Navy awards $17.5M engineering and logistics support contract to Delphinus Engineering

Contract Overview

Contract Amount: $17,490,108 ($17.5M)

Contractor: Delphinus Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND LOGISTIC SUPPORT SERVICES FOR ENVIRONMENTAL SOLUTIONS, POLLUTION PREVENTION, SHIP-TO SHORT TECHNOLOGIES, AND SAFETY SYSTEMS SUPPORTING THE US NAVY, US ARMY, COAST GUARD, MARINE CORPS, MSC, OFFSHORE PLATFORMS, FMS, AND JOINT PROGRAMS.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to DELPHINUS ENGINEERING, INC. for work described as: ENGINEERING AND LOGISTIC SUPPORT SERVICES FOR ENVIRONMENTAL SOLUTIONS, POLLUTION PREVENTION, SHIP-TO SHORT TECHNOLOGIES, AND SAFETY SYSTEMS SUPPORTING THE US NAVY, US ARMY, COAST GUARD, MARINE CORPS, MSC, OFFSHORE PLATFORMS, FMS, AND JOINT PROGRAMS. Key points: 1. Contract provides critical engineering and logistics support for environmental, pollution prevention, and safety systems across multiple military branches. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Performance period extends over four years, indicating a need for sustained support. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 5. The contractor, Delphinus Engineering, Inc., has a track record with the Department of Defense. 6. This contract supports a broad range of naval and joint programs, highlighting its strategic importance.

Value Assessment

Rating: good

The contract value of $17.5 million over four years appears reasonable for comprehensive engineering and logistics support services. Benchmarking against similar large-scale defense contracts for specialized engineering services suggests this is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while common, necessitates diligent oversight to ensure costs remain controlled and that the fixed fee is appropriate for the scope of work. Without specific details on the fixed fee percentage or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

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 suggests a moderate level of competition for this specialized service. While more than two bidders would typically indicate stronger price discovery, the full and open nature of the competition is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best offers from a wide range of qualified companies, promoting competitive pricing.

Public Impact

The US Navy, US Army, Coast Guard, Marine Corps, and Military Sealift Command benefit from enhanced engineering and logistics support. Services include environmental solutions, pollution prevention, ship-to-short technologies, and safety systems. The contract supports offshore platforms and joint programs, indicating a broad operational impact. This contract ensures the readiness and operational effectiveness of critical naval and joint military assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type requires robust oversight to manage costs effectively and prevent potential overruns.
Limited competition (2 bidders) may not have driven the absolute lowest price compared to a more crowded field.
The duration of the contract (4 years) necessitates ongoing performance monitoring to ensure sustained quality and value.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
The contractor, Delphinus Engineering, Inc., is a known entity within the defense sector, suggesting familiarity with requirements.
The contract supports critical safety and environmental systems, aligning with important government priorities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal procurement landscape supporting defense and infrastructure. The market for specialized engineering and logistics support for military applications is substantial, driven by the complex needs of naval and joint operations. This award represents a portion of the broader Department of Defense spending on technical services, which often involves long-term engagements and requires contractors with specific expertise and security clearances. Comparable spending benchmarks for similar multi-year engineering support contracts with the Navy can range from tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, Delphinus Engineering, Inc. may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem. The extent of subcontracting opportunities will depend on the specific technical requirements and Delphinus's subcontracting strategy.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and their representatives within the Department of the Navy. Performance monitoring, cost tracking, and compliance with contract terms are key oversight functions. Transparency is facilitated through contract award databases and reporting requirements. 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
Environmental Compliance Support
Military Logistics and Maintenance Contracts
Shipbuilding and Repair Support Services

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition (2 Bidders)
Performance Monitoring Requirement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to DELPHINUS ENGINEERING, INC.. ENGINEERING AND LOGISTIC SUPPORT SERVICES FOR ENVIRONMENTAL SOLUTIONS, POLLUTION PREVENTION, SHIP-TO SHORT TECHNOLOGIES, AND SAFETY SYSTEMS SUPPORTING THE US NAVY, US ARMY, COAST GUARD, MARINE CORPS, MSC, OFFSHORE PLATFORMS, FMS, AND JOINT PROGRAMS.

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 $17.5 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is Delphinus Engineering, Inc.'s track record with the Department of Defense, particularly on similar contracts?

Delphinus Engineering, Inc. has a history of performing contracts with the Department of Defense, including the Navy. While specific details on past performance metrics for this exact type of service are not provided in the summary data, their selection for this significant contract suggests they have met the necessary qualifications and demonstrated capability. Further analysis would involve reviewing past performance evaluations, any contract disputes, and the scope of their previous work to assess their reliability and expertise in delivering engineering and logistics support for environmental, pollution prevention, and safety systems.

How does the $17.5 million contract value compare to similar engineering and logistics support contracts awarded by the Navy or other DoD branches?

The $17.5 million contract value over a four-year period averages approximately $4.375 million per year. This figure appears moderate for specialized engineering and logistics support within the defense sector. Large-scale contracts for similar services can range significantly, from a few million to hundreds of millions of dollars, depending on the scope, duration, and complexity. Given that this contract supports multiple branches and critical systems, its value seems aligned with the expected investment for sustained, high-level technical support. A more precise comparison would require analyzing contracts with identical or very similar scopes of work and durations.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of increased costs above the estimated amount. This necessitates robust oversight from the contracting agency to scrutinize incurred costs, ensure efficiency, and prevent unnecessary expenditures. Another risk is ensuring the fixed fee remains fair and appropriate for the effort expended. Without strong government oversight, CPFF contracts can be less cost-effective than fixed-price arrangements.

What is the expected impact of this contract on the operational readiness and effectiveness of the supported military branches?

This contract is expected to significantly enhance the operational readiness and effectiveness of the US Navy, Army, Coast Guard, Marine Corps, and other supported entities. By providing essential engineering and logistics support for environmental solutions, pollution prevention, and safety systems, it ensures that critical assets are maintained, compliant with regulations, and operate safely. This support is vital for mission accomplishment, reducing downtime, and mitigating risks associated with environmental hazards or system failures. The continuity of these services over four years provides a stable foundation for ongoing operational support.

How has spending on engineering and logistics support services for the Navy evolved over the past five years?

Analyzing historical spending trends for engineering and logistics support services for the Navy over the past five years would reveal patterns in demand and investment. Generally, such spending is influenced by fleet modernization, maintenance requirements, new technology integration, and evolving environmental and safety regulations. While specific figures for this contract's category are not detailed here, the Navy consistently allocates substantial budgets to technical services to maintain its complex platforms and systems. Spending in this area often remains robust, reflecting the ongoing need for specialized expertise to support advanced naval capabilities and ensure operational readiness.

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: N0016722R3000

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,149,261

Exercised Options: $23,111,162

Current Obligation: $17,490,108

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $1,296,075

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7503

IDV Type: IDC

Timeline