DoD's $16.2M Electrical Systems Upgrade Contract Awarded to M.C. Dean, Inc. for Atlanta VA Medical Center

Contract Overview

Contract Amount: $16,206,929 ($16.2M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-19

End Date: 2010-10-01

Contract Duration: 742 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: ELECTRICAL SYSTEMS UPGRADE VA MEDICAL CTR, ATLANTA, GA

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30033

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to M. C. DEAN, INC. for work described as: ELECTRICAL SYSTEMS UPGRADE VA MEDICAL CTR, ATLANTA, GA Key points: 1. Contract value of $16.2 million for electrical systems upgrade. 2. Awarded to M.C. Dean, Inc. under full and open competition. 3. Project duration of 742 days, indicating a significant scope of work. 4. Fixed-price contract type suggests cost certainty for the government. 5. The contract falls under the Commercial and Institutional Building Construction NAICS code. 6. Geographic focus on Georgia, specifically Atlanta.

Value Assessment

Rating: good

The contract value of $16.2 million for an electrical systems upgrade at a VA Medical Center appears reasonable given the scope of such infrastructure projects. While direct comparisons are difficult without specific project details, major facility upgrades often run into the millions. The fixed-price nature of the contract provides a degree of cost control for the government, assuming the scope was well-defined. Benchmarking against similar large-scale electrical upgrades in federal facilities would provide a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that after an initial exclusion of certain sources (perhaps due to specific requirements or prior solicitations), the remaining opportunity was fully and openly competed. The presence of full and open competition generally suggests a robust bidding process, allowing multiple qualified contractors to submit proposals. This competitive environment is expected to drive better pricing and terms for the government.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing and innovative solutions available in the market, as multiple companies vie for the contract.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, which will receive an upgraded electrical system for its Atlanta Medical Center. The services delivered include the modernization and upgrade of critical electrical infrastructure. The geographic impact is localized to Atlanta, Georgia, improving the facility's operational capabilities. The project likely involves a significant number of skilled tradespeople, including electricians and construction workers, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract scope is not meticulously managed.
Risk of project delays impacting the operational readiness of the medical center.
Dependence on M.C. Dean, Inc.'s performance and capacity to deliver complex electrical work.

Positive Signals

Fixed-price contract provides budget certainty.
Full and open competition suggests a competitive award process.
Award to an established contractor like M.C. Dean, Inc. may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on commercial and institutional building construction. The market for upgrading critical infrastructure in federal facilities, such as hospitals, is substantial. These projects often require specialized expertise in electrical engineering and construction, with a limited number of large, experienced contractors capable of undertaking such complex and high-value work. Benchmarks for similar electrical system upgrades in large federal buildings can vary widely based on size, complexity, and age of the facility.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While M.C. Dean, Inc. is a large contractor, the absence of a small business set-aside means that subcontracting opportunities for small businesses will depend on M.C. Dean's own subcontracting plan. It is common for large construction projects to involve significant subcontracting, potentially creating opportunities for small businesses in specialized trades or material supply, but this is not guaranteed by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of Defense or the agency it serves (in this case, indirectly the VA). Performance monitoring, quality assurance, and adherence to contract terms would be key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Facility Construction and Renovation Projects
Department of Defense Infrastructure Modernization
Federal Building Electrical System Upgrades
Large-Scale Commercial Construction Contracts

Risk Flags

Potential for scope creep in fixed-price contracts.
Risk of unforeseen site conditions impacting project timeline and cost.
Dependence on contractor's technical expertise and performance.
Ensuring continuity of critical medical services during upgrade.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to M. C. DEAN, INC.. ELECTRICAL SYSTEMS UPGRADE VA MEDICAL CTR, ATLANTA, GA

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 Army).

What is the total obligated amount?

The obligated amount is $16.2 million.

What is the period of performance?

Start: 2008-09-19. End: 2010-10-01.

What is the track record of M.C. Dean, Inc. on similar federal contracts, particularly those involving healthcare facilities?

M.C. Dean, Inc. is a well-established government contractor with a significant history of performing large-scale electrical and mechanical systems work for various federal agencies, including the Department of Defense and the General Services Administration. They have a notable presence in complex projects such as data centers, laboratories, and critical infrastructure upgrades. While specific details on their performance on VA medical center electrical upgrades would require a deeper dive into contract performance reports and past performance evaluations, their general profile suggests they are a capable entity for such work. Analyzing their past performance on fixed-price contracts of similar magnitude would be crucial to assess their reliability and efficiency in delivering projects on time and within budget.

How does the awarded amount of $16.2 million compare to similar electrical system upgrade projects at federal medical centers?

Benchmarking the $16.2 million award requires comparing it to similar projects in terms of scope, size of the facility, and complexity of the electrical systems being upgraded. Electrical system upgrades in large medical centers are inherently complex due to the need for continuous operation of critical life-support systems, stringent regulatory requirements (e.g., healthcare codes), and the integration of advanced medical equipment. Projects of this nature can easily range from several million to tens of millions of dollars. Without specific details on the Atlanta VA Medical Center's size and the exact scope of the upgrade (e.g., replacement of main switchgear, distribution systems, emergency power, specific medical gas systems integration), a precise comparison is challenging. However, $16.2 million is within the expected range for a significant upgrade at a large federal medical facility.

What are the primary risks associated with a fixed-price contract for a large-scale electrical upgrade?

The primary risk with a fixed-price contract for a large-scale electrical upgrade lies in the potential for scope creep and unforeseen conditions. While the fixed price offers cost certainty to the government, the contractor bears the risk of cost overruns. If the project encounters unexpected issues, such as discovering outdated or hazardous existing infrastructure not identified during the initial assessment, or if the government requests changes to the scope, the contractor may incur losses unless change orders are properly negotiated and funded. Conversely, a poorly defined scope can lead to disputes. Effective project management, detailed initial assessments, and robust change control processes are critical to mitigating these risks for both parties.

What is the expected impact of this upgrade on the operational effectiveness and patient care at the Atlanta VA Medical Center?

An upgraded electrical system is fundamental to the reliable and safe operation of any modern medical facility. For the Atlanta VA Medical Center, this upgrade is expected to enhance operational effectiveness by ensuring a stable and sufficient power supply for all medical equipment, lighting, HVAC, and IT systems. This reliability is crucial for uninterrupted patient care, especially for critical services like surgery, intensive care units, and diagnostic imaging. Improved power quality can also reduce equipment malfunctions, leading to fewer disruptions in patient treatment and potentially lower maintenance costs. Furthermore, modern electrical systems often incorporate enhanced safety features and energy efficiency, contributing to a safer and more sustainable healthcare environment for veterans.

How has federal spending on electrical system upgrades for healthcare facilities evolved over the past decade?

Federal spending on electrical system upgrades for healthcare facilities, particularly within agencies like the VA and DoD, has likely seen a steady increase over the past decade. This trend is driven by several factors: the aging infrastructure of many federal facilities, the increasing demand for power to support advanced medical technologies and IT systems, and a growing emphasis on energy efficiency and resilience. Agencies are often under pressure to modernize their facilities to meet current standards and ensure continuity of operations, especially in the face of potential threats or natural disasters. Budget allocations for infrastructure modernization, including electrical systems, are typically part of larger capital improvement plans, reflecting a long-term commitment to maintaining and upgrading these vital assets.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: W9127808R0056

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22461 SHAW ROAD, DULLES, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,206,929

Exercised Options: $16,206,929

Current Obligation: $16,206,929

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline