DoD's $45.3M electrical contract with M.C. Dean Inc. awarded under full and open competition

Contract Overview

Contract Amount: $45,278,919 ($45.3M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-17

End Date: 2021-10-22

Contract Duration: 1,374 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ADF-C RECAP 1 (SPLIT LOAD CTR K AND UPS

Place of Performance

Location: AURORA, ARAPAHOE County, COLORADO, 80011

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $45.3 million to M. C. DEAN, INC. for work described as: ADF-C RECAP 1 (SPLIT LOAD CTR K AND UPS Key points: 1. Contract value represents a significant investment in electrical infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of over three years indicates a substantial, long-term need. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award falls within the Electrical Contractors and Other Wiring Installation Contractors NAICS code. 6. Contractor M.C. Dean, Inc. has a notable presence in federal contracting.

Value Assessment

Rating: good

The contract value of $45.3 million over approximately three years is substantial for electrical installation services. Benchmarking against similar large-scale federal electrical projects would be necessary for a precise value-for-money assessment. However, the firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the contractor's bid was competitive and accounted for these risks.

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 two bids suggests a moderate level of competition for this specific award. While two bidders is better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to ensure the government receives the best possible pricing through a wide range of potential offers.

Public Impact

The Department of Defense benefits from upgraded or maintained electrical infrastructure, crucial for operational readiness. Services delivered include electrical contracting and wiring installation, supporting military facilities. The contract's specific geographic impact is not detailed but likely supports a particular military installation or region. Workforce implications include employment opportunities for electricians, technicians, and project managers within M.C. Dean, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price bid did not adequately account for unforeseen complexities.
Dependence on a single contractor for a critical infrastructure service.
Limited visibility into the specific performance metrics and quality control processes without further data.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded through full and open competition, suggesting a competitive process.
Contractor M.C. Dean, Inc. is an established entity in federal contracting, implying experience.

Sector Analysis

The electrical contractors and other wiring installation services sector is a vital component of the construction and infrastructure industry. Federal spending in this area supports the maintenance, upgrade, and construction of government facilities, including military bases, administrative buildings, and research centers. The market size for federal electrical contracting is substantial, driven by ongoing infrastructure needs and modernization efforts across various agencies. This contract fits within the broader landscape of federal construction and facilities maintenance spending.

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 requirements for small businesses mandated by a set-aside. The prime contractor, M.C. Dean, Inc., may still engage small businesses as subcontractors, but this is not explicitly detailed in the provided data. The absence of a small business set-aside means the primary competition was open to all eligible firms, potentially limiting direct opportunities for small businesses unless they are part of larger subcontracting bids.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army personnel responsible for the project's execution. Accountability measures are inherent in the firm fixed-price contract type, where the contractor is responsible for delivering the specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS, which provide basic details of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Army Corps of Engineers Construction Projects
Federal Electrical Infrastructure Modernization
General Services Administration (GSA) Building Services

Risk Flags

Contract Duration
Number of Bids Received
Contract Type (FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.3 million to M. C. DEAN, INC.. ADF-C RECAP 1 (SPLIT LOAD CTR K AND UPS

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 $45.3 million.

What is the period of performance?

Start: 2018-01-17. End: 2021-10-22.

What is the track record of M.C. Dean, Inc. with the Department of Defense and similar electrical installation contracts?

M.C. Dean, Inc. is a significant federal contractor with a long history of performing electrical and mechanical services for various government agencies, including the Department of Defense. Their portfolio often includes large-scale projects involving power systems, building automation, and infrastructure upgrades. Analyzing their past performance on similar definitive contracts, particularly those with firm fixed-price terms and durations exceeding one year, would provide insight into their ability to manage complex projects and adhere to budgets. Reviewing past performance evaluations and any documented disputes or contract modifications would further illuminate their reliability and effectiveness in delivering services to the DoD.

How does the awarded price of $45.3 million compare to industry benchmarks for similar electrical installation projects of this scale?

Benchmarking the $45.3 million award requires detailed analysis of the contract's scope of work, including the specific types of electrical installations, geographic location, and complexity of the facilities involved. Without this granular detail, a direct comparison is challenging. However, industry benchmarks for large federal electrical installation contracts can be derived from data on similar projects awarded by agencies like the General Services Administration (GSA) or other branches of the Department of Defense. Factors such as prevailing labor rates in the contract's performance region, material costs, and the contractor's overhead and profit margins would be considered. A preliminary assessment suggests the price is substantial, reflecting the scale and duration, but its value-for-money hinges on detailed scope comparison and market rates for comparable services.

What are the primary risks associated with this firm fixed-price contract for electrical installation services?

The primary risk associated with this firm fixed-price contract is the potential for the contractor, M.C. Dean, Inc., to incur cost overruns if their initial bid underestimated the project's complexity, labor, or material costs. While the government is protected from price increases, the contractor might face financial strain, potentially impacting performance or leading to disputes if they seek change orders. Another risk is that the contractor might cut corners on quality or scope to maintain profitability, although this is mitigated by contract oversight and performance standards. The government also faces the risk of contractor default or poor performance, which could lead to delays and the need to re-compete or find an alternative contractor, incurring additional costs and time.

How effective is the 'full and open competition' strategy in ensuring competitive pricing for large federal electrical contracts?

The 'full and open competition' strategy is generally considered the most effective method for ensuring competitive pricing in federal contracting, as it allows all responsible sources to submit proposals. This broadens the potential bidder pool, increasing the likelihood of receiving multiple competitive offers. For large contracts like this $45.3 million electrical installation project, a robust competition can drive down prices by forcing bidders to offer their most aggressive terms. However, the effectiveness is contingent on the number of actual bids received. In this case, with two bids, the competition was present but perhaps not as intense as it could be with a larger number of participants. Nonetheless, it provides a stronger basis for price discovery than sole-source or limited competition scenarios.

What is the historical spending trend for electrical contractors and wiring installation services by the Department of the Army?

Historical spending by the Department of the Army on electrical contractors and wiring installation services (NAICS 238210) has been substantial and consistent, reflecting the ongoing need to maintain, upgrade, and construct electrical infrastructure across numerous military installations. Annual spending typically fluctuates based on major construction initiatives, modernization programs, and repair requirements. Analyzing multi-year spending data would reveal trends in contract values, types of services procured (e.g., new installations, upgrades, maintenance), and the distribution of awards among prime contractors. This contract's value of $45.3 million aligns with the typical scale of significant electrical projects undertaken by the Army, suggesting it is part of a broader, sustained investment in its facilities.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DR17R0004

Offers Received: 2

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: $45,278,919

Exercised Options: $45,278,919

Current Obligation: $45,278,919

Actual Outlays: $6,250,190

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline