DoD contract for Tobyhanna infrastructure upgrade awarded to M.C. Dean, Inc. for $5.57M

Contract Overview

Contract Amount: $5,574,906 ($5.6M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-15

End Date: 2026-01-31

Contract Duration: 1,053 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO UPGRADE THE EXISTING OUTSIDE PLANT AND INSIDE PLANT INFRASTRUCTURE AT TOBYHANA."

Place of Performance

Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $5.6 million to M. C. DEAN, INC. for work described as: TO UPGRADE THE EXISTING OUTSIDE PLANT AND INSIDE PLANT INFRASTRUCTURE AT TOBYHANA." Key points: 1. Contract focuses on upgrading existing outside and inside plant infrastructure. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration is over 3 years, indicating a significant project scope. 4. The firm-fixed-price contract type aims to control costs for the government. 5. The specific NAICS code (541512) points to computer systems design services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $5.57 million for infrastructure upgrades appears reasonable given the project's scope and duration. Benchmarking against similar IT infrastructure upgrade contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control. However, without detailed breakdowns of labor, materials, and overhead, a definitive value assessment is challenging.

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 fact that it was competed suggests a healthy level of market interest. The number of bidders (2) is on the lower side for a full and open competition, which could potentially limit price discovery, but it still signifies that multiple companies vied for the work.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings. While only two bids were received, the competitive nature of the award process is a positive sign for fiscal responsibility.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Tobyhanna Army Depot, which will receive upgraded infrastructure. The services delivered include the modernization of critical IT and physical plant infrastructure. The geographic impact is localized to Tobyhanna, Pennsylvania. The contract is expected to support jobs within the IT and construction sectors, particularly for the awarded contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen infrastructure issues arise during the upgrade.
Dependence on M.C. Dean, Inc. for successful project completion, with limited immediate alternatives if performance issues emerge.
The relatively low number of bidders in a full and open competition could indicate potential market concentration or barriers to entry for other firms.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses critical infrastructure needs, ensuring operational readiness.
Long-term duration allows for thorough planning and execution of complex upgrades.

Sector Analysis

This contract falls within the IT services and infrastructure modernization sector. The market for IT infrastructure upgrades for government facilities is substantial, driven by the need to maintain secure, reliable, and up-to-date systems. Comparable spending benchmarks would involve looking at other large-scale IT infrastructure projects awarded by federal agencies, particularly within defense installations, to assess cost-effectiveness and pricing structures.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). M.C. Dean, Inc. is a large business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. However, large federal contracts often include subcontracting goals, and it would be beneficial to review the master IDIQ contract for any such requirements to understand the potential impact on the small business ecosystem.

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. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified infrastructure upgrades. Transparency is facilitated through contract award databases like SAM.gov. Inspector General jurisdiction would apply if allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense IT Modernization Programs
Army Base Infrastructure Improvement Projects
Tobyhanna Army Depot Operations and Maintenance
Federal Information Technology Acquisition Reform Act (FITARA) initiatives

Risk Flags

Potential for scope creep
Contractor performance risk
Limited competition observed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to M. C. DEAN, INC.. TO UPGRADE THE EXISTING OUTSIDE PLANT AND INSIDE PLANT INFRASTRUCTURE AT TOBYHANA."

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 $5.6 million.

What is the period of performance?

Start: 2023-03-15. End: 2026-01-31.

What is the track record of M.C. Dean, Inc. in performing similar IT infrastructure upgrade contracts for the Department of Defense?

M.C. Dean, Inc. has a significant history of performing large-scale electrical, mechanical, and technology infrastructure projects for government agencies, including the Department of Defense. They have been involved in numerous complex upgrades and installations at military bases and federal facilities. Their past performance on similar contracts, particularly those involving outside and inside plant infrastructure, would be a key factor in their selection for this Tobyhanna project. A review of their contract history, including any performance evaluations or past performance questionnaires (PPQs) from previous DoD awards, would provide insight into their capabilities and reliability in executing projects of this nature and scale.

How does the awarded value of $5.57 million compare to similar IT infrastructure upgrade contracts at other Army depots?

Benchmarking this $5.57 million contract against similar IT infrastructure upgrades at other Army depots requires access to detailed data on comparable projects. Factors such as the scope of work (e.g., square footage, types of systems upgraded), the specific technologies involved, the duration of the contract, and the prevailing economic conditions at the time of award all influence cost. Generally, infrastructure upgrades at large military installations are complex and can range from a few million to tens of millions of dollars. Without specific comparable contract data, it's difficult to definitively state if $5.57 million represents excellent, fair, or concerning value. However, for a multi-year upgrade of both outside and inside plant infrastructure, this figure appears within a plausible range for a significant facility.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to unforeseen site conditions during infrastructure work, schedule delays caused by contractor performance or external factors, and cybersecurity vulnerabilities introduced during system upgrades. Mitigation strategies likely involve robust project management by the Army, detailed site surveys prior to work commencement, clear performance metrics and milestones in the contract, and adherence to strict cybersecurity protocols throughout the upgrade process. The firm-fixed-price nature of the contract also shifts some financial risk to the contractor. The relatively short list of bidders (two) could also pose a risk if it indicates limited market availability for such specialized services.

How effective is the firm-fixed-price contract type in ensuring value for taxpayers on this project?

The firm-fixed-price (FFP) contract type is generally considered effective for taxpayers when the scope of work is well-defined and the risks are understood. It provides cost certainty by establishing a ceiling price that the contractor must adhere to, incentivizing them to manage costs efficiently to maximize profit. For an infrastructure upgrade project like this, where the requirements for outside and inside plant are specified, FFP is a suitable choice. It minimizes the government's exposure to cost overruns, provided the initial scope is accurate and comprehensive. However, if significant scope changes become necessary, they can lead to costly modifications.

What is the historical spending trend for IT infrastructure upgrades at Tobyhanna Army Depot or similar facilities?

Analyzing historical spending trends for IT infrastructure upgrades at Tobyhanna Army Depot or similar facilities would require accessing historical contract databases and budget allocations. Typically, such upgrades are undertaken periodically as systems age or technology advances. Spending can fluctuate significantly year-to-year based on specific modernization initiatives, available funding, and the urgency of identified deficiencies. A trend analysis would reveal if this $5.57 million contract represents a typical investment level, a surge in spending, or a lull, providing context for the current award's significance within the depot's long-term capital investment strategy.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $7,727,973

Exercised Options: $5,574,906

Current Obligation: $5,574,906

Actual Outlays: $758,802

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $536,309

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128Z22D0006

IDV Type: IDC

Timeline