DoD's $25.7M Engineering Support Contract Awarded to Delphinus Engineering, Inc

Contract Overview

Contract Amount: $25,749,063 ($25.7M)

Contractor: Delphinus Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-10-29

End Date: 2018-10-28

Contract Duration: 1,095 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: IGF::CT::IGF ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES TO NSWCCD NAVSSES

Place of Performance

Location: CRUM LYNNE, DELAWARE County, PENNSYLVANIA, 19022

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to DELPHINUS ENGINEERING, INC. for work described as: IGF::CT::IGF ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES TO NSWCCD NAVSSES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risks. 3. The contract duration of 1095 days (3 years) indicates a medium-term engagement for specialized services. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery contract vehicle. 6. The contract was not set aside for small businesses, suggesting the scope or nature of services may not have been suitable for smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and performance metrics. The CPIF contract type introduces variability in the final cost. Comparing it to similar engineering support contracts within the Department of Defense would require access to a broader dataset of contract awards and their associated performance outcomes. The initial award amount of $25.7 million over three years suggests a moderate investment for specialized technical and management support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders (no: 2) suggests a moderate level of competition for this specific award. While competition is generally beneficial for price discovery, a low number of bidders could indicate a niche market or high barriers to entry for potential competitors.

Taxpayer Impact: A competitive bidding process, even with a limited number of bidders, generally leads to better pricing for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center, Philadelphia Division (NSWCCD) and its Naval Ship Systems Engineering Station (NAVSSES), receiving essential engineering and technical support. Services delivered include engineering, technical, and management support, crucial for maintaining and advancing naval systems. The geographic impact is primarily centered around the Naval Surface Warfare Center in Philadelphia, Pennsylvania. The contract supports specialized engineering and technical roles, potentially impacting the workforce within the defense engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type can lead to costs exceeding initial estimates if not managed carefully.
Limited competition (2 bidders) may not have driven the most aggressive pricing.
The specific nature of 'engineering, technical and management support' can be broad, potentially leading to scope creep if not well-defined.

Positive Signals

Awarded via full and open competition, ensuring a broad search for qualified contractors.
The contract is for specialized engineering services, indicating a need for specific expertise.
The contractor, Delphinus Engineering, Inc., is likely experienced in providing such support to the DoD.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the defense industrial base. The market for defense engineering support is characterized by specialized firms with deep technical expertise and security clearances. Spending in this sector is driven by the need for advanced research, development, and sustainment of complex military systems. Comparable spending benchmarks would involve analyzing other contracts for similar engineering and technical support services awarded by various branches of the U.S. military.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the scope, complexity, or specific requirements of the engineering services were likely beyond the typical capabilities or capacity of small businesses, or that the competition was structured in a way that favored larger, more established firms. There is no explicit indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The CPIF contract type necessitates close monitoring of costs and performance against established incentives. Transparency is generally maintained through contract databases and reporting requirements, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Technical Support Services Contracts
Management Support Services Contracts

Risk Flags

Potential for cost overruns due to CPIF structure.
Limited number of bidders may indicate reduced price competition.
Scope creep risk in broad engineering support contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to DELPHINUS ENGINEERING, INC.. IGF::CT::IGF ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES TO NSWCCD NAVSSES

Who is the contractor on this award?

The obligated recipient is DELPHINUS ENGINEERING, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2015-10-29. End: 2018-10-28.

What is the historical spending pattern for Delphinus Engineering, Inc. with the Department of Defense?

Analyzing the historical spending patterns of Delphinus Engineering, Inc. with the Department of Defense requires access to a comprehensive database of federal contract awards. Based on the provided data, this specific contract represents a $25.7 million award over three years. To understand their broader track record, one would need to examine all contracts awarded to Delphinus Engineering, Inc. by the DoD, noting the agencies involved, the types of services rendered, contract values, and performance history. This would reveal if they are a frequent or occasional contractor, and if their awards are concentrated in specific service areas or agencies. Without this broader context, it's difficult to assess their overall relationship and performance trends with the DoD.

How does the Cost Plus Incentive Fee (CPIF) structure impact the final cost of this contract compared to fixed-price alternatives?

The Cost Plus Incentive Fee (CPIF) structure allows the contractor to incur costs, with the final negotiated total cost being adjusted based on performance against predetermined targets. If the contractor meets or exceeds targets (e.g., cost savings, schedule adherence, technical performance), they earn a higher fee. Conversely, if they underperform, their fee is reduced. This contrasts with fixed-price contracts, where the price is set upfront, and the contractor bears the full risk of cost overruns. For taxpayers, CPIF can be beneficial if targets are well-defined and achievable, leading to cost efficiencies and high performance. However, it carries a risk of higher costs than anticipated if targets are not met or if the baseline cost estimate is inaccurate. The incentive fee mechanism aims to align contractor and government interests, but requires robust oversight to ensure fair pricing and prevent excessive costs.

What are the key performance indicators (KPIs) typically associated with engineering and technical support contracts for naval systems?

Key Performance Indicators (KPIs) for engineering and technical support contracts for naval systems often revolve around technical accuracy, timeliness, cost control, and responsiveness. Specific KPIs might include the percentage of engineering designs meeting specified requirements, on-time delivery of technical reports and analyses, adherence to project schedules, and the number of design revisions required due to errors. For management support, KPIs could involve successful project milestone completion, effective resource allocation, and clear communication channels. The CPIF structure in this contract suggests that performance against cost targets and potentially specific technical milestones would be critical KPIs influencing the contractor's fee. Robust quality assurance and acceptance testing processes are also implicit KPIs, ensuring the delivered support meets the stringent standards of naval operations.

What is the typical market size and competitive landscape for engineering services supporting the Naval Surface Warfare Center?

The market for engineering services supporting the Naval Surface Warfare Center (NSWC) is specialized and competitive, primarily populated by firms with deep expertise in naval architecture, marine engineering, systems engineering, and related technical fields. These firms often possess specific security clearances and a proven track record with the Department of Defense. The competitive landscape includes large defense contractors as well as smaller, niche engineering firms. The size of the market is substantial, driven by the continuous need for research, development, modernization, and sustainment of the U.S. Navy's fleet. Contracts can range from small, specialized studies to large, multi-year support efforts like the one awarded to Delphinus Engineering. Competition is often fierce, particularly for larger contracts awarded under full and open competition, as evidenced by the presence of multiple bidders.

How does the 'Delivery Order' award type affect the overall contract management and potential for future work?

The 'Delivery Order' award type indicates that this contract is a task order issued under an existing indefinite-delivery contract (ID) vehicle. This structure allows the government to procure services incrementally as needed, providing flexibility. For the contractor, it means they have secured a potential stream of work, but the exact scope and timing of individual orders are determined by the government. This approach can streamline the procurement process for recurring or anticipated needs. From a management perspective, it requires ongoing coordination between the contracting officer and the program office to ensure orders align with requirements and funding. The existence of this delivery order suggests Delphinus Engineering, Inc. was selected as a prime contractor on a broader IDIQ contract, potentially positioning them for future task orders within the scope of that larger vehicle.

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: N0002416R3066

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 3803 WEST CHESTER PIKE STE 190, NEWTOWN SQUARE, PA, 19073

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: $32,285,662

Exercised Options: $30,953,278

Current Obligation: $25,749,063

Subaward Activity

Number of Subawards: 59

Total Subaward Amount: $5,878,452

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4033

IDV Type: IDC

Timeline