DOT's $8.6M Physical Security Enterprise Management System contract awarded to M.C. Dean, Inc. for nationwide security upgrades

Contract Overview

Contract Amount: $8,583,776 ($8.6M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Transportation

Start Date: 2019-11-25

End Date: 2027-08-14

Contract Duration: 2,819 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHYSICAL SECURITY ENTERPRISE MANAGEMENT SYSTEM (PSEMS) PHASES 1 AND 2

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.6 million to M. C. DEAN, INC. for work described as: PHYSICAL SECURITY ENTERPRISE MANAGEMENT SYSTEM (PSEMS) PHASES 1 AND 2 Key points: 1. Contract value appears reasonable for a multi-year, enterprise-wide security system deployment. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This contract supports the Federal Aviation Administration's critical infrastructure protection efforts. 5. The duration of the contract (nearly 8 years) indicates a long-term commitment to security modernization. 6. The National Industry Classification code 561621 points to specialized security systems services.

Value Assessment

Rating: good

The contract value of approximately $8.6 million over nearly eight years for a nationwide physical security enterprise management system seems within a reasonable range for such a complex and extensive project. Benchmarking against similar large-scale security system deployments across federal agencies would provide a more precise value-for-money assessment. However, given the scope and duration, the per-year cost is not excessively high.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the method of competition suggests a robust process aimed at achieving fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to drive down costs and ensure the government receives the best possible value for its investment in critical security infrastructure.

Public Impact

Benefits the Federal Aviation Administration (FAA) by enhancing the security of its facilities and operations nationwide. Delivers a comprehensive Physical Security Enterprise Management System (PSEMS) to improve monitoring, control, and response capabilities. Has a nationwide geographic impact, covering FAA facilities across the United States. Supports a specialized workforce in the security systems and technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and complexity of enterprise-wide system implementation.
Reliance on a single contractor for an extended period could lead to vendor lock-in.
Ensuring continued technological relevance and integration with evolving security threats over the contract's lifespan.

Positive Signals

Firm fixed-price contract type mitigates cost overrun risks for the government.
Full and open competition suggests a strong initial pricing negotiation.
The contract's focus on a comprehensive management system implies a strategic approach to security modernization.

Sector Analysis

This contract falls within the Security Systems Services sector, specifically for security systems (excluding locksmiths). This industry involves the design, installation, integration, and maintenance of electronic security systems, access control, surveillance, and related management software. The market for such services is substantial, driven by increasing security needs across government and commercial sectors. This contract represents a significant investment by the FAA in modernizing its security infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While M.C. Dean, Inc. is a large business, there is no information provided on subcontracting plans for small businesses. Further analysis would be needed to determine the extent of small business participation in fulfilling this contract.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Transportation's Office of Inspector General may provide oversight for contracts of this magnitude. Transparency is facilitated through contract award databases like FPDS. Accountability will be managed through performance reviews and adherence to the firm fixed-price terms.

Related Government Programs

FAA Security Programs
Department of Homeland Security Cybersecurity Initiatives
Federal Protective Service Contracts
Department of Transportation Infrastructure Security

Risk Flags

Long contract duration may lead to technological obsolescence.
Potential for vendor lock-in due to long-term reliance on a single contractor.
Need for robust oversight to ensure sustained performance over nearly 8 years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.6 million to M. C. DEAN, INC.. PHYSICAL SECURITY ENTERPRISE MANAGEMENT SYSTEM (PSEMS) PHASES 1 AND 2

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2019-11-25. End: 2027-08-14.

What is the track record of M.C. Dean, Inc. with similar large-scale federal security system contracts?

M.C. Dean, Inc. has a significant history of performing large-scale federal contracts, particularly in areas of critical infrastructure, security, and building systems. They have been involved in numerous projects for various government agencies, including defense, intelligence, and civilian branches. Their experience often includes complex integration of electronic security, communications, and power systems. While specific details on past PSEMS-like contracts would require deeper research into their project portfolio and performance reviews, their general profile suggests they are a capable contractor for this type of work. Past performance evaluations and any reported issues on previous federal contracts would be crucial for a comprehensive assessment of their track record.

How does the awarded value compare to other federal contracts for similar physical security enterprise management systems?

Directly comparing the $8.6 million award for the PSEMS to other federal contracts is challenging without specific details on the scope, scale, and duration of those comparable contracts. However, the value appears reasonable for a nationwide, multi-year implementation of an enterprise management system. Larger, more complex systems for agencies with a greater physical footprint or higher security requirements could easily exceed this amount. Conversely, smaller, localized systems would cost less. The Federal Aviation Administration's extensive network of airports and facilities suggests a significant undertaking. Benchmarking against contracts for similar systems within agencies like the Department of Defense or Department of Homeland Security, adjusted for scale and complexity, would provide a more robust comparison.

What are the primary risks associated with the long duration (nearly 8 years) of this contract?

The nearly eight-year duration of this contract presents several risks. Firstly, technological obsolescence is a significant concern; security technologies evolve rapidly, and a system implemented over such a long period might become outdated before its end date, requiring costly upgrades or modifications. Secondly, contractor performance risk can increase over time; maintaining consistent high performance from M.C. Dean, Inc. throughout the contract's life requires diligent oversight. Thirdly, there's a risk of vendor lock-in, where the government becomes heavily reliant on the incumbent contractor, potentially limiting future flexibility and competitive options. Finally, changes in agency needs or federal security policies over nearly a decade could necessitate contract modifications, potentially impacting cost and schedule.

How effective is a firm fixed-price contract type in managing costs for a long-term, complex security system deployment?

A firm fixed-price (FFP) contract type is generally considered effective in managing costs for the government in long-term, complex deployments like the PSEMS, as it shifts the majority of the cost risk to the contractor. The contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and control project costs. However, for highly complex or R&D-intensive projects where uncertainties are high, FFP can sometimes lead to contractors building in significant contingency into their price, making it higher than it might be under other contract types. For a system deployment with defined requirements, FFP is a strong choice for cost control.

What are the potential implications for future competition if M.C. Dean, Inc. successfully executes this long-term contract?

Successful execution of this long-term, nearly eight-year contract by M.C. Dean, Inc. could have implications for future competition. The contractor will gain extensive intimate knowledge of the FAA's security infrastructure and operational needs, potentially creating a competitive advantage in future procurements for related services or system upgrades. This deep institutional knowledge can be difficult for new entrants to replicate. While the current contract was awarded through full and open competition, future procurements might be structured in a way that favors the incumbent, or competitors may find it challenging to match the incumbent's understanding and established relationship. However, a well-documented and transparent implementation could also serve as a strong reference for other potential bidders in the future.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

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: $10,258,517

Exercised Options: $8,583,776

Current Obligation: $8,583,776

Actual Outlays: $7,331,505

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $91,659

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA819D00007

IDV Type: IDC

Timeline