M.C. Dean awarded $40.1M Army contract for Wiesbaden maintenance, a significant investment in IT infrastructure

Contract Overview

Contract Amount: $40,113,835 ($40.1M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-19

End Date: 2026-05-18

Contract Duration: 1,460 days

Daily Burn Rate: $27.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINTENANCE & SERVICE (M&S) USAG WIESBADEN, GERMANY

Plain-Language Summary

Department of Defense obligated $40.1 million to M. C. DEAN, INC. for work described as: MAINTENANCE & SERVICE (M&S) USAG WIESBADEN, GERMANY Key points: 1. Contract value represents a substantial commitment to IT services for a key European installation. 2. Full and open competition suggests a healthy market for these specialized IT services. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. Contract duration of 4 years allows for sustained service delivery and potential for long-term performance. 5. The award is a significant indicator of the Army's ongoing investment in its global IT backbone. 6. The NAICS code 541512 points to a focus on computer systems design and related services.

Value Assessment

Rating: good

The contract value of $40.1 million over four years for IT maintenance and services at USAG Wiesbaden appears reasonable given the scope and duration. Benchmarking against similar IT service contracts for overseas military installations is complex due to varying operational requirements and geographic factors. However, the firm-fixed-price nature of the award suggests that the contractor, M.C. Dean, Inc., has assumed the risk of cost overruns, which can be a positive indicator of value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 3 bids (as suggested by 'no': 3) suggests a competitive environment, which typically drives better pricing and service quality. The agency likely benefited from a range of technical solutions and cost proposals, allowing for selection of the best value.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to yield a more cost-effective solution and encourage efficient service delivery by the contractor.

Public Impact

US Army personnel and operations at USAG Wiesbaden, Germany, will benefit from reliable IT systems and maintenance. Essential IT services, including computer systems design and maintenance, will be delivered. The geographic impact is concentrated at the USAG Wiesbaden installation in Germany, supporting U.S. Army Europe and Africa. The contract supports a specialized workforce skilled in IT systems design and maintenance, potentially including local hires or U.S. military personnel overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Ensuring consistent service quality across the 4-year duration requires robust oversight.

Positive Signals

The firm-fixed-price contract incentivizes contractor efficiency and cost control.
Full and open competition suggests a strong market offering and potential for competitive pricing.
The 4-year duration allows for stable service delivery and relationship building with the contractor.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The IT services market for government contracts is substantial, with significant spending allocated to maintaining and upgrading complex systems, particularly for defense and overseas operations. M.C. Dean, Inc. is a known entity in this space. Comparable spending benchmarks would involve looking at other IT support contracts for large military installations, both CONUS and OCONUS, to assess the relative cost and scope.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). M.C. Dean, Inc. is a large business. While there is no direct small business set-aside, the prime contractor may engage small businesses for subcontracting opportunities to fulfill specific aspects of the IT services required. The extent of small business participation will depend on M.C. Dean's subcontracting plan and the availability of specialized small businesses in the relevant IT fields.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and technical teams at USAG Wiesbaden. Accountability measures will be tied to the firm-fixed-price contract terms, performance work statements, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Army IT Modernization Programs
DoD Enterprise IT Services
Overseas Military Base IT Infrastructure
Computer Systems Design Services Contracts
Information Technology Support Services

Risk Flags

Potential for performance issues due to fixed-price nature
Reliance on contractor for critical IT infrastructure
Complexity of managing IT services at an overseas location

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.1 million to M. C. DEAN, INC.. MAINTENANCE & SERVICE (M&S) USAG WIESBADEN, GERMANY

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 $40.1 million.

What is the period of performance?

Start: 2022-05-19. End: 2026-05-18.

What is M.C. Dean, Inc.'s track record with similar IT service contracts for the Department of Defense, particularly in overseas locations?

M.C. Dean, Inc. has a significant history of performing large-scale IT and engineering services contracts for various government agencies, including the Department of Defense. Their experience often involves complex infrastructure projects, cybersecurity, and facility management. For overseas locations, they have undertaken projects that require navigating logistical challenges and adhering to specific security protocols. Analyzing their past performance on similar contracts, including any past performance evaluations or awards/debarments, would provide further insight into their capability to execute this specific $40.1 million contract effectively at USAG Wiesbaden over its four-year duration.

How does the $40.1 million contract value compare to other IT maintenance and service contracts awarded by the Army for similar-sized installations in Europe?

Directly comparing the $40.1 million value requires detailed analysis of contract scope, duration, and specific services. However, for a four-year contract supporting a significant installation like USAG Wiesbaden, this figure appears to be within a reasonable range for comprehensive IT maintenance and design services. Factors influencing this value include the complexity of the existing infrastructure, the scope of required upgrades or new designs, cybersecurity mandates, and the cost of labor and logistics in Germany. Without specific data on comparable contracts' exact service offerings and installation sizes, it's difficult to definitively benchmark, but the full and open competition suggests the price was deemed competitive.

What are the primary risks associated with a 4-year firm-fixed-price IT services contract for an overseas military base?

Key risks for a 4-year firm-fixed-price IT services contract at an overseas base include potential for contractor underperformance if cost-saving measures compromise quality, unforeseen technological obsolescence requiring costly upgrades not covered by the fixed price, and logistical challenges unique to overseas operations (e.g., supply chain disruptions, personnel deployment). For the government, the risk lies in the contractor's ability to maintain service levels throughout the contract term and the potential for disputes if the scope of work is not meticulously defined. The firm-fixed-price structure places the financial risk of cost overruns on the contractor, but this can sometimes lead to reduced service scope or quality if not properly managed and overseen.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specific IT services contract?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid. This increases the likelihood of receiving competitive pricing and innovative solutions. For this $40.1 million IT services contract, the fact that it was competed openly suggests that the Army sought to leverage market forces to obtain the best possible outcome. The presence of multiple bidders (indicated as 3) further supports this, as it provides a basis for comparison and negotiation. The ultimate value for money will also depend on the clarity of the performance work statement and the effectiveness of contract administration and oversight.

What are the historical spending patterns for IT maintenance and services at USAG Wiesbaden or similar Army installations in Europe?

Historical spending patterns for IT maintenance and services at installations like USAG Wiesbaden typically show consistent, significant investment due to the critical nature of IT infrastructure for military operations. Spending often fluctuates based on modernization initiatives, cybersecurity upgrades, and the lifecycle of existing equipment. Contracts for such services are usually long-term, often spanning multiple years, and can range from tens to hundreds of millions of dollars depending on the installation's size and strategic importance. Analyzing past contract awards for USAG Wiesbaden or comparable European bases would reveal trends in service providers, contract types (FFP, cost-plus), and overall expenditure levels, providing context for the current $40.1 million award.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY17R0014

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1765 GREENSBORO STATION PLACE SUITE 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: $43,479,740

Exercised Options: $40,911,254

Current Obligation: $40,113,835

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $114,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0034

IDV Type: IDC

Timeline