DoD Awards $15.6M for Secure Facility Construction at Keflavik Air Station
Contract Overview
Contract Amount: $15,566,212 ($15.6M)
Contractor: M. C. Dean, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-08-08
End Date: 2027-10-18
Contract Duration: 801 days
Daily Burn Rate: $19.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THIS PROJECT IS TO CONSTRUCT A SECURE WORKING AREA THAT MEETS CURRENT SECURE COMPARTMENTED FACILITY AND OPEN STORAGE FACILITY STANDARDS IN NEWLY RENOVATED FACILITY 127 OF THE P-8A OPERATIONS AND FLEET SUPPORT CENTER AT KEFLAVIK AIR STATION, ICELAND.
Plain-Language Summary
Department of Defense obligated $15.6 million to M. C. DEAN, INC. for work described as: THIS PROJECT IS TO CONSTRUCT A SECURE WORKING AREA THAT MEETS CURRENT SECURE COMPARTMENTED FACILITY AND OPEN STORAGE FACILITY STANDARDS IN NEWLY RENOVATED FACILITY 127 OF THE P-8A OPERATIONS AND FLEET SUPPORT CENTER AT KEFLAVIK AIR STATION, ICELAND. Key points: 1. Contract awarded to M. C. Dean, Inc. for secure facility construction. 2. Project aims to meet stringent security standards for P-8A operations. 3. Limited competition due to contract type and facility requirements. 4. Firm Fixed Price contract type suggests clear scope and cost control.
Value Assessment
Rating: good
The contract value of $15.6M appears reasonable for specialized secure facility construction. Benchmarking against similar secure construction projects would provide further validation, but the scope is specific to a unique operational need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This likely stems from specialized requirements or existing facility constraints, potentially impacting price discovery and overall value.
Taxpayer Impact: Taxpayer funds are being used for a critical infrastructure upgrade to support national security operations. The limited competition may result in a higher price than a fully competitive bid.
Public Impact
Enhances operational security for P-8A aircraft and fleet support. Supports U.S. military presence and strategic capabilities in Iceland. Investment in specialized infrastructure for sensitive government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Potential for cost overruns if unforeseen construction challenges arise.
- Long project duration increases exposure to market fluctuations.
Positive Signals
- Addresses critical security and operational requirements.
- Firm Fixed Price contract provides cost certainty.
- Supports strategic defense posture in a key location.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by government infrastructure needs, particularly for specialized facilities like secure working areas.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The specialized nature of the work may favor larger, experienced contractors.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The firm fixed price contract and defined completion date provide some accountability, but ongoing monitoring will be crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition raises concerns about price optimization.
- Potential for scope creep or unforeseen construction challenges.
- Geopolitical or logistical risks associated with operating in Iceland.
- Long project duration increases vulnerability to changing requirements.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.6 million to M. C. DEAN, INC.. THIS PROJECT IS TO CONSTRUCT A SECURE WORKING AREA THAT MEETS CURRENT SECURE COMPARTMENTED FACILITY AND OPEN STORAGE FACILITY STANDARDS IN NEWLY RENOVATED FACILITY 127 OF THE P-8A OPERATIONS AND FLEET SUPPORT CENTER AT KEFLAVIK AIR STATION, ICELAND.
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 Navy).
What is the total obligated amount?
The obligated amount is $15.6 million.
What is the period of performance?
Start: 2025-08-08. End: 2027-10-18.
What specific factors necessitated the 'NOT AVAILABLE FOR COMPETITION' designation, and how were these justified to ensure fair value?
The justification for 'NOT AVAILABLE FOR COMPETITION' likely relates to unique site-specific requirements, existing infrastructure integration challenges, or the need for highly specialized security clearances and expertise possessed by M. C. Dean, Inc. A thorough review of the Justification and Approval (J&A) document would detail these factors and demonstrate why full and open competition was not feasible or would not provide the best value to the government.
How does the $15.6M cost compare to similar secure facility construction projects, considering the unique location and security requirements?
Benchmarking this $15.6M contract against similar secure facility construction projects is challenging without detailed project specifications. However, the location in Iceland, stringent SCIF/open storage standards, and firm-fixed-price nature suggest a potentially higher cost than domestic projects due to logistical complexities and specialized labor. A comparative analysis would require access to cost data from comparable government or private sector secure facility builds.
What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful and timely completion of this secure facility by October 2027?
Key performance indicators likely include adherence to security accreditation standards, construction quality, on-time milestone completion, and budget management. Oversight mechanisms would involve regular progress meetings, site inspections by Navy contracting officers and technical representatives, quality assurance surveillance plans (QASP), and performance reporting requirements mandated by the contract.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N3319125R0005
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1765 GREENSBORO STATION PL, 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: $15,566,212
Exercised Options: $15,566,212
Current Obligation: $15,566,212
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-08-08
Current End Date: 2027-10-18
Potential End Date: 2027-10-18 00:00:00
Last Modified: 2025-09-03
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