M.C. Dean, Inc. awarded $9.4M for USS George H.W. Bush installations, highlighting engineering services for naval assets

Contract Overview

Contract Amount: $9,433,331 ($9.4M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-16

End Date: 2024-07-17

Contract Duration: 397 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TOID 4968 USS GEORGE H. W. BUSH (CVN 77) INSTALLATIONS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to M. C. DEAN, INC. for work described as: TOID 4968 USS GEORGE H. W. BUSH (CVN 77) INSTALLATIONS Key points: 1. Contract focuses on specialized engineering services for a major naval vessel. 2. Competition was robust, indicating potential for competitive pricing. 3. Performance period spans over a year, suggesting a complex scope of work. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. This award contributes to the sustainment and modernization of critical defense infrastructure. 6. The value is significant for a single delivery order, reflecting the specialized nature of the work.

Value Assessment

Rating: good

The $9.4 million award for installations on the USS George H.W. Bush appears reasonable given the specialized nature of naval engineering services. Benchmarking against similar complex installation projects on aircraft carriers suggests that this value falls within expected ranges. The Cost Plus Fixed Fee structure, while common for evolving requirements, necessitates diligent cost tracking to ensure value for money. Without specific details on the scope of 'installations,' a precise per-unit cost comparison is difficult, but the overall award reflects the high cost of maintaining and upgrading advanced naval platforms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bids received. This level of competition is a positive indicator for price discovery and suggests that the Department of the Navy sought the best value from a broad range of qualified contractors. The presence of multiple bidders generally exerts downward pressure on pricing and encourages innovation. The selection of M.C. Dean, Inc. from six offers implies a thorough evaluation process that considered technical capabilities and cost.

Taxpayer Impact: Full and open competition with six bidders is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price, maximizing the return on investment for defense spending.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the USS George H.W. Bush is equipped and maintained. Services delivered include critical engineering and installation work essential for the vessel's functionality and potential upgrades. The geographic impact is centered around naval bases where the ship is stationed or undergoing maintenance, primarily in Virginia. The contract supports a skilled workforce of engineers and technicians involved in specialized maritime installations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
The specific scope of 'installations' is broad and could encompass a wide range of activities, potentially leading to scope creep.
Reliance on a single delivery order for extensive work might indicate a phased approach, requiring future funding and potential re-competition.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Multiple bidders (six) indicate a healthy market for these specialized engineering services.
The contractor, M.C. Dean, Inc., likely possesses specialized expertise required for naval vessel installations.
The contract duration (397 days) suggests a well-defined project timeline.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's need for specialized technical support for complex assets like naval vessels. The market for defense engineering services is substantial, driven by continuous modernization and maintenance requirements for military equipment. Comparable spending often involves significant investments in ship maintenance, upgrades, and system integration, where firms like M.C. Dean, Inc. play a crucial role in ensuring operational readiness and technological advancement.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). M.C. Dean, Inc. is a large business. While there's no direct indication of small business subcontracting goals in the provided data, large prime contractors are often encouraged or required to utilize small businesses for a portion of their work. The impact on the small business ecosystem would depend on whether M.C. Dean, Inc. actively seeks small business partners for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Naval Ship Maintenance and Repair
Defense Engineering Services
Military Vessel Modernization
Shipbuilding and Repair Contracts
Department of Defense IT and Infrastructure

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Scope definition for 'installations' may evolve, necessitating strong change management.
Performance risk associated with complex naval engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to M. C. DEAN, INC.. TOID 4968 USS GEORGE H. W. BUSH (CVN 77) INSTALLATIONS

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 $9.4 million.

What is the period of performance?

Start: 2023-06-16. End: 2024-07-17.

What is the specific scope of 'installations' covered by this contract?

The provided data categorizes this award under 'USS GEORGE H. W. BUSH (CVN 77) INSTALLATIONS' and lists the North American Industry Classification System (NAICS) code as 541330, 'Engineering Services.' While 'Engineering Services' is broad, in the context of a naval vessel, 'installations' typically refers to the integration of new systems, equipment, or modifications onto the ship. This could range from upgrading electronic warfare systems, installing new communication equipment, modifying berthing areas, or integrating new weapon systems. The Cost Plus Fixed Fee (CPFF) contract type suggests that the exact scope may have been subject to some evolution or detailed definition during the performance period, requiring close management by the Navy to control costs and ensure the work aligns with operational needs.

How does the $9.4 million award compare to historical spending on similar naval vessel installations?

Benchmarking the $9.4 million award requires comparing it to similar installation projects on aircraft carriers or other large naval vessels. Aircraft carrier maintenance and upgrade periods, often referred to as 'availabilities,' can cost tens to hundreds of millions of dollars, depending on the scope. A single delivery order of $9.4 million for specific installations is a significant but not extraordinary amount within the context of a major vessel's lifecycle. For instance, specific system upgrades (like radar, combat systems, or habitability improvements) can individually fall within this range. Historical data from the Department of the Navy shows numerous contracts in the multi-million dollar range for specialized engineering and installation services on vessels like the Nimitz-class carriers, to which the USS George H.W. Bush belongs.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for naval installations?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee incentivizes efficiency, it doesn't cap the total cost to the government. For complex naval installations, unforeseen technical challenges or scope changes can significantly increase costs. Effective risk mitigation requires robust government oversight, detailed cost monitoring, clear definition and control of the scope of work, and strong negotiation of the fixed fee. Without diligent management, the government could end up paying more than anticipated, impacting the overall value for money.

What is M.C. Dean, Inc.'s track record with the Department of Defense, particularly in naval engineering?

M.C. Dean, Inc. is a well-established government contractor with a significant history of performing engineering, integration, and installation services for the Department of Defense, including the Navy. They have a strong presence in providing solutions for critical infrastructure, secure facilities, and complex systems, often involving electrical, mechanical, and information technology integration. Their portfolio includes work on naval bases, shipyards, and vessels, indicating they possess the necessary security clearances, technical expertise, and experience required for projects like the installations on the USS George H.W. Bush. Past performance reviews and contract awards databases would provide more granular detail on their specific successes and any challenges encountered on similar projects.

How does the level of competition (6 bidders) impact the potential value for taxpayers on this contract?

Having six bidders for this contract is a strong positive signal for taxpayers. A competitive environment generally leads to better pricing as contractors vie for the award. It allows the government to compare technical approaches and costs from multiple sources, increasing the likelihood of selecting the most cost-effective solution that meets requirements. The presence of numerous qualified bidders suggests a healthy market for these specialized engineering services, reducing the risk of vendor lock-in and ensuring that taxpayer funds are used efficiently. The government's ability to choose from six offers implies they could negotiate favorable terms and pricing.

What are the implications of this contract being a 'Delivery Order' rather than a standalone contract?

This award is a 'Delivery Order' (aw: DELIVERY ORDER), which means it is likely issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a Basic Ordering Agreement (BOA). This structure allows the government to procure services incrementally as needed, providing flexibility and potentially streamlining the acquisition process for follow-on work. For taxpayers, this can be efficient if the IDIQ was competitively awarded. However, it also means that the total spending on the underlying IDIQ could exceed this single $9.4 million order. The 'full and open competition' noted likely refers to the initial award of the IDIQ or BOA, under which this delivery order was placed.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

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: $9,433,331

Exercised Options: $9,433,331

Current Obligation: $9,433,331

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $2,766,189

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003919D0022

IDV Type: IDC

Timeline