M.C. Dean awarded $12.8M for maintenance services at USAG Ansbach, Germany, under full and open competition

Contract Overview

Contract Amount: $12,821,076 ($12.8M)

Contractor: M. C. Dean, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2026-09-20

Contract Duration: 1,095 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW ASK ORDER TO PROVIDE PREVENTATIVE AND CORRECTIVE MAINTENANCE AT USAG ANSBACH, GERMANY

Plain-Language Summary

Department of Defense obligated $12.8 million to M. C. DEAN, INC. for work described as: NEW ASK ORDER TO PROVIDE PREVENTATIVE AND CORRECTIVE MAINTENANCE AT USAG ANSBACH, GERMANY Key points: 1. Contract awarded for preventative and corrective maintenance, indicating a need for ongoing facility upkeep. 2. The contract duration of 1095 days (3 years) suggests a stable, long-term requirement. 3. Awarded under full and open competition, implying a competitive bidding process. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services, which may encompass IT infrastructure maintenance. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 7. No small business set-aside was utilized, suggesting the primary contractor is not a small business or the requirement did not meet set-aside criteria.

Value Assessment

Rating: good

The contract value of $12.8 million over three years for maintenance services in Germany appears reasonable, especially considering the scope of preventative and corrective actions. Benchmarking against similar IT infrastructure maintenance contracts for overseas military installations would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government has negotiated a set price, which can be advantageous if the contractor manages costs effectively. However, without specific details on the services included, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 6 bidders indicates a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used more efficiently, as multiple companies vied to offer the best value, driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the U.S. Army Garrison (USAG) Ansbach in Germany, which will receive essential maintenance services. The services delivered will ensure the operational readiness and functionality of facilities and potentially IT infrastructure at the military base. The geographic impact is localized to USAG Ansbach, Germany, supporting the U.S. military presence in Europe. The contract supports the workforce of M.C. Dean, Inc., potentially creating or sustaining jobs related to facility and IT maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen maintenance issues.
Dependence on a single contractor for critical maintenance could pose a risk if performance issues arise.
Scope creep could occur if the definition of 'preventative and corrective maintenance' is not clearly delineated.
Geopolitical factors in Germany could potentially impact service delivery or costs.
Ensuring compliance with local German regulations for maintenance and labor practices.

Positive Signals

Awarded through full and open competition, suggesting a competitive and potentially cost-effective selection process.
The firm-fixed-price contract type transfers cost risk to the contractor, potentially saving the government money.
A 3-year contract duration indicates a stable requirement and allows for consistent service delivery.
The contractor, M.C. Dean, Inc., is likely an established entity with experience in similar services.
The contract aims to ensure the operational readiness of a key military installation.

Sector Analysis

This contract falls within the broader Information Technology and Facilities Maintenance sectors. The IT component, indicated by NAICS 541512, suggests services related to the design and integration of computer systems, which often includes the maintenance of the underlying infrastructure. The facilities maintenance aspect is crucial for ensuring the operational readiness of military installations. Comparable spending benchmarks would involve analyzing other Department of Defense contracts for similar maintenance services at overseas bases, considering factors like labor costs, security requirements, and the specific technological infrastructure involved.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary focus was on obtaining the best value through open competition, potentially favoring larger, established contractors. The absence of explicit small business provisions means there may be limited direct impact on the small business ecosystem for this specific award, although the prime contractor might engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures would be enforced through contract clauses, performance metrics, and payment schedules tied to successful service delivery. Transparency is facilitated by contract databases like FPDS, which publish award details. Inspector General (IG) jurisdiction could be invoked if significant issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Base Operations Support (BOS)
Information Technology Services Contracts
Facilities Engineering and Maintenance
Defense Infrastructure Projects
Overseas Military Construction

Risk Flags

Potential for performance issues due to overseas location complexities.
Risk of cost escalation impacting the fixed-price agreement.
Dependence on contractor's ability to manage diverse maintenance needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to M. C. DEAN, INC.. NEW ASK ORDER TO PROVIDE PREVENTATIVE AND CORRECTIVE MAINTENANCE AT USAG ANSBACH, 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 $12.8 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-09-20.

What is the track record of M.C. Dean, Inc. with the Department of Defense for similar maintenance contracts?

M.C. Dean, Inc. has a significant history of contracting with the Department of Defense (DoD) for a wide range of services, including facilities maintenance, IT infrastructure, and engineering solutions. Their portfolio often includes large-scale projects at military installations both domestically and internationally. Analyzing their past performance on similar contracts, particularly those involving preventative and corrective maintenance at overseas bases, would reveal their reliability, quality of service, and ability to manage complex requirements. Past performance reviews and any documented disputes or contract terminations would be critical indicators of their suitability for this current award. A review of their contract history would likely show numerous awards across various branches of the military, underscoring their established presence within the federal contracting space.

How does the per-year cost of this contract compare to similar overseas base maintenance contracts?

The annual cost for this contract is approximately $4.27 million ($12.8 million / 3 years). To benchmark this effectively, we would need to compare it against contracts for similar services (facilities maintenance, IT infrastructure support) at comparable overseas military installations. Factors such as the specific geographic location (cost of living, labor rates), the size and complexity of the installation, and the scope of services (e.g., critical infrastructure vs. general upkeep) significantly influence pricing. Contracts awarded under full and open competition generally provide a good basis for comparison. If similar-sized bases in similar regions have contracts in the $3-5 million annual range for comparable services, this award would appear to be within market norms. Conversely, significantly higher or lower figures would warrant further investigation into the scope, duration, and competitive landscape.

What are the primary risks associated with a firm-fixed-price contract for maintenance services in an overseas location?

A primary risk with a firm-fixed-price (FFP) contract for overseas maintenance is the contractor's potential to cut corners on quality or scope to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. For maintenance, this could mean delaying non-critical repairs or using less durable materials. In an overseas location, risks are amplified by logistical challenges, potential currency fluctuations, differing labor laws, and geopolitical instability, all of which can impact the contractor's costs and ability to perform. The government's risk is that the fixed price may not adequately cover all necessary work if the scope is significantly underestimated or if external factors drastically increase costs, potentially leading to performance deficiencies or disputes. Robust performance monitoring and clear contract terms are crucial to mitigate these risks.

What is the expected impact of these maintenance services on the operational effectiveness of USAG Ansbach?

The preventative and corrective maintenance services are critical for ensuring the sustained operational effectiveness of USAG Ansbach. Preventative maintenance aims to identify and address potential issues before they cause failures, thereby minimizing downtime for essential systems and infrastructure. Corrective maintenance addresses issues that have already arisen. By ensuring that facilities, power systems, communication networks, and other critical infrastructure are well-maintained, these services directly support the base's ability to carry out its mission, house personnel, conduct operations, and maintain security. A failure in these systems could lead to significant disruptions, safety hazards, and mission degradation, making this contract vital for the base's overall readiness and functionality.

How has spending on IT and facilities maintenance at USAG Ansbach trended over the past five years?

To assess historical spending trends at USAG Ansbach for IT and facilities maintenance, one would need to query federal procurement databases (like FPDS) for all contracts awarded to that installation over the past five years. This analysis would involve filtering for relevant NAICS codes (e.g., 541512 for IT services, and various codes related to facilities maintenance and repair) and agencies (Department of the Army). The goal would be to identify the total obligated amounts, contract types, and durations for previous maintenance contracts. Observing trends—whether spending has increased, decreased, or remained stable—can indicate changes in the base's infrastructure needs, aging of facilities, or shifts in contracting strategies. This context helps evaluate if the current $12.8 million award represents a significant increase or is in line with historical investment.

What specific IT systems or infrastructure components are covered under the NAICS code 541512 for this contract?

The NAICS code 541512, 'Computer Systems Design Services,' typically covers services such as designing, developing, and integrating hardware, software, and communication technologies. For a maintenance contract at a military installation, this could encompass a wide range of IT infrastructure components. Examples include the design, installation, and maintenance of local area networks (LANs) and wide area networks (WANs), server infrastructure, data centers, cybersecurity systems, communication systems (voice and data), and potentially specialized IT systems supporting base operations. Preventative maintenance might involve system updates, hardware checks, and performance monitoring, while corrective maintenance would address system failures, network outages, or hardware malfunctions. The exact scope would be detailed in the contract's Statement of Work (SOW).

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: 6

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: $22,037,444

Exercised Options: $14,776,711

Current Obligation: $12,821,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0034

IDV Type: IDC

Timeline