Navy awards $27.4M for ship modernization, Delphinus Engineering to lead upgrades

Contract Overview

Contract Amount: $27,435,604 ($27.4M)

Contractor: Delphinus Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-22

End Date: 2015-09-21

Contract Duration: 1,825 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CODE 951 WILL UTILIZE ENGINEERS, TECHNICIANS AND AITS TO IMPLEMENT ENGINEERED UPGRADES AND MODERNIZATION OF CONDITION ASSESSMENT SYSTEMS TO ENHANCE FLEET READINESS ON SURFACE SHIPS.

Place of Performance

Location: CRUM LYNNE, DELAWARE County, PENNSYLVANIA, 19022

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to DELPHINUS ENGINEERING, INC. for work described as: CODE 951 WILL UTILIZE ENGINEERS, TECHNICIANS AND AITS TO IMPLEMENT ENGINEERED UPGRADES AND MODERNIZATION OF CONDITION ASSESSMENT SYSTEMS TO ENHANCE FLEET READINESS ON SURFACE SHIPS. Key points: 1. Contract focuses on enhancing fleet readiness through engineered upgrades. 2. The award represents a significant investment in naval infrastructure. 3. Competition dynamics are crucial for ensuring cost-effectiveness in defense spending. 4. Performance context involves modernization of condition assessment systems. 5. Sector positioning is within the critical defense engineering services market. 6. Risk indicators may include technical complexity and schedule adherence.

Value Assessment

Rating: good

The contract value of $27.4 million for engineering services appears reasonable given the scope of modernizing condition assessment systems for surface ships. Benchmarking against similar large-scale naval modernization projects suggests that costs are within expected ranges, though specific per-unit cost data for the system upgrades is not provided. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while aiming for cost control, but requires careful oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of robust competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not detailed, but the 'full and open' designation suggests a broad solicitation.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovative solutions.

Public Impact

Benefits the U.S. Navy's surface fleet by improving readiness and operational capabilities. Delivers essential engineering services for the modernization of critical assessment systems. Geographic impact is national, supporting naval operations across various fleets. Workforce implications include employment for engineers and technicians specializing in naval systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely managed.
Schedule delays could impact fleet readiness timelines.
Technical challenges in modernizing legacy systems may arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Focus on enhancing fleet readiness aligns with strategic defense objectives.
Contractor has experience in engineering services, potentially mitigating execution risks.

Sector Analysis

The defense engineering services sector is a critical component of the U.S. military's ability to maintain and upgrade its vast array of assets. This contract fits within the broader market for naval ship maintenance, repair, and modernization, which is substantial. Comparable spending benchmarks in this area often involve multi-million dollar contracts for system upgrades and platform modernization, reflecting the complexity and scale of naval engineering requirements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Delphinus Engineering, Inc., is likely a mid-to-large sized firm. There is no explicit information on subcontracting plans for small businesses within this award, which could represent a missed opportunity for small business participation in specialized engineering roles.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and program managers. Accountability measures would focus on tracking costs, ensuring adherence to the fixed fee, and verifying the successful completion of modernization tasks. Transparency is generally maintained through contract award databases, though detailed performance metrics may be internal.

Related Government Programs

Naval Ship Modernization Programs
Surface Ship Readiness Initiatives
Defense Engineering Services Contracts
Condition Assessment System Upgrades

Risk Flags

Potential for cost creep in CPFF contract
Schedule adherence critical for fleet readiness
Complexity of modernizing legacy systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to DELPHINUS ENGINEERING, INC.. CODE 951 WILL UTILIZE ENGINEERS, TECHNICIANS AND AITS TO IMPLEMENT ENGINEERED UPGRADES AND MODERNIZATION OF CONDITION ASSESSMENT SYSTEMS TO ENHANCE FLEET READINESS ON SURFACE SHIPS.

Who is the contractor on this award?

The obligated recipient is DELPHINUS ENGINEERING, 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 $27.4 million.

What is the period of performance?

Start: 2010-09-22. End: 2015-09-21.

What is Delphinus Engineering, Inc.'s track record with the Department of Defense, particularly in similar naval modernization projects?

Delphinus Engineering, Inc. has a history of performing engineering and technical services for the Department of Defense. While specific details on past naval modernization projects are not provided in this data snippet, their award for CODE 951 suggests they possess the requisite experience and qualifications for such work. A deeper dive into their contract history would reveal the scale, complexity, and success rates of their previous engagements, providing further insight into their capabilities and reliability for this specific project. Examining past performance evaluations and any reported issues would offer a more comprehensive understanding of their track record.

How does the $27.4 million award compare to the typical cost of modernizing condition assessment systems on surface ships?

The $27.4 million figure for modernizing condition assessment systems on surface ships is a significant investment, but its comparability depends heavily on the number of ships involved, the scope of the upgrades (e.g., hardware replacement, software integration, sensor technology), and the specific types of surface vessels. Without detailed project breakdowns or data on similar modernization efforts across the fleet, it's challenging to establish a precise benchmark. However, large-scale naval system upgrades often run into tens of millions of dollars due to the complexity, stringent requirements, and the need for long-term reliability in a harsh maritime environment. This award likely covers a substantial portion of the fleet or a particularly complex set of upgrades.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for the Navy?

The primary risk for the Navy with a CPFF contract is the potential for cost overruns. While the contractor is paid their actual costs plus a predetermined fixed fee, there is less incentive for the contractor to control costs compared to fixed-price contracts. If the contractor's costs escalate significantly beyond initial estimates, the government bears that increased expense. To mitigate this, the Navy must implement robust oversight, including detailed cost tracking, regular audits, and strict change order management, to ensure that costs remain reasonable and that the fixed fee adequately compensates the contractor for their effort without excessive profit.

How will the modernization of condition assessment systems enhance fleet readiness?

Modernizing condition assessment systems is crucial for enhancing fleet readiness by providing more accurate, timely, and comprehensive data on the health and performance of shipboard equipment and structures. Improved systems can detect potential issues earlier, allowing for proactive maintenance and preventing costly breakdowns or mission-critical failures at sea. This leads to increased operational availability of vessels, reduced downtime for repairs, and better-informed decisions regarding maintenance schedules and resource allocation. Ultimately, it ensures that the Navy's surface ships are more reliable and capable of fulfilling their operational missions.

What is the historical spending pattern for engineering services related to naval ship modernization by the Department of the Navy?

Historical spending by the Department of the Navy on engineering services for naval ship modernization has been substantial and consistent, reflecting the ongoing need to maintain and upgrade a large, aging fleet. Annual expenditures in this category often reach billions of dollars across various programs, encompassing everything from minor system upgrades to major platform overhauls. This $27.4 million award for condition assessment systems is one component within this larger spending picture. Trends typically show a steady demand for these services, influenced by defense budgets, geopolitical requirements, and the lifecycle of naval assets.

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: N0002410R3181

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 650 BALDWIN TOWER BLVD, EDDYSTONE, PA, 19022

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,295,818

Exercised Options: $28,076,230

Current Obligation: $27,435,604

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4033

IDV Type: IDC

Timeline