DoD awards $15M for Naval Digital Transformation, with Delta Constellation Group leading R&D efforts

Contract Overview

Contract Amount: $14,950,961 ($15.0M)

Contractor: Delta Constellation Group, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-06

End Date: 2025-06-05

Contract Duration: 1,095 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NAVAL DIGITAL TRANSFORMATION AND INTEGRATION SYSTEMS ENGINEERING AND PLANNING FOR NAVAL DIGITAL INTEGRATION SUPPORT CELL

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to DELTA CONSTELLATION GROUP, LLC for work described as: NAVAL DIGITAL TRANSFORMATION AND INTEGRATION SYSTEMS ENGINEERING AND PLANNING FOR NAVAL DIGITAL INTEGRATION SUPPORT CELL Key points: 1. Contract focuses on research and development for naval digital integration, a critical area for modernization. 2. The award is a delivery order under a larger contract, indicating potential for follow-on work. 3. The contractor, Delta Constellation Group, LLC, is tasked with complex engineering and planning services. 4. The contract duration of 1095 days suggests a significant, multi-year effort. 5. The specific NAICS code (541715) points to specialized R&D in physical and engineering sciences. 6. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, balancing flexibility with contractor incentive.

Value Assessment

Rating: good

The award amount of $14.95 million for a 3-year R&D effort appears reasonable given the specialized nature of naval digital transformation. Benchmarking against similar R&D contracts in defense requires access to proprietary data, but the scope suggests a significant investment. The Cost Plus Fixed Fee structure is common for R&D where exact costs are difficult to predict, but it necessitates careful oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies a competitive process was initiated but specific sources were later excluded. This suggests that while multiple bidders may have been considered initially, the final selection was made from a narrowed pool. The level of competition, even if initially broad, is crucial for ensuring fair pricing and innovation.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by fostering a more efficient market and potentially leading to better pricing and service quality compared to sole-source awards.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, who will receive enhanced digital integration capabilities. Services delivered include systems engineering, planning, and R&D crucial for modernizing naval operations. The geographic impact is primarily within the defense sector, potentially supporting naval bases and operations globally. Workforce implications may include specialized roles for engineers, researchers, and technical planners within the contractor's organization and potentially within the Navy's digital transformation initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent overruns.
The 'after exclusion of sources' clause warrants scrutiny to understand the rationale behind the exclusions and ensure fairness.
The specialized nature of R&D means performance metrics and success criteria must be clearly defined and monitored.

Positive Signals

Awarding to a single contractor for a complex, integrated system can lead to streamlined execution and clear lines of responsibility.
The full and open competition aspect, even with exclusions, suggests an effort to leverage the broader market for specialized R&D.
The multi-year duration allows for sustained focus and development on critical naval digital transformation goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced engineering and integration for defense applications. The market for defense R&D is highly specialized, with a limited number of firms possessing the requisite expertise. Spending in this area is driven by the need for technological superiority and modernization within military branches. Comparable spending benchmarks would typically be found within DoD's R&D budget allocations for IT and systems integration.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. While this contract may not directly benefit small businesses through set-asides, the prime contractor could potentially engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting agency (Department of the Air Force, serving the Navy) through program managers and contract specialists. Accountability measures will focus on adherence to the fixed fee, cost reporting, and achievement of R&D milestones. Transparency is typically managed through contract reporting mechanisms and official solicitations/award notices.

Related Government Programs

Naval Systems Engineering
Defense Digital Transformation Initiatives
Information Technology Research and Development
Naval Warfare Systems Integration
DoD Research and Development Contracts

Risk Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts.
Need for clear definition and monitoring of R&D milestones.
Ensuring effective competition despite source exclusions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to DELTA CONSTELLATION GROUP, LLC. NAVAL DIGITAL TRANSFORMATION AND INTEGRATION SYSTEMS ENGINEERING AND PLANNING FOR NAVAL DIGITAL INTEGRATION SUPPORT CELL

Who is the contractor on this award?

The obligated recipient is DELTA CONSTELLATION GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2022-06-06. End: 2025-06-05.

What is the specific nature of the 'Naval Digital Integration Support Cell' and its role within the Navy's digital strategy?

The Naval Digital Integration Support Cell (NDISC) is envisioned as a crucial entity responsible for facilitating and accelerating the adoption of digital technologies across the U.S. Navy. Its role likely involves developing strategies, standards, and architectures for integrating various digital systems, data platforms, and operational technologies. This includes areas like cloud computing, artificial intelligence, cybersecurity, and data analytics to enhance warfighting capabilities, improve operational efficiency, and streamline maintenance and logistics. The R&D contract awarded to Delta Constellation Group aims to provide the foundational engineering and planning expertise necessary for the NDISC to effectively support these digital transformation goals.

How does the 'Full and Open Competition After Exclusion of Sources' process differ from standard full and open competition, and what are the implications?

Standard 'Full and Open Competition' means all responsible sources are permitted to submit an offer. 'Full and Open Competition After Exclusion of Sources' implies that the agency initially intended to compete the requirement broadly but subsequently excluded certain sources based on specific criteria or justifications, such as national security concerns, proprietary data limitations, or unique capabilities. This process can still be competitive but may result in a smaller pool of eligible bidders. The implications are that while competition is sought, the exclusion might limit the range of innovative solutions or potentially lead to higher prices if the remaining pool of bidders is small or lacks sufficient competitive pressure. Transparency regarding the reasons for exclusion is key for understanding the impact on fairness and value.

What are the key performance indicators (KPIs) likely to be used to measure the success of this R&D contract?

For an R&D contract focused on systems engineering and planning for digital transformation, Key Performance Indicators (KPIs) would likely revolve around the successful development and delivery of specific technical documentation, prototypes, architectural designs, and feasibility studies. Examples could include: timely completion of defined research phases, successful validation of proposed digital integration architectures through simulations or modeling, development of comprehensive technical specifications, identification and mitigation of key technical risks, and the clarity and completeness of strategic planning documents for the NDISC. The effectiveness of the contractor's recommendations in aligning with the Navy's broader digital strategy and future implementation plans would also be a critical, albeit longer-term, measure of success.

What is Delta Constellation Group, LLC's track record in similar defense R&D or digital transformation projects?

Assessing Delta Constellation Group, LLC's specific track record requires access to detailed contract databases and performance reviews. However, their selection for this significant R&D effort suggests they possess relevant expertise in defense systems engineering, digital technologies, and potentially naval applications. Companies awarded such contracts typically have a history of successful project execution, demonstrated technical capabilities, and a strong understanding of the defense procurement environment. Further investigation into their past performance on similar contracts, particularly those involving complex integration and R&D within the Department of Defense or other federal agencies, would provide a clearer picture of their capabilities and reliability.

How does this $14.95 million award compare to historical spending on naval digital transformation or related R&D efforts within the DoD?

The $14.95 million award represents a specific investment in the foundational R&D and planning stages of naval digital transformation. The Department of Defense, as a whole, allocates billions annually to research, development, and modernization efforts, including significant portions dedicated to IT infrastructure, cybersecurity, and advanced warfighting capabilities. This particular contract is a component of a larger, ongoing strategic push towards digitalization across all military branches. While $15 million is substantial for a single R&D contract, it should be viewed within the context of the vast sums the DoD invests in technological advancement and system integration, which can range from hundreds of millions to billions of dollars annually for major programs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1100 NEW JERSEY AVE SE STE 400, WASHINGTON, DC, 20003

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,950,961

Exercised Options: $14,950,961

Current Obligation: $14,950,961

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807519D0022

IDV Type: IDC

Timeline