DoD's $207.5M Buckley AFB power plant SCADA upgrade awarded to M.C. Dean, Inc

Contract Overview

Contract Amount: $207,507,685 ($207.5M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2027-01-17

Contract Duration: 1,935 days

Daily Burn Rate: $107.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECAPITALIZATION OF POWER GENERATION PLANT AND SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA), LOCATED ON BUCKLEY AFB, CO

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80010

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $207.5 million to M. C. DEAN, INC. for work described as: RECAPITALIZATION OF POWER GENERATION PLANT AND SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA), LOCATED ON BUCKLEY AFB, CO Key points: 1. Contract value of $207.5 million for a critical infrastructure upgrade. 2. Awarded to M.C. Dean, Inc., a significant player in electrical contracting. 3. The contract involves modernization of power generation and SCADA systems. 4. Performance period extends through January 2027. 5. Firm Fixed Price contract type suggests defined scope and cost certainty. 6. Located at Buckley AFB, Colorado, impacting a key military installation.

Value Assessment

Rating: good

The contract value of $207.5 million for a power generation plant recapitalization and SCADA system upgrade appears substantial, reflecting the complexity and critical nature of the work. Benchmarking against similar large-scale federal infrastructure projects is challenging without more specific details on the scope of work and technology involved. However, the firm fixed-price nature of the contract suggests a degree of cost control and risk transfer to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process would provide further insight into the level of competition. A competitive process generally aims to secure the best value for the government.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down prices and encourages innovation from a wider pool of contractors, leading to better value for the government's investment.

Public Impact

Ensures reliable power generation for Buckley Air Force Base operations. Modernizes critical Supervisory Control and Data Acquisition (SCADA) systems for enhanced operational efficiency and security. Supports the Department of Defense's infrastructure modernization goals. Impacts the operational readiness and security of a key military installation in Colorado. Potentially creates or sustains jobs in the electrical contracting and engineering sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during the modernization.
Dependence on a single contractor for a critical infrastructure upgrade.
Risk of schedule delays impacting base operations if project milestones are not met.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting competitive pricing.
M.C. Dean, Inc. has a significant track record in large-scale electrical projects.
Modernization of SCADA systems can improve system resilience and security.

Sector Analysis

This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector (NAICS 238210). This sector is crucial for maintaining and upgrading the nation's power infrastructure, including specialized systems like SCADA. The market for such services is characterized by a need for highly skilled labor, adherence to stringent safety and security protocols, and the ability to manage complex, large-scale projects. Federal spending in this area is often driven by the need to modernize aging infrastructure and enhance the security and efficiency of critical facilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the prime contract was awarded to a large business, and the direct impact on the small business ecosystem may be limited unless M.C. Dean, Inc. actively engages small businesses as subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army or Air Force. The firm fixed-price nature of the contract implies that the contractor bears most of the cost risk, but performance monitoring and quality assurance remain crucial. Transparency is facilitated through contract award databases, but detailed project-specific oversight mechanisms are usually internal to the agency.

Related Government Programs

Department of Defense Military Construction
Federal Energy Management Program
Base Realignment and Closure (BRAC) projects
Department of the Army Facilities Modernization

Risk Flags

Critical Infrastructure
Cybersecurity Risk
Potential for Schedule Delays
Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $207.5 million to M. C. DEAN, INC.. RECAPITALIZATION OF POWER GENERATION PLANT AND SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA), LOCATED ON BUCKLEY AFB, CO

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 $207.5 million.

What is the period of performance?

Start: 2021-09-30. End: 2027-01-17.

What is M.C. Dean, Inc.'s track record with similar SCADA and power generation projects for the federal government?

M.C. Dean, Inc. has a substantial history of performing large-scale electrical and systems integration projects for various federal agencies, including the Department of Defense. They have been involved in numerous projects related to power generation, distribution, and control systems, often within secure or critical infrastructure environments like military bases. While specific details on SCADA system upgrades for power plants are not immediately available without deeper database searches, their general experience in complex electrical infrastructure suggests a capacity to handle such requirements. Reviewing past performance evaluations and contract histories for similar projects would provide a more granular understanding of their success rates, on-time delivery, and adherence to budget on comparable federal contracts.

How does the $207.5 million contract value compare to similar federal SCADA and power plant modernization projects?

Benchmarking the $207.5 million contract value requires comparing it to similar federal projects involving the recapitalization of power generation plants coupled with SCADA system upgrades. Projects of this magnitude are typically awarded to large, experienced contractors and can vary significantly based on the size of the facility, the complexity of the existing infrastructure, the scope of the modernization (e.g., replacing turbines, upgrading control software, enhancing cybersecurity), and the specific technological requirements. Without access to a comprehensive database of comparable federal contracts with detailed scope breakdowns, a precise comparison is difficult. However, this figure is consistent with major infrastructure upgrades at large federal installations, suggesting a significant undertaking.

What are the primary risks associated with this type of critical infrastructure modernization contract?

Key risks for this contract include technical challenges arising from integrating new SCADA systems with legacy power generation equipment, potential cost overruns if unforeseen issues emerge during the upgrade process, and schedule delays that could impact the operational readiness of Buckley AFB. Cybersecurity vulnerabilities during the transition to a new SCADA system are also a significant concern, requiring robust security protocols. Furthermore, the availability of specialized labor and materials, as well as potential supply chain disruptions, could pose risks. The firm fixed-price nature shifts some financial risk to the contractor, but performance failures or significant scope changes could still lead to disputes or require contract modifications.

How effective are SCADA systems in enhancing the security and efficiency of military power generation plants?

SCADA systems are crucial for enhancing both the security and efficiency of military power generation plants. They provide real-time monitoring and control over critical operational parameters such as voltage, frequency, load, and fuel levels, allowing for immediate adjustments to optimize performance and prevent outages. From a security perspective, SCADA systems enable centralized monitoring of plant status, detection of anomalies or unauthorized access attempts, and rapid response to potential threats. Modern SCADA systems incorporate advanced cybersecurity features to protect against cyberattacks that could disrupt power supply or compromise sensitive operational data. Effective implementation and maintenance of SCADA are vital for ensuring a stable, secure, and efficient power supply for military installations.

What has been the historical spending trend for power generation and SCADA upgrades at Department of Defense facilities?

Historical spending trends for power generation and SCADA upgrades at Department of Defense (DoD) facilities have generally shown a consistent need for investment due to aging infrastructure and evolving technological requirements. The DoD consistently allocates significant funds towards maintaining and modernizing its vast network of installations, which includes ensuring reliable power. Spending in this area is often influenced by factors such as military readiness requirements, energy security initiatives, sustainability goals, and the lifecycle of existing equipment. While specific figures fluctuate annually based on budget allocations and project priorities, there has been a sustained focus on upgrading critical infrastructure, including power systems, to enhance resilience and efficiency across DoD installations.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DR20R0026

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1765 GREENSBORO STATION PL STE 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: $207,987,685

Exercised Options: $207,507,685

Current Obligation: $207,507,685

Actual Outlays: $20,234,284

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $150,416,603

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline