DoD Awards $19M Combat Systems Contract to The McHenry Management Group, LLC

Contract Overview

Contract Amount: $19,040,496 ($19.0M)

Contractor: THE Mchenry Management Group, LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-18

End Date: 2026-02-14

Contract Duration: 2,006 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMBAT SYSTEMS

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to THE MCHENRY MANAGEMENT GROUP, LLC for work described as: COMBAT SYSTEMS Key points: 1. Contract value of $19.04 million for combat systems. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract spans over 5 years, from August 2020 to February 2026. 4. Services fall under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract's firm fixed price structure suggests predictable costs. Benchmarking against similar engineering services contracts is needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, allowing all eligible contractors to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, maximizing taxpayer value for the services rendered.

Public Impact

Ensures continued support for critical combat systems. Supports a private sector company and its employees. Potential for technological advancements in defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration extends over multiple fiscal years.
  • Reliance on a single awardee for specialized services.

Positive Signals

  • Full and open competition utilized.
  • Firm fixed price contract type.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for defense system development and maintenance. Spending in this sector is significant, driven by complex defense requirements.

Small Business Impact

The data indicates that the awardee is not a small business. Further analysis would be required to determine if small business subcontracting opportunities were mandated or utilized.

Oversight & Accountability

The Department of the Navy awarded this contract, implying oversight from a major defense agency. The duration and value suggest a need for ongoing performance monitoring.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Contract duration is lengthy.
  • Potential for sole-source follow-on contracts.
  • Dependence on contractor expertise for critical systems.
  • Scope of work may evolve significantly over contract life.

Tags

engineering-services, department-of-defense, fl, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to THE MCHENRY MANAGEMENT GROUP, LLC. COMBAT SYSTEMS

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 $19.0 million.

What is the period of performance?

Start: 2020-08-18. End: 2026-02-14.

What specific combat systems are covered under this contract, and how critical are they to current defense operations?

The contract details do not specify the exact combat systems. However, given the 'Combat Systems' designation and the Department of Defense as the agency, these are likely critical components for naval warfare capabilities. Understanding the specific systems would allow for a more precise assessment of operational reliance and potential risks associated with contractor performance.

How does the awarded price compare to industry benchmarks for similar engineering services supporting combat systems?

Without specific details on the scope of work and deliverables, a precise benchmark is difficult. However, the total contract value of $19.04 million over approximately 5.5 years suggests an average annual value of around $3.46 million. This figure should be compared against industry data for engineering services on comparable defense platforms to ascertain cost-effectiveness.

What measures are in place to ensure the contractor's performance meets the evolving technological and operational needs of the Navy?

The contract utilizes a Firm Fixed Price (FFP) structure, which incentivizes the contractor to control costs. However, FFP can sometimes limit flexibility for scope changes. The Navy likely employs performance metrics, regular reviews, and potentially contract modifications to ensure alignment with evolving needs, though specific oversight mechanisms are not detailed in the provided data.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N4002720R3002

Offers Received: 3

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: $19,040,496

Exercised Options: $19,040,496

Current Obligation: $19,040,496

Actual Outlays: $6,492,360

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $6,319,658

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

Start Date: 2020-08-18

Current End Date: 2026-02-14

Potential End Date: 2026-02-14 00:00:00

Last Modified: 2025-12-10

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