DoD Awards $21M Contract for Design, Installation, and Support Services to McHenry Management Group

Contract Overview

Contract Amount: $21,068,004 ($21.1M)

Contractor: THE Mchenry Management Group, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-11-14

Contract Duration: 1,142 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DESIGN SERVICES, SYSTEM HARDWARE DESIGN, MATERIAL KITTING, AND INSTALLATION INTEGRATION MANAGEMENT AND SUPPORT SERVICES.

Place of Performance

Location: PORT HUENEME, VENTURA County, CALIFORNIA, 93041

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to THE MCHENRY MANAGEMENT GROUP, LLC for work described as: DESIGN SERVICES, SYSTEM HARDWARE DESIGN, MATERIAL KITTING, AND INSTALLATION INTEGRATION MANAGEMENT AND SUPPORT SERVICES. Key points: 1. The contract focuses on engineering services, including system hardware design and installation integration. 2. McHenry Management Group, LLC, a single awardee, secured this delivery order. 3. The contract's value is substantial at over $21 million, with a duration of nearly three years. 4. The Department of the Navy is the contracting agency, indicating a significant defense-related need.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering service contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, it is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the scope of competition for this specific order.

Taxpayer Impact: Taxpayer funds are being used for critical defense infrastructure design and support services. The cost-plus fixed fee structure warrants close monitoring to ensure value for money.

Public Impact

Ensures the Department of the Navy has necessary design and integration support for its systems. Supports technological advancement and operational readiness within the naval forces. The contract's duration suggests a long-term need for these specialized engineering services. Potential for follow-on work or similar contracts in the future.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Limited visibility into specific cost drivers for the fixed fee component.
Potential for scope creep in complex integration projects.

Positive Signals

Awarded under full and open competition.
Significant duration indicates a sustained need and potential for stable support.
Supports critical defense infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330). Spending in this sector is crucial for government infrastructure projects and defense modernization. Benchmarks for similar contracts vary widely based on complexity and scope.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract is a delivery order under a larger award, suggesting oversight mechanisms are in place. However, the cost-plus fixed fee structure necessitates diligent monitoring by the contracting officer to ensure costs remain reasonable and performance meets expectations.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Limited detail on performance metrics.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to THE MCHENRY MANAGEMENT GROUP, LLC. DESIGN SERVICES, SYSTEM HARDWARE DESIGN, MATERIAL KITTING, AND INSTALLATION INTEGRATION MANAGEMENT AND SUPPORT SERVICES.

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 $21.1 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-11-14.

What specific performance metrics are in place to ensure the quality and timeliness of the design, installation, and support services provided by McHenry Management Group?

The provided data does not detail specific performance metrics. However, as a delivery order under a larger contract, it is expected that performance standards and evaluation criteria are defined within the base contract or the delivery order itself. These would typically include adherence to schedules, quality of deliverables, and responsiveness to support requests, subject to oversight by the Department of the Navy.

How does the fixed fee component of the Cost Plus Fixed Fee contract ensure that the government receives value for money, given the potential for cost overruns?

The fixed fee is negotiated based on the anticipated cost of performance and the contractor's profit margin. While the 'cost plus' portion covers allowable expenses, the fixed fee aims to incentivize efficiency. However, effective oversight is crucial to ensure the contractor does not inflate costs to justify the fee, and that the fee itself is reasonable for the services rendered.

What is the strategic importance of this contract for the Department of the Navy's current and future operational capabilities?

This contract is vital for the Department of the Navy's modernization and operational readiness. The design, hardware integration, and installation support services are fundamental to maintaining and upgrading complex naval systems. Successful execution ensures that naval assets are equipped with up-to-date technology and integrated effectively, contributing to overall mission effectiveness and national security.

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: N6339422R3004

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $71,910,323

Exercised Options: $40,738,061

Current Obligation: $21,068,004

Actual Outlays: $9,943

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