and naval vessel maintenance. The market for specialized naval engineering services is often characterized by a limited number of highly qualified contractors due to security clearances, specialized expertise, and established relationships with defense agencies. Comparable spending benchmarks would typically be found within Department of Defense shipbuilding and repair budgets.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, M.C. Dean, Inc., would determine any subcontracting opportunities based on their own business practices and the project's needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the Cost Plus Incentive Fee structure, which links contractor performance and cost control to fee adjustments. Transparency is generally maintained through contract award notices and reporting requirements, though specific details of performance may be sensitive.

Related Government Programs

Naval Vessel Maintenance and Repair
Shipbuilding and Repair Services
Defense Engineering Services
Fleet Readiness Programs

Risk Flags

Cost Plus Incentive Fee contract type requires close monitoring to manage potential cost overruns.
Complexity of naval vessel availability projects can lead to unforeseen technical challenges and schedule delays.
Limited number of qualified bidders for specialized naval engineering services could impact future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to M. C. DEAN, INC.. (IGF::OT::IGF) MOUNT WHITNEY LCC-20 FY17 CNO AVAIL WITH CANES

Who is the contractor on this award?

The obligated recipient is M. C. DEAN, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2016-09-16. End: 2018-01-31.

What is the historical spending pattern for Mount Whitney CNO availabilities?

Analyzing historical spending for Mount Whitney CNO availabilities requires access to detailed contract databases and specific project records. Without direct access to this historical data, it's difficult to provide a precise spending pattern. However, naval vessel availabilities are typically recurring events, often scheduled as part of a ship's lifecycle maintenance plan. The frequency and cost can vary significantly based on the scope of work, the age of the vessel, and the specific upgrades or repairs required. Factors such as shipyard availability, labor costs, and the complexity of the required services (e.g., modernization, repair, system upgrades) all contribute to the overall expenditure. Generally, such availabilities represent a significant investment to ensure the continued operational readiness and safety of naval assets.

How does M.C. Dean, Inc.'s track record compare for similar naval engineering contracts?

M.C. Dean, Inc. has a significant track record in providing engineering, procurement, and construction services, including for defense and government clients. For similar naval engineering contracts, their performance would be assessed based on factors such as on-time delivery, adherence to budget, quality of work, and safety record. Publicly available contract data and performance reviews (if accessible) would offer insights. Their extensive experience suggests a capacity to handle complex projects. However, a detailed comparison would necessitate examining specific past performance evaluations for contracts of comparable scope and complexity within the naval sector, looking for any patterns of success or challenges.

What are the key performance indicators (KPIs) for this Cost Plus Incentive Fee contract?

For a Cost Plus Incentive Fee (CPIF) contract like this one, key performance indicators (KPIs) are crucial for managing costs and ensuring successful project completion. While specific KPIs are defined within the contract's Statement of Work (SOW) and Performance Work Statement (PWS), they typically revolve around achieving target cost, schedule adherence, and meeting specific technical performance requirements for the CNO availability. The 'incentive' aspect means the contractor's fee is adjusted based on how well they meet or exceed these targets. For example, KPIs might include completing specific repair milestones by certain dates, achieving a defined level of system functionality post-availability, or maintaining a certain safety incident rate. The government would monitor these KPIs closely to determine the final fee paid to the contractor.

What is the potential risk associated with the Cost Plus Incentive Fee (CPIF) contract type in this context?

The primary risk associated with a Cost Plus Incentive Fee (CPIF) contract is the potential for cost overruns, even with the incentive structure. While CPIF aims to motivate the contractor to control costs by linking a portion of their fee to cost savings or performance against targets, it still allows for costs to exceed the initial estimate. If the project encounters unforeseen technical challenges, scope creep, or inefficiencies, the 'cost plus' element means the government will bear these costs. The 'incentive' part is designed to mitigate this, but the effectiveness depends on the clarity and attainability of the incentive targets and the rigor of government oversight. In a complex naval engineering project, unexpected issues are common, making diligent monitoring of expenditures and progress essential to manage this risk.

How does the $22.7 million award compare to typical engineering service contracts for naval vessels?

The $22.7 million award for the Mount Whitney CNO availability falls within the range of significant engineering service contracts for naval vessels. The cost of such availabilities can vary widely depending on the vessel's class, age, and the specific scope of work, which can include routine maintenance, major repairs, system upgrades, and modernization efforts. Larger, more complex vessels or those undergoing extensive refits or technological upgrades will naturally command higher contract values. Without knowing the precise scope of this particular CNO availability, a direct comparison is difficult. However, for a vessel of the Mount Whitney's type and operational status, this figure suggests a comprehensive service package rather than a minor upkeep task.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1765 GREENSBORO STATION PLACE SUITE 1400, TYSONS, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,669,657

Exercised Options: $22,669,657

Current Obligation: $22,669,657

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003915D0035

IDV Type: IDC

Timeline