DoD's Navy awards $9.6M for maintenance training, with 6 bidders competing for a 5-year contract

Contract Overview

Contract Amount: $9,645,708 ($9.6M)

Contractor: THE Mchenry Management Group, LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-24

End Date: 2026-12-09

Contract Duration: 1,841 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CNSL/CNSP HAS A REQUIREMENT FOR MAINTENANCE MANAGEMENT TRAINING AND SUPPORT SERVICES. THE CONTRACTOR SHALL PROVIDE PERSONNEL, MATERIAL AND FACILITIES REQUIRED TO DEVELOP, MAINTAIN AND CONDUCT MAINTENANCE UNIVERSITY (MU) TRAINING.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.6 million to THE MCHENRY MANAGEMENT GROUP, LLC for work described as: CNSL/CNSP HAS A REQUIREMENT FOR MAINTENANCE MANAGEMENT TRAINING AND SUPPORT SERVICES. THE CONTRACTOR SHALL PROVIDE PERSONNEL, MATERIAL AND FACILITIES REQUIRED TO DEVELOP, MAINTAIN AND CONDUCT MAINTENANCE UNIVERSITY (MU) TRAINING. Key points: 1. Value for money appears reasonable given the 5-year duration and the competitive nature of the award. 2. Competition dynamics show a healthy level of interest with 6 bidders, suggesting fair price discovery. 3. Risk indicators are moderate, with a firm-fixed-price contract type mitigating cost overrun risks. 4. Performance context is tied to developing and conducting maintenance training for the Navy's Maintenance University. 5. Sector positioning is within engineering services, supporting critical operational readiness for the Navy.

Value Assessment

Rating: good

The contract value of $9.6 million over approximately five years averages to about $1.9 million annually. This seems reasonable for specialized training and support services. Benchmarking against similar contracts for technical training and management support within the Department of Defense would provide a more precise value assessment. However, the firm-fixed-price structure suggests the government has locked in costs, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six distinct bidders vying for the opportunity. This level of competition is generally considered healthy and suggests that the solicitation was accessible to a wide range of qualified contractors. The presence of multiple bidders typically leads to more competitive pricing and a broader selection of innovative solutions.

Taxpayer Impact: A robust competition level like this benefits taxpayers by driving down costs and ensuring the government receives high-quality services at a fair market price, minimizing the risk of overpayment.

Public Impact

The primary beneficiaries are personnel within the Department of the Navy who will receive enhanced maintenance training. The services delivered include the development, maintenance, and delivery of training programs for the Maintenance University. The geographic impact is likely concentrated where Navy maintenance personnel are stationed, potentially across multiple bases. Workforce implications include the potential for skilled trainers and support staff to be employed by the contractor, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if the training curriculum becomes highly specialized and difficult to transfer.
Ensuring the training content remains current with evolving maintenance technologies and best practices.
Monitoring contractor performance to ensure the quality and effectiveness of the training delivered.

Positive Signals

Awarded under full and open competition, indicating a broad market response.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, The McHenry Management Group, LLC, is likely experienced in providing such specialized services.
The contract duration of over five years allows for program stability and continuity.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and services. The market for defense-related training and support services is substantial, driven by the need for continuous skill development and operational readiness within the armed forces. This specific contract supports the Navy's internal training infrastructure, a critical component of its human capital management and operational effectiveness.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB: false) and there is no explicit mention of small business subcontracting goals. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses in their subcontracting plan. Further investigation into subcontracting reports would be needed to confirm.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics may not always be publicly available.

Related Government Programs

Navy Training and Education Programs
Defense Logistics Agency Training Support
Department of Defense Professional Development

Risk Flags

Potential for training obsolescence if not regularly updated.
Contractor performance variability could impact training quality.
Dependence on a single contractor for critical training infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.6 million to THE MCHENRY MANAGEMENT GROUP, LLC. CNSL/CNSP HAS A REQUIREMENT FOR MAINTENANCE MANAGEMENT TRAINING AND SUPPORT SERVICES. THE CONTRACTOR SHALL PROVIDE PERSONNEL, MATERIAL AND FACILITIES REQUIRED TO DEVELOP, MAINTAIN AND CONDUCT MAINTENANCE UNIVERSITY (MU) TRAINING.

Who is the contractor on this award?

The obligated recipient is THE MCHENRY MANAGEMENT GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $9.6 million.

What is the period of performance?

Start: 2021-11-24. End: 2026-12-09.

What is the track record of The McHenry Management Group, LLC in providing similar maintenance training and support services to the federal government?

A review of federal procurement data would be necessary to fully assess The McHenry Management Group, LLC's track record. However, being awarded a contract of this value and duration by the Department of the Navy suggests they possess the necessary qualifications and experience. Further analysis would involve examining past performance evaluations, other contracts awarded to the company, and any reported issues or successes in previous engagements. Understanding their history with similar training development, curriculum design, and delivery across various technical domains would provide a clearer picture of their capabilities and reliability in fulfilling this requirement.

How does the average annual cost of this contract compare to similar maintenance training programs within the DoD?

The contract's total value of $9.6 million over approximately 1841 days (roughly 5 years) equates to an average annual cost of roughly $1.9 million. To benchmark this effectively, one would need to compare it against contracts for similar services, such as technical training development, curriculum design, and instructor support, awarded by other branches of the DoD or defense agencies. Factors like the complexity of the subject matter, the required level of certification, the number of personnel trained, and the specific delivery methods (e.g., in-person, virtual, simulation) would need to be considered for a fair comparison. Without access to a comprehensive database of comparable contracts and their specific details, a precise benchmark is difficult, but the competitive award suggests the pricing is likely within a reasonable range.

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

Key risks include potential performance deficiencies (e.g., training quality not meeting standards), contractor non-compliance, and the risk of the training curriculum becoming outdated. The firm-fixed-price (FFP) contract type mitigates financial risks for the government by establishing a set price, reducing the likelihood of cost overruns. Mitigation for performance risks relies on robust oversight by the contracting officer's representative (COR), clear performance standards outlined in the contract, and potential award-fee or incentive structures tied to performance metrics. Ensuring the curriculum remains current will likely involve contract modifications or regular reviews based on evolving Navy needs and technological advancements.

How effective is the Maintenance University (MU) training program in improving Navy maintenance personnel's skills and readiness?

Assessing the effectiveness of the Maintenance University (MU) training program requires data beyond the contract award details. This would involve analyzing metrics such as trainee performance improvements, post-training job performance evaluations, reduction in maintenance errors or downtime, and feedback from both trainees and their supervisors. The contract's focus on 'development, maintenance, and conduct' suggests a comprehensive approach. However, the ultimate measure of effectiveness lies in how well the trained personnel perform their duties and contribute to the Navy's overall operational readiness. This information is typically gathered through program reviews and performance monitoring conducted by the Navy.

What has been the historical spending trend for maintenance training and support services by the Department of the Navy?

Analyzing historical spending trends for maintenance training and support services by the Department of the Navy would require accessing historical procurement data over several fiscal years. This would involve searching for contracts with similar service descriptions (e.g., training development, technical support, curriculum design) and NAICS codes related to education and training services within the Navy's budget. Understanding past spending levels can reveal patterns, identify periods of increased or decreased investment, and highlight any significant shifts in procurement strategies or priorities related to workforce development and training infrastructure.

Industry Classification

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

Solicitation ID: N0018921R3026

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 INDEPENDENCE PKWY STE 105, CHESAPEAKE, VA, 23320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,962,618

Exercised Options: $10,790,460

Current Obligation: $9,645,708

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $3,552,896

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8084

IDV Type: IDC

Timeline